Mji.Capabilities.Aug.2009.Pdf

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Mji.Capabilities.Aug.2009.Pdf

  1. 1. MOSKOWITZ JACOBS INC. Strategic Brand Developers: Research & Consulting
  2. 2. Accomplished Strategic Partners We work through all phases of the product/service innovation and development process New Product Re-Stage Development Efforts A Research & Consulting Firm focused on accelerating the innovation process 2
  3. 3. Assisting Clients Access Every Region of the Globe 3 3
  4. 4. MJI‟s Research Methods Are Based On a Simple Fact “The Learning is in the Stimuli” Customers don‟t know what they want in terms of specific features, benefits, or ingredients …until they see it, taste it or smell it The most effective methods Test the broadest range of variables Reveal patterns in the data to identify drivers of consumer behavior Use systemized approaches for maximum discovery 4
  5. 5. Marketing Optimization Solutions MJI Suite of Business Marketing Tools  Optimize positioning for  Direction for agency personal care product line IdeaMap® creative  Optimize health claims for development ice cream, snacks, and beverages  Optimize loyalty program  Competitive ChoiceMap™ market simulation  Optimize on-package benefits for OTC healthcare product  Clients have access to data Concept  User-Friendly  Clients revisit the optimizer Optimizer Marketing Tool for years after the research is completed  Optimize logos  Graphic Design StyleMap™ optimization  Design packaging for infant care product  Continuously  Create a real-time one-to-one Addressable Minds integrate Voice of the marketing optimization platform (in development) Customer  Drivers of Product  Category Assessments Product Engineer Liking; Recipe  Ingredient Optimization Optimization 5
  6. 6. IdeaMap® - The Industry Standard When you want to…  Web-based, self-directed  Have many options to measure or full service  Discover „drivers‟ of motivation quantitative survey  Understand the full competitive frame  Uncovers the conceptual themes which drive interest  Identifies the specific ideas that are most compelling  Reveals attitudinal mindsets in your customer base  Exposes potential niche markets  Capture insights from hundreds of consumers fast and cost effectively 6
  7. 7. IdeaMap Method to Identify…On A Conceptual Basis…What Consumers Want » IdeaMap is rooted in conjoint (trade-off) analysis  Recognizes that in reality, purchase decisions are made by evaluating bundles of attributes  Consumers trade-off sets of bundled attributes against each other  IdeaMap allows the identification of the contribution of each element in the bundle to the overall rating » IdeaMap is based on a stimulus-response  We know the response we want to elicit (e.g., interest) …the stimuli most effective at eliciting that response » IdeaMap uses an experimental design – identifies causal relationships, not just correlations
  8. 8. ChoiceMap™ / ChoiceMap.Net When you want to…  Identify the elements that will capture market share from competitors  Web-based, self- directed or full  Measure how your customer respond to you and if you might service quantitative inadvertently be pushing them to consider your competition! survey  Built on the same principles as IdeaMap®  Side-by-Side comparisons of your products vs competition 8
  9. 9. Concept Optimizer™ Bringing Compiled Data to the Next Level For pre-defined customer segments and Attitudinal / behavioral segments which emerge from the surveys For Illustrative Purposes Only Total Panel Segment Winning Concept – Optimized Losing Proposition Total Score = 85 Total Score = 38 • Special blend of anti-irritants sooths • De-puffs; minimizes appearance of dark circles skin and minimizes puffiness  Optimal Concepts are built from the • Alleviates dryness • Ultra-hydrating eye cream that lifts, tones and smoothes the eye area highest scoring elements in each • Lipids strengthen skin; optical diffusers • Anti-oxidants help fight free radicals scatter light for a softened effect category Optimal Concepts are built from the highest scoring elements in each category. Scored by adding the sum of the utility scores to the constant 9
