learn how to gain insights and perspective from think to win co-author peter klein, pk associates

Copyright ©2015 PK Associates LLC. All rights reserved. Material cannot be copied and is is not for publication or use without written permission from PK Associates. PK Associates is a trademark or registered trademark of PK Associates LLC

June 2015

Insights --- Perspective (And Examples)

NOTE: See Peter Klein’s voiceover comments on Pages 1-12 under each slide

Peter [email protected]

2 www.pkassociates.comCopyright ©2015 PK Associates LLC. All rights reserved. Material cannot be copied and is is not for publication or use without written permission from PK Associates. PK Associates is a trademark or registered trademark of PK Associates LLC

Insights


INSIGHT

Insights


Insights


Are simple yet profound

Are obvious in hindsight

Tap into an underlying need/desire/belief/values

Illuminate WHY people behave

Are at the heart of what motivates

Create platforms of innovation and growth

Insights


aha!an

profoundimplications

thatmoment

has

6 www.pkassociates.comMaterial cannot be copied and is is not for publication or use without written permission from PK ASSOCIATES LLC : 914-921-4815

Insights


an “inductive” processbased on new connectionsdiffers from “normal” mental processing or “rational” problem solvingcomes from both relevant and apparently “irrelevant” datarelies on guesswork, hunches and intuitioninvolves a flash of inspiration or a restructuring of a problemoften challenges current beliefs

is both an ART and a SCIENCE7 www.pkassociates.comMaterial cannot be copied and is is not for publication or use without written permission from PK ASSOCIATES LLC : 914-921-4815

TRANSFORMATIVE... The Insight Process

Insights


Movie: A Beautiful Mind

An AHAA! Moment

Insights


Insights

An AHAA! Moment


Uncovered from a holistic understanding of consumers’ needs, preferences and motivations plus other market-driven areas such as customers/retailers, competition, etc. …

that are actionable and can be profitably leveraged to build brand value and drive purchase

Insights Are Hidden Truths

Insights – Definition

A statement that explains the significance of facts & findings and increases their understanding…

A penetrating, observational statement that captures intuitively “what's behind a finding, fact,

data or what is “being said”, and can be acted on…

Something meaningful you know that competition doesn't or if they do they aren't doing anything

about it


Consumer ‘As Shopper’ Insights – An Important Related Dimension of Consumer Insights


Consumer Insights Applied: EXAMPLE… ASTRA (More on This Process Later in Presentation)

ALIGN

SEARCHACT

TRANSFORMRETHINK

on the business objective and core consumer question for which you need insights to drive the Category... and share

existing and new sources for a 360° view of the consumer

an array of data, information, and factoids to creatively generate Insights!

the business objective, leveraging the new insights to develop implications

and invent new strategies and initiatives, programs

Define actionsteps, implement,

and measure impact


Consumer Insights – Come in All Forms!


Example: The Single Most Frequently Shared Characteristic of Successful New Products is the Ability to Bring a New Benefit to an Existing Category

• Dockers brought branding and style to casual clothing

• Domino's brought quick to delivery

• Home Depot brought education and customer service to the DIY market

• Southwest Airlines brought consistently low price (with a competitively advantaged cost structure) to air travel

• AT&T brought “No fee for life” to credit cards

• The Home Shopping Network brought the ultimate convenience to shopping

• MCI brought price to long distance

• Oscar Mayer Lunchables brought fast, fresh, portable combination meals to lunch occasion

Consumer Insights – Applied in All Forms Too!


Example -- Many Other Factors That Are Enablers catalysts for New Product Success

• First to capture an emerging trend– Home Depot and Self Reliance– Snapple and desire for BFY alternatives to soft drinks– SnackWell's and Boomer's desire for small indulgences– Dockers and casual business dress, Boomer's need for non-jean comfortable

clothing

• Broadly extendable business building idea– Not a “product in search of an enduring, sustainable strategy”– Strategic growth opportunity areas: Healthy Choice, SnackWell's, Lunchables

• Intersect target consumers where they live, work, and shop– Gatorade: point of sweat



Strategic Growth Opportunity Areas (SGOAs) Focus Innovation Efforts on the Highest Potential Consumer Demand and Needs

A benefit-oriented view of the category that provides a rich environment for generating specific ideas

Grounded in a Consumer Insight

Addresses a Current or Emerging

Consumer Need/ Problem

Broad Enough to Encompass Multiple

Solutions to Consumer Problem

Key Characteristics

SGOA Definition

Focused internal and/or external development effort leadsto greater creativity… building ‘a business’



Identifying SGOAs Brings Many Benefits

• Engages senior management early— Pre-empts many questions, issues upfront

— Gets ownership, buy-in by resource allocators: $, people

— Makes them part of the business development process… not the problem

• Organizational alignment for increased success odds

— Gets management and organization strategically-focused

• Avoids New Product wind-up toy syndrome!

— A tactical idea in search of an enduring strategy!


“If you think you're in a slow/no growth Category you will be!”


