Thinking from the "Outside-In" Linking Research & Design to Drive Breakthrough Innovation & In-Market Success

Transcription

1 Thinking from the "Outside-In" Linking Research & Design to Drive Breakthrough Innovation & In-Market Success 1

2 Today s Session & Team Scott Young Barry Calpino Eric Singler Discuss four common pitfalls that drive new product failures Reveal research on the impact of packaging & retail visibility on new product trial Illustrate how digital and physical shopper marketing efforts can work together to promote new products. Share several case studies of successful innovation and in-market launches. Share a best in class process for linking insights & design to drive successful innovation 2

3 PRS: Our Mission At PRS, our mission is to help our clients "win at retail" in the global marketplace. Since 1972, We ve Conducted Over 12,000 Studies to Help Clients Improve Their Packaging & Shopper Marketing. 3

4 PRS: Our Clients 4

5 PRS Eye-Tracking PRS Pioneered the Use of Eye-Tracking to Gauge Shelf Visibility and Viewing Patterns 5

6 PRS Mobile Eye-Tracking 6

7 PRS Mobile Eye-Tracking Today, We Also Use Mobile Eye-Tracking to Document Shopping Patterns (In-Store and Online) 7

8 PRS Mobile Eye-Tracking Today, We Also Use Mobile Eye-Tracking to Document Shopping Patterns (In-Store and Online) 8

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10 IN VIVO Shopper Labs & Nudge 10

11 The Core Reality of Shopping 11

12 What Shoppers Say 12

13 What Shoppers See 13

14 and What Shoppers Do! The Shopping Experience Becomes Largely About De-Selection (Drive By What People See & Recognize) 14

15 To Navigate Complex Aisles & Shelves, We Use Two Systems of Thinking System 1 Autonomic, unconscious, lightening fast, leverages emotion and generates strong feelings of certainty. System 2 Rational, conscious, requires effort, works slowly, examines, calculates and weighs evidence = X 2? 15

16 and Our Decisions are Heavily Influenced by Context. If we wish to accurately predict real life decisions, we need to understand and replicate the shopper s choice architecture (i.e. the shelf & competition). Prof. Dan Ariely (DUKE university) Most people don t know what they want unless they see it in context. 16

17 DRIVING SUCCESSFUL INNOVATION THINKING FROM THE OUTSIDE-IN 17

18 The Persistent Challenge For Nearly 50 Years, Failure Rates for New Consumer Products Have Remained at Well Over 80%. 18

19 Why Do So Many Innovations Fail? Reason #1: They Get Lost in Store! 19

20 The Link Between Visibility & New Product Trial Joint R&D Quantified the Link Between Visibility & Sales 20

21 Why Do So Many Innovations Fail? What Exactly What is Inside Exactly the am Box? I Buying? Reason #2: They Don t Quickly & Clearly Convey the Proposition! 21

22 Why Do So Many Innovations Fail? Where Do What I Find Exactly It? am I Buying? How Do What I Use Exactly It? am I Buying? 1% Reason #2: They Don t Quickly & Clearly Convey the Proposition! Rep Sample Base: (156) % I would store my Diary Bliss products In the cupboard/pantry 85 In the refrigerator 9 On the counter 6 Other 1 22

23 Why Do So Many Innovations Fail? Reason #3: They Cannibalize & Don t Drive Category Growth! 23

24 Why Do So Many Innovations Fail? Reason #4: They Don t Deliver on Expectations Created by the Pack! 24

25 Linking the Two Moments of Truth - Ensuring Consistency of Pack & Product Delivery - A very good idea & a convincing pack.but a deceptive recipe leads to failure. Purchase rate 12.2% Overall Liking 6.7/10 It s too acidic I don t recognise the raspberry taste 25

26 The Great Disconnect Innovations are Developed from the Inside-Out with an Emphasis on Product & Concept Research 26

27 The Great Disconnect But Shoppers Experience Innovation from the Outside-In & Within Competitive Context. 27

28 The Primary Limitation of Forecasting CONCEPT (COMMUNICATION) Traditional STM methods fail to incorporate the reality of shopping: They mostly concentrate on front-end (concept) and back-end (usage) PRODUCT (USAGE) 28

29 is that It Ignores In-Store Execution. CONCEPT (COMMUNICATION) To accurately gauge potential, we need to understand performance on shelf. EXECUTION (SHELF & PACK) PRODUCT (USAGE) 29

30 Consumers don t see Strategy they only see execution. 30

31 Driving NPD Success Using Research Effectively & What Works? 31

32 Thinking from the Outside In Using Research Effectively: 4 Core Principles 1. Use Ethnography to Drive Ideation 2. Screen Concepts in Competitive Context 3. Focus on Incrementality 4. Test Holistically (from Shelf to Home) 32

33 Driving NPD Success: Ethnography By Employing In-Store & In-Home Ethnography to Identify Barriers & Drive Ideation 33

34 Driving NPD Success: On-Shelf Screening By Screening Concepts in Competitive Context 34

35 Driving NPD Success: Incrementality Current Category (Pre-Launch) Proposed Category (with Innovation) By Simulating Each Product s Introduction on Shelf (and Focusing on Incrementality & Source of Volume) 35

36 Driving NPD Success: Holistic Studies By Assessing Ideas From the Shelf to the Home 36

37 What Works? Creating Visual Equity Successful New Brands Create Ownable Assets 37

38 What Works? Leveraging Visual Equity Successful Line Extensions Leverage Visual Equity (of the Parent Brand) 38

39 What Works? In-Store Support In-Store Support is Critical to Successful Launches! 39

40 Maximize Visibility Work from the Floor Up! Facilitate Shopping Provide Reassurance! Connect Emotionally Keep It Simple! Surprise & Delight! Do the Unexpected! What Works? In-Store Support 4 Principles for Effective POSM 40

41 What Works? Speaking to Usage Occasions Using Structural Innovation to Drive Increased Consumption 41

42 What Works? Integrating Digital Marketing Illustrating Usage of New Products 42

43 What Works? Integrating Digital Marketing Helping Shoppers Choose the Right Product for Them 43

44 Linking Digital & Physical Shopping Understanding the Role of Mobile Devices in the Shopping Process 44

45 What Else is New at PRS IN VIVO? - Several Recent White Papers - Optimizing Packaging for Online Shopping Gauging Emotion in Pack & Shopper Research Thinking from the Outside-In to Drive NPD Success Making Packaging & POS Work Together Conveying Real at the Shelf Connecting with Hispanic Shoppers 45