  10. 10. StyleMap®  Web-based, self-directed or full service quantitative survey  Built on the same principles as IdeaMap®  Instead of elements, Advertising features are varied:  Headlines  Visuals  Copy  Positioning statements 10
  11. 11. One Example of the Future Happening Now …Customer Typing Tool IdeaMap survey  Identify Segments, Create Typing Tool  Deliver the right message #3 Deliver The Right #1 Use IdeaMap to Message To Specific segment customers Customer and optimize message Addressable Minds Message Optimization and Targeting #2 Create Typing Tool And Classify Prospects
  12. 12. What to say… And to whom IdeaMap.Net and Addressable Minds™ -Relevant Messaging to ReceptiveTargets- 12
  13. 13. IdeaMap® How It Works Defining the Scope: Organizing Principle: Experimental Output & Analysis: Addressable Input Elements Categories Design Regression Modeling Minds  Promotes flexibility & Categories Building the Concepts  Statistical modeling creativity  Provide organization  Systematically simulating the  Collaborative effort; cross of ideas combines elements respondent‟s interest in functional  e.g. Benefits, RTB‟s, from different learning more about the categories  Enables one-to- Service, Offers, product is built through one targeted Experience, Brand Consumer/Professional regression modeling Can be sourced from: communication Selection, Delivery, Response techniques with the right  Brainstorming Trust, Emotional  Utility scores assigned to message, to the  Respondents are  Focus Groups Messages exposed to these each tested element right person,  Previous studies/internal combinations or  Optimized product at the right time.  “Bite sized” ways of data describing a product, concepts one at a time concept and / or service or idea  They respond to the messaging by segment  Current messaging whole entity, not its identified  Competitive advertising /  Can be either words or pictures individual parts packaging 13
  14. 14. Expertise In Action … RESEARCH METHOD  In our approach – IdeaMap.Net ®and Addressable Minds ™  We have a true torture test of the ideas  Every element appears against other elements in small, easy to read combinations  Everyone sees different combinations  Test up to 36 elements, separated into 3 to 10 categories.  A category is a collection of like-minded ideas.  These categories with examples of elements are shown on the  Research Methodology next page. Stimuli Tested  Whatever comes up to the top must be strong…otherwise it would fade against the onslaught of the other elements Results  IdeaMap.Net used for 20+ years to understand consumer minds Optimal Concept  For product design & marketing  For the law (jury selection and communication…where it Sensitivity Analysis creates very large jury awards)  Communication (identifies what to say to prospective customers) 14
  15. 15. A Recent Success Story 1 5 Recent Press Release … High profile lawyer, Rex Parris, uses MJI’s Addressable Minds, powered by IdeaMap.Net to optimize trial arguments in historic $370 million award » White Plains NY and Los Angeles CA – July 28, 2009 Moskowitz Jacobs Inc. (MJI), a global leader in Messaging Optimization Solutions, today announced that R. Rex Parris, the lead attorney for the employees in a defamation law suit, was instrumental in having $370 million awarded to his clients after utilizing IdeaMap.Net‟s Addressable Minds solution to optimize his arguments. » IdeaMap.Net‟s Addressable Minds solution quickly identifies the most compelling combination of arguments in their case to maximize the likelihood of achieving the desired verdict. IdeaMap.Net‟s Addressable Minds assesses and optimizes relevant content including framing statements, evidence, collateral factors, and even the nature/tonality of the witness. » “This quantitative technique really helped me frame my courtroom arguments…The net result…The jury returned one of the biggest verdicts in the history of Los Angeles County for a defamation case”, said R. Rex Parris, the lead attorney. “The tested messages were dead-on. I knew exactly what to say and what not to say.”
