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BASIC OVERVIEW




CMI Oral Care - 2010
“Market research is science applied to marketing. It is not perfect
mathematics, but it is not astrology either.”


                                     - Someone bright and famous




                                                                      2
At the end of this presentation you will…

   Have an overview of the research process – what it can
    or cannot do.
   Be able to understand the types of research and their
    applications
   Be aware of how to diagnose an in market problem
   Learn how to work an innovation through launch




                                                         3
1. Overview of Role of research
        a. Understanding Users of research
        b. Why do we need research?
        c. Types of Research




                                             4
Users of research in marketing


   Marketing team
     Brand /Marketing managers
     Category heads
     Business / Country heads
   R&D team
   Advertising / Planning agencies
     Planners
     Creative

                                      5
Team Structure


        Category head                                Operating
                                                   company head




Mkting mgr   Mkting mgr      R&D      Ad planner



Brand mgr    Brand mgr                 Creative




                                                            6
Which Aspect of research?
Brand /Marketing managers              Research and Development


     New launches, current brands
                                                    Product related
              handled


Category heads                         Advertising – Planners

       Portfolio decisions, growing         Similar to BM’s , project related
      franchise, strategic decisions        but focused on communication



Business / Country heads               Advertising - Creative


    Revenue, Bottom line, activation
                                             Evaluation of creative copies
       learning, focus markets

                                                                             7
How can research help?

Brand /Marketing managers


     New launches, current brands     -Understand market and
              handled                 consumers.
                                      -Evaluating success of the
                                      elements of marketing mix, Brand
                                      REQUIRE: Deep consumer and
                                      brand understanding , objective
                                      view

Category heads
                                      -Overview of category
      Portfolio decisions, growing    -Portfolio decisions.
     franchise, strategic decisions   -Strategic understanding of
                                      brands / category
                                      REQUIRE: Bird’s eye view,
                                      understanding of what’s working
                                      and what’s not
                                                                         8
How can research help?

Business / Country heads

    Revenue, Bottom line, activation   -Ensure revenue/ Bottom-line
       learning, focus markets         market share targets are met.
                                       -Understand impact of on ground
                                       activities and performance of mix
                                       REQUIRE: Summary of
                                       performance metrics

Research and Development

                                       -Understanding performance of
            Product related            products vs competition
                                       -Inputs into product development
                                       REQUIRE: Importance of product
                                       attributes, directions of
                                       improvement for existing products.
                                                                           9
How can research help?

Advertising – Planners

                                         -Understanding of consumers /
     Similar to BM’s , project related
                                         market to plan the brands future
     but focused on communication
                                         along with marketing.
                                         -Impact of communication
                                         REQUIRE: Deep consumer and
                                         brand understanding, evaluation
                                         of communication.

Advertising - Creative

                                         -Understand how communication
      Evaluation of creative copies
                                         is received
                                         -Clear understanding of which
                                         elements are working/not and
                                         why?
                                         REQUIRE: Objective view
                                                                            10
Good to remember !

Different users of research may vary in their:

   Appreciation of research : Creative
   Need for detail : Brand manager vs VP
   Aspect that needs looked at : R&D vs Brand manager
   Perspective : Long vs Short term




                                                         11
Why Research?




                12
Points to PONDER

   What could be the pitfalls in the following cases?




                                                         13
Existing technology                         Shares declining



Create concept / product               Market Visit to understand



    Launch product                          Take corrective action




                   Need new communication



                        Boss likes the ad



                     Air new communication

                                                                     14
Don’t shoot in the dark

      Existing technology                   Shares declining
           Technological
          Technological
              innovation,
            innovation,
    Create concept / product                      Could tackle
                                        Market Visit to understand
                                                  Could tackle
           rather than a
          rather than a                          surface issues,
                                                surface issues,
          consumer one,
         consumer one,                          rather than root
                                               rather than root
        is ititaccepted by
         is accepted by
           consumers?
          consumers?
        Launch product                    Take corrective action




                       Need new communication

                             How does the
                             How does the
                           Boss likes the ad
                              target group
                             target group
                            react to the ad?
                           react to the ad?
                            Does ititmeet its
                            Does meet its
                               objective?
                              objective?
                        Air new communication
                                                                     15
CAVEAT !!

- Not only to be used to only “Validate” : keep an open mind
-The right inputs are critical – Garbage in, Garbage out




                                                               16
Final thoughts


   Research helps better decision making, but it does not
    replace marketing decisions.

   Use research for an objective holistic view, instead of
    shooting in the dark.
     What you wish to market should determine research
      design, never the other way around.




                                                              17
Types of Research




                    18
 Developmental
 Evaluative




                  19
Time




        Developmental Research       Evaluative Research




   DEVELOPMENTAL RESEARCH IS LIKE PREPARING FOR AN
       EXAM – THE REWARDS OF DOING A THOROUGH
  UNDERSTANDING JOB AT THE OUTSET IS INVALUABLE…WE
    KNOW WHAT HAPPENS IF YOU DON’T STUDY ENOUGH !
                                                           20
Developmental

   Explorative : Mainly Qualitative and some
    Quantitative
     Research with consumer at the center
     For understanding how the marketing elements are
      received by consumers, how it fits into his/her life
     Improving the marketing elements

Time spent here is an investment. If the mix fails to test well finally, then it
              will mean going back to the drawing board




                                                                                   21
Evaluative


   Against an yardstick of measurement: Quantitative
     Research done among “representative” sample of TG
     To see whether we “measure up” or not
     Ensure that the correct action standards are set.




                                                      22
Which type of researches do these fall under?

   Quantitative Product test to understand flavour
    preference of juices
   Quantitative Product test against competitive
    benchmark
   Quantitative Ad test
   Understanding which communication routes work
   Market segmentation study
   Simulated test market




                                                      23
2. Understanding where research fits in
       a. Overview
       b. Diagnosing Issues / Opportunities
       c. The Innovation management process




                                              24
Overview




           25
Example


                       Develop mix
                                     Concept


                                              Product

          Dove Soap   Dove Shampoos
                                         Communication

                                     Launch
                      Track launch




                                                        26
Overview of the ongoing research process
                 for a brand

              Launch Mix



Develop Mix                       Track Mix


                 Mix related                  Tactical
              Identify elements               On ground
                 to change                    corrective action




                                                              27
Diagnosing Issues / Opportunities




                                    28
Diagnosing Issues / Opportunities

                        Launch Mix



Develop Mix                                 Track Mix



                                                        On ground
                        Mix related:
                                                        corrective action
                        Identify elements
                        to change



  Evaluating Mix / Activities post launch
  1. Directions for corrective action
  2. Inputs into Mix development                                        29
The critical first step is to identify the problem or spot
      the opportunity and articulate it concisely




                                                             30
From Surface Issues to Key Issues to Marketing task

                 Surface Issue
                 Surface Issue             Key Issue
                                           Key Issue          Marketing task
                                                              Marketing task

                                        Restaurant is
                                         Restaurant is        Get parents (of
                                                               Get parents (of
               Restaurant has good
                Restaurant has good     practically empty
                                         practically empty    children aged 8-16)
                                                               children aged 8-16)
               levels of traffic in
                levels of traffic in    at weekend
                                         at weekend           who don’t like
                                                               who don’t like
               the week but your
                the week but your       lunchtimes because
                                         lunchtimes because   eating in a smoky
                                                               eating in a smoky
               pub/bar is
                pub/bar is              families (core
                                         families (core       atmosphere, to
                                                               atmosphere, to
               practically empty at
                practically empty at    target for this
                                         target for this      bring their families
                                                               bring their families
               weekend
                weekend                 occasion) don’t
                                         occasion) don’t      in to the restaurant
                                                               in to the restaurant
               lunchtimes
                lunchtimes              like the smoky
                                         like the smoky       to try the weekend
                                                               to try the weekend
                                        atmosphere
                                         atmosphere           lunchtime menu
                                                               lunchtime menu


                                        Brand X det bar
                                         Brand X det bar
                                        loyalty decline,
                                         loyalty decline,
                                        primarily amongst
                                         primarily amongst    Get SEC CD
                                                              Get SEC CD
    Mass                                SEC CD
                                         SEC CD
               Brand X Detergent
                Brand X Detergent                             housewives to re-
                                                              housewives to re-
                                        housewives, is
                                         housewives, is
  detergent    bar –– is losing share
                bar is losing share     driven by poor
                                         driven by poor
                                                              engage with Wheel
                                                              engage with Wheel
               in a declining
                in a declining                                green bar, even
                                                              green bar, even
     Bar       market                   product experience
                                         product experience
                market                                        when other brands
                                                              when other brands
                                        coupled with price
                                         coupled with price   are on promotion
                                                              are on promotion
                                        premium & low key
                                         premium & low key
                                        promotional
                                         promotional
                                        programme
                                         programme
                                                                                  31
Unilever’s 6P tool
  Market
 dynamics

