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TRANSCRIPT
WAVE 5 INNOVATION: Looking “Inside Out” & “Outside In”
to Change the Game
October 14, 2013 Ralph Blessing, Executive VP, GfK Innovation
What Are Category Disruptions You Admire??
(No Apple or Facebook Mentions)
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What were they thinking?
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What were they thinking?
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What were they thinking?
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What were they thinking?
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Some Disruptions…..
“The things we fear most in organizations –fluctuations, disturbances, imbalances – are the primary sources of creativity.” ~ Margaret J. Wheatley
"The achievement of excellence can only occur if the organization promotes a culture of
creative dis-satisfaction.” ~ Lawrence Miller
SERTA versus TEMPUR-‐PEDIC A Case Study
CONFIDENTIAL
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• Key Point of Difference is cooling gel – some consumers complain that memory foam gets too hot
• Positioned as ‘next generation’ memory foam
• Focus on in-store materials (very beautiful displays) and co-op advertising with retailers
• Priced a few hundred dollars less than Tempur-Pedic
• Branding emphasized iComfort vs. Serta
Key Serta iComfort Strategies
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Some iComfort Materials
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iComfort Launch
Tempur-Pedic Slow to Initially React
Tempur-Pedic Stock
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Agenda
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Can’t Rely On Risk Adverse, Short Term Thinking
Don't worry about people stealing your ideas. If your ideas are any good, you'll have to ram them down people's throats.
~ Howard Aiken
“If you're not failing every now and again, it's a sign you're not doing anything very innovative.” ~Woody Allen
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Wave 5 Innovation A Definition
Innovation that
BREAKS OUT of existing category definitions or paradigms:
Often borrowing news from other categories/services
Creating solutions for specific user groups and/or occasions
[ ] [ ]
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Wave 5 Creating new category definitions
Fusion of core with secondary needs
Fusion of core needs (ex. Taste + Health)
More advanced expressions of core needs
Meeting basic core needs
Wave 4
Wave 3
Wave 2
Wave 1
5 Waves of Innovation – All Are Important!
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Customer / Consumer Buy Benefits
Peace of mind that I, my loved ones and
the planet will be safe from harm.
Safety
Feeling good - emotionally, physically,
socially and financially.
Wellbeing
Enjoyment of a product or service; pride of ownership.
“I’m worth it.”
Gratification
Saving time, energy, or money frees us up
for other things.
Freedom
Customers are Driven by Four Overarching Motivators (Core Drivers)
Each core driver can be dimensionalized
The importance of each dimension/sub-dimension varies by category
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Key Principle – Evolving Needs
Looking at today's needs isn't good enough – you need a future projection
of what is going to emerge as a longer term need/ benefit space
Safety Wellbeing Gratification Freedom
Future needs evolving here
Current needs & messaging here
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Wave 1
Wave 2
Wave 3
Wave 4
Wave 5
Categories evolve in waves based on customer needs, with core needs being addressed before secondary needs
A Model of Need State Evolution
Basic Security Basic Freedom Basic Gratification
Basic Wellbeing
Advancing Dimensions of Security
Advancing Dimensions of Convenience
Category Today
Fusion Opportunity Tomorrow
Disruptive!
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Wave 1
Wave 2
Wave 3
Wave 4
Wave 5
Fusion of Needs – Oral Care Whitening (Gratification) + Health (Well Being)
Basic Security Basic Freedom Basic Gratification
Basic Wellbeing
Advancing Dimensions of Security
Advancing Dimensions of Convenience
Well Being + GraEficaEon (enamel health + whitening)
Fu
sio
n
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Wave 1
Wave 2
Wave 3
Wave 4
Wave 5
Moving to Wave 5 New Category Definition
Basic Security Basic Freedom Basic Gratification
Basic Wellbeing
Advancing Dimensions of Security
Advancing Dimensions of Convenience
Well Being + GraEficaEon (enamel health + whitening)
Fu
sio
n
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Outside-In Perspective From Around the Globe
Patches, adhesives, kits, strips, professional care…
Tracking news across categories, countries and time identifies innovation that is being seeded with customers
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How did Coppertone find a disruptive innovation that significantly altered sun care?
The Approach in Action
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The Approach in Action
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What comes next?
15 30
45 50
90 100
Sunscreen evolution driven by Well Being – higher and better SPF
???
4
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The Approach in Action
Secondary need states were overlooked; sunscreen was underdeveloped in the other drivers, particularly Convenience...
Hard to Reach Messy Hard to Apply “Future Opportunity”
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The Approach in Action
Sun Protection
Looking “outside-in” for inspiration:
The work enabled Coppertone to start a Continuous Spray category revolution
Easy application – spray at any angle, no-rub
Convenient twist to close – no cap to lose
On-going protection – waterproof & sweat proof
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Wishbone bought Salad Spritzers in 2006; Newman's Own and others soon followed with their own “spritzer” versions
2006
At the Right Time: Before its Time:
1988
Don’t Forget Timing
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Don’t Forget Timing
Avert Virucidal Tissues by Kleenex
Kleenex Anti-Viral Tissues
2004
At the Right Time: Before its Time:
1984
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2012 Tesla
1961 Henney Kilowa4
(Failed; no interest)
1913 Thomas Edison with the
Detroit Electric Car
Don’t Forget Timing
The Electric Car Re-launch at the Right Time?
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1. Standard approaches and modeling just don’t work very well
2. We find you have to: - Look at “Leading Edge Consumers” for the ‘category
- Place more weight on uniqueness and less on believability or top box purchase interest
- Often we test unpriced early in the development
- Do NOT include super ‘finished’ visuals. May test via an animatic or video vs. 2-D board
- Map through diagnostics where the idea is delivering on benefit framework – how strong is the communication of new/fused benefits
Testing of Ideas “That Don’t Exist”
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“Leading edge consumers are most likely to shape the future — those that are early buyers, who are passionate about the category, and/or influence others in the category”
We have found that this group of pioneers helps us predict the later direction of the majority.
Lessons from GfK’s Leading Edge Consumers The future is here, if you know where to look
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“My Spaces”
White Spaces
LINKING
KNOWING WHEN TO LAUNCH
TAPPING OUTSIDE INFLUENCES
OBSERVING CHANGING PATTERNS
IDENTIFYING PRIORITY CONSUMERS and Benefits
Connecting ALL the dots to provide FORESIGHT
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And, don’t forget our greatest tool of all…
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Closing Thoughts and Q & A
1. Identify how evolved your category is today (through a customer/consumer lens)
2. Look for categories / geographies / services that are more ‘evolved’ § Go ‘outside in’ § Identify what news is being seeded with customers
3. Link potential emerging desired benefits with emerging technologies / news – this can require a very extensive search outside familiar areas
4. Develop specific innovation strategic platforms that can guide innovation short and longer term � Use as a springboard for ideation
5. Ironically – seeking Wave 5 identifies better Wave 2-4 ideas!
Wave 5 InnovaEon… SomeEmes, You Have to Swing For The Fences!
"Security is mostly a supersEEon. Life is either a daring adventure or nothing."
~ Helen Keller
Thank You.
Ralph Blessing, Executive VP, GfK [email protected]