  16. 16. Case History.. From the Food Industry » The client manufactures healthful snacks…now using probiotics to increase product healthfulness » Probiotics are the healthful bacteria in yogurt, which can now be added to baked goods with the same customer benefit » Where is the opportunity…and what specifically to say and to whom » This test used a combination client‟s own marketing material and new messages 16
  17. 17. Flexibility to Test Broad Range of Elements - Showing 8 Out of 24 Test Messages - General Benefit Get the most out of your breakfast Minimize Calories Each portion is worth its weight in health – 100 calories per 2 oz. serving…no need to settle for smaller portions Taste Promise Comes in deliciously rich flavors to hit your Research Methodology sweet spot  Stimuli Tested Specific Ingredient / Health Benefit Results Helps reduce cholesterol Optimal Concept Probiotic Contains probiotic bacteria, treats gastrointestinal ills Sensitivity Analysis Closing Benefit Get the energy you need while keeping it gentile on your stomach 17
  18. 18. The Complete List…Six Silos, Four Phrases Each 18
  19. 19. In the Study..We Begin by Orienting Participants 19
  20. 20. A Concept 20
  21. 21. Expertise In Action RESULTS  A statistical model simulating the respondent‟s interest in buying an 8 pack of muffins is built through regression modeling techniques. Input 1 Input 2 Combinations of ideas Respondent’s Answers (Experimental design) Research Methodology Regression Stimuli Tested Analysis  Results Output: Additive Model simulating respondent‟s behavior Optimal Concept The additive model shows the impact, or value, of each individual idea (element) to the respondent‟s behavior. Sensitivity Analysis  Drive behavior to learn more (drivers)  Prevent from learning more (inhibitors)  Have no impact (neutrals) 21
  22. 22. Understanding the Additive Model Each concept element is assigned an impact score that represents the importance contribution of that element. Positive values indicate Scores that are near zero Negative values that the respective indicate respondents are indicate that the element enhances indifferent to inclusion of that respective element customer reaction. element. detracts consumer reaction. In addition to the individual element impact scores, the regression analysis yields a “Constant”. Think of the constant score as a “baseline” level of motivation to start from when building a concept. Constant (C) Individual Total Elements (I) Impact (T) 22
  23. 23. What we discovered What the data show us from the evaluation by 172 respondents of different combinations of messaging 23
  24. 24. How to Read the Results » Let‟s look at interest  % rating 7-9 „I would buy the product‟ (like the top 2 box) » Begin with the constant  % saying I accept, with no elements  Baseline…estimated from the ratings by regression (also called the additive constant)  It is 28 here..28% of the people would say „I‟m interested‟..even without any elements » Look at the contribution of each element beyond the constant  E1: Contains probiotic bacteria, which treat gastrointestinal ills (+7)  An additional 7% of the respondent would change from “base line”to interest (from 28 to 35) » Build a new selling message by combining (at most) one element from each of four silos  Additive constant + impact values (utilities) tell you how many people interested 24
  25. 25. Relate Presence/Absence of 24 Elements to Interest 25
  26. 26. Today‟s Advertising Practice Messages…not-targeted, not-relevant » Retailers / Manufacturers -> » ...Traditional advertising messaging targeted to large audiences …based on simple classification descriptors and what they purchase …it‟s how media is bought Demographics, Behavior » Your Customers….Advertising strategy assumes/hopes for group homogeneity…Men want “Y”, Women want “X” » Result…Lots of messages without regard to „true/effective‟ messages & motivators „that really work‟ for each customer 26
  27. 27. Mindsets Create Business Opportunities » People differ from each other  Conventional methods divide them by easy-to-buy information (geo-demos)  Other methods divide them by high-level psychographics (general world views)  Still others divide people by what they buy, etc. » We are going to segment the 172 respondents based on how they react to these new ideas  This is called mind-set segmentation  It is granular, specific to the particular product and opportunity  And it is up-to-date » We uncovered two different mind-sets, based on the patterns of reactions to the elements 27
  28. 28. The Addressable Mind™ Solution Targeted by Mind-Set, Very Relevant Messaging » Retailers / Manufacturers -> » IdeaMap.Net Foundation Database / test for each retailer / manufacturer IdeaMap.net » Discover Segments, Create Typing Tool, Identify Message Drivers » Classify new population into Discover Mind Segments: Identify Mechanism Identify Importance - Green Conscious Of Each Message by segments…THEY LOOK THE SAME BUT - Only The Best For Segmentation Total, Segments etc. THEIR MINDS ARE DIFFERENT » Now, Target best messages to each segment and do it by each manufacturer and retailer GREEN BEST GREEN BESTGREEN BEST GREEN BEST 28