                          Category              Value market size                 Value share
                        performance
                                                Volume market size               Volume share

  Buying
 behaviour
                       How many people                             How much they buy
                            buy
                         Penetration                   Loyalty                   Consumption




Mix elements   Proposition      Promotion          Place            Pack             Price         Product
               The brand that
                 consumers
                have in their                                                      The price the
                    heads        Getting our    What happens
                                                                 The packaging       consumer      The product
                                   message       wherever our
                The brand’s     across to the                    the consumer      pays, regular    or service
                   values,                      consumers buy
                                  consumer                        sees & uses       price or on      offered
                 benefits &                       the brand
                                                                                    promotion
                 reasons to
                   believe




                                                                                                            32
   It’s a thinking framework to help you get to the key issues and
    opportunities on your brands

   It is about prompting teams to ask hard questions and seek the right
    data to get to the key issues.




                                                                           33
All surface issues can be linked back to the marketing outcome
desired

     Use existing information of brand tracking (aspects covered later)
     Do use instinct and gut feel to table the issues
       “My daughter hates the product”
       “I never saw the ad on TV!”
       “Its selling like hot cakes near my shop”.
       “No body likes this brand anymore”

     But check if data supports the same !
       Product: Product scores vs competitors among TG
       Promotion: Media plans, SOV, GRP’s
       Volume share, Place: Sales by channel , by region
       Proposition : Brand Health (pyramids)

                                                                           34
Applying it to an example...


                Surface Issue
                Surface Issue


              Brand X Detergent
               Brand X Detergent
              bar –– a profitable
               bar a profitable
              and significant part
               and significant part
              of the company ‘s
               of the company ‘s
              detergent portfolio
               detergent portfolio
                                             Understanding the 6 P’s and
              –– is losing share in a
                  is losing share in a                category
              declining market
               declining market




                    Det bar loyalty decline, primarily amongst SEC CD housewives,
        Key issue
                    is driven by poor product experience coupled with price
                    premium and lowkey promotional programme




                                                                                35
The Key Issue is a highly specific and insightful description of the issue
or opportunity, identified by interrogating and cross-referencing data
from the various levels
                 Det bar loyalty decline, primarily amongst SEC CD housewives,
          Key
         Issue   is driven by poor product experience coupled with price
                 premium and low key promotional programme




                                       WHO, WHEN,
                                       WHO, WHEN,
                 WHAT?
                 WHAT?                                                  WHY?
                                                                        WHY?
                                        WHERE?
                                         WHERE?
   • What is the issue or       • Amongst whom?            • Which of the 6Ps is the
     opportunity?               • Where (regions/            key to the issue or
   • Is it about penetration,     channels)?                 opportunity?
     consumption or loyalty,    • When (time of year)?     • Might be more than one!
     or a combination?
                                • Not all of these will
                                  always be relevant/
                                  important
                                                                                  36
Detective Ways of Working

1. It’s asking the RIGHT Question that counts
2. Think WHO, WHAT, WHEN, WHERE, WHY
3. Be evidence-driven and objective. Hunches are OK as a starting point
   but MUST be validated

4. Dig deep for the AHA moments. No point telling everyone what they
   already know

5. Work in mini-teams – bringing together expertise and different
   perspectives

6. You might not have the evidence you need readily available. Think of
   clever ways to find it (e.g. use proxy data from neighbouring country,
   other brands)


                                                                            37
Asking the right question is critical!!




   Here are some prompts to explain it further:




                                                  38
Does the Product delight consumers?                                        Product

                                                                           Will product
                                                                        performance meet
                                                                           consumers’
                                                                          expectations?


Does the product meet the expectations set for it
 Does the product meet the expectations set for it
by the proposition?
 by the proposition?
    Does the proposition make specific claims for the
    Does the proposition make specific claims for the
     product? Are they met? Will consumers notice them?
      product? Are they met? Will consumers notice them?
     Will consumers appreciate them?
      Will consumers appreciate them?
    What are the product benefits set out in the
    What are the product benefits set out in the
     proposition? Are they relevant to and motivating for
      proposition? Are they relevant to and motivating for
     consumers?
      consumers?
How does product performance compare with
 How does product performance compare with
competitors?
 competitors?
    Are we seen as better or worse than our competitors?
    Are we seen as better or worse than our competitors?
    What advantages do we have? What disadvantages are
    What advantages do we have? What disadvantages are
     there?
      there?
    Check out the latest consumer product tests. Do those
    Check out the latest consumer product tests. Do those    Our second point of contact with the
     advantages/disadvantages matter to the consumer?
      advantages/disadvantages matter to the consumer?       consumer is when she uses our product.
     Can consumers detect differences in product
      Can consumers detect differences in product            Does that experience make her want to
     performance?
      performance?
                                                              go out and buy it again next time she
                                                                       shops the category?
How can we improve product performance?
 How can we improve product performance?
    What changes could we make to the
    What changes could we make to the
     formulation/recipe?
      formulation/recipe?
    What differences would these make to the
    What differences would these make to the
     performance?
      performance?
    How much would they cost? Does the benefit outweigh
    How much would they cost? Does the benefit outweigh
     the cost?
      the cost?
                                                                                                      40
Axe – Argentina case study


    Tracking the brand revealed :
      High levels of penetration
      Consumption highest among deo’s in Argentina.
    Seemingly, no problem ; Strong brand
    However looking at consumption figures for Deo’s in other Lat Am
     markets revealed Argentina consumption could increase further
    Diagnosing consumption from usage studies:
      Argentineans only use Deo’s in underarms.
    Focus on increasing consumption among TG
    Development of “Show them the way campaign” : All over body use.
    Growth in sales through increased consumption – Campaign now used
     across the world.

                                                                         41
Criticality


   Existing brand
   Higher returns – less expensive compared to
    innovation
   Consumer / Competitor pulse

   Needs determination / perseverance to identify




                                                     42
The Innovation Management process




                                    43
Why Innovation?

     Refresh the brand in the mind of the consumer. Good brands
      are those which stand for something.
         Reminding the consumer (More media spends, Variant launch)
         Making proposition more relevant for the times (Lifebuoy).
         Innovative products which change how consumers use the
          category , or add value to the consumer (Vimbar with plastic
          wrap)


Extend brands core proposition to different categories to grow the
brand. ( Dove)
CAVEAT
Can be innovation for Innovations sake , IS IT REALLY DIFFERENT OR
       OFFERING VALUE?
Dangerous when the brand health itself is failing                       44
Innovation management process


                       Launch Mix



Develop Mix                                       Track Mix



                                                              On ground
                        Tweak Mix
                                                              corrective action




  Developing and Evaluating Mix prior to Launch

                                                                              45
Innovation has two broad areas:
- Developing and Short-listing ideas
- Building on and Evaluating the final ideas




    Develop
     Ideas        Building Mix                   Launch           PLE




        Screen ideas             Evaluate Potential       Track
                                                                        46
Develop
 Ideas        Building Mix                   Launch           PLE




    Screen ideas             Evaluate Potential       Track


                                                                    47
Developing Ideas



 Generating the idea
 Communicating the idea




                           48
Mine Strategic Researches to Develop ideas




Category driver
study
Bases MBA


       Develop
        Ideas           Building Mix                   Launch           PLE

Habits and Attitude


TNS Needscope

Consumer
understanding – gut
feel
              Screen ideas             Evaluate Potential       Track


                                                                              49
Generating Ideas – Product/Communication
Look back
    Habits , Usage and Attitudes studies
    Examples from around the world
    Existing Triggers/ Barriers studies
    Segmentation studies – targeting a new segment ( NeedScope).
    Shopper studies
Look around
    Adjacent categories
    Consumer immersions with TG
    Situational interviews
    Experts
Learn
    What do people think today about the Brand?
    How are they using the product ? What are their experiences?



                                                                    50
Communicating the Idea : Importance of
“Language”


Connection is about the “foot in the door” - creating a little
space in the consumer’s mind
If you want real innovation, it is about creating a new brainspot.




