Managing Innovation with Innovative Research
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Brandheattm is a collaboration between marketers and researchers aimed at supporting innovative ideas through practical market research. The document details their methodologies, including various analytics and optimization tools like nab, branddelphi, and ideamap, that aid in understanding consumer behavior and enhancing brand experiences. It emphasizes the importance of packaging, emotional connections, and innovative data collection techniques to drive brand usage and consumer engagement.
Managing Innovation with Innovative Research
- 1. Igniting the Experiential Value Proposition
- 2. About UsBrandHeat™ is a collaboration between innovative marketers and market researchersSkuuber, LLCOptimization Group, Inc.Our mission is Intelligent Innovation--- supporting breakthrough ideas with breakthrough research, all the while grounded in practical market realitiesWe recognize and serve the need of clients to ignite a passionate enthusiasm behind their brands, products and ideas
- 5. Optimization Group is a marketing analytics firm that uses many advanced tools and techniques….Traditional and on-line focus groups
- 6. Traditional survey services (CATI and on-line)
- 8. Geographical Information Systems (GIS)
- 10. Data mining and modeling
- 11. Dashboard analyticsSkuuber, LLC is a marketing consultancy dedicated to mold-breaking innovation grounded in commercial realitiesProduct development
- 12. Branding & identity systems
- 16. Competitive response solutionsOur PeopleOur people come from two worlds:Technology“Automate and systematize complex data sets”Systems analystsProgrammersDatabase designersProcess engineersMarketing“Make data and analyses work in the real world”Marketing research & consultingCorporate brand managementAgency account serviceMarketing & media database (applications focus)
- 17. Some of our Clients
- 18. Our Global ExperienceUSCanadaBrazilMexicoUKFrance SpainPoland ItalyGermanyIndiaChinaAustraliaSouth KoreaJapan
- 19. Bio: Jeff Ewald26+ years research experience Founder and CEO of Optimization Group Product management and research experience with General Mills and Campbell’s Soup Consultant on Volumetric Forecasting to major CPG firm Research, account management and GM of J. Walter Thompson, Detroit B.A. in Music from Indiana University M.B.A. from The University of Michigan
- 20. Bio: Rick Hill30+ years consumer marketing leadership Founder & CEO Skuuber, LLC Brand management excellence with General Mills; PepsiCo/Pizza Hut; Popeyes; Barq’s, Inc.; TRIARC/Royal Crown; National Beverage Corp.; Hewlett-Packard Co.; SABMillerA.B. in Economics from Cornell University M.B.A. from Wharton Graduate Division, University of Pennsylvania
- 21. Select AwardsThe American Marketing Association Award for Advertising Effectiveness (“EFFIE”)PMA Super Reggie AwardAd Age Top 100 MarketerBRAMMY AwardCLIO FinalistAdvertising Research Foundation’s David Ogilvy Award for Research Excellence, 1994 AME International Award for Advertising and Marketing Effectiveness, 1995 ESOMAR’s John and Mary Goodyear Award for Best Paper Likely to Make an Impact in Marketing, 2001 Lawrence Technological University/Grant Thornton Leaders & Innovators Award, 2008Advertising Research Foundation’s David Ogilvy Award for Research Excellence, Grand Ogilvy Award, 2010
- 22. Select PublicationsMoskowitz, H.R., and Ewald, J. (2001). “Always On – Bringing market research down to the development engineer, closer to the customer, and into the vortex of product development.”” Proceedings of the ESOMAR Congress, Rome.(Received Gold Award for Best Paper Likely to Make an Impact in Marketing)Hartmann, J., Moskowitz and Ewald (2003). “From Multi-country Concept Testing/Optimization to Corporate Database and Beyond.” Global Cross Industry Forum. Moskowitz, H.R., Itty, Fink and Ewald (2003). “Deconstructing Automobile Messaging: Clues to Brand Strategy.” The Journal of Database Marketing, 10:3, pp. 200-218. Moskowitz, H.R., Itty and Ewald (2003). “Teens on the Internet – Commercial Applications of a Deconstructive Analysis of ‘Teen Zine’ Features.” Journal of Consumer Behaviour, 2:3, pp. 296 – 310. Moore, P., Moskowitz, Rabino and Ewald (2005), “’Quali-Quant’ Research at the Development Stage: Using Iterative, Small-Scale Conjoint Analysis to Explore/Refine Communications for a ‘New Age’ Car Dealer,” Innovative Marketing, 1:2, pp. 89-105.Beckley, J. Foley, Topp, Huang, Prinyawiwatul, ed. (2007). Accelerating New Food Product Design and Development. Blackwell Publishing. Contributing author: Ewald and Moskowitz, “Market Forces: The Push-Pull of Marketing and Advertising in the New Product Business,” pp. 103-122. Moskowitz, H.R., Saguay and Straus (2009). An Integrated Approach to New Food Product Development. CRC Press, Taylor and Francis Group. Contributing author: Ewald, “Chapter 22: Getting The Positioning Right: Advertising Planning.” pp. 387-399. Hill, Richard E (2011) “Why Traditional Concept Testing Doesn’t Work”. Ezinearticles.com.
- 24. The Product Eco System: tradeoffs & interdependencies define products and go-to-market strategiesBrand
- 25. Uniqueness
- 26. Value
- 27. Price
- 28. Size/Contents
- 29. Ingredients
- 30. Form factor
- 32. Performance
- 33. SubstitutabilityStrong brands are built by and tethered to iconic products Brands live and die at the product levelProduct usage is the brand experience --- and that experience defines the brandGreat brands are built by Great products…not the other way around
- 34. What mattersA brand is no more than the culmination of a user’s experience with it; directly or inferred; good and bad
- 35. Brands win because of what they ARE, