Demand Express. Breadman Breadmaker. For More Information, Contact: Stephen Bohnet Direct: Main:

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1 Demand Express Breadman Breadmaker For More Information, Contact: Stephen Bohnet Direct: Main: September 2009 Linking Market Research to Market Performance

2 Key Findings: Breadman Breadmaker Market Potential Consumer Target High liking, price/value perception, and believability drive very strong purchase intent for Breadman. Mass Market Potential lies on the upper-end of marginal, reflecting that the product could still be optimized before hitting the market for even greater success. Specifically, marketing can help by addressing the average uniqueness and need fulfillment scores. Reviewing the detailed copy evaluation and possibly pursuing qualitative research will help to identify and best communicate points of difference that resonate with consumers. Skews younger consumers, ages Particularly strong interest among Hispanics. Urban families with children (ages 6-12 especially). Heavy consumers of TV - watch all TV genres except Sports. Very active online - steaming entertainment, social networking, blogging, managing their finances, reading product reviews, and shopping. Prefer shopping online above average purchasing behavior for all types of products/services. Gather information related to purchase decisions from a variety of sources rely on reviews by experts in particular. Quality is more important than price when evaluating products/services. Message Power Above average Message Power and Buzz Power scores. Mass marketing and viral marketing campaigns will both be effective. The fact that Breadman s benefits are edible and easily shared between users and prospects will likely proliferate word of mouth advertising. Detailed Copy Evaluation Breadman s marketing message is easily understood and appeals to consumers. The most popular phrases relate to product automation of practically all of the steps in the bread making process. The various bread making cycle options also sparked consumer interest, especially the 100-percent whole wheat cycle Ipsos Demand Express: Breadman Breadmaker 2

3 Vantis Scores Market Performance Indicators Consumers are eager to purchase Breadman. They like the concept, think it s offered at a very good price, and believe it can do what it says will. Its Mass Market Potential on the upper-end of marginal reflects that its chances for success could still improve before hitting the market. Specifically, marketing can help by addressing the average uniqueness and need fulfillment scores. Mass Market Potential Caution Marginal Advance Breadman Key Measure Scorecard Bottom 20 Percentile Below Seek Information (Top Two Box %) 46% Above Purchase Intent (Top Box %) 10% Top 20 Percentile Purchase Intent (Top Two Box %) 38% Liking (Mean 6-Point Scale) 4.1 Price/Value (Mean 5-Point Scale) 3.3 Uniqueness (Mean 5-Point Scale) 3.1 Believability (Top Box%) 44% Need Fulfillment (Top Two Box %) 43% Although the Vantis Database consists of over 15,400 product evaluations, the scores of this study were compared to a subset of approximately 550 similarly priced products Ipsos Demand Express: Breadman Breadmaker 3

4 Targeting Snapshot The Breadman Breadmaker appeals most to younger consumers, ages 18-34, who live in urban households with children ages It has particularly strong interest among Hispanics. Likely buyers of this product are heavy consumers of TV who are more likely to watch all TV genres except Sports. They are also more involved online. The Internet is an entertainment platform for enjoying media, a social networking tool for connecting with others, a vehicle for expression through blogs, a way to better manage their finances, a source for product reviews, and a marketplace for making purchases. They prefer shopping online and their online purchasing behavior is above average across the board for products and services. When it comes to purchase decisions, they like gathering information from a variety of sources, especially reviews by experts. Quality is top of mind for them when evaluating products and services and is more important than the price. Demographics Total Target Media Habits Total Target Index (164) (63) (164) (63) Index Gender (%) Male Hours/week (mean) Female Movies Comedy series Drama series Age (%) Kids programming Sports TV (Hrs/Wk) Reality TV Mean Age Soap operas Caucasian News Hispanic Weather Ethnicity (%) African-American Talk shows Asian Morning shows Other Game shows Married Newspaper (%) Daily Subscription Marital Single/Wid/Div Magazines Number of Status (%) (Mean) subscriptions Age 5 and under Internet Hours/week (mean) Children at home Age 6 to News/headlines (%) Age Entertainment News HH Size (mean) Social networking Income Mean ($000) Online stores Urban Personal finance Websites Residence (%) Suburban Stocks and investments Type of Home (%) Rural (% visit weekly) Watch TV/videos Single Family Home Product reviews Townhouse / Duplex Read blogs Apartment Stream music Write blogs Info Search & Purchasing Friends/Family Music Info Sources (%) Purchasing (%) Purchasing Importance (rank order %) Talk to salesperson PC accessories Consumer reviews Electronics Expert reviews Movies on demand Company website Online Durable goods Prefer Retail Purchasing (% Insurance Prefer Online last year) Movie Streaming Price Investments Quality Banking services Brand Personal computers Convenience Movie downloads Ipsos Demand Express: Breadman Breadmaker 4

5 Communications Impact Breadman has an above average Message Power, meaning its messaging will be easily proliferated via mass marketing. An above average Buzz Power score also shows consumers would respond well to viral marketing campaigns. The fact that Breadman s benefits are edible and easily shared between users and prospects will likely aid the spread of word of mouth advertising. Communications Indices Bottom 20 Percentile Below Above Top 20 Percentile Message Power 124 Buzz Power Ipsos Demand Express: Breadman Breadmaker 5

6 Detailed Copy Evaluation Concept Highlighter The messaging for Breadman is easy for consumers to understand and really resonates with them. The most popular phrases relate to how the product will automate practically all of the steps in the bread making process for them. The various bread making cycle options also spark consumer interest, especially the 100-percent whole wheat cycle. Phrases with higher click rates that are points of difference could be used to combat the average perception consumers have of the concept as innovative. "Enjoy the delicious flavor" 10% "home-cooked bread" 23% "without the hassle" 12% "The Breadmaker will do all the hard work for you" 46% "mixing" "kneading" "rising" "baking" 30% 32% 31% 30% "while you watch through the viewing window" "It will bake 1" "1 1/2" "and 2 pound loaves" "and has a super-rapid cycle" 17% 17% 15% 18% 23% "a 100-percent whole wheat cycle" 33% "and a gluten-free cycle" 17% "The machine will also notify you when to add extras like fruit and nuts" 43% "Price:$115" 4% 0% 20% 40% 60% Percent Reason to Buy 2009 Ipsos Demand Express: Breadman Breadmaker 6

7 Methodology Country Dates of Fieldwork Data Collection Method Concept Specs USA August 31, 2009 September 3, 2009 Online JPEG 1 pg Sample Size Sample Definition Exposure Method Length of Survey N=150 General population Internet access Sequential monadic survey 3 concepts per respondent Test concept exposure rotated to avoid order bias 15 minutes 2009 Ipsos Demand Express: Breadman Breadmaker 7

8 Questionnaire Details Key Measure Scorecard Seek Information Purchase Intent Liking Price/Value Uniqueness Which statement best describes how likely you would be to seek more information about the product/service? Response on a 5-Point Scale Definitely Would to Definitely Would Not Buy Which statement best describes how you feel about buying/signing up for the product/service? Response on a 5-Point Scale Definitely Would to Definitely Would Not Buy How much do you think you would like or dislike the product/service? Response on a 6-Point Scale Like Extremely Well to Not Like at All Considering the price, how do you feel about the value of the product/service? Response on a 5-Point Scale Very Good Value to Very Poor Value How would you rate the product/service in terms of being new and different from other products currently available? Response on a 5-Point Scale Extremely New and Different to Not at All New and Different Need Fulfillment How well would the product/service solve a problem or fulfill a need for you? Response on a 5-Point Scale Definitely Would to Definitely Would Not Believability Which statement best describes how you feel about the believability of the statements made about the product/service? Response on a 4-Point Scale Very Believable to Not at All Believable Buzz Power Agree/Disagree (5 pt scale) If I owned this product, I would want people to know I personally own it or use it I would tor tell friends and family about this I would recommend this to people I know I would search websites for consumer ratings, blogs, or more information about it This product will create a lot of excitement and will be talked about 2009 Ipsos Demand Express: Breadman Breadmaker 8