                                                                     51
Dove “Pro Age” vs Anti Aging


Other Examples.
   .
   - Lakme : “All day lipstick” vs “9-5” lipstick
   - Parachute : “Hair oil massage”vs “1 hour Champi”   52
P&G example : Same product , different positioning


   Procter & Gamble introduced Fabreze in 1996 as a way to remove odors from
    smelly clothes. The company ran advertisements of a woman complaining about
    a blazer that smelled like cigarette smoke. Other ads focused on smelly pets,
    sweaty teenagers and stinky minivan interiors.
   But Fabreze flopped.
   One of the biggest problems, P&G's researchers discovered, was that bad smells
    simply did not happen often enough in consumers' lives.
   Because bad smells occurred too infrequently for a Fabreze habit to form,
    marketers started looking for more regular cues on which to capitalize.
   The perfect cue, they realized, was the act of cleaning a room, something
    studies showed its target audience did almost daily. P&G produced commercials
    showing women spraying Fabreze on a perfectly made bed and spritzing freshly
    laundered clothing. The product's imagery was revamped to incorporate open
    windows and gusts of fresh wind - an airing that is part of the physical and
    emotional cleaning ritual.
   Today, Fabreze is one of P&G's greatest successes.



                                                                                     53
Getting “Wow” propositions


       Steps                    Must do’s                   Process

• Consumer insights         • Consumer immersion       • Consumer connect ,
                            along with past research   past research, Research


• Ideation                  • Get width of ideas       •Workshop with extended
                                                       team,

• Rough concepts            • Clarity on one-line      •Team.
                            concept, why
                            compelling?

• Recycling concepts        • Finetune language,       •Connecting statements –
                            whats working , whats      team and consumer
                            not
•Finalisation for testing   •Layout, pictures          •Quantitative

                                                                                  54
Develop
 Ideas        Building Mix                   Launch           PLE




    Screen ideas             Evaluate Potential       Track



                                                                    55
Develop
 Ideas          Building Mix                   Launch           PLE




     Screen ideas              Evaluate Potential       Track

Bases Idea Screener
Bases Bundle Builder
                                                                      56
Screening Ideas


   Is it relevant to business strategy ?
   Is it feasible at all? New technology vs Consumer
    perception
   Finally Consumer evidence – Initial size of
    opportunity
     Bases Idea generation, Bundle Builder
     Can help you reject ideas or prioritize – indication
       of whether it will cannibalize or grow franchise as
       well


                                                             57
Develop
 Ideas         Building Mix               Launch           PLE




    Screen ideas          Evaluate Potential       Track



                                                                 58
Building a mix




                 59
Flow of Research - Concept

              Connecting statements     Connection, Concept
                                             directions



              Qualitative fine tuning    Fine tune concepts
                                               Routes
                                         Check for format fit
Inputs from                             Usage comprehension
               Concept product fit
  Product
                  (qualitative)
  research


              Quantitative screening
                                          Screen best ideas


                 Sales Estimate
                (if high investment
                                        Determine potential,
                      product)          And price of formats
                                              BASES 1
                                                              60
Flow of Research - Product

  Selecting Benchmarks   - Consumer checks, restaurants /comptn
                         - Prototype development and checking



   Consumer Connect      - Recycling to fine tune Prototypes
                         - Recycling to understand experience
                             of use




   Evaluate products
                         - CPT : Check consumer acceptance of
                                  product
                         - STM ( BASES 2 )for Mix acceptance

                                                          61
Develop
 Ideas        Building Mix                   Launch           PLE




    Screen ideas             Evaluate Potential       Track



                                                                    62
3. Evaluate



    Concept product test : to finalize product mix,
         check concept product acceptance




       STM : To evaluate the full mix potential




                                                      63
CPT vs STM

   STM required when
     Capex decision is huge
     Launch is a line extension, to check franchise
      growth
   CPT useful to understand final range, Concept
    product fit and product acceptance.
     The STM assumes the product and the concept are
      final , therefore ensure that tested products go
      into the STM.



                                                         64
Develop
 Ideas        Building Mix                   Launch           PLE




    Screen ideas             Evaluate Potential       Track
                             Full Mix test
                             CPT, BASES 2                           65
New Brand/
 New benefit/       Idea screener
 Repositioning      Bundle Builder     Product tests
                                       STM (For High            Preview
                 Concept recycling     Capex)
                                       Ad test                 STM

                                                             Preview
                    Bundle builder         Product tests    STM (If Large
   Relaunch         (If sig.
                                       Creative            investment for
                    Concept change)
                                       Development         volume growth)
                                       Research

                                      Paired Comparison



Cost reduction
                            Screen ideas                        Evaluate Potential   Track
                                                                                             66
Develop
 Ideas        Building Mix                   Launch           PLE




    Screen ideas             Evaluate Potential       Track



                                                                    67
Tracking research

Measurement
 Dipsticks
 Continuous tracks
    Monitors brands in category
    Spends, campaigns
    Activities
    Brand health measures
    Imagery and Brand equity
 Ongoing Household and Retail data
Exploratory
 Triggers and Barriers
 Shopper Studies


                                      68
M
Continuous trends help identify what causes
what
 The continuous trend makes it clear that the sponsorship is driving the increase




                                                                                          POST
                              60                                                           x
                                                                                           x
 % Interested
    in buying                                              PRE
                                                            x
                                                            x
                              40




                              20
                                            TV Advertising →

                                          Sponsorship of TV programme →

                                0
                                      JAN                         FEB               MAR          APR



                                                                                                       69
M


Brand Health Check




Managing a brand through an understanding of consumer
equity and imagery perceptions




                                                        71
M


BHC Module – the questions

   Awareness and Claimed Usage
   Brand Health Check
   Brand Image Positioning




                                  72
M


Brand Health Check builds pyramids which
quantify a brand’s equity and answers these
questions

      Conviction        Can anything else beat it?

     Advantage          Does it have any advantages?
      Acceptable        Is it satisfactory?
     performance
      Relevance         Does it cater for me?

      Presence          Do I know about it?



                                                     73
M


 As consumers move up the Pyramid they become
 more valuable
                Brand            Share of
               pyramid            wallet

  Conviction          10%          40%


 Advantage      30%                26%

  Acceptable
                45%                19%
performance

  Relevance     60%                16%


   Presence     80%                12%

                                                74
M


 The BrandSignature™ allows us to identify a
 brand’s relative strengths and weaknesses
               Brand A               Brand
               Pyramid™           Signature™
                  %


  Conviction           10%          -7


 Advantage       30%                -8

  Acceptable                        -5
                 45%
performance

  Relevance      60%                     4


   Presence      80%                         30


                                                  75
M


     BrandSignature™
    An example of how the Brand Signature™ is calculated

                                                   Expected          Brand
                     Brand A                      Conversion      Signature™
                    Pyramid™                      Based on all    Does the Brand
                        %              Brand      brands in the   get more or less
                                     Conversion     Category        than its fair
                                                                       share?
  Conviction                10%
                                      10
                                           = 33       40             -7
                                      30
 Advantage            30%             30                            -8
                                      45   = 67       75
  Acceptable
Performance           45%             45
                                           = 75       80             -5
                                      60
  Relevance
                                      60
   Presence           60%             80   = 75       71                  4

                                     80
                      80%            100   = 80       50                      30

                                                                              76
M




Measuring Brand Imagery




      Positioning Profiles
M


Measuring Brand Imagery – the question




                                         78
M


What do we get from the Brand Imagery
question?
   Consumers are asked to select the brands they feel are associated with
    the various image attributes.
   The basic output is the % of people who selected each of the brands on
    each of the attributes.
   This absolute level of association is important to monitor
     It tells us which brands are more associated with these different
       dimensions
     And when measured over time it allows us to understand which
       marketing activities impact positively or negatively on certain image
       dimensions




                                                                               79
M


What do we get from the Brand Imagery
question?
   Consumers are asked to select the brands they feel are associated with
    the various image attributes.
   The basic output is the % of people who selected each of the brands on
    each of the attributes.
   This absolute level of association is important to monitor
     It tells us which brands are more associated with these different
       dimensions
     And when measured over time it allows us to understand which
       marketing activities impact positively or negatively on certain image
       dimensions
   But when you look across all of the responses on the image grid you
    will find that big brands (because they have more brand users and
    brand users pick their brands on most positive attributes) will have
    higher scores on most attributes
   To look at which of the attributes differentiate one brand from the
    others in the category, we use an output called
     Differentiation (Positioning) Profiles
                                                                               80
M

What are Differentiation Profiles?
   Removes effect of brand size, and statement popularity.




                                                              81
M

What are Differentiation Profiles?


    How would you describe Fred and Bill?
                    Fred                                 Bill




     Their ears are roughly the same size, but relative to the size of his head,
     Bill’s ears are much bigger than Fred’s.


    We could use this feature to describe him to a stranger - it’s his most
     prominent feature
                                                                                   82
M
The brand size effect
   Because Brand A is a ‘big brand’, it is endorsed more on all measures



               Brand A                Brand B           Brand C

      Tasty                 70                   65              30

 Good price                                 50
                        60                                  20
    Modern
                       50            10                     18
 Traditional
                  30                 8                      15


    But this doesn’t tell us much about the relative associations of
        the brands and it can lead to apparent contradictions,
     e.g. here Brand A appears to be both more ‘modern’ and yet
               more ‘traditional’ than the other 2 brands
                                                                       83
M
Example of Differentiation Profiles

       Initially Brand C appears strongest on ‘Tasty’ and ‘Good price’…..

                       Brand C                  Brand C
                   (absolute figures)   (differentiation profile)
                   Tasty         30             -6

             Good price
                             20                 -5
                 Modern
                            18                       6
             Traditional
                            15                       0


   …..however, once we remove the effect of brand size, we see that
       relative to other brands Brand C is perceived as ‘modern’
  This reveals the true ‘profile’ (points of difference) of the brand and
 allows us to make direct comparisons with the profiles of other brands
                                                                       84
M


What do Differentiation Profiles tell us about a
brand?
   It identifies which of the attributes ‘define’ a brand’s point of
    difference from the competitive set
   As a rule of thumb, anything with a score of +5 is probably a significant
    ‘differentiator’ for a brand




                                                                                85
M


What do Differentiation Profiles tell us about a
brand?
   It identifies which of the attributes ‘define’ a brand’s point of
    difference from the competitive set
   As a rule of thumb, anything with a score of +5 is probably a significant
    ‘differentiator’ for a brand




                                                                                86
Strategic Research




                     87
Types of strategic research


   Habits and Attitudes

   Need segmentation

   Strategic pricing

   Category drivers

   Product Quality benchmarking




                                   88
Habits & Attitudes

In Philippines , an Habits and Usage study showed

   Sinegang was a popular dish consumed by 50% of the population, and
    accounted for 10% of all dishes in the country.
   The cooking process required a tamarind mix which determined the
    taste of the dish.
   By developing a specific “Sinegeng tamarind” cooking aid for the dish,
    Knorr launched a successful extension of it’s bouillon business in
    Philippines




                                                                             89
Segmentation




               90
Needscope: Model of Archetypes
                                Outward directed
                                  Extroverted
    dimensions of human
    thinking, feeling and
    behaviour, that have been
    universally found by
    psychologistst




  Receptivity                                                   Dominance
   Passivity                                                   Assertiveness
   Affiliation                                                  Individuality




                                                   NeedScope® uses these
                                                   dimensions to describe
                                                   human needs in different
                                                   contexts as well as brands
                                 Inward directed   and their executions on all
                                   Introverted     marketing mix factors.


 the NeedScope® framework is based on archetypes91
The Audi Case – Status 1982

                       Alfa Romeo Honda
                                                 Fiat
            Porsche                 Peugeot
                               Mazda                      Toyota
  BMW                           Citroën   Renault

                                                        Seat
                                                            Mitsubishi
                                 VW                              Hyundai
                                                   Skoda
                                                 Nissan Suzuki
 Mercedes
                                                 Opel
                     Rover   Volvo
            Jaguar
                                                        Audi
                                          Ford



                                                                           92
The Needstates and the Brands

                       Alfa Romeo Honda
                                                 Fiat
            Porsche                 Peugeot Modern fun (21%)
                               Mazda               Toyota
  BMW                           Citroën   Renault
   Power & success (16%)
                                                   Seat
                                                       Mitsubishi
                                          At ease & basics (21%)
                                 VW                        Hyundai
                                               Skoda
                                             Nissan Suzuki
 Mercedes                          Practical & safe (26%)
 Superior status (15%)                       Opel
                     Rover   Volvo
            Jaguar
                                          Ford
                                                    Audi

                                                                     93
The Target Chosen

                       Alfa Romeo Honda
                                                 Fiat
            Porsche                 Peugeot Modern fun (21%)
                               Mazda
  BMW       X                   Citroën   Renault  Toyota
   Power & success (16%)
                                                    Seat
                                                        Mitsubishi
                                           At ease & basics (21%)
                                 VW                         Hyundai
                                                Skoda
                                              Nissan Suzuki
 Mercedes                                 Practical & safe (26%)
 Superior status (15%)                        Opel
                     Rover   Volvo
            Jaguar
                                          Ford
                                                    Audi

                                                                      94
Audi 1970 - 1986




                   95
Monitoring 1986

                       Alfa Romeo Honda
                                                 Fiat
            Porsche                 Peugeot Modern fun (21%)
                               Mazda
  BMW       X                   Citroën   Renault  Toyota
   Power & success (16%)
                                                    Seat
                                                        Mitsubishi
                                           At ease & basics (21%)
                                 VW                         Hyundai
                                                Skoda
                                              Nissan Suzuki
 Mercedes                        Audi
 Superior status (15%)                           Opel
                     Rover   Volvo
            Jaguar                   Practical & safe (26%)
                                          Ford



                                                                      96
Monitoring 1990


                         Alfa Romeo Honda
                                                   Fiat
              Porsche                   Peugeot Modern fun (21%)
                                   Mazda
    BMW       X                     Citroën   Renault  Toyota
     Power & success (16%)
                                                      Seat
                                                          Mitsubishi
                                             At ease & basics (21%)
                               Audi VW            Skoda
                                                              Hyundai
                                                Nissan Suzuki
   Mercedes
   Superior status (15%)                           Opel
                       Rover     Volvo
              Jaguar                     Practical & safe (26%)
                                            Ford



                                                                        97
Audi 2001




            98
Monitoring 2001


                         Alfa Romeo Honda
                                                   Fiat
              Porsche                 Peugeot Modern fun (24%)
                                 Mazda
    BMW       X                   Citroën   Renault  Toyota
     Power & success (26%)
                  Audi                                Seat
                                                          Mitsubishi
                                             At ease & basics (15%)
                                   VW                         Hyundai
                                                  Skoda
                                                Nissan Suzuki
   Mercedes
   Superior status (17%)                           Opel
                       Rover   Volvo
              Jaguar                    Practical & safe (17%)
                                            Ford



                                                                        99
Audi today




             100
Monitoring 2004 - Reached their goal, but it took
20 years.

                          Alfa Romeo Honda
    Power & success (26%)                           Fiat
                Porsche                Peugeot Modern fun (24%)
     BMW       X Audi             Mazda
                                   Citroën   Renault  Toyota

                                                       Seat
                                                           Mitsubishi
                                              At ease & basics (15%)
                                    VW                         Hyundai
                                                   Skoda
                                                 Nissan Suzuki
    Mercedes
    Superior status (17%)                           Opel
                        Rover   Volvo
               Jaguar                    Practical & safe 17%)
                                             Ford



                                                                         101
Category Drivers




                   102
Nielsen - Market & Brand Advisor
Key objective: provide a powerful strategic platform for Growth




        Identify Blue ocean / White spaces
                                         Tipping point / Emerging opportunities



          Reliable: robust quantitative study (typically over 800 consumers)




                                                                                  103
Market & Brand Advisor: Drivers of the category




  Importance of functional / emotional vs. brand vs. price image drivers


                                                                           104
Market & Brand Advisor: Reach of the drivers
                                                                                                    Niche/Polarizing


                                                                                                 Natural
           Moisturizes &    Family &       Easy & Gentle Lasting & Lovely      Hair                            Dandruff &      Revitalize &
                                                                                              Ingredients &
             Protects       Everyday           Clean        Fragrance       Appearance                         Scalp Care        Pamper
                                                                                                Nutrients



Critical       57%            55%                39%            2%              6%                 4%              3%             12%

Major          33%            43%                56%           77%             17%                 2%              23%            78%

Medium          5%            0%                 1%            18%             41%                18%              15%             8%

Minor           4%            0%                 1%             2%             36%                39%              32%             1%

                                                                         Niche/Polarizing
Turnoff         2%            2%                 4%             1%              1%                37%              27%             1%

                                                         Attractive &
                 Brand equity &                                         For Younger, Active                                 Cheap / Value
                                       Salon Quality     Easy to Use                               Price Premium
                     variety                                                  Women                                          Perception
                                                          Packaging


Critical               1%                   2%               1%                 1%                      90%                     14%

Major                 77%                   2%               1%                 2%                      10%                     70%

Medium                16%                   9%              52%                 5%                       0%                     13%

Minor                  3%                  83%              40%                43%                       0%                      2%

Turnoff                3%                   3%               5%                49%                       0%                      1%

   Different consumers have different needs; MBA analysis pulls apart this
                                 distinction

                                                                                                                                              105
Market & Brand Advisor: Brand ratings




                                        106
Market & Brand Advisor:Decide which scenarios to play

Example of Scenario:
Imagine that you notice a new
& improved shampoo with
the description below…

Would it make you more or
less likely to purchase?




