ALS12_Dr. Ned Roberto_Consumer Insighting for Continuous Innovation_July27,2011_New World Hotel

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ALS12_Dr. Ned Roberto_Consumer Insighting for Continuous Innovation_July27,2011_New World Hotel

  1. 1. Consumer Insightingfor Continuous Product Innovations An Invited Presentation at: The 12th SLV’s ALS 27 July 2011, New World Hotel Prepared & Presented by: Ned Roberto, Ph.D. Salt & Light Ventures, Inc. Note: No part of this briefing material may be circulated, quoted, or reproduced for distribution without the written approval from Roberto & Associates, Inc. ©2002- 2011 by Dr. Ned Roberto. All rights reserved.
  2. 2. Basic Proposition … “Underpinning every marketing strategy model that worked is an appropriate consumer behavior model.” Ned Roberto (2010)
  3. 3. So, 1st things 1st …  Start by understanding where the consumers are, and not from where you are as marketers.  Where you are as marketers must come after.  So, begin with consumer insighting.
  4. 4. And What’s ConsumerInsighting in the First Place?
  5. 5. Consumer Insighting is about …… uncovering, unlocking business and market growing opportunities.  There are several types.  Here, we focus on 2. 5
  6. 6. 1st. Let’s consider … … this consumer insight: “What everyone has seen but THINKING what nobody has thought.” … to paraphrase Albert von Szent-Gyorgyi, Hungarian medical scientist & Nobel Laureate in physiology. 6
  7. 7. 2nd. We next consider …… this consumer insight: What competitors DO NOT SEE or do not YET see NOR do consumers. 7
  8. 8. And now to … … the ConsumerInsight that: “Everyone has seen but thinking what nobody has thought.”
  9. 9. Case: ELECTRIC CARS“How can you get electric cars to run more cost-effectively than gas-based ones?”
  10. 10. Why are automobile consumers not switching to electric cars? Is the value of eco-friendliness, the values for clean energy vehicles & pollution control, efficient fuel consumption & emission control, recycling & energy conservation not a priority with them? Yes, these are priority consumer values. So what is holding them back?
  11. 11. Consumer Insighting Research … … where an IDI* found most car owners saying: “I think electric cars are good. But I’m a sales manager. I drive to work everyday and I go around accompanying 1 or 2 of my sales reps visiting clients who have problems. And that’s everyday too and most of the time we’re driving. Using an electric car in this kind of job means we have to recharge every so often. Depends. Maybe once or twice during the day. That’s not the real problem. It’s the recharging time. It takes so long. If recharging will take only as long as it takes me to fill up at the gas station, I’d immediately go for an electric car. Why not?” *From a “Deconstruction” role playing workshop among ExecDev Workshop attendees.
  12. 12. So, here’s the consumer’s … … perceived problem = a real here-&-now felt problem of inconvenience.  What’s the consumer’s own idea of what’s “convenient?”  Convenient = “If recharging will take only as long as it takes me to fill up at the gas station.”
  13. 13. Another Respondent Said:* “During weekends especially come summer months, I like driving and taking the kids to the beach. Vacation time is either up north or down south and really far away from Manila. When it’s a 4 or 5 or 10 hours driving, my wife and I take turns. So how long or how far can a fully charged battery of an electric car last? I read somewhere about 100 or at most 150 km. And then when fully discharged you’ll have to have it fully charged overnight or for 8 hours. The time of the electric car has not come yet … not for me and my family. If electric cars can offer a prepaid card for their electric battery, then and only will I say that it finally has arrived. In the U.S., you can subscribe to electric power on a prepaid and postpaid basis. So why not for the electric power in electric cars?” *From a “Deconstruction” role playing workshop among ExecDev Workshop attendees.
  14. 14. So, here’s a clue … … from the consumer about the problem solution.  And what’s that problem solution idea?  Problem solution idea = “If electric cars can offer (something like) a prepaid card for their electric battery …” [Parenthetical phrase inserted]
  15. 15. And what is that …… “something like?” It comes from insighting that yields our kind of consumer insight: “What everyone has seen but THINKING what nobody has thought.” … to paraphrase Albert von Szent-Gyorgyi, Hungarian medical scientist & Nobel Laureate in physiology. 15
  16. 16. And This Was Precisely … … the kind of insight that Shai Agassi uncovered on which he founded and organized his company to create the battery-swapping innovation.
  17. 17. Shai Agassi’s BatteryDistribution Strategy Model … 1st. Think of car batteries as part of the electric infrastructure.  This way, you separate car ownership from battery ownership.  Then build that infrastructure so that you have a network of charge spots where motorists can hook up to all along the way.
  18. 18.  2nd. At each battery switching station, do battery swapping = to like filling up gas.  Travelers drive in their cars to a battery switching, swapping station.  Then the depleted battery, removed.  Next, fully charged one installed in less than it takes to fill a gas tank.  Batteries then charged at night when electricity costs = low to allow a by-use pricing formula for the swapped battery < gas price. .