9 Demand Express Deliverables Mass Market Potential The Mass Market Potential is a calculation of eventual consumer demand, rescaled from 0 to 100 for simple interpretation. In contrast to a full forecast, the Mass Market Potential focuses only on consumer demand, and does not account for marketing plans (generating awareness and building distribution). The Mass Market Potential is used to help your business prioritize ideas early, according to a market proven metric. A correlation of the Vantis Mass Market Potential to in-market sales indicates that concepts with a top third score have a 70% success rate in market. Ballpark forecasting can also be conducted at the early concept stage, though that is not part of this annual Demand Express offer. Key Measure Scorecard Survey scores for each new concept are compared to the Vantis Database. Vantis owns the world s largest database of new concept scores in technology, durable goods, health, and services industries. By comparing scores of new products and services to the database, we can speak to the absolute strength about the survey scores. The individual key measure scores and their pattern are both important parts of the interpretation. The individual score (i.e., low believability) can reveal a specific problem area. The pattern typically classifies into one of approximately 20 new product archetypes. Understanding the archetypes informs strategy and assists in communications development. Targeting Snapshot The standardized Demand Express survey includes demographics, shopping and media habits. The summary, as depicted on page 4, is meant to give a topline understanding of the consumer target. Message Power Message Power scores the ability to execute the message in mass marketing. A high copy score vs. the norm results when one or few clear, differentiated benefits are present. Demand potential is adjusted based on the ability to convey the message in market. Message Power is informed by the Concept highlighter exercise, where consumers are asked to click on the words or phrases in the concept that are reasons to buy and/or are new and different from other products/services they ve seen before Buzz Power Some products are more likely to be discussed, even hyped by faithful buyers. Buzz Power indicates how much word-of-mouth (buzz) a new product will generate. Buzz Power links directly to demand potential, whereby high buzz scores translate to incremental awareness in the market Ipsos Demand Express: Breadman Breadmaker 9

10 About Ipsos Vantis Linking Market Research to Market Performance Ipsos Vantis is a world leader in forecasting and optimizing new products and services before they are introduced in market. Over the past 20 years Vantis has conducted 15,000 new product concept studies, and built the world s largest database of new product survey scores in technology, durable goods, health, and services industries. Ipsos Vantis tracks its forecasts vs. market launches and has observed a high degree of accuracy. 87% of forecasts are within 20% of actual sales results Early stage concepts clearing the Vantis hurdles have a 70% success rate in market Philosophy Forecasting validation is a necessity for our business in order to ensure the validity of the advice, but our attention is placed on delivering research that informs the right business decision. This requires stepping outside of research to understand the business problem, then asking how with respect to every aspect of marketing. Once we answer these questions, we can conduct research. What matters most to our partners is how much money we earn them, or save them. Every Ipsos Vantis study delivers results that depict business and financial impact. Our unique expertise is our capability to translate survey data to business results. Research that speaks terms of business impact, especially in financial terms (the universal business language), works its way through an organization more effectively and elevates the role of research within a company. Engineers, the sales force, finance, and management can be trained to understand survey scores, but they already understand sales, revenue, market share, and profits. Demand Express & the Vantis Philosophy Demand Express serves several purposes. It could be used to prioritize early concepts, to gauge the threat of a new competitor that has just entered the market, or to disaster check a product before launch. On one hand, Demand Express is a standardized, scaled down, affordable and fast way to test new product and service concepts. On the other, it is a succinct collection of powerful market-proven metrics that relate to the three major components of any concept evaluation program: demand, targeting, messaging. While Demand Express stops short of a sales forecast, its deliverables hold true to the philosophy of translating survey scores to business impact. Demand Express will depict the opportunity for a new product or service, leaving little doubt as to the strength of your concept Ipsos Demand Express: Breadman Breadmaker 10

11 Concept 2009 Ipsos Demand Express: Breadman Breadmaker 11