Unlocking innovation. Joe Staton, Client Services Lead, GfK Market Opportunities & Innovation GfK July 12, 2016 Unlocking innovation

Transcription

1 Unlocking innovation Joe Staton, Client Services Lead, GfK Market Opportunities & Innovation 1

2 Market opportunities and innovation Strategic innovation roadmap FUTURE MARKET MAP Tomorrow s market opportunities, grounded in rich emotional benefit territories STRATEGIC INNOVATION PLATFORMS Defining and sizing tomorrow s market opportunities that are right for your brand INNOVATION LAUNCH PLAN Ideation & optimized proposition mix for maximum market impact, 2

3 Future market map Data and insight that forecast how life evolves Shifts in consumers values introduce new expectations for what brands need to do to stay relevant in peoples' lives These shifts go onto become forces in the marketplace driving demand for innovation in products and marketing 3

4 Global drivers Paradox of modern life More People Urban Distractions Data Complexity Choice Disruption Noise Demands Less Resource Rural Attention Clarity Simplicity Curation Stability Quiet Time Source: GfK Consumer Life (Roper Reports ) 4

5 Unlocking innovation Three narratives Consumers now and next Innovating LECs Sharing new model thinking Attitudes Concerns What they want Companies, brands From I to we P2P Innovation space Innovation space Innovation space 5

6 1 Consumers now and next 6

7 1. Trust UK 2011 UK Diff I only buy products and services from a trusted brand GfK Consumer Life (Roper Reports ) 7

8 2. Simplicity UK 2011 UK Diff I m prepared to pay more for products that make my life easier GfK Consumer Life (Roper Reports ) 8

9 3. Provenance UK 2011 UK Diff Where and how a product is made is really important to me 9

10 4: Virtual World UK 2011 UK Diff Virtual interactions with people can be as good as being there in person GfK Consumer Life (Roper Reports ) 10

11 5. Facts UK 2011 UK Diff I always read the label before I buy any product GfK Consumer Life (Roper Reports ) 11

12 Concerns What are we worried about Going up % UK 2011 % UK 2016 Diff Terrorism 32 Immigration 13 Personal information getting into the wrong hands Cost of healthcare 7 Going down % UK 2011 % UK 2016 Diff Recession and unemployment -31 Inflation and high prices -22 Crime and lawlessness -13 Money enough to live right and pay the bills GfK Consumer Life (Roper Reports ) 12

13 Keep me safe (but show me a good time!) I am always concerned about my safety and security UK % Experiences are more important than possessions UK % GfK Consumer Life (Roper Reports ) 13

14 Honda s hydrogen engine The only emission is water that s safe enough to drink 14

15 DESIRES Emotional benefits Reassurance Connected everything Wearables Functional benefits Control Data economy Tech savvy Surprise and delight Peace of mind Novel/unique being special Simply, easy BASES OF INTEREST UK: 48% if people are satisfied with the security of their personal information and identity (54% 2014, -6pts) UK: 19% (2016) of people agree personal information getting into the wrong hands as one of their top concerns (11% 2011, +8pts) GfK Consumer Life (Roper Reports ) 15

16 Safe Sexy 16

17 2. Innovating LECs 17

18 Leading Edge Consumers (LECs) We identify those consumers who are particularly important to your brand management and innovation efforts. LECs are much more than just early adopters, or heavy consumers. They are: The movers and the shakers The influencers who are ahead of trends, and influence others on adoption The category fans and fanatics Early Adopters within the category We will identify and analyze the LECs in your categories using a series of proprietary GfK questions to: Help you understand their perceptions and motivations Help predict the later direction of the majority Influentials recommend/ influence Category Passionate 18

19 LEC Attitudes Why you should talk to them I'm always on the lookout for new products and services I prefer to own fewer but higher quality items (clothes, technology products, etc.) Virtual interactions with people and places can be as good as being there in person I only buy products or services from a trusted brand I am always looking for novelty and fun, even in everyday products I spend quite a lot of time researching brands before making a major purchase I am interested in other people's opinions about what products and services to buy I am prepared to pay more for products that make my life easier I go out of my way to tell other people about products and services I really like I try to maintain the right balance between work and leisure UK Total LEC GfK Consumer Life (Roper Reports ) 19

20 Innovating LECs Fast, fun, different An easier way of doing something Harnessing the very latest technology A faster way of doing something Providing a solution to a problem that you have A more fun or exciting way of doing things Simplifying something that was too complex Being unique and really different A less expensive way of doing something Total UK LEC Replacing routine or ordinary tasks with automated solutions Something that improves your well-being or health Something that makes you feel safer or more secure Something that you didn't even know that you needed or wanted GfK Consumer Life (Roper Reports ) Technology LECs Something that your friends will notice 20