  29. 29. Mindset 1 – It‟s About Calories
  30. 30. Mindset 2 – It‟s About Health 30
  31. 31. Opportunity Analysis of the Segments » It will be all about building interest in the brand and selling to more people  We learn that from the high interest scores  For this product » Let‟s look at Segment 2 – your prospects for the product benefits  They are more than half the sample (97 out of 172 respondents)  They have a modest interest in the product (constant of 29) » But you can add another 16% (i.e. go from 29 to 45)  How..by putting in ONE of the top two scoring elements  E.g., Contains probiotic bacteria, which treat gastrointestinal ills  And then build on that by adding another hot button for segment 2  All natural with no artificial additives or preservatives (adds another 5) » NOTE ON IMPACT OR UTILITY VALUES  5-10 are very good, keep  10-15 are breakthrough  > 15 are blockbuster for the group 31
  32. 32. Expertise In Action OPTIMAL CONCEPT & SENSITIVITY ANALYSIS  These concepts for each subgroup are the result of a computer program generated selection routine that focuses on the highest- scoring elements across the categories.  It is an example of how the optimization process works.  The Optimal Concepts are examples of high-impact bundles of elements.  Other combinations can also be built from this research.  These scores are calculated by adding the sum of the utility scores to the constant Research Methodology  The Optimal Sensitivity Chart on the following page (read across) identifies on the diagonal the predicted sum of the Optimal Stimuli Tested Concept for each sample group as calculated by a combination of the constant + the additive values of the elements in the optimized Results concept:  Optimal Concept  Sensitivity Analysis 32
  33. 33. Sample Data Optimal Concept Example Do Not Quote - Total Sample -  Optimal Concept Total Seg 1 of 2 Seg 2 of 2 Base Size: (172) (75) (97) Baseline: 28 27 29 E1 Contains probiotic bacteria which treats gastrintestinal ills 7 -5 16 Maximize satisfaction with minimum calories…low fat and high B2 in fiber and nutrients 7 11 3 F2 Our mission is simple: to make healthy and delicious baked goods… 6 6 6 D1 Contains less sugar and more vitamins and minerals than an apple 5 6 5 Total Impact 53 45 59  Sensitivity Analysis Optimized for: Total Sample Seg 1 of 2 Seg 2 of 2 Total Sample 53 45 59 Seg 1 of 2 48 60 41 Seg 2 of 2 45 22 60 33
  34. 34. Addressable Minds Scratch Testing Turn your website visitors into Addressable Minds™ Improve your website… mind-type visitors and direct them to the proper pages based on their mind-set 34
  35. 35. The Scratch Test With a segmented world..and enormous segment responsiveness….you have to find your segment 2 people to whom you can really sell… We use a 45 second scratch test.. With five questions and a scoring key Put this on your website, let your prospects score themselves, and give them the „right message‟ 35
  36. 36. Finding, directing, messaging your target with a 5-question scratch test Segment 1 Not in a 36 segment Segment 2
  37. 37. Change the Data-Mining Game…Designed for the Data-Miner Trying to Increase Lift Data Mine Using Customer Minds At the Granular Level of Today‟s Messaging 37
  38. 38. When You Can‟t Mind-type Individual People In Your Database…What to do? » All you know are today‟s current messages » You know who responds by sub-groups and segments » You know the strength of each message » That‟s already demonstrably more than any of your competitors know » Given the above…who in your database is likely to respond to your client‟s offer » Maximize your client‟s lift rapidly
  39. 39. Simulate 10,000 Alternative 4-Element Messages » Look at how each key subgroup responds to each of the 10,000 test combinations » If you don‟t profoundly understand your messaging or your database customers…then who should you message to » What elements in your current messaging are really working for and among whom 39
  40. 40. Using the results to assess strategy .. Who do you mail to (mining your database) » Don‟t want to use probiotics this year in selling message  We looked at 20 of the 24 messages (no probiotics messages)  All of these are current messages  Now what do we do?..to whom do we mail? » We don‟t know who will buy the „new product‟..but we do know from our audit how prospective customers respond to current messaging  Instead of guessing, we simulated different messages, and „ran them by our data set‟  So ..we‟re replacing previous behavior (which we may/may not have) with attitudes to the precise current messaging the client will use  We created 10,000 random „4 element mini ads‟ representing what could be sent  Now let‟s see what consumer groups will be turned on » Now we can estimate distribution of interest for our new strategy  Which of our groups is most likely to respond to an offer  These are our likely responders 40  And…we easily simulated and scored the current strategy!!!!
