Catalyst: the inspiration companyEmail: [email protected]
86, Gloucester Place, London W1U 6HP Tel: + 44 (0) 207 935 7616 Web: www.catalystmarketing.co.uk
Prepared by:
13th November 2008
Innovation – why bother?
Owners’ ConferenceOwners’ Conference
Why bother?
2
““Within small and medium sized businesses, Within small and medium sized businesses, when things are going badly and cut backs are when things are going badly and cut backs are being made, innovation is the first thing to go.being made, innovation is the first thing to go.
Most people don’t realise how crucial it is to be Most people don’t realise how crucial it is to be innovating throughout tough times to ensure innovating throughout tough times to ensure
the prosperity of your business.” the prosperity of your business.”
““Within small and medium sized businesses, Within small and medium sized businesses, when things are going badly and cut backs are when things are going badly and cut backs are being made, innovation is the first thing to go.being made, innovation is the first thing to go.
Most people don’t realise how crucial it is to be Most people don’t realise how crucial it is to be innovating throughout tough times to ensure innovating throughout tough times to ensure
the prosperity of your business.” the prosperity of your business.”
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
3 ways to innovate
What does Rigour look like?
Examples of Rigour
Needn’t cost the earth
Benefits of innovation
What’s coming up
3
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
3 Ways to Innovate
4
1. Instinct
3. Rigour
2. Copycat
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
3 Ways to Innovate: Pros & Cons
5
1. Instinct
+ You know your business
+ You understand your customers
+ You are aware of your competitors
+ You may know best
+ You know your business
+ You understand your customers
+ You are aware of your competitors
+ You may know best
- Too close to it?
- Selective hearing?
- How much do you look around?
- What do you know?
- Too close to it?
- Selective hearing?
- How much do you look around?
- What do you know?
N.B. Mostly works fine, if your market is immatureN.B. Mostly works fine, if your market is immatureN.B. Mostly works fine, if your market is immatureN.B. Mostly works fine, if your market is immature
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
3 Ways to Innovate: Pros & Cons
6
+ It’s working for them
+ It’s easy to adapt
+ Can do it quickly
+ Can do it cheaper
+ It’s working for them
+ It’s easy to adapt
+ Can do it quickly
+ Can do it cheaper
- Your business is not the same
- There’s no point of difference
- It’s yesterday’s news
- Your customers take it for granted
- Your business is not the same
- There’s no point of difference
- It’s yesterday’s news
- Your customers take it for granted
““90% of businesses are average, doing average marketing, achieving average profits. 90% of businesses are average, doing average marketing, achieving average profits. To be ultra successful you need to avoid what everyone else does and do the To be ultra successful you need to avoid what everyone else does and do the
extraordinary! “extraordinary! “
““90% of businesses are average, doing average marketing, achieving average profits. 90% of businesses are average, doing average marketing, achieving average profits. To be ultra successful you need to avoid what everyone else does and do the To be ultra successful you need to avoid what everyone else does and do the
extraordinary! “extraordinary! “
2. Copycat
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
3 Ways to Innovate: Pros & Cons
7
+ Researched thoroughly
+ Analysed the results
+ Carefully developed
+ Properly launched
+ Researched thoroughly
+ Analysed the results
+ Carefully developed
+ Properly launched
- Time consuming
- Might not like what you see
- Costs money
- A real commitment
- Time consuming
- Might not like what you see
- Costs money
- A real commitment
3. Rigour
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
What does Rigour look like?
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
What does Rigour look like? – the process
OBJECTIVEBuild and develop the ideas to realityMETHODDevelop and refine the best ideas and then research with consumers and go with strongest for launch
OBJECTIVEDeveloping a range of ideas against target marketsMETHODCreative workshop to take the seeds and grow them (reject old thinking!)
OBJECTIVEIdentify target markets and provide seeds for ideas. This is about knowledgeMETHODAnalyse overall consumer trends, direct observation, competitor visits and sampling
STAGE 1: GATHERING SEEDS & PREPARING GROUNDSTAGE 1: GATHERING SEEDS & PREPARING GROUND
STAGE 2: GERMINATIONSTAGE 2: GERMINATION
STAGE 3: NURTURINGSTAGE 3: NURTURING
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Examples of Rigour
10
Hoseasons - creating a targeted offer
Butlins – sizing the market opportunity
Barr – retro positioning
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Examples of Rigour
11
Hoseasons - creating a targeted offer
So, who was the target and what did they want?So, who was the target and what did they want?So, who was the target and what did they want?So, who was the target and what did they want?