21 Curve Combines all your credit and debit cards into one single card 21

22 Corporate LECs Most important responsibilities of companies today (UK) Providing good jobs for people Producing good quality products or services Paying a fair share of taxes Charging reasonable prices for products and services Investing in research and technology Protecting the health and safety of its workers Being environmentally responsible Advertising honestly Supporting the local community Helping to educate people Providing a good return to shareholders Having programs that address social issues and causes Being involved with charities Total UK LEC GfK Consumer Life (Roper Reports ) Technology LEC 22

23 Health LECs Health gaps Very important Do often Get a good night s sleep Use vitamin and mineral supplements Take steps to minimize stress Monitor or track my health (e.g. diet, fitness, vital statistis) 71% 16% 34% 17% 41% 24% 16% 12% Health gap GfK Consumer Life (Roper Reports ) 23

24 Oscar Insurance Provides customers with a free fitness tracker and rewards activity 24

25 Emotional benefits Busy life Wearables Personal-is ation Functional benefits ID printing Be your best Lower stress levels In control, powerful Gamification of health Carefree Tailored, targeted BASES OF INTEREST Two-thirds of people cite, not getting enough sleep as a major/minor cause of stress in their lives GfK Consumer Life (Roper Reports ) 25

26 Controlled Paradox 26

27 3 Sharing new model thinking 27

28 Our values Going up 2011 to 2016 Ranked change Personal value Creativity Knowledge Equality Health & fitness Respecting Ancestors Simplicity Internationalism Preserving the environment GfK Roper Consumer Life, UK 2011 to

29 Social Rational Motivations Drivers point to the rise of this value segment that we see today DRIVERS Ageing Population Technology Specialized Social Networks Sharing Economy Demographically, we have an aging population which further contributes to the Social Rational mindset (the segment typically skews older) Tech advancements allow for more efficient evaluation of products, brands and overall information Specialised ones which are more focused (aside from Facebook catch-all for example) adds to these informational efficiencies and connecting like-minded consumers more readily There is a pragmatic aspect to the sharing economy GfK Consumer Life (Roper Reports ) 29

30 The rise of the Socialrational Social tolerance, open-mindedness and knowledge I choose brands that are in keeping with my beliefs, values, and ideals. I know it s all about great value (and not just best price). 30

31 P2P The sharing economy is a global movement Awareness and interest Even kids get in on the P2P act with KidsTrade a safe way to exchange toys and games 55% in the UK are aware of it 30% in the UK are interested in using it Italian start-up TimeRepublik allows users to earn skills by sharing their own time 12% of UK consumers who are aware of it have already used it RCL 31

32 P2P benefits It goes back to money, time and stress Leading associations globally with the sharing economy UK (%) Users (%) Gap (% pts.) They save you money They help individuals like you rather than paying a big corporation They save you time They offer unique experiences They are something fun and new to try They are unfamiliar and less known They reduce hassle and stress The quality isn't as consistent They give you access to luxury goods that you normally could not afford They put you at greater risk of getting sick from unclean or contaminated products They put you at greater risk of harm or injury They let you be on the leading edge of trends In some other way None of these Roper Reports Worldwide 2015, QK4C, UK 32

33 OpenLabel Know more about what you re buying! 33

34 Guilt-free consumption Sense of community for everyone Emotional benefits Aging population Technology Functional benefits Saves you time and money Saves the planet Specialized social networks Sharing economy Stick to your moral compass Security in using real-time, personalized knowledge BASES OF INTEREST UK: 23% (2016) of people feel guilty when they do something that is not environmentally friendly (18% 2011, +5pts) GfK Consumer Life (Roper Reports ) 34

35 Social Rational 35

36 Unlocking innovation Three learnings Consumers now and next Innovating LECs Sharing new model thinking In times of economic strife, consumers want to live as normal a life as possible and still look to enjoy themselves responsibly Reassurance is paramount, but people still want to enjoy themselves Understanding the needs of Leading-Edge Consumers can help you get ahead today and plan for tomorrow Above all, LECs are looking for smart solutions that make their lives easier There is an on-going values shift towards a desire for greater knowledge and creative solutions The sharing economy is just one creative, consumer-driven solution 36

37 Unlocking innovation Joe Staton, Client Services Lead, GfK Market Opportunities & Innovation 37