“Makes hair smooth & silky” is an end benefit expression on which consumers have unmet
              aspirations AND appeals to the key group of trend riders …


                                   Moisturizes & protects (10%) Natural ingredients & nutrients            (niche or polarising)
In addition, a link between the    Protects dry/damaged hair                61 natural ingredients
                                                                             Has                      71
                                   Moisturizes your hair                    60 nutrients / vitamins
                                                                             Has                      61
Natural Ingredients and            Makes hair smooth and silky              43
Moisturizes drivers exists via     Makes your hair healthy                  41
                                   Has nutrients / vitamins                 40
“nutrients/vitamins” attribute.    Leaves your hair feeling good to touch   36




   The opportunity therefore exists for the Natural brands to create more explicit links
  between natural perceptions and the end-benefits (smooth & silky hair) that contribute
                   towards the core driver of Moisturizes & Protects


                                                                                                                           107
Market & Brand Advisor:
MBA also becomes a framework of reference for the innovation
journey




   Optimize and diagnose your initiatives on the strategic drivers for the category   108
Types of strategic research


   Habits and Attitudes

   Need segmentation

   Category drivers : Understand which attributes currently drive
    preference.

   Strategic pricing : Impact of price changes, right price

   Product Quality benchmarking : Understanding how the product
    fares vs competitors in blind format.




                                                                     109
When can research NOT help?




                              110
   Technically, Never
   All decisions involve research in some form or the
    other – You may not need “formal” research.
   Even Intuition and Gut feel comes from a sum total of
    all your previous experiences !
   Except
     Strategy: What you research is an “execution” of the
      strategy but never the strategy.
     Trends : Can indicate but not predict size or duration