  41. 41. Groups Highlighted in Green are the Target for a Strategy (No Probiotics)…Good Idea or Not? Q2_65 Without Probiotic Total Q2_30- Q2_39- Q2_45- Q2_53- and Segment 1 Segment Messaging Sample Q1_Male Q1_Female 38 44 52 64 above of 2 2 of 2 Base Size 172 43 129 21 20 42 68 17 75 97 Constant 28 37 25 25 30 30 23 42 27 29 Mean 44 39 46 45 33 58 40 42 50 40 Median 44 38 46 46 33 58 40 42 50 39 St.Dev. 2.5 4.9 2.7 7.0 6.4 4.6 3.1 7.1 4.6 3.6 % greater than 25 100% 100% 100% 100% 90% 100% 100% 98% 100% 100% % greater than 30 100% 98% 100% 98% 70% 100% 100% 94% 100% 100% % greater than 35 100% 78% 100% 93% 40% 100% 94% 84% 100% 91% % greater than 40 95% 34% 99% 78% 16% 100% 52% 62% 97% 45% % greater than 45 36% 14% 65% 51% 3% 100% 8% 34% 86% 8% % greater than 50 0% 1% 7% 26% 0% 94% 0% 12% 52% 0% % greater than 55 0% 0% 0% 9% 0% 73% 0% 2% 13% 0% % greater than 60 0% 0% 0% 2% 0% 33% 0% 0% 0% 0% % greater than 65 0% 0% 0% 0% 0% 5% 0% 0% 0% 0% % greater than 70 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 41
  42. 42. Using the Results to Assess Updated Strategy .. Who do You Mail to (Mining Your Database) » We looked at all 24 of the 24 messages  All of these are current messages  Revised strategy.. pursue probiotics this year  Now what do we do?..to whom do we mail? » Then we created „4 element messages‟  10,000 new messages .. With the probiotic messages ..to reflect the new strategy  One or no element from each silo  And estimated level of interest » Now we can estimate distribution of interest for our new strategy  Which of our groups is most likely to respond to an offer  These are our likely responders  Simulated and scored the new strategy allowing in probiotics !!!! 42
  43. 43. Groups Highlighted in Green Are the Target for a Strategy (Use Probiotics) Q2_65 Marketing Message: With Total Q2_53- and Segment 1 Segment 2 Probiotics Sample Q1_Male Q1_Female Q2_30-38 Q2_39-44 Q2_45-52 64 above of 2 of 2 Base Size 172 43 129 21 20 42 68 17 75 97 Constant 28 37 25 25 30 30 23 42 27 29 Mean 45 37 47 45 31 57 43 44 42 47 Median 45 37 47 45 31 57 43 44 42 48 St.Dev. 2.8 4.7 3.3 7.7 6.3 4.5 4.4 7.1 7.2 6.5 % greater than 25 100% 100% 100% 100% 84% 100% 100% 99% 100% 100% % greater than 30 100% 96% 100% 97% 56% 100% 100% 96% 97% 100% % greater than 35 100% 69% 100% 89% 27% 100% 97% 89% 84% 97% % greater than 40 96% 25% 99% 72% 8% 100% 73% 71% 58% 83% % greater than 45 48% 9% 76% 49% 1% 100% 32% 45% 32% 65% % greater than 50 3% 0% 22% 25% 0% 93% 6% 18% 18% 39% % greater than 55 0% 0% 0% 9% 0% 68% 0% 5% 4% 10% % greater than 60 0% 0% 0% 2% 0% 26% 0% 1% 0% 0% % greater than 65 0% 0% 0% 0% 0% 3% 0% 0% 0% 0% % greater than 70 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% % greater than 75 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 43
  44. 44. ChoiceMap Market Simulation Think of Vectors Influencing Each Other (Psychological Cross- Elasticities) 44
  45. 45. ChoiceMap Concept Screen SAMPLE SCREEN Research Methodology  Stimuli Tested Results Optimal Concept Sensitivity Analysis 45
