Dave Siegel - Innovation Myth #4
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The document discusses how poor communication is often the underlying reason for innovation failures. It notes that poor internal communication within companies can result in great innovations not moving forward or receiving poor test results. Poor external communication with consumers, such as in concept testing, advertising, or packaging, can also cause innovations that tested well to ultimately fail in the marketplace. Effective communication is important at every stage of innovation development and launch, both within companies and with consumers, retailers, and other stakeholders.
Dave Siegel - Innovation Myth #4
- 2. Fact DISREGARDS one of the UNDERLYING HINDRANCES of innovation!
- 4. Reality Many times the reason behind a new product’s failure lies NOT in the idea itself! Poor communication both INSIDE a company and/or BETWEEN the company and its consumer is oftentimes the culprit!
- 5. Reality Poor communication internally results in companies not going forward with potentially great innovations. Poor communication in concept tests results in great innovations receiving poor test results. Poor communication in advertising/packaging results in great innovations that tested well….ultimately failing in the marketplace!
- 6. DUH !
- 7. DUH !
- 8. DUH!
- 11. Communication is difficult! Understanding WITHIN a company is greatly biased by: • EXPERIENCES • INTERESTS & NEEDS • PHYSIOLOGY We see things not as THEY are but as WE are!
- 13. Time is NOT on our side! Faster communication can cause more misconceptions—no body language voice tone!
- 14. Innovation communication is even MORE difficult! • The newer or more unusual something is….the harder it is to understand. • People (whether inside company or consumers) do NOT like to take risks. – Nay saying is common. – Workers are busy enough without having to take on something new!
- 15. Innovation communication is even MORE difficult! • Many different people and departments within a company are involved in developing and launching innovations. • Our business world is ruled by NORMS, Procedures—THE PAST! Yet Innovation is in the NOW and FUTURE.
- 16. Who needs to be “sold?” BOSS/CEO DISTRIBUTORS IDEA RETAILERS CONSUMER
- 17. What they want to know? • R&D/Engineering ………………..‖How does it work?‖ • Marketing………………………..‖ What does it do?‖ • Retailers and Consumers………..‖What benefit does it have for ME?‖
- 18. My Mistake
- 19. My Mistake
- 20. What do they need? • R&D/Engineering – What’s the problem, the parameters. How does it work? • Marketing – What’s it do? What’s the benefit. • Brand – Make it turn-key. How am I going to get it done? • Finance- Make it profitable, reasonable investment. • Management/Boss- Fit with company (my personal need?)
- 21. What do they need? • Owners/CEO- Fit with company objectives and vision. • Distributors/Sales – What’s in it for retailer? Quota’s? • Retailers-Will it grow my category? Increase Profits? • Communications Agency/Package Designers - What’s the KEY selling proposition? • Customers- What’s the benefit to me?
- 22. Communication Grid Who What Needed What to Tell Marketing Make Job Easy What will be delivered Make me a hero Volume estimates Cost & Timing Cost & Timing Fit with Brand Brand Rationale
- 23. And… Communicating WITH the Consumer??? • Marketers know the importance of ―impulse‖ buying yet they require consumers to be ―logical‖ in research. • Consumers don’t really know what they want or why they do things. • When ―testing‖ we are wedded to NORMS and PROCEDURES anchored in the PAST
- 25. What did they want? Market-Focused Innovation
- 26. What did they want? Market-Focused Innovation
- 27. What did they want? Market-Focused Innovation
- 28. Focus Groups
- 30. And… Communicating TO the Consumer??? • People see the same thing…..differently! • Customers buy the SIZZLE not the STEAK! • Customers do not know what you know! • BASES new product testing cites communication breakdown as the #2 reason for product failure!
- 31. What do you see?
- 32. What did they see?
- 33. The Sizzle! 1988 Game of Year
- 34. The Sizzle! #1 Leisure Product in the World
- 35. P4 CONCEPT PERT PLUS Day Off Daily washing of your hair is not only time-consuming, it can cause excessive dryness and strip the strands of critical nutrients. That’s why we created PERT PLUS Day Off: a 2-in-1 shampoo plus nourishing conditioner specially designed to be used every other day. Not only will you save time with less shampooing, you will be giving your hair the optimum care and rest it needs. 35
- 36. HUH???? 36
- 37. What did THEY know? COMMUNICATION – A shampoo that allows one to only have to shampoo every other day. Men: •Confused….probably at least partly caused by men not understanding the need for this whatsoever. •Name means pest control. Women: •Day Off = Bug Spray •Confusion on when to use the product—‖Daily use optional‖ is not understood •Like the wording of Less Hair Stress •Seems like a dry shampoo •Very masculine and unappealing package 37
- 38. What did THEY know?