                                                          111
Thank you!




             112

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Steps in market research

  • 2. “Market research is science applied to marketing. It is not perfect mathematics, but it is not astrology either.” - Someone bright and famous 2
  • 3. At the end of this presentation you will…  Have an overview of the research process – what it can or cannot do.  Be able to understand the types of research and their applications  Be aware of how to diagnose an in market problem  Learn how to work an innovation through launch 3
  • 4. 1. Overview of Role of research a. Understanding Users of research b. Why do we need research? c. Types of Research 4
  • 5. Users of research in marketing  Marketing team  Brand /Marketing managers  Category heads  Business / Country heads  R&D team  Advertising / Planning agencies  Planners  Creative 5
  • 6. Team Structure Category head Operating company head Mkting mgr Mkting mgr R&D Ad planner Brand mgr Brand mgr Creative 6
  • 7. Which Aspect of research? Brand /Marketing managers Research and Development New launches, current brands Product related handled Category heads Advertising – Planners Portfolio decisions, growing Similar to BM’s , project related franchise, strategic decisions but focused on communication Business / Country heads Advertising - Creative Revenue, Bottom line, activation Evaluation of creative copies learning, focus markets 7
  • 8. How can research help? Brand /Marketing managers New launches, current brands -Understand market and handled consumers. -Evaluating success of the elements of marketing mix, Brand REQUIRE: Deep consumer and brand understanding , objective view Category heads -Overview of category Portfolio decisions, growing -Portfolio decisions. franchise, strategic decisions -Strategic understanding of brands / category REQUIRE: Bird’s eye view, understanding of what’s working and what’s not 8
  • 9. How can research help? Business / Country heads Revenue, Bottom line, activation -Ensure revenue/ Bottom-line learning, focus markets market share targets are met. -Understand impact of on ground activities and performance of mix REQUIRE: Summary of performance metrics Research and Development -Understanding performance of Product related products vs competition -Inputs into product development REQUIRE: Importance of product attributes, directions of improvement for existing products. 9
  • 10. How can research help? Advertising – Planners -Understanding of consumers / Similar to BM’s , project related market to plan the brands future but focused on communication along with marketing. -Impact of communication REQUIRE: Deep consumer and brand understanding, evaluation of communication. Advertising - Creative -Understand how communication Evaluation of creative copies is received -Clear understanding of which elements are working/not and why? REQUIRE: Objective view 10
  • 11. Good to remember ! Different users of research may vary in their:  Appreciation of research : Creative  Need for detail : Brand manager vs VP  Aspect that needs looked at : R&D vs Brand manager  Perspective : Long vs Short term 11
  • 13. Points to PONDER  What could be the pitfalls in the following cases? 13
  • 14. Existing technology Shares declining Create concept / product Market Visit to understand Launch product Take corrective action Need new communication Boss likes the ad Air new communication 14
  • 15. Don’t shoot in the dark Existing technology Shares declining Technological Technological innovation, innovation, Create concept / product Could tackle Market Visit to understand Could tackle rather than a rather than a surface issues, surface issues, consumer one, consumer one, rather than root rather than root is ititaccepted by is accepted by consumers? consumers? Launch product Take corrective action Need new communication How does the How does the Boss likes the ad target group target group react to the ad? react to the ad? Does ititmeet its Does meet its objective? objective? Air new communication 15
  • 16. CAVEAT !! - Not only to be used to only “Validate” : keep an open mind -The right inputs are critical – Garbage in, Garbage out 16
  • 17. Final thoughts  Research helps better decision making, but it does not replace marketing decisions.  Use research for an objective holistic view, instead of shooting in the dark.  What you wish to market should determine research design, never the other way around. 17
  • 20. Time Developmental Research Evaluative Research DEVELOPMENTAL RESEARCH IS LIKE PREPARING FOR AN EXAM – THE REWARDS OF DOING A THOROUGH UNDERSTANDING JOB AT THE OUTSET IS INVALUABLE…WE KNOW WHAT HAPPENS IF YOU DON’T STUDY ENOUGH ! 20
  • 21. Developmental  Explorative : Mainly Qualitative and some Quantitative  Research with consumer at the center  For understanding how the marketing elements are received by consumers, how it fits into his/her life  Improving the marketing elements Time spent here is an investment. If the mix fails to test well finally, then it will mean going back to the drawing board 21
  • 22. Evaluative  Against an yardstick of measurement: Quantitative  Research done among “representative” sample of TG  To see whether we “measure up” or not  Ensure that the correct action standards are set. 22
  • 23. Which type of researches do these fall under?  Quantitative Product test to understand flavour preference of juices  Quantitative Product test against competitive benchmark  Quantitative Ad test  Understanding which communication routes work  Market segmentation study  Simulated test market 23
  • 24. 2. Understanding where research fits in a. Overview b. Diagnosing Issues / Opportunities c. The Innovation management process 24
  • 25. Overview 25
  • 26. Example Develop mix Concept Product Dove Soap Dove Shampoos Communication Launch Track launch 26
  • 27. Overview of the ongoing research process for a brand Launch Mix Develop Mix Track Mix Mix related Tactical Identify elements On ground to change corrective action 27
  • 28. Diagnosing Issues / Opportunities 28
  • 29. Diagnosing Issues / Opportunities Launch Mix Develop Mix Track Mix On ground Mix related: corrective action Identify elements to change Evaluating Mix / Activities post launch 1. Directions for corrective action 2. Inputs into Mix development 29
  • 30. The critical first step is to identify the problem or spot the opportunity and articulate it concisely 30
  • 31. From Surface Issues to Key Issues to Marketing task Surface Issue Surface Issue Key Issue Key Issue Marketing task Marketing task Restaurant is Restaurant is Get parents (of Get parents (of Restaurant has good Restaurant has good practically empty practically empty children aged 8-16) children aged 8-16) levels of traffic in levels of traffic in at weekend at weekend who don’t like who don’t like the week but your the week but your lunchtimes because lunchtimes because eating in a smoky eating in a smoky pub/bar is pub/bar is families (core families (core atmosphere, to atmosphere, to practically empty at practically empty at target for this target for this bring their families bring their families weekend weekend occasion) don’t occasion) don’t in to the restaurant in to the restaurant lunchtimes lunchtimes like the smoky like the smoky to try the weekend to try the weekend atmosphere atmosphere lunchtime menu lunchtime menu Brand X det bar Brand X det bar loyalty decline, loyalty decline, primarily amongst primarily amongst Get SEC CD Get SEC CD Mass SEC CD SEC CD Brand X Detergent Brand X Detergent housewives to re- housewives to re- housewives, is housewives, is detergent bar –– is losing share bar is losing share driven by poor driven by poor engage with Wheel engage with Wheel in a declining in a declining green bar, even green bar, even Bar market product experience product experience market when other brands when other brands coupled with price coupled with price are on promotion are on promotion premium & low key premium & low key promotional promotional programme programme 31
  • 32. Unilever’s 6P tool Market dynamics Category Value market size Value share performance Volume market size Volume share Buying behaviour How many people How much they buy buy Penetration Loyalty Consumption Mix elements Proposition Promotion Place Pack Price Product The brand that consumers have in their The price the heads Getting our What happens The packaging consumer The product message wherever our The brand’s across to the the consumer pays, regular or service values, consumers buy consumer sees & uses price or on offered benefits & the brand promotion reasons to believe 32
  • 33. It’s a thinking framework to help you get to the key issues and opportunities on your brands  It is about prompting teams to ask hard questions and seek the right data to get to the key issues. 33
  • 34. All surface issues can be linked back to the marketing outcome desired  Use existing information of brand tracking (aspects covered later)  Do use instinct and gut feel to table the issues  “My daughter hates the product”  “I never saw the ad on TV!”  “Its selling like hot cakes near my shop”.  “No body likes this brand anymore”  But check if data supports the same !  Product: Product scores vs competitors among TG  Promotion: Media plans, SOV, GRP’s  Volume share, Place: Sales by channel , by region  Proposition : Brand Health (pyramids) 34
  • 35. Applying it to an example... Surface Issue Surface Issue Brand X Detergent Brand X Detergent bar –– a profitable bar a profitable and significant part and significant part of the company ‘s of the company ‘s detergent portfolio detergent portfolio Understanding the 6 P’s and –– is losing share in a is losing share in a category declining market declining market Det bar loyalty decline, primarily amongst SEC CD housewives, Key issue is driven by poor product experience coupled with price premium and lowkey promotional programme 35
  • 36. The Key Issue is a highly specific and insightful description of the issue or opportunity, identified by interrogating and cross-referencing data from the various levels Det bar loyalty decline, primarily amongst SEC CD housewives, Key Issue is driven by poor product experience coupled with price premium and low key promotional programme WHO, WHEN, WHO, WHEN, WHAT? WHAT? WHY? WHY? WHERE? WHERE? • What is the issue or • Amongst whom? • Which of the 6Ps is the opportunity? • Where (regions/ key to the issue or • Is it about penetration, channels)? opportunity? consumption or loyalty, • When (time of year)? • Might be more than one! or a combination? • Not all of these will always be relevant/ important 36
  • 37. Detective Ways of Working 1. It’s asking the RIGHT Question that counts 2. Think WHO, WHAT, WHEN, WHERE, WHY 3. Be evidence-driven and objective. Hunches are OK as a starting point but MUST be validated 4. Dig deep for the AHA moments. No point telling everyone what they already know 5. Work in mini-teams – bringing together expertise and different perspectives 6. You might not have the evidence you need readily available. Think of clever ways to find it (e.g. use proxy data from neighbouring country, other brands) 37
  • 38. Asking the right question is critical!! Here are some prompts to explain it further: 38
  • 39. Does the Product delight consumers? Product Will product performance meet consumers’ expectations? Does the product meet the expectations set for it Does the product meet the expectations set for it by the proposition? by the proposition?  Does the proposition make specific claims for the  Does the proposition make specific claims for the product? Are they met? Will consumers notice them? product? Are they met? Will consumers notice them? Will consumers appreciate them? Will consumers appreciate them?  What are the product benefits set out in the  What are the product benefits set out in the proposition? Are they relevant to and motivating for proposition? Are they relevant to and motivating for consumers? consumers? How does product performance compare with How does product performance compare with competitors? competitors?  Are we seen as better or worse than our competitors?  Are we seen as better or worse than our competitors?  What advantages do we have? What disadvantages are  What advantages do we have? What disadvantages are there? there?  Check out the latest consumer product tests. Do those  Check out the latest consumer product tests. Do those Our second point of contact with the advantages/disadvantages matter to the consumer? advantages/disadvantages matter to the consumer? consumer is when she uses our product. Can consumers detect differences in product Can consumers detect differences in product Does that experience make her want to performance? performance? go out and buy it again next time she shops the category? How can we improve product performance? How can we improve product performance?  What changes could we make to the  What changes could we make to the formulation/recipe? formulation/recipe?  What differences would these make to the  What differences would these make to the performance? performance?  How much would they cost? Does the benefit outweigh  How much would they cost? Does the benefit outweigh the cost? the cost? 40
  • 40. Axe – Argentina case study  Tracking the brand revealed :  High levels of penetration  Consumption highest among deo’s in Argentina.  Seemingly, no problem ; Strong brand  However looking at consumption figures for Deo’s in other Lat Am markets revealed Argentina consumption could increase further  Diagnosing consumption from usage studies:  Argentineans only use Deo’s in underarms.  Focus on increasing consumption among TG  Development of “Show them the way campaign” : All over body use.  Growth in sales through increased consumption – Campaign now used across the world. 41
  • 41. Criticality  Existing brand  Higher returns – less expensive compared to innovation  Consumer / Competitor pulse  Needs determination / perseverance to identify 42
  • 43. Why Innovation?  Refresh the brand in the mind of the consumer. Good brands are those which stand for something.  Reminding the consumer (More media spends, Variant launch)  Making proposition more relevant for the times (Lifebuoy).  Innovative products which change how consumers use the category , or add value to the consumer (Vimbar with plastic wrap) Extend brands core proposition to different categories to grow the brand. ( Dove) CAVEAT Can be innovation for Innovations sake , IS IT REALLY DIFFERENT OR OFFERING VALUE? Dangerous when the brand health itself is failing 44
  • 44. Innovation management process Launch Mix Develop Mix Track Mix On ground Tweak Mix corrective action Developing and Evaluating Mix prior to Launch 45
  • 45. Innovation has two broad areas: - Developing and Short-listing ideas - Building on and Evaluating the final ideas Develop Ideas Building Mix Launch PLE Screen ideas Evaluate Potential Track 46
  • 46. Develop Ideas Building Mix Launch PLE Screen ideas Evaluate Potential Track 47
  • 47. Developing Ideas  Generating the idea  Communicating the idea 48
  • 48. Mine Strategic Researches to Develop ideas Category driver study Bases MBA Develop Ideas Building Mix Launch PLE Habits and Attitude TNS Needscope Consumer understanding – gut feel Screen ideas Evaluate Potential Track 49
  • 49. Generating Ideas – Product/Communication Look back  Habits , Usage and Attitudes studies  Examples from around the world  Existing Triggers/ Barriers studies  Segmentation studies – targeting a new segment ( NeedScope).  Shopper studies Look around  Adjacent categories  Consumer immersions with TG  Situational interviews  Experts Learn  What do people think today about the Brand?  How are they using the product ? What are their experiences? 50