  46. 46. ChoiceMap Example of Deliverables RESULTS Base 3+ Purchases Loyal Competitor Sample per Month Shoppers Shoppers Base Size (1502) (603) (511) (452) CONSTANT 12 5 12 5 Feature 5: Special quarterly discounts for members available through local gyms, rec centers, spas, online shopping partners and other outside health partners: OPTION C: Discounts of 30% to 50% 9 9 9 11 Research Methodology OPTION B: Discounts of 15% to 30% 6 5 5 9 OPTION A: Discounts of 10% to 15% 4 4 4 9 Stimuli Tested Feature 2: Panel of experts available for members to consult with via telephone or online 24 hr/day  Results OPTION C: OPTION B: Available Both online and via phone Available by phone only 7 4 9 7 10 7 6 3 OPTION A: Available online only 4 5 7 2 Optimal Concept Sensitivity Analysis 46
  47. 47. StyleMap Design Optimization - Same Principles As IdeaMap But Graphically Based- 47
  48. 48. Shampoo Bottle Case…Six Silos and 4 Graphical Options Each 48
  49. 49. Product Development - Category Assessment - Drivers of Liking - Recipe Optimization 49
  50. 50. MJI‟s Product Evaluation Competencies Today’s Focus Category Appraisal Product Screening Product Optimization Competitive analysis Optimal ingredient Winners/Losers Sensory drivers of liking formulation Benchmarking New product Optimal formulation given performance against opportunities cost/ manufacturing in-market products constraints Sensory segmentation Direction for product Ingredient drivers of liking Reverse Engineering improvement Brand equity Sensitivity analysis Product acceptance by measurement subgroups Optimizer Software Product line extension/ constriction
  51. 51. Product Hierarchy Based on Overall Liking - Partial List of Products Toilet Tissue Products: Overall Liking 100 80 72 66 Overall liking 58 60 50 40 20 0 #304 #309 #290 #601 A difference of +/-10 points is significantly different at the 90% confidence level.
  52. 52. Sensory Profiles for Each Product Tested -Partial List of Products and Attributes #304 #309 #290 #601 Signifcant Overall Liking 72 60 58 48 [+/-10] Like Overall Appearance 65 40 65 55 [+/-10] Visual Thickness 63 45 59 80 [+/-10] Like Overall Aroma 65 40 65 55 [+/-10] Strength of Aroma 63 35 55 75 [+/-10] Like Touch On Skin 68 57 49 44 [+/-8] Thickness 65 59 45 85 [+/-8] Softness 66 85 49 44 [+/-8] Is A Premium 70 85 51 44 [+/-8] Toilet Tissue Technical Measure 1 3.9 3.85 4.2 3.95 Technical Measure 2 402 385 425 299
  53. 53. Category Appraisal » Drivers of Liking Analysis  Create sensory response curves  Graphically shows the relationship of overall liking versus:  Sensory perception  Objective measures  Instrumental measures
  54. 54. Sensory Drivers of Liking and Sensory Targets 100 90 #304 80 #290 #309 Overall Liking 70 #601 60 50 40 30 Products in this area 20 represent sensory targets to aid in 10 product improvement 10 20 30 40 50 60 70 80 90 100 Softness Against Skin
  55. 55. Category Appraisal » Sensory Segmentation (requires larger base sizes)  Identify whether liking is homogeneous or whether different preference segments exist  Based on stimulus response patterns  Was the basis for the segmentation approach used for IdeaMap
  56. 56. Consumer Segments With Opposing Sensory Needs 100 90 Weaker Fragrance Stronger Fragrance Segment 80 Segment Overall Liking 70 60 50 40 30 20 SEGMENT1: sq. mult. R= .81 10 SEGMENT2: sq. mult. R= .93 10 20 30 40 50 60 70 80 90 100 Tissue Fragrance Intensity
  57. 57. Category Appraisal » Sensory optimization  An optimal sensory profile which maximizes overall liking can be identified.  Compare against tested products to identify which of the tested products have the most desired characteristics …REVERSE ENGINEERING  Use this to adjust existing products or create new ones