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
OLDER COUPLES ACTIVE
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Most important factors in choosing a Lodge Holiday
OLDER ACTIVES
LOCATION
COST (ABSOLUTE)
STANDARD OF ACCOMMODATION
LEISURE ACTIVITIES (POOL & TENNIS)
CHILDRENS FACILITIES
Most important
Less important
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
YOUNGER COUPLES PASSIVE
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Most important factors in choosing a Lodge Holiday
YOUNGER PASSIVES
LOCATION
COST (ABSOLUTE)
STANDARD OF ACCOMMODATION
SIZE (FOR GROUPS OF PEOPLE)
CREATURE COMFORTS
Most important
less important CONVENIENT ACCESS TO LOCAL SHOPS
ACCOMMODATION
SERVICES & OTHER
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
On-Site Services: Free
Room Service
Not Needed
Presented as Free-Services
Presented as Paid-for-Services
Not presented
Welcome Pack
Welcome Host
Must Haves
Information Pack
Key:
Newspaper Delivery
Concierge Service
Nice to Have
Daily Maid Service
Next Day Grocery Deliveries
Luxury Cotton Bathrobes
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
WHERE DOES THE PREMIUM LODGE OFFER FIT?Facilities/ activities
More Expensive
Less Expensive
No facilities/ activities
Premium Lodges
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Autograph 2009
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.27
Butlins – sizing the market opportunity
Examples of Rigour
So, how big was the market and how much would they spend?So, how big was the market and how much would they spend?
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Objectives
To identify top revenue generating customers who
demonstrate greatest potential for the Butlins hotel
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Analysis Methodology
ACTIVITY
Bookings data split by Mosaic groups
PH
AS
E O
NE
:P
HA
SE
ON
E:
Butlins Data Analysis
Sources:Mintel – British on
Holiday at Home 2002 Short Breaks
2000UK Tourist Board - UK Tourist
Statistics 2002
PH
AS
E T
WO
:P
HA
SE
TW
O:
External Data Analysis
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Top Customers Profiling – Butlins Analysis
G30 Bijou Homemakers
Mosaic Group
G31 Market Town Mixture
B8 Pebble Dash Subtopia
C10 30’s Industrial Spec
C11 Lo-rise Right To Buy
C9 Affluent Blue Collar
D13 Coalfield Legacy
J44 Maturing Mortgagers
E12 Smokestack Shift Work
A2 Rising Materialists
D16 Low Rise Subsistence
As % of total 2001 Butlins
bookings (227,911)
1.2%
1.1%
1.0%
1.0%
1.0%
1.0%
0.9%
0.9%
0.8%
0.8%
0.7%
10.1%
Lo
wer
Pri
ori
tyH
igh
er P
rio
rity
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Top Customers Profiling – External Analysis
Priority mosaic groups most closely associated with C1 demographic which accounted for 27% of UK population.
Source: Holiday Tourism in the UK, UKTS 2000
21
20
30
29
25
20
29
26
22
20
31
28
DE
C2
C1
AB
Trips 106m
Nights 392.7m
Spend £16,494m
21%
27%
22%
29%
Socio Economic Groups
% U
K P
op
ula
tio
n
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Top Customers Profiling – External Analysis
AB
Socio-Economic Groups vs Lifestages
C2 DE
16-34 married or single with kids under 16
(17%/10 million)
2.1m
% Population 21%
2.2m
22%
2.9m
29%
35-54 married or single with kids under 16
(16%/9.5 million)
2.0m 2.1m 2.7m
4.1m 4.3m 5.6m
Very similar percentage to Butlins data. Likely to represent UK population with the most interest in the Butlins hotel.
Source: Holiday Tourism in the UK, UKTS 2000
8.9% of Total Population
C1
2.7m
27%
2.6m
5.3m
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Top Customers Profiling – External Analysis
Spend*
Total UK Holiday Expenditure
£16,494m
%/£ Spent on Serviced Accommodation
(i.e. hotels, motels, B&Bs)
43%(£7092.42m)
Spend levels of the 16-54 with kids group were in line with forecast prices for Butlins ‘Hotel’ accommodation.