  • 50. Communicating the Idea : Importance of “Language” Connection is about the “foot in the door” - creating a little space in the consumer’s mind If you want real innovation, it is about creating a new brainspot. 51
  • 51. Dove “Pro Age” vs Anti Aging Other Examples. . - Lakme : “All day lipstick” vs “9-5” lipstick - Parachute : “Hair oil massage”vs “1 hour Champi” 52
  • 52. P&G example : Same product , different positioning  Procter & Gamble introduced Fabreze in 1996 as a way to remove odors from smelly clothes. The company ran advertisements of a woman complaining about a blazer that smelled like cigarette smoke. Other ads focused on smelly pets, sweaty teenagers and stinky minivan interiors.  But Fabreze flopped.  One of the biggest problems, P&G's researchers discovered, was that bad smells simply did not happen often enough in consumers' lives.  Because bad smells occurred too infrequently for a Fabreze habit to form, marketers started looking for more regular cues on which to capitalize.  The perfect cue, they realized, was the act of cleaning a room, something studies showed its target audience did almost daily. P&G produced commercials showing women spraying Fabreze on a perfectly made bed and spritzing freshly laundered clothing. The product's imagery was revamped to incorporate open windows and gusts of fresh wind - an airing that is part of the physical and emotional cleaning ritual.  Today, Fabreze is one of P&G's greatest successes. 53
  • 53. Getting “Wow” propositions Steps Must do’s Process • Consumer insights • Consumer immersion • Consumer connect , along with past research past research, Research • Ideation • Get width of ideas •Workshop with extended team, • Rough concepts • Clarity on one-line •Team. concept, why compelling? • Recycling concepts • Finetune language, •Connecting statements – whats working , whats team and consumer not •Finalisation for testing •Layout, pictures •Quantitative 54
  • 54. Develop Ideas Building Mix Launch PLE Screen ideas Evaluate Potential Track 55
  • 55. Develop Ideas Building Mix Launch PLE Screen ideas Evaluate Potential Track Bases Idea Screener Bases Bundle Builder 56
  • 56. Screening Ideas  Is it relevant to business strategy ?  Is it feasible at all? New technology vs Consumer perception  Finally Consumer evidence – Initial size of opportunity  Bases Idea generation, Bundle Builder  Can help you reject ideas or prioritize – indication of whether it will cannibalize or grow franchise as well 57
  • 57. Develop Ideas Building Mix Launch PLE Screen ideas Evaluate Potential Track 58
  • 59. Flow of Research - Concept Connecting statements Connection, Concept directions Qualitative fine tuning Fine tune concepts Routes Check for format fit Inputs from Usage comprehension Concept product fit Product (qualitative) research Quantitative screening Screen best ideas Sales Estimate (if high investment Determine potential, product) And price of formats BASES 1 60
  • 60. Flow of Research - Product Selecting Benchmarks - Consumer checks, restaurants /comptn - Prototype development and checking Consumer Connect - Recycling to fine tune Prototypes - Recycling to understand experience of use Evaluate products - CPT : Check consumer acceptance of product - STM ( BASES 2 )for Mix acceptance 61
  • 61. Develop Ideas Building Mix Launch PLE Screen ideas Evaluate Potential Track 62
  • 62. 3. Evaluate Concept product test : to finalize product mix, check concept product acceptance STM : To evaluate the full mix potential 63
  • 63. CPT vs STM  STM required when  Capex decision is huge  Launch is a line extension, to check franchise growth  CPT useful to understand final range, Concept product fit and product acceptance.  The STM assumes the product and the concept are final , therefore ensure that tested products go into the STM. 64
  • 64. Develop Ideas Building Mix Launch PLE Screen ideas Evaluate Potential Track Full Mix test CPT, BASES 2 65
  • 65. New Brand/ New benefit/ Idea screener Repositioning Bundle Builder Product tests STM (For High Preview Concept recycling Capex) Ad test STM Preview Bundle builder Product tests STM (If Large Relaunch (If sig. Creative investment for Concept change) Development volume growth) Research Paired Comparison Cost reduction Screen ideas Evaluate Potential Track 66
  • 66. Develop Ideas Building Mix Launch PLE Screen ideas Evaluate Potential Track 67
  • 67. Tracking research Measurement  Dipsticks  Continuous tracks  Monitors brands in category  Spends, campaigns  Activities  Brand health measures  Imagery and Brand equity  Ongoing Household and Retail data Exploratory  Triggers and Barriers  Shopper Studies 68
  • 68. M Continuous trends help identify what causes what The continuous trend makes it clear that the sponsorship is driving the increase POST 60 x x % Interested in buying PRE x x 40 20 TV Advertising → Sponsorship of TV programme → 0 JAN FEB MAR APR 69
  • 69. M Brand Health Check Managing a brand through an understanding of consumer equity and imagery perceptions 71
  • 70. M BHC Module – the questions  Awareness and Claimed Usage  Brand Health Check  Brand Image Positioning 72
  • 71. M Brand Health Check builds pyramids which quantify a brand’s equity and answers these questions Conviction Can anything else beat it? Advantage Does it have any advantages? Acceptable Is it satisfactory? performance Relevance Does it cater for me? Presence Do I know about it? 73
  • 72. M As consumers move up the Pyramid they become more valuable Brand Share of pyramid wallet Conviction 10% 40% Advantage 30% 26% Acceptable 45% 19% performance Relevance 60% 16% Presence 80% 12% 74
  • 73. M The BrandSignature™ allows us to identify a brand’s relative strengths and weaknesses Brand A Brand Pyramid™ Signature™ % Conviction 10% -7 Advantage 30% -8 Acceptable -5 45% performance Relevance 60% 4 Presence 80% 30 75
  • 74. M BrandSignature™ An example of how the Brand Signature™ is calculated Expected Brand Brand A Conversion Signature™ Pyramid™ Based on all Does the Brand % Brand brands in the get more or less Conversion Category than its fair share? Conviction 10% 10 = 33 40 -7 30 Advantage 30% 30 -8 45 = 67 75 Acceptable Performance 45% 45 = 75 80 -5 60 Relevance 60 Presence 60% 80 = 75 71 4 80 80% 100 = 80 50 30 76
  • 75. M Measuring Brand Imagery Positioning Profiles
  • 76. M Measuring Brand Imagery – the question 78
  • 77. M What do we get from the Brand Imagery question?  Consumers are asked to select the brands they feel are associated with the various image attributes.  The basic output is the % of people who selected each of the brands on each of the attributes.  This absolute level of association is important to monitor  It tells us which brands are more associated with these different dimensions  And when measured over time it allows us to understand which marketing activities impact positively or negatively on certain image dimensions 79
  • 78. M What do we get from the Brand Imagery question?  Consumers are asked to select the brands they feel are associated with the various image attributes.  The basic output is the % of people who selected each of the brands on each of the attributes.  This absolute level of association is important to monitor  It tells us which brands are more associated with these different dimensions  And when measured over time it allows us to understand which marketing activities impact positively or negatively on certain image dimensions  But when you look across all of the responses on the image grid you will find that big brands (because they have more brand users and brand users pick their brands on most positive attributes) will have higher scores on most attributes  To look at which of the attributes differentiate one brand from the others in the category, we use an output called  Differentiation (Positioning) Profiles 80
  • 79. M What are Differentiation Profiles?  Removes effect of brand size, and statement popularity. 81
  • 80. M What are Differentiation Profiles?  How would you describe Fred and Bill? Fred Bill Their ears are roughly the same size, but relative to the size of his head, Bill’s ears are much bigger than Fred’s.  We could use this feature to describe him to a stranger - it’s his most prominent feature 82
  • 81. M The brand size effect Because Brand A is a ‘big brand’, it is endorsed more on all measures Brand A Brand B Brand C Tasty 70 65 30 Good price 50 60 20 Modern 50 10 18 Traditional 30 8 15 But this doesn’t tell us much about the relative associations of the brands and it can lead to apparent contradictions, e.g. here Brand A appears to be both more ‘modern’ and yet more ‘traditional’ than the other 2 brands 83
  • 82. M Example of Differentiation Profiles Initially Brand C appears strongest on ‘Tasty’ and ‘Good price’….. Brand C Brand C (absolute figures) (differentiation profile) Tasty 30 -6 Good price 20 -5 Modern 18 6 Traditional 15 0 …..however, once we remove the effect of brand size, we see that relative to other brands Brand C is perceived as ‘modern’ This reveals the true ‘profile’ (points of difference) of the brand and allows us to make direct comparisons with the profiles of other brands 84
  • 83. M What do Differentiation Profiles tell us about a brand?  It identifies which of the attributes ‘define’ a brand’s point of difference from the competitive set  As a rule of thumb, anything with a score of +5 is probably a significant ‘differentiator’ for a brand 85
  • 84. M What do Differentiation Profiles tell us about a brand?  It identifies which of the attributes ‘define’ a brand’s point of difference from the competitive set  As a rule of thumb, anything with a score of +5 is probably a significant ‘differentiator’ for a brand 86
  • 86. Types of strategic research  Habits and Attitudes  Need segmentation  Strategic pricing  Category drivers  Product Quality benchmarking 88
  • 87. Habits & Attitudes In Philippines , an Habits and Usage study showed  Sinegang was a popular dish consumed by 50% of the population, and accounted for 10% of all dishes in the country.  The cooking process required a tamarind mix which determined the taste of the dish.  By developing a specific “Sinegeng tamarind” cooking aid for the dish, Knorr launched a successful extension of it’s bouillon business in Philippines 89
  • 89. Needscope: Model of Archetypes Outward directed Extroverted dimensions of human thinking, feeling and behaviour, that have been universally found by psychologistst Receptivity Dominance Passivity Assertiveness Affiliation Individuality NeedScope® uses these dimensions to describe human needs in different contexts as well as brands Inward directed and their executions on all Introverted marketing mix factors. the NeedScope® framework is based on archetypes91
  • 90. The Audi Case – Status 1982 Alfa Romeo Honda Fiat Porsche Peugeot Mazda Toyota BMW Citroën Renault Seat Mitsubishi VW Hyundai Skoda Nissan Suzuki Mercedes Opel Rover Volvo Jaguar Audi Ford 92
  • 91. The Needstates and the Brands Alfa Romeo Honda Fiat Porsche Peugeot Modern fun (21%) Mazda Toyota BMW Citroën Renault Power & success (16%) Seat Mitsubishi At ease & basics (21%) VW Hyundai Skoda Nissan Suzuki Mercedes Practical & safe (26%) Superior status (15%) Opel Rover Volvo Jaguar Ford Audi 93
  • 92. The Target Chosen Alfa Romeo Honda Fiat Porsche Peugeot Modern fun (21%) Mazda BMW X Citroën Renault Toyota Power & success (16%) Seat Mitsubishi At ease & basics (21%) VW Hyundai Skoda Nissan Suzuki Mercedes Practical & safe (26%) Superior status (15%) Opel Rover Volvo Jaguar Ford Audi 94
  • 93. Audi 1970 - 1986 95
  • 94. Monitoring 1986 Alfa Romeo Honda Fiat Porsche Peugeot Modern fun (21%) Mazda BMW X Citroën Renault Toyota Power & success (16%) Seat Mitsubishi At ease & basics (21%) VW Hyundai Skoda Nissan Suzuki Mercedes Audi Superior status (15%) Opel Rover Volvo Jaguar Practical & safe (26%) Ford 96
  • 95. Monitoring 1990 Alfa Romeo Honda Fiat Porsche Peugeot Modern fun (21%) Mazda BMW X Citroën Renault Toyota Power & success (16%) Seat Mitsubishi At ease & basics (21%) Audi VW Skoda Hyundai Nissan Suzuki Mercedes Superior status (15%) Opel Rover Volvo Jaguar Practical & safe (26%) Ford 97
  • 96. Audi 2001 98
  • 97. Monitoring 2001 Alfa Romeo Honda Fiat Porsche Peugeot Modern fun (24%) Mazda BMW X Citroën Renault Toyota Power & success (26%) Audi Seat Mitsubishi At ease & basics (15%) VW Hyundai Skoda Nissan Suzuki Mercedes Superior status (17%) Opel Rover Volvo Jaguar Practical & safe (17%) Ford 99
  • 98. Audi today 100
  • 99. Monitoring 2004 - Reached their goal, but it took 20 years. Alfa Romeo Honda Power & success (26%) Fiat Porsche Peugeot Modern fun (24%) BMW X Audi Mazda Citroën Renault Toyota Seat Mitsubishi At ease & basics (15%) VW Hyundai Skoda Nissan Suzuki Mercedes Superior status (17%) Opel Rover Volvo Jaguar Practical & safe 17%) Ford 101
  • 101. Nielsen - Market & Brand Advisor Key objective: provide a powerful strategic platform for Growth Identify Blue ocean / White spaces Tipping point / Emerging opportunities Reliable: robust quantitative study (typically over 800 consumers) 103
  • 102. Market & Brand Advisor: Drivers of the category Importance of functional / emotional vs. brand vs. price image drivers 104
  • 103. Market & Brand Advisor: Reach of the drivers Niche/Polarizing Natural Moisturizes & Family & Easy & Gentle Lasting & Lovely Hair Dandruff & Revitalize & Ingredients & Protects Everyday Clean Fragrance Appearance Scalp Care Pamper Nutrients Critical 57% 55% 39% 2% 6% 4% 3% 12% Major 33% 43% 56% 77% 17% 2% 23% 78% Medium 5% 0% 1% 18% 41% 18% 15% 8% Minor 4% 0% 1% 2% 36% 39% 32% 1% Niche/Polarizing Turnoff 2% 2% 4% 1% 1% 37% 27% 1% Attractive & Brand equity & For Younger, Active Cheap / Value Salon Quality Easy to Use Price Premium variety Women Perception Packaging Critical 1% 2% 1% 1% 90% 14% Major 77% 2% 1% 2% 10% 70% Medium 16% 9% 52% 5% 0% 13% Minor 3% 83% 40% 43% 0% 2% Turnoff 3% 3% 5% 49% 0% 1% Different consumers have different needs; MBA analysis pulls apart this distinction 105
  • 104. Market & Brand Advisor: Brand ratings 106
  • 105. Market & Brand Advisor:Decide which scenarios to play Example of Scenario: Imagine that you notice a new & improved shampoo with the description below… Would it make you more or less likely to purchase? “Makes hair smooth & silky” is an end benefit expression on which consumers have unmet aspirations AND appeals to the key group of trend riders … Moisturizes & protects (10%) Natural ingredients & nutrients (niche or polarising) In addition, a link between the Protects dry/damaged hair 61 natural ingredients Has 71 Moisturizes your hair 60 nutrients / vitamins Has 61 Natural Ingredients and Makes hair smooth and silky 43 Moisturizes drivers exists via Makes your hair healthy 41 Has nutrients / vitamins 40 “nutrients/vitamins” attribute. Leaves your hair feeling good to touch 36 The opportunity therefore exists for the Natural brands to create more explicit links between natural perceptions and the end-benefits (smooth & silky hair) that contribute towards the core driver of Moisturizes & Protects 107
  • 106. Market & Brand Advisor: MBA also becomes a framework of reference for the innovation journey Optimize and diagnose your initiatives on the strategic drivers for the category 108
  • 107. Types of strategic research  Habits and Attitudes  Need segmentation  Category drivers : Understand which attributes currently drive preference.  Strategic pricing : Impact of price changes, right price  Product Quality benchmarking : Understanding how the product fares vs competitors in blind format. 109
  • 108. When can research NOT help? 110
  • 109. Technically, Never  All decisions involve research in some form or the other – You may not need “formal” research.  Even Intuition and Gut feel comes from a sum total of all your previous experiences !  Except  Strategy: What you research is an “execution” of the strategy but never the strategy.  Trends : Can indicate but not predict size or duration 111
  • 110. Thank you! 112

