research practices that hinder innovation- webinar

Nobody’s Unpredictable

Predicting market potential for business initiatives, with 20+ years validated history

Research Practices that Hinder Innovation

Stephen Bohnet, SVP & General Manager Ipsos Vantis

© 2011 Ipsos 2

Innovation is an investment

© 2011 Ipsos 3

Accelerating Returns

© 2011 Ipsos 4

The Video Rental Market

?

© 2011 Ipsos 5

Your role

© 2011 Ipsos 6

Predicting Market Potential for business initiatives,

with 20+ years of validated history

Ipsos Vantis Specializes in Innovation

A suite of powerful, fast, and affordable

services to help you identify winning

initiatives early in development by

assessing their true market potential.

Predict market potential

Prioritize features, ideas, & concepts

Define the consumer target

Measure the strength of the message

Identify key/motivating phrases in the

message

Measure buzz potential

A suite of customizable forecasting tools

for optimizing price, features, product

design, and marketing. Used for modeling

new products, portfolios, and categories.

Forecast units, revenues, profits

Feature simulation

Pricing simulation

Product & Prototype Design simulation

Measure Incrementality vs.

Cannibalization

Competitive war-gaming

Marketing plan simulation

Optimize & simulate launch scenarios Identify winning initiatives

© 2011 Ipsos 7

Business units focused on technology,

financial services, health, and durable

goods

World’s largest database of key measure

survey scores – over 25,000 concepts

tested (Consumer and B2B)

Proven track record of forecasting

accuracy through rigorous post-launch

validation and R&D relating survey results

to demand

Independent study of new products and

services, to strengthen our models and

build relevant case studies to share with

our clients

Leading edge innovations in quantitative

research

About Ipsos Vantis

© 2011 Ipsos 8

Ongoing Validations:

Past 6 Month Technology Innovations Studied

Iconia

Veriton Z290G

iPad 2

Macbook Air 2nd Edition

TV Second Edition

Buy Back Program

Playbook

Bluetooth Headset

Soundlink Wireless Music System

Boxee Box

Umi

Cloud Computer

Ultra HD

Kids Designer Tablet

TV

HD7

Surround

BRAVO MB520

FLIPOUT

FLIPSIDE

XOOM

3Ds

Rear-view Mirror

Viera Tablet

Ping

Switchblade

3D HDTV

Galaxy Tab

HT-D7100: Home Theater Cube

Virtually Edgeless LED HDTV

Full HD 3D camcorder

Playstation PSP2

Flex View

XVT Series 3D HDTV

XFINITY



Research Practice #1:

How we measure success

© 2011 Ipsos 11

What do these new products & services have in

common?

© 2011 Ipsos 12

11% 15%

8%

19%

8%

6%

8%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

iPad Kindle Hulu+ Straight Talk

Top Two Box Purchase Intent

Definitely Would Buy/Sign Up

Probably Would Buy/Sign Up

All of these offers had average to low purchase intent

scores

19% 21%

16%

30%

© 2011 Ipsos 13

The Problem with the Hurdle

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Research Performance vs. Market Success

Concept Testing Rank

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Consumers like this idea and consider it highly unique, but have trouble

believing the claims or accepting the price. As its benefits become more

accepted and/or the price comes down, this product will have mass

potential.

Expect a fiercely competitive marketplace. Margins are likely to be tight

and payout will take time, as competitors vie for brand leadership in the

emerging category

Every Concept has a Unique Personality

Bottom 20 Percentile

Below Average Average

Above Average

Top 20 Percentile

Seek Information (Top Two Box %)

Purchase Intent (Top Two Box %)

Liking (Mean 6-Point Scale)

Price/Value (Mean 5-Point Scale)

Uniqueness (Mean 5-Point Scale)

Believability (Top Box%)

Need Fulfillment (Top Two Box %)

Bt

Breakthrough $

© 2011 Ipsos 17

Four Key Winning Profiles

Mass Potential Breakthrough Niche/Targeted Price/Fee Imbalance

Purchase Intent (Top Box %)

High Ave High Low


High Low to Ave Low to Ave Low to Ave


Ave to High High Low to Ave High


Ave to High Low to Ave Low to Ave Low


Ave to High High Low to Ave Ave to High


Ave to High Low Low to Ave Ave to High


Ave to High Low to Ave Low to Ave Ave to High

Van

tis K

ey M

easu

re

© 2011 Ipsos 18

How to Go Forward

New web browser for Windows. Google Chrome is a

browser that combines a minimal design and

sophisticated technology Make the web faster, safer, easier

Search from the address bar:

Type in the address bar and get suggestions for both

search and web pages. Thumbnails of your top sites:

Access your favorite pages instantly

with lightning speed from any new tab. Private browsing: Open an incognito window

when you don't want to save your browsing

history

Percentage selecting phrase:

1-19% 20-34% 35-49% 50%+

© 2011 Ipsos 19

Linking Concept Performance and Message Execution

Strive for Clarity Market Ready

Winning ideas that are communications

challenged. These ideas may be more

difficult to communicate in market.