Source: Holiday Tourism in the UK, UKTS 2000
Nights 106m23%
(24.38m)
£/night £156 £291
£/week(7 nights)
£1089 £2036
%/£ of Total Spent on Serviced
Accommodation by 16-34 with kids
13%(£922m)
%/£ of Total Spent on Serviced
Accommodation by 35-54 with kids
18%(£1276.6m)
15%(3.66m)
21%(5.12m)
£252 £249
£1763(£441 per person in
family of 4)
£1745(£436 per person in
family of 4)
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Butlins Shoreline Hotel
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.36
Examples of Rigour
So, how best to deliver nostalgia in adult soft drinks?So, how best to deliver nostalgia in adult soft drinks?
Barr – retro positioning
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
37
Developing the Adult Soft Drinks CategoryDeveloping the Adult Soft Drinks Category
Objectives
Understand adult nostalgia for soft drinks Generate ideas that closely reflect that need
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
38
Exploratory Research to understand the opportunity
Creative Workshop to generate the ideas
Process OverviewProcess Overview
New Products Research to test soft drink ideas
Recommending the strongest idea for launch
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Perceptions of the marketPerceptions of the market
Adult
SparklingSmaller bubbles
PopBigger bubbles
Child
‘Energy Drinks’
‘Adult Sparkling’
‘Traditional’ Sparkling (adult/family)
‘Traditional’ Pop (adult/family)
‘Diet / Low Cal’ pop Pepsi Max; Diet Coke etc
‘Family’ pop
‘Child’ pop
Not good for you
Good for you
Adult nostalgia
Adult nostalgia
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
40
Feeling RootedFeeling Rooted
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
41
Barr Originals
Barr’s Originals
“Where have all the great soft drink flavours gone? The ones you used to drink when you were a child? You just don’t see them anymore.”
Barr’s have been making soft drinks for over 100 years. We’ve taken classic recipes and made them even better. Using 100% natural ingredients, we’ve made Cream Soda with real vanilla extract, Ginger Beer with real root ginger, Real Lemonade and original Dandelion & Burdock. Always bottled in glass to ensure the finest quality, taste and freshness.
HIT Popularity: 1st (out of 18)
They are sticking with the classics
and bringing them up to date…
good
It is what we have been brought up with. But they are re-launching them by using nostalgia and natural
GP 2 Younger men
GP 4 Younger Women
They have updated it – made
it a bit more modern which is
good to keep things interesting
They are like the old bottles – good, safe and traditional
GP 1 Older Women
GP 1 Older Women
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
NEW Barr Originals – Summer 2008
Stocked in Tesco, Sainsbury’s, Morrisons and AsdaStocked in Tesco, Sainsbury’s, Morrisons and Asda
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Needn’t cost the earth
43
1. DIY
3. Ask customers
2. Friends & family
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Needn’t cost the earth
44
1. DIY – it’s free!
Analyse your sales and customer data – be honestbe honest Analyse your sales and customer data – be honestbe honest
Get hold of published research from the web – be openbe open Get hold of published research from the web – be openbe open
Share the findings with staff and draw conclusions – listenlisten Share the findings with staff and draw conclusions – listenlisten
Run a Creative Workshop with team – don’t judgedon’t judge! Run a Creative Workshop with team – don’t judgedon’t judge!
Pick the best ideas - agree selection criteriaagree selection criteria Pick the best ideas - agree selection criteriaagree selection criteria
Develop and launch Develop and launch
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Needn’t cost the earth
45
They know what you’re trying to achieve They know what you’re trying to achieve
You can trust them and they’ll be honest! You can trust them and they’ll be honest!
They can try out your product and your competitors’ They can try out your product and your competitors’
Listen to their ideas and build on them Listen to their ideas and build on them
Agree the best ones, develop and launch Agree the best ones, develop and launch
2. Friends & family – costs little
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
Needn’t cost the earth
46
They like to be heard, they’re experiencing it They like to be heard, they’re experiencing it
You always learn something you didn’t know You always learn something you didn’t know
Share the findings with staff and draw conclusions Share the findings with staff and draw conclusions
Agree the best ideas Agree the best ideas
Develop and launch Develop and launch
3. Ask customers – small cost
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
47
So, what are the benefits?
Benefits of innovation
New New CustomersCustomers
New New CustomersCustomers
Increased Increased SalesSales
Increased Increased SalesSales
Improved Improved MarginsMargins
Improved Improved MarginsMargins
Stronger BusinessStronger BusinessStronger BusinessStronger Business
Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.
INSPIRINGACTION