Editor's Notes

  1. Don’t fixate on the 40% only – you need to grow the total brand
  2. 12 9
  3. 12 9
  4. NeedScope model is a summary of work done by famous psychologists like Carl Jung, Joseph Campbell & Freud The analysis of human needs leads to these axes (physiological – extro introversion) versus social (ego – we) factors, which are the only ones that are really independent/ orthogonal (what is needed for a map) Explain, that we often tend to categorise people immediately into one of the dimensions, however we all have needs of all four directions, depending on the context, category, occasion, day, time, age, mode. Some people tend towards one dimension, aspire to one archetype, however most of us have different feelings and needs. You may also already explain here, that in our research we usually do not map people, but their needs.
  5. Brand positioning: many brands on the right side, less stronger brands on the left side
  6. 16 brands share 70% of the needs on the right side, however 5 brands cover 30% of the needs on the left side Considerations Audi: decide to move to the image they wanted the brand to stand for. Porsche is small, because of price level, sitting in a niche, so BMW (15% market share) has no competition in power & success
  7. Audi chose one of the most difficult to reach targets on the map with the highest necessary input of effort, budget and time, because they wanted “Vorsprung durch Technik”
  8. This is where they were coming from: Brown means down to earth, protection, simple, practical The mood in the advert shows a sundown, i.e. balance, silence, peace, introvert feelings Most of their cars were even brown, most preferred colour
  9. Audi started to move
  10. The central positioning is composed of contradictory images by owners and considerers (close to X) and non considerers (old Audi positioning)
  11. Power & Success has grown significantly. Both brands (BMW and Audi) are the most successful in many markets. It shows that market power, if within the Zeitgeist, can change the needstate situation dramatically and that competition animates the market
  12. How Audi wants to be seen today
  13. Extravert and assertive needstates have grown over the last 15 years. Due to confidentiality we kept the position of the competitors stable