new market space in consumer goods. agenda finding new market space examples of new space in...

New Market Space in Consumer Goods

Agenda

• Finding new market space• Examples of new space in consumer goods• Developing a process to claim new space

Redefining market space – do not focus on needs, but on jobs consumer are trying get done

3Copyright 2013 New Markets Advisors

Needs• Better acceleration• More precise

handling• Increased headroom• Larger storage

capacity

Competition• Mid-sized sedans

Jobs• Express myself• Park in tight spaces• Show my ecological

sense• Have fun

Competition• Fashion, scooters,

Prius, Smart, Cayenne

WHAT WHY

Where do jobs come from?

Functions Attitudes CircumstancesSeek X because

it leads to YSeek X because it fits with who I am

Seek X because of what’s happening

right now


Defining the challenge tightly, beyond just the job

Element Brief DescriptionJobs What are people trying to get done, regardless

of what they are currently buying?Approaches and Pain Points

What do people do today? Where does there appear to be non-consumption? What are the pain points?

Competition What is the “real” competition? What do analogies and benchmarks suggest about underlying jobs?

Criteria How do people evaluate new solutions?Obstacles What hinders adoption of new solutions?


Example – Tackling frequent obstacles to adoption of new consumer goods

Leverage Existing Behavior• Febreze• Swiffer• VitaminWater• Listerine Agent CoolBlue• PedEgg

Tackle New Occasions• Tide to Go• Cameraphone• iPod• Desktop copier• RedBull

Find Purchase Triggers• Ticket insurance• Extended warranty• Airline clubs• Auto accessories• Home deep freezes

Affordable, Not Inexpensive• Razors / blades• Microfinance• Freemium• JiffyLube

Easy to Trial / Know it Works• Video games• High definition TV• Quicken software• Free samples in grocery


Agenda


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• Kraft released its Sizzling Salads Dinner Kits, which include a bottle of salad dressing and a bottle of cooking sauce sold in a kit

• All the cook has to do is mix the dressing into the salad, add the cooking sauce into the chicken they plan to cook, and toss it into the salad

• The prep time is 20 minutes, making it a quick meal that is still “homemade”

Reconceive categories by underlying jobs to be doneExample – Kraft Sizzling Salads

Source: USA Today


Laser-target a benefit for the jobs of unaddressed market segmentsExample – Ensure with Revigor

• According to Ensure, if you are over 40, you could be losing 8% of your muscle every 10 years, and exercise alone might not be enough to fight that off

• Ensure Muscle Health has Revigor, the amino acid metabolite HMB, and protein to help rebuild muscle and strength naturally lost over time

• While there have been many protein supplements for weightlifters, fitness gurus, and normal people looking for meal replacements, there has not been one directed towards those who are aging and want to preserve their muscle mass

Source: www.ensure.com

http://www.ensure.com/


Leverage cues to address under-addressed jobs, e.g. “know it works”Example – Berocca Twist 'N' Go effervescence

• From Bayer Australia, Twist ‘N’ Go is a revolution in drink packaging by using a patented cutting mechanism within the lid which, when twisted, cuts open a blister packet, automatically dispensing a vitamin tablet into purified water

• Since vitamin tablets typically degrade when exposed to water, delivering premixed vitamin drinks has traditionally been very difficult, and Berocca sought to fix that

Source: Invetech


Tackle pain points in the consumption processExample – Smucker’s Uncrustables

• Smucker’s Uncrustables sandwiches are premade peanut butter and jelly sandwiches without the crust and are perfect for picky kids

• They can be frozen to ensure prolonged freshness and come in a variety of flavors, which include new varieties on whole wheat bread with strawberry, grape, or raspberry spread

Source: www.smuckersuncrustables.com

http://www.smuckersuncrustables.com/


• Smucker’s Goobers has every kid’s favorite sandwich, peanut butter and jelly, in one jar

• With either grape or strawberry jelly mixed with peanut butter, the job of making this sandwich is simplified

Source:

Tackle pain points in the consumption processExample – Smucker’s Goobers


• Nearly two in three people say they don't have enough energy, but nearly 40% don't believe energy drinks are good for you, which is where V8 comes in with its V-Fusion + Energy drinks

• When the drink made with fruits and veggies rolls out this new product, the label will clearly spell out where that energy comes from: 80 mg of natural green tea

Address obstacles to category adoptionExample – V8 V-Fusion + Energy

Source: USA Today


Address obstacles to frequent useExample – Off Clip-On

• Off Clip-Ons provide protection from mosquitoes without a spray, lotion, or citronella candle or lamp

• By clipping it onto your pants or shirt, the quiet, battery-powered fan circulates repellent all around you, giving you your own bug-free bubble

• It uses an active ingredient with no scent, and each refill provides up to 12 hours of head-to-toe protection

Source: www.off.com

Agenda



Embrace a process that creates customer-centric solutions, driven by clear growth strategy• Develop consensus about your current situation, your present strategy,

baseline knowledge, and key upcoming decisions• Undertake primary, qualitative research with target stakeholders to see

the world through their eyes and understand their jobs to be done• Quantify the resulting job-based segments and the job drivers• Rigorously define the challenges target customers grapple with, and

create total solutions that put you in a competitive class you can own• Develop business plans focused on mitigating key risks, validating

success drivers, and rapidly reaching milestones that improve odds of success– Reduce risk before investing for scale– Avoid false precision in financial estimates. Focus instead on “what you have

to believe” financial assumptions and achieving certainty behind those assumptions

– Explicitly link near and long-term decisions to underlying strategy

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Relevant services from New Markets

Light-touch counsel on strategy-shaping process

Facilitation of consensus-building meetings

Deeper involvement in strategy and solution creation

Structuring of primary research and interpretation of results

Business plan creation

Copyright 2013 New Markets Advisors

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Who is New Markets?

• Experts in reframing market space and generating growth• Senior

experience• Creative and

pragmatic• First-class

consultants, thought leaders, and entrepreneurs

Recent Clients

Copyright 2013 New Markets Advisors


Our team’s publications have appeared in:


Contact

Stephen WunkerManaging DirectorNew Markets Advisors245 First Street, 18th FloorCambridge, MA 02142 USATel. +1 617 337 3060Fax +1 617 337 [email protected]

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