Strive for better message clarity and

focus.

Winning ideas with clear marketing

messages. Marketing investment

likely to solidly payoff.

Adjust & Retest Reconstruct or Bow-out

Poor performing ideas with unclear

messages. Adjustments to messaging

can often improve these weak

performers.

Poor performers with clear messages.

Consumers “get it” but don’t want it.

These are either simply poor ideas, or

ideas that need a major positioning

overhaul before they will succeed.

Message Power Score

Win

nin

g

Arc

hety

pe

Low

Lo

w

Pote

ntial

Mark

et

Pote

ntial

High

© 2011 Ipsos 20

High purchase intent is good, but it is not the only way forward

Recognize the other profiles of winners

– Many big innovations do not have high purchase intent initially

Be willing to iterate on ideas that show promise, but aren’t ready

Giving good guidance on HOW to move forward is as important as

identifying the right ideas

– Is your idea easy to communicate in the market?

– Are there ideas that aren’t ready for advancing, but should go through some fix-it steps,

then retest?

Recap: Measuring Success




What we show to the respondent

© 2011 Ipsos 22

Golden Rule: Model the Buying Process

If our purpose in evaluating a new offer is to

determine it’s potential in the market, then we

must show the idea to the consumer/customer

in such a manner that reflects what that person

will learn or experience when encountering the

product offer in the real world.

© 2011 Ipsos 23

The Concept

© 2011 Ipsos 24

In many categories it is becoming increasingly difficult to

differentiate the hardware

© 2011 Ipsos 27

51%

13%

31%

3.8

3.3

3.6

44%

29%

Microsoft Kinect Scores

Seek Information (Top Two Box %)

Purchase Intent (Top Box %)







Raw Score

Vantis Database Ranking

Bottom 20%

Below Ave.

Above Ave.

Top 20%

Ave

64%

23%

47%

4.5

3.9

4.1

37%

47%

Written Concept + Images

Video Concept

Raw Score

© 2011 Ipsos 28

Liberally apply Single Minded Proposition

The basic tenet works: structure your idea using insight, benefit, and

reason to believe

BUT… give people the information that they would have when buying – Non CPG products are often multi-faceted

– There is rarely only 1 reason to believe.

Steal a play from the Apple playbook: Show me, don’t tell me

Convey the user experience

More Flash, Video, Images, even PPT in research to simulate the offer

The offer doesn’t have to be fully baked or prototyped

Recap: What We Show the Respondent




The Need for Speed

Speed for speed’s sake, except in very special instances, is rarely

effective. This is not to say that speed is unimportant.

Jason Brown, President & CEO Ipsos Vantis

Innovation Strategy, Misconceptions (Oct 2010)

© 2011 Ipsos 30

Research has gotten faster and cheaper over the past 15

years

0 10 20 30 40 50 60 70 80 90 100

Pre-Internet

Online

Online Rush

Time (Weeks)

Research Timeline

Setup Recruit & Fieldwork Analysis

Cuts here are detracting

from the true goal

© 2011 Ipsos 32

Recognize there are several paths leading to success

High purchase intent as the primary hurdle misses 3 out of the 4 winners

Be willing to nurture and iterate on the ideas that show potential, but

aren’t ready to move ahead.

Get real: Show the consumer what they’ll really experience

Integrate the user experience where needed

Steal a play from Apple: Show me, don’t tell me

Make sure the way you communicate the product simulates what you

would do in market.

Spend enough time getting your concepts right

Your role: Help your company make the right investments!

Recap of Today’s Key Points

© 2011 Ipsos 33

The latest in:

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A Voice for Innovation- www.innovationpov.com

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© 2011 Ipsos 35

Innovation Misconception (articles 1 through 7) (2010) Jason Brown

Ipsos Vantis

http://www.innovationpov.com/2010/10/11/innovations-common-misconceptions-1/

Taking product development lessons from a robot (2011) Stephen Bohnet

Ipsos Vantis

http://www.innovationpov.com/2011/05/20/product-development-lessons-robot/

Why innovation funnels don’t work and why rockets do (2007) David Nichols

The BrandGym

http://thebrandgym.com/downloads/bgym%20Market%20Leader%20Innovation%20

Rocket%20article%20-%20Sept%2007.pdf

Using Research to Avoid the Pitfalls of Concept Development

(2011) Martha E. Guidry

The Rite Concept

Quirks: http://www.quirks.com/articles/2011/20110725-1.aspx

Related Articles
















http://thebrandgym.com/downloads/bgym Market Leader Innovation Rocket article - Sept 07.pdf




http://www.quirks.com/articles/2011/20110725-1.aspx




Stephen Bohnet, SVP & GM

O. 925.327.2032

M. 925.325.5969

[email protected]

@IpsosVantis

www.innovationpov.com

mailto:[email protected]

research practices that hinder innovation- webinar

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