  58. 58. Reverse Engineering – How To Use It Optimal Product Description--> Product Product Code--> 304 309 290 601 Overall Liking 72 69 63 57 54 Like Fragrance 55 64 62 51 48 Like Fragrance Intensity 50 46 49 43 49 Strength of Fragrance 55 53 53 48 55 Easy to Tear 58 66 62 53 44 Large Sheet 43 45 46 80 22 Soft vs. Firm Texture 62 65 62 56 51 Is a premium product 52 60 57 52 49 Expert 1 61 68 64 68 52 Expert 2 59 58 59 54 49 Expert 3 44 48 44 54 37 Objective Measure 1 0.25 0.20 0.08 0.55 0.51 Objective Measure 2 1251 1235 1300 900 800 Objective Measure 3 750 62 68 75 53 Boxed number indicates the product is off by +/-3 points from the optimal product score for that attribute.
  59. 59. Product Optimization » Why use this approach  Most direct approach to identify formulations that optimize consumer behavior  Optimal formulations are reported in terms of R&D ingredient levels » Experimental research design helps estimate the link between ingredients and consumers‟ perceptions and liking.  Enables R&D to systematically manipulate the ingredients and/or manufacturing processes of a product  Reveals ingredient drivers of liking and perception within the ingredient set tested  Provides R&D with a recipe for formulation guidance  What is the best combination of ingredients on an absolute basis?  What is the best combination of ingredients at specific cost constraints?
  60. 60. Overall Liking of the Products - 4 Continuous Variables; 3 Levels Each, Individual recipes that consumers want: » By systematically varying ingredients and processes, the following prototypes beating the current product on an unbranded basis were produced. Prototype Ing.A Ing.B Ing.C Ing.D Overall Liking 1 Low Low Low Low 74 2 Low Low High Med 71 3 Med High Low High 69 4 Low High High Low 69 5 High Low Low High 67 18 - Current 57
  61. 61. Do Consumers Track Formulation Changes? “As R&D created a thicker sheet consumers recognized the change” 100 R2 = .948 80 Perceived Thickmess 60 40 20 0 0% 50% 100% Sheet Thickness – R&D Controlled
  62. 62. Ingredient Drivers of Liking - Sheet Thickness vs. Overall Liking - SIMILAR CHARTS ARE CREATED FOR EACH INGREDIENT 80 70 R² = 0.75 60 Overall Liking 50 40 30 20 10 0 0% 50% 100% 4 8 12 16 20 24 Thickness of Sheet - R&D Controlled
  63. 63. Product Modeling Approach -No constraints and with 2 cost constraints Optimal Constraints None Cost 1 (-5% ) Cost 2 (-20% ) Ing. A 65% 55% 50% Ing. B 22% 25% 18% Ing. C 13% 15% 8% Ing. D 0% 5% 24% Cost per unit $6.50 $6.18 $5.20 Overall Liking 79 74 63 Strength of Fragrance 65 62 56 Softness 60 65 75 Easy to Tear 65 58 50 A Premium Toilet Tissue 75 70 59
  64. 64. MJI - For more information… We offer solutions with actionable results - each engagement delivers a unique set of solutions and benefits. Bert Krieger Howard R. Moskowitz, Ph.D. Executive Vice President President 914-421-7456 Moskowitz Jacobs Inc. bkrieger@mji-designlab.com  Phone: +1-914-421-7408 Email: mjihrm@sprynet.net www.mji-designlab.com www.ideamap.net www.SellingBlueElephants.com Moskowitz Jacobs Inc. - 1025 Westchester Avenue, 4th Fl. - White Plains, New York 10604 - (914) 421-7456 - www.mji-designlab.com 64

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