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Art Or Science (2)
1. BRAND DEVELOPMENT
Art OR
Presented by:
Science
David G. Elliott
B.A. (Lon) MBA Executive Management (Hull)
MCIM
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2. David G. Elliott
• Health and Beauty Marketing
background: Reckitts, Seven Seas,
Dumex.
• Consultant since 1994.
• Business & Brand Development.
• Guest lecturer CIM, University of Hull.
• Open Innovation – Reckitt
Benckiser, GSK & Boots.
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3. For the purpose of
this talk focusing on
New Product
Development
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4. Art
“The use of skill and imagination in
the creation of aesthetic objects,
environments, or experiences that
can be shared with others.”
Encyclopædia Britannica
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5. True…there’s lots Technology
of skill &
imagination in
NPD…
Personal Care www.youtube.com/watch?v=9eVCFXxgn2M
Household
http://www.goodhousekeeping.com/pro
duct-reviews/innovative-products-
awards-2011#slide-1
http://www.premiumbeautynews.com/en/boots-laboratories-launches-the,3924
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6. Science “A systematic
enterprise that
builds and
organises
knowledge in
the form of
testable
explanations and
predictions.”
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7. If NPD is a science and is predictable why is it…
“The rate of introduction of
“86% of new brands and brand
extensions has fallen by
NPD fails
21 per cent, and their
success rate has fallen
from one in six to one in
within one seven. The window of
opportunity for success is
also getting narrower new
year.” launches are peaking
earlier.”
March 2012
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8. ?
What is that the
manufacturers of the
1 product out of 7
that succeeds
getting right?
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9. A
They adopt or develop
a strategic approach
to achieve a unique
expectation that is
relevant to their brand,
the CONSUMER and
the SHOPPER.
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10. Stage-Gate Matrix Example
®
Product
Innovation &
Technology
Strategy for the
Business
Climate, Resources:
Business’s New
Culture, Teams Commitment
Product
& Leadership & Portfolio
Performance
Management
Idea-to-Launch http://www.stage-
System: gate.com/downloads/Fo
Stage-Gate ® rmula
for_Success_in_New_P
roduct_Development.pd
Stage-Gate® is a trademark of
f
Product Development Institute Inc.
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11. Ansoff’s Matrix
PRODUCTS
Existing New
Selling
Selling NEW
Existing
MORE of the
Market Product products to
SAME to the
Penetration Development EXISTING
SAME types
MARKETS
of consumer customers
Selling Selling NEW
EXISTING Market products to
New
Diversification
products to Development NEW
NEW types customers
of consumer
Ansoff, I.: Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5, Sep-Oct 1957, pp 113-124
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12. Ansoff’s Matrix -
PRODUCTS
Existing New
Selling
Selling NEW
Existing
MORE of the
Market Product products to
SAME to the
Penetration Development EXISTING
SAME types
MARKETS
of consumer customers
Selling Selling NEW
EXISTING Market products to
New
Diversification
products to Development NEW
NEW types customers
of consumer
http://businesscasestudies.co.uk/beiersdorf/growing-a-business-by-developing-products-and-markets/conclusion.html
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13. Ansoff’s Matrix -
PRODUCTS
Existing New
Selling
Selling NEW
Existing
MORE of the
Market Product products to
SAME to the
Penetration Development EXISTING
SAME types
MARKETS
of consumer customers
Selling Selling NEW
EXISTING Market products to
New
Diversification
products to Development NEW
NEW types customers
of consumer
http://www.nurofen.co.uk/heritage.php
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14. ? HOW?
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15. How?
How?
Cross-functional team
Research R&D
Legal
Production
Finance
Cat-Man
Marketing
Creative
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16. How?
How?
Understand Your Market
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19. How?
How?
Research
Getting into
the mind of
the
consumer
and shopper.
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20. How?
How?
Research
There are plenty of
conventional research
methods but we are also at
the dawn of a new age:
“New technologies can now pinpoint more
precisely which brain regions are active as
people respond to products or make brand
choices or are exposed to advertisements.
The neuroscience dream of being able to
peer into the functioning brain has been
made possible through technology.
(2007 Dr. Max Sutherland Australian Neuromarketing Symposium)
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21. The ‘Experiential’ consumer
Research
Social Context
Consumers and shoppers are smart, sophisticated, promiscuous, deal
conscious, cynical of marketing and advertising.
2010’s ‘CHANGE’ CULTURE: Reviewing and changing our spending habits
• Full-time employment work hours grown from 40 to average to 47 hours (2011 Office of National Statics)
• TV viewing – 25 hours per person per week but challenged by growth in on-line activity
• 1 in 3 Households own a computer and use it for 10 hours per week (imrg.org)
• YOY Increase in UK on-line purchasing 2009-10: 22%
2010-11: 16%
2011-12: 13% (imrg.org)
• UK debt family debt increased 48% 2011-2012 to £7,944 in unsecured borrowing (The Guardian: Jan 2012)
• Plan more: shopping lists growing (Shopper Insights:18% 2003 to 27% 2011)
• Price sensitivity / deal seeking or switching to deals increasing.
• Less loyalty to one brand, growth in repertoire purchasing or doing without.
• Frequency of grocery visits increasing. Most visit 3+ stores / retailers regularly.
• Average grocery shopping trip in UK down from 44 to 21 minutes.