  19. 19. 20
  20. 20. And as this was on-going … … and as Shai Agassi persuaded Israel, Denmark and Australia to set up and test nationwide the “Better Place” innovation.  In another place, another related innovation was under testing and incubation.
  21. 21. 22
  22. 22. The Innovator … accelerating the transition to sustainable transportation
  23. 23. Before proceeding … … a word or 2 about “Deconstruction.”
  24. 24. And What Is Deconstruction?  It’s re-analyzing the past to see what it could, even what it should have been.  Adapted, synthesized from: Bill McMillon, The Archaeology Handbook (1991) E. Agirre & P. Edwards, Word Sense Disambiguation (2007)
  25. 25. And Now, We Next Consider … … this consumer insight: What competitors DO NOT SEE and NEITHER do the consumers. 26
  26. 26. Case: “How do you grow a business in a niche market of young heavy T-shirt wearers, a niche that partakes of the character of a club but where you can not generate revenue by membership fee nor by advertisements?”
  27. 27. Consumer Insighting Research … … where an IDI* found many saying: “Why should I buy my T-shirt from a club of T-shirt wearers? Sure. But let me tell you why I won’t. Even if I’m a T-shirt fan, or even if I’m a club member, what’s in it for me to get my next Tee through this club? You know, the T-shirt price will only be higher by how much commission the club will charge for selling. That’s why I won’t.” *From a “Deconstruction” role playing workshop among ExecDev Workshop attendees.
  28. 28. So, here’s the consumer’s … … felt barrier to buying = a demotivator problem.  So how can this barrier be overcome?  Do consumers themselves, or some of them have any practical ideas about how to remove the demotivator?
  29. 29. Another IDI Respondent Said:* “What do I think they can do just among themselves to generate T-shirt sales? You know, we have our Church sponsor every so often a food fair or bazaar. Each of us who bake or cook a specialty bring each one’s thing and put it up for sale. At the end of that day’s fair, I’m always amaze to see everyone’s item sold. I guess if I want my cookies sold, I feel almost obligated to buy someone’s beef stew. So why don’t they think like that?” *From a “Deconstruction” role playing workshop among ExecDev Workshop attendees.
  30. 30. So, here’s a clue … … from the consumer about how to overcome the barrier.  And it’s a simple idea; it’s about side-tracking a problem or jujitsu-ing it in order to solve it.  It’s also problem solving by “analogy,” by “benchmarking.”
  31. 31. And Indeed, … … & its co-founders, Jake Nickell and Jacob deHart, thought along how the potluck and the food fair people did things.  So the resultant marketing strategy model = Crowd-source, Community-driven Model
  32. 32. Here are the steps in that … … modeling process to answer that question:  Step #1. Each member of the Threadless Community works on a t-shirt design that each likes.  Step #2. The designers submit their t-shirt designs to the Threadless website.  Step #3. Community members and visitors are asked to score each submitted design on a 5-point scale.
  33. 33.  Step #4. Each week, some 1,500 designs compete. During the week, the Threadless staff selects the 10 most voted designs. The selected designer gets $2,000 in cash, a $500 in GCs each of which can be traded in for $200 in cash plus additional $500 for every reprint. These 10 winning designs are then printed and sold through an online store. Sold-out designs with unfilled orders are scheduled for reprinting and second round selling.
  34. 34. Basic Proposition … “Underpinning every marketing strategy model that worked is an appropriate consumer behavior model.” Ned Roberto (2010)
  35. 35. Why Be Theory Guided? “Nothing is more practical than a good theory. If it’s bad in practice, it came from a bad theory. If it’s good in practice, a good theory made ithappen. A good theory is responsible for a good practice.” Kurt Lewin Pioneering Psychologist
  36. 36. The Eric von Hippel Model … “It’s more the consumers, the users who innovate and less us, marketers and manufacturers.”  “CONSUMER-CREATED Innovations” To successfully “innovate” = “Watch, monitor how consumers, users solve their daily as well as emergent problems.”
  37. 37. Threadless as a Company Threadless =“ a phenomenally successful T-shirt company with more than 4 million tees sold since it began in 2000.”  It pioneered the online business model of crowd-sourced or community-driven design.  Co-founders Jake Nickell and Jacob DeHart started the company with $1,000 in seed money after entering an Internet t-shirt design contest.
  38. 38. Threadless: 10 Years of T-Shirts from the World’s Most InspiringOnline Design Community by Jake Nickell. 2010
  39. 39. So, there’s your …… consumer insighting for2 categories of continuous innovations.
  40. 40. 1st. Continuous for …… MARKETER-CREATED innovations. 41
  41. 41. 2nd. Continuous for …… CONSUMER-CREATED innovations. 42
  42. 42. So What’s …… your choice?  What’s your choice about … How to consumer insight for continuously innovating? 43
  43. 43. On Making Choices“In any choice situation, avoid framing your choice decision as an either-this-or-that. Instead frame it as a both-this-and-that kind of choice. Either-or is a prisoner’s dilemma. Both-and is win-win.” Paul Schoemacher
  44. 44. Questions you were unable to ask? Email me at: ned.roberto@gmail.com 45

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