- 40. Why Unique Ideas Fail to Test Well • Consumers do not take risks! • Communication is not relevant. • No real reason for being.
- 41. •Innovators – Brave,, will “pull” and help communicate •Early Adpts – Opinion leaders, will try but careful •Early Majorty – Thoughtful, will accept change carefully. •Late Majorty – Skeptic, will try only after majority uses. •Laggards – CRITICAL about new ideas. Will accept only after mainstream.
- 42. Why Unique Ideas Fail to Test Well • Consumers do not take risks! • Communication is not relevant. • No real reason for being. Therefore: • Take pains to show relevancy, frame of reference • Root idea in an insight/reason for being
- 43. New Idea An innovative extension of Pop Tarts toaster pastry that would remove the top pastry layer, providing an ―open faced‖ more tasty filling experience. (Pop Tarts are a brand of flat, rectangular, pre-baked toaster pastries and have a sugary filling sealed inside two layers of thin pastry crust)
- 44. Product X A (Product X) that blows the lid off taste! We’ve blown the top off our signature crusts to make room for delicious toppings with amazing texture and tastes like chocolate brownie, oat clusters and yummy fruit. And because they’re toaster and oven friendly, they taste even better warm. Flavors: Fun Chips Chocolate Brownie Strawberry Oat Cluster Cherry Chocolate Cluster 44
- 45. What???? • No true insight (other than taste and that of course is a given for food) • No consistency on package design • No true benefits or RTB's- NOT relevant! • Not rooted in a reason for being
- 46. Introducing Product X Wholesome, sweet, bakery-inspired delights in an individually-wrapped toaster pastry. Sometimes, it’s the real ingredients you can see that are the most delicious. New Product X is the open-faced toaster pastry bursting with flavors that satisfy and start your day off right. Product X is individually-wrapped, and made without a top crust to allow more room for edge-to-edge goodness and premium ingredients like big pieces of yummy strawberry, sweet brown sugar, cinnamon, oats, and a touch of honey. They all come together with a taste that can’t be beat. Whether straight out of the box or warmed in the toaster, each bite is sure to brighten your morning every time. Available in the following varieties, in packs of 5 for $X: • Strawberry Crisp • Blueberry Crumble • Raspberry Chocolate Streusel
- 47. What
- 48. News is made…..November, 2009!
- 49. HUH??????
- 50. HUH????
- 51. WRONG TARGET…WRONG COMMUNICATION • Sell CFO’s, Plant Managers….NOT Engineers • Communicate Benefits….NOT Attributes!
- 54. Actions • Develop Communication Grid to make certain that the CORE IDEA is understood & RELEVANT to all Key Decision Makers. • Develop consumer research that uncovers INSIGHTS not misleading FACTS. • Do not be afraid to employ innovative testing methods more appropriate to the actual innovation and marketplace realities….Don’t be a slave to NORMS! • Constantly re-check to make 100% sure that what you think you are saying is what the respondent is understanding. • Double check all written, verbal and visual communications to consumers and make sure….in the end.. that what is ―delivered is what was ―tested.‖ • In case of failure…..re-check the communication!
- 55. In Conclusion…..
Editor's Notes
- #4: In fact, the importance and challenge of communication 9especially in iinnovation) is so obvious….and the fact that we disregard this so often makes it a big DUH. Look at how obvious this is!!!!!!!! We see tons and tons of jokes made about it.
- #7: The many jokes about communication betsween men and women….and remember there are men and women in our company teams and between our companies and our consumers.
- #8: And the boredom/ miscommunication between scientists/engineers, and others!
- #9: In fact, a big one pretty recently has been published…..this one actually sits in the office of a computer analyst friend of mine…..in fact his job is to try to make sure the technical and business departments understand each other….and he is ready to admit….they often don’t
- #14: More than 75% of comprehension comes from body language and tone in voice. Yet because of the need for speed, we are using more emails, twitters, texting. Words and abbreviations! Great for some stuff, deadly for others!