• More health, eco and sustainability aware but product / service has to be affordable.
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23. Research
Consumer Pyschographics
Since the 1950’s classical marketing has profiled consumers by attitudes and
behaviours to quantify opportunity and target products and communication:
AIO - ‘Activities, Interests & Opinions’ = ‘Psychographics’
Demographics
Demographics
Lifestyle
Lifestyle
Consumer Behaviour
Consumer Behaviour
Self-concept
Self-concept
Personality
Personality
Wells, W.D. (1975) Pyschographics: a critical review, Journal of Marketing Research 12
Mehotra, S and Well W.D. (1979) Pyschographics and buyer behaviour: theory and recent
empirical findings, Consumer and Industrial Buying Behavior, 49-65.
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24. Research
Consumer Motivations - Why We Buy
Physiological needs
Buy products and services which allow
consumers to function in their day to
day lives:
- Food
- Housing
- Transportation
- Clothing
- Information
- Health Copyright and intellectual property of: www.dgeconsultancy.co.uk
25. Other motivations of experiential shoppers
Research
Consumer Motivations - Why We Buy
Functional
Consumers desire
choice because
brands and products
play roles in their
lives which are not
just physiological
they fulfil
psychological
needs.
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26. ‘Experiential’ needs
Research
Consumer Motivations - Why We Buy
‘Experiential Needs’
Products and services which are
primarily bought because of feelings they
give consumers.
Holbrook and Hirschman (1982)
The experiential aspects of consumption, Journal of Consumer Research 9
The ‘experiential shopper’ has
driven much of the recent
expansion and development of
retailing globally in the last 10
years.
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27. A few examples of experiential environments…
Cosmetics Cafe Nike Running Track
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HMV Music Stations Levi’s – ‘Shrink to Fit’
28. Other motivations
Research
Consumer Motivations - Why We Buy
‘Social’
Brands, products or services that satisfy the
need to affect or enhance a consumer’s
relationship with other people.
Solomon R (1983)
The role of products as social stimuli, Journal of Consumer Research 9
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29. Other motivations
Research
Consumer Motivations - Why We Buy
‘Symbolic’
Psychosocial need for consumers
to express themselves through
the products they buy, regarding
possessions as a part of
themselves.
Belk R W (1988)
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Possessions and the extended self, Journal of Consumer Research 14 www.dgeconsultancy.co.uk
30. Other motivations
`
Research
Consumer Motivations - Why We Buy
‘Hedonic’
Products consumed because of
their sensory benefits.
Hirschman and Holbrook(1982)
Hedonic consumption, emerging concepts, methods and propositions
Journal of Marketing 46
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31. Other motivations
`
Research
Consumer Motivations - Why We Buy
‘Cognitive’
Products and services that satisfy
the need to know.
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32. COMPLEXITY
Research
Shopper Psychology
Retail
environments can
be immensely
complex.
The average shopper has to
navigate their way around the
store processing thousands of
products, promotions, signs, other
shoppers and staff to find and
select the few products they want.
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33. Research
Shopper Psychology
Shoppers are pack
focused & have developed
low attention cognitive
strategies to recognise,
recall and pay attention to
products of interest
and make decisions.
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34. Research
PROCESSING PACK DESIGNS
Shopper Psychology
Subconscious interaction
1. Mnemonics: Shoppers look for UNIQUE visual clues
in preference to words, often shape and colour.
2. Visual Language: Look for use imagery or symbols
in preference to words to illustrate a ‘story’.
SUBCONSCIOUS PROCESSING OF PACKAGING
DESIGN MINIMISES THE TIME AND EFFORT
INVOLVED IN DECISION MAKING.www.dgeconsultancy.co.uk
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35. Research
Shopper Psychology
• They use core visual mnemonics (CVM) to trigger
recognition, recall & decision-making. This is called the
‘Recognition Heuristic’. The CVM not only is a
recognition tool it also provides reassurance.
Nurofen
In recognition and recall tests
94% of respondents recognised
Nurofen from its core visual
mnemonic (CVM).
(Shopper Insights 2003) Copyright and intellectual property of: www.dgeconsultancy.co.uk
36. Research
How?
Shopper Psychology
(Nurofen Brand
Engram Research -
Shopper Insights
2003)
ADULT
STRONG SPEED PROBLEM SOLVING
TARGETS PAIN
SCIENTIFIC
PROVEN INNOVATIVE
REASSURANCE EFFECTIVE RELIEF
COMFORTING SUPERIOR QUALITY
INTELLIGENT
TASTE FREE
CVM triggers Brand Engram...
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37. How?
How?
Channel or Channels
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38. How?
How?
Retailer Needs
Retailers are a market, just as consumers are. It is important
they are considered at the START and not the end of the
NPD process.
Retailers see themselves as channels of DEVELOPMENT &
COMMUNICATION and as well as distribution.
They have limited shelf space from which they must
maximise profit – if your new product takes space who is to
be delisted?
Where is your product to be located?
Retailers have there own customer profiles - who will buy
your new product?
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40. Art OR
Science
If NPD is a SCIENCE of
doing something NEW,
then ART is in doing it
well!
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41. BRAND DEVELOPMENT
Art OR
Science
Thank You
David G. Elliott
B.A. (Lon) MBA Executive Management (Hull)
MCIM
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