SGOAs Define Target Rich Environments for Innovation … Under Which Product Platforms and Specific Products Can Be Developed

Illustrative SGOA Examples

Potential Product Solutions• Polaroid film cameras• Digital camera• Video camera with still pictures option• Cell phone camera

• Oral B Brush-ups• Listerine Pocket Paks• Whitening wand• Disposable toothbrush with paste

• Freeze-dried instant coffee-bulk package• “Coffee bags” similar to tea bags• “Cup of coffee” similar to Cup ‘O Soup• Pre-measured single cup coffee filters• Coffee on demand/espresso machines• Neighborhood coffee cart, similar to an ice

cream truck

"Most of the time I'm the only person drinking coffee and I don't want to make a whole pot because it takes too long and it's a waste"

"I want to be sure that I really captured the picture I want while I can still fix it. By the time I get the film developed it's too late"

"Fresh breath and clean, white teeth are important to my appearance (and my confidence). I wish there was a better way to get that feeling during the day vs. just in the morning after I get done brushing, flossing, etc."

Consumer Need/Problem

Coffee for One That Tastes Good

Photographs That Are Available to View Immediately

On-the-Go Oral Care

SGOAs


Consumer Insights – Examples


Insight & Translation Example: Budweiser (1980's)

Heavy male beer drinker• Blue collar, 18-24, high school education• Physical labor

Target

3 Key Insights Blue collar male• Low self-esteem• Future outlook bleak

Led to the 1980's Positioning (Not Today's)

1. Me/My Life

Beer plays an important role in my life. Thirst quencher after

long day of hard work. Male bonding with guys like

me. Alcohol escape.

The popular mid-priced brand work for blue collar guys like me

The working man's reward

3. The BUD Brand2. The Product

TAG LINE: You make America work. This Bud's for you! Ads celebrated blue collar workers who value America; ads showed them working hard and positioned Bud as the reward that they deserve


Insight Generation

ConsumerLandscape

ConsumerLandscape

ConsumerNeeds

ConsumerNeeds

Brand EquityBrand Equity

• How do the different consumer segments vary?

• Who are the heavy users and why?• What are the usage dynamics across the

consumer segments, particularly for the heavy & super-heavy users?

• How do the purchase and preference drivers vary by segment, particularly for the heavy users?

• What are the rational and emotive benefits that consumers are looking for?

• What are the largest arenas of consumer frustration or under-addressed and latent needs?

• What are the emerging consumer trends and how can you best capitalize?

• What product substitutes or category adjacencies can you improve upon or build off of?

• What are the most leverageable elements of your brand equity?

• How do consumers perceive your brand relative to competitive brands?

Key Questions

• “Target consumers want…”• “Target consumers need…”• “Target consumers believe…”

Consumer Insight Worksheets

Consumer Insight Example

Sources of InspirationConsumer Insights Worksheet

Created By: Date:

CPT:

SECTION 1: CONSUMER KEY LEARNINGS

Consumer LandscapeHow do different consumer segments vary? Who are the heavy users and why?What are the usage dynamics across the consumer segments, particularly for heavy users?How do the purchase and preference drivers vary by segment, particularly for heavy users

Consumer NeedsWhat are the rational and emotive benefits that consumers are looking for?What are the largest arenas of customer frustration Or under-addressed or latent needs? What are the emerging consumer trends and how can we best capitalize?What are the product substitutes or category adjacencies?

Brand EquityWhat are the most leverageable elements of

our brand equities?How do consumers perceive our brands

relative to competitive brands?

SECTION 2: SYNTHESIZED CONSUMER INSIGHTSAnswer the following questions: Synthesize the key consumer learnings and/or insights for new product innovation

Target consumers want…

Target consumersneed…

Target consumers believe…


Focus on the Target Customer Often Yields Insight That Drives These Companies’ Strategic Direction• Deep understanding of the target consumer — proprietary insight or

an internal revelation — directs action powerfully

Insight Response

SearsRestructure the company, revitalize the stores, and restock the shelves to suit the female HOH

Women make most of the purchasing decisions for the household — including hard goods

IBM Do not de-emphasize the mainframe business; on the contrary, nurture it

Internal thinking to the contrary, system-intensive companies see the mainframe as critical — it's

the enterprise server for the new networked world

NikeMarket to, at, about, and for the serious athlete— hire serious athletes as employees and select Nike appropriate spokes people, not just great athletes

For the serious athlete, sports is a metaphor for life,

“linking the cultures of the world”

Disney Never dilute the Disney name, and always meet and then exceed expectations

Parents want safe places and safe decisions for their families

MicrosoftDevelop products and deals that make computers easy to use and readily accessible

What if computing/communications were almost free?

The most important travelers perceive air travel as a game in which they lose because they're at the

mercy of the airlines —making them feel like winners will reinvent the airline business

United Airlines

Plan and implement over 130 initiatives across the business, spending over $400 million to improve the flying experience for frequent travelers

Source: TCG


Great Brand Companies View Themselves As The Sourceof Solutions, Something Meaningful vs. a Product Provider

They associate their brand and the market they're in with a high order emotional benefit that transcends product

• Disney Not just entertainment… Creativity and magic

• IBM Not just systems and service… Solutions

• Microsoft Not just computing… Access to a new world

of thinking and communications

• Nike Not just athletic wear… Aspiration and connection between athletes

• Sears Not just a store… Comfort, confidence and

value

• United Not just transportation… A welcome escape or a productive experienceWhen defining their markets, they avoid marketing

myopia — thinking far beyond the tangibleSource: TCG


Think to Win by Paul Butler, John Manfredi, and Peter Klein#ThinktoWinBook http://www.thinktowin.net

http://www.thinktowin.net/



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