This document discusses common research practices that can hinder innovation. It notes that predicting market potential based solely on high purchase intent misses many successful innovations. It advocates showing concepts realistically to simulate the customer experience, and spending sufficient time developing concepts rather than rushing research. The document provides examples of how Ipsos Vantis approaches concept testing and links to related articles on innovation best practices.

1. Research Practices that Hinder Innovation
Stephen Bohnet, SVP & General Manager Ipsos Vantis
Predicting market potential for business initiatives, with 20+ years validated history
Nobody’s Unpredictable

2. Innovation is an investment
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© 2011 Ipsos

3. Accelerating Returns
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4. The Video Rental Market
?
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5. Your role
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6. Ipsos Vantis Specializes in Innovation
Predicting Market Potential for business initiatives,
with 20+ years of validated history
Identify winning initiatives Optimize & simulate launch scenarios
A suite of powerful, fast, and affordable A suite of customizable forecasting tools
services to help you identify winning for optimizing price, features, product
initiatives early in development by design, and marketing. Used for modeling
assessing their true market potential. new products, portfolios, and categories.
 Predict market potential  Forecast units, revenues, profits
 Prioritize features, ideas, & concepts  Feature simulation
 Define the consumer target  Pricing simulation
 Measure the strength of the message  Product & Prototype Design simulation
 Identify key/motivating phrases in the  Measure Incrementality vs.
message Cannibalization
 Measure buzz potential  Competitive war-gaming
 Marketing plan simulation
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7. About Ipsos Vantis
 Business units focused on technology,
financial services, health, and durable
goods
 World’s largest database of key measure
survey scores – over 25,000 concepts
tested (Consumer and B2B)
 Proven track record of forecasting
accuracy through rigorous post-launch
validation and R&D relating survey results
to demand
 Independent study of new products and
services, to strengthen our models and
build relevant case studies to share with
our clients
 Leading edge innovations in quantitative
research
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© 2011 Ipsos

8. Ongoing Validations:
Past 6 Month Technology Innovations Studied
Iconia BRAVO MB520
Veriton Z290G FLIPOUT
iPad 2 FLIPSIDE
Macbook Air 2nd Edition XOOM
TV Second Edition 3Ds
Buy Back Program Rear-view Mirror
Playbook Viera Tablet
Bluetooth Headset Ping
Soundlink Wireless Music System Switchblade
Boxee Box 3D HDTV
Umi Galaxy Tab
Cloud Computer HT-D7100: Home Theater Cube
Ultra HD Virtually Edgeless LED HDTV
Kids Designer Tablet Full HD 3D camcorder
TV Playstation PSP2
HD7 Flex View
Surround XVT Series 3D HDTV
XFINITY
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9. Research Practice #1:
How we measure success
Predicting market potential for business initiatives, with 20+ years validated history
Nobody’s Unpredictable

10. What do these new products & services have in
common?
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© 2011 Ipsos

11. All of these offers had average to low purchase intent
scores
50% Top Two Box Purchase Intent
45%
40%
35%
30%
30%
25% 11%
21%
20% 19%
6% 16%
15% 8%
8%
10% 19%
15%
5% 11%
8%
0%
iPad Kindle Hulu+ Straight Talk
Definitely Would Buy/Sign Up
Probably Would Buy/Sign Up
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12. The Problem with the Hurdle
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13. Research Performance vs. Market Success
Concept Testing Rank
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14. Every Concept has a Unique Personality
Consumers like this idea and consider it highly unique, but have trouble
Bt
believing the claims or accepting the price. As its benefits become more
accepted and/or the price comes down, this product will have mass
Breakthrough $
potential.
Expect a fiercely competitive marketplace. Margins are likely to be tight
and payout will take time, as competitors vie for brand leadership in the
emerging category
Bottom 20 Below Above Top 20
Percentile Average Average Average Percentile
Seek Information
(Top Two Box %)
Purchase Intent
(Top Two Box %)
Liking
(Mean 6-Point Scale)
Price/Value
(Mean 5-Point Scale)
Uniqueness
(Mean 5-Point Scale)
Believability
(Top Box%)
Need Fulfillment
(Top Two Box %)
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15. Four Key Winning Profiles
Mass Potential Breakthrough Niche/Targeted Price/Fee Imbalance
Purchase Intent High Ave High Low
(Top Box %)
Vantis Key Measure
Purchase Intent High Low to Ave Low to Ave Low to Ave
(Top Two Box %)
Liking Ave to High High Low to Ave High
(Mean 6-Point Scale)
Price/Value Ave to High Low to Ave Low to Ave Low
(Mean 5-Point Scale)
Uniqueness Ave to High High Low to Ave Ave to High
(Mean 5-Point Scale)
Believability Ave to High Low Low to Ave Ave to High
(Top Box%)
Need Fulfillment Ave to High Low to Ave Low to Ave Ave to High
(Top Two Box %)
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16. How to Go Forward
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browser that combines a minimal design and
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Search from the address bar:
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history
Percentage selecting phrase:
1-19% 20-34% 35-49% 50%+
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17. Linking Concept Performance and Message Execution
Archetype
Strive for Clarity Market Ready
Winning
Winning ideas that are communications Winning ideas with clear marketing
challenged. These ideas may be more messages. Marketing investment
difficult to communicate in market. likely to solidly payoff.
Strive for better message clarity and
focus.
Market Potential
Adjust & Retest Reconstruct or Bow-out
Poor performing ideas with unclear Poor performers with clear messages.
messages. Adjustments to messaging Consumers “get it” but don’t want it.
can often improve these weak These are either simply poor ideas, or
performers. ideas that need a major positioning
overhaul before they will succeed.
Potential
Low
Low Message Power Score High
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18. Recap: Measuring Success
 High purchase intent is good, but it is not the only way forward
 Recognize the other profiles of winners
– Many big innovations do not have high purchase intent initially
 Be willing to iterate on ideas that show promise, but aren’t ready
 Giving good guidance on HOW to move forward is as important as
identifying the right ideas
– Is your idea easy to communicate in the market?
– Are there ideas that aren’t ready for advancing, but should go through some fix-it steps,
then retest?
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19. Research Practice #2:
What we show to the respondent
Predicting market potential for business initiatives, with 20+ years validated history
Nobody’s Unpredictable

20. Golden Rule: Model the Buying Process
If our purpose in evaluating a new offer is to
determine it’s potential in the market, then we
must show the idea to the consumer/customer
in such a manner that reflects what that person
will learn or experience when encountering the
product offer in the real world.
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21. The Concept
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22. In many categories it is becoming increasingly difficult to
differentiate the hardware
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23. Show Me, Don’t Tell Me
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25. Microsoft Kinect Scores
Raw Written Concept Raw Video
Score Score
 + Images  Concept
Seek Information (Top Two Box %) 51% 64%
Purchase Intent (Top Box %) 13% 23%
Purchase Intent (Top Two Box %) 31% 47%
Liking (Mean 6-Point Scale) 3.8 4.5
Price/Value (Mean 5-Point Scale) 3.3 3.9
Uniqueness (Mean 5-Point Scale) 3.6 4.1
Believability (Top Box%) 44% 37%
Need Fulfillment (Top Two Box %) 29% 47%
Vantis Database Ranking
Bottom Below Above Top
20% Ave
Ave. Ave. 20%
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© 2011 Ipsos

26. Recap: What We Show the Respondent
Liberally apply Single Minded Proposition
 The basic tenet works: structure your idea using insight, benefit, and
reason to believe
 BUT… give people the information that they would have when buying
– Non CPG products are often multi-faceted
– There is rarely only 1 reason to believe.
Steal a play from the Apple playbook: Show me, don’t tell me
 Convey the user experience
 More Flash, Video, Images, even PPT in research to simulate the offer
 The offer doesn’t have to be fully baked or prototyped
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© 2011 Ipsos

27. Research Practice #3:
The Need for Speed
Speed for speed’s sake, except in very special instances, is rarely
effective. This is not to say that speed is unimportant.
Jason Brown, President & CEO Ipsos Vantis
Innovation Strategy, Misconceptions (Oct 2010)
Predicting market potential for business initiatives, with 20+ years validated history
Nobody’s Unpredictable

28. Research has gotten faster and cheaper over the past 15
years
Research Timeline
Setup Recruit & Fieldwork Analysis
Pre-Internet
Online
Online Rush
0 10 20 30 40
Time 50
(Weeks) 60 70 80 90 100
Cuts here are detracting
from the true goal
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29. The #1 Problem Area for Innovation Research is….
The Concept
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30. Recap of Today’s Key Points
Recognize there are several paths leading to success
 High purchase intent as the primary hurdle misses 3 out of the 4 winners
 Be willing to nurture and iterate on the ideas that show potential, but
aren’t ready to move ahead.
Get real: Show the consumer what they’ll really experience
 Integrate the user experience where needed
 Steal a play from Apple: Show me, don’t tell me
 Make sure the way you communicate the product simulates what you
would do in market.
Spend enough time getting your concepts right
Your role: Help your company make the right investments!
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31. A Voice for Innovation- www.innovationpov.com
The latest in:
 Innovation news
 Thought leadership
 Innovation strategy tips
 Innovation marketing education
 12,000 visits/month with 4,000
uniques!
Follow us on Twitter @IpsosVantis
 700+ followers, including
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32. Vantis Concept Testing Offers
Multi-Client Study Custom Study
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© 2011 Ipsos

33. Related Articles
Innovation Misconception (articles 1 through 7) (2010)
 Jason Brown
 Ipsos Vantis
 http://www.innovationpov.com/2010/10/11/innovations-common-misconceptions-1/
Taking product development lessons from a robot (2011)
 Stephen Bohnet
 Ipsos Vantis
 http://www.innovationpov.com/2011/05/20/product-development-lessons-robot/
Why innovation funnels don’t work and why rockets do (2007)
 David Nichols
 The BrandGym
 http://thebrandgym.com/downloads/bgym%20Market%20Leader%20Innovation%20
Rocket%20article%20-%20Sept%2007.pdf
Using Research to Avoid the Pitfalls of Concept Development
(2011)
 Martha E. Guidry
 The Rite Concept
 Quirks: http://www.quirks.com/articles/2011/20110725-1.aspx
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34. Stephen Bohnet, SVP & GM
O. 925.327.2032
M. 925.325.5969
stephen.bohnet@ipsos.com
@IpsosVantis
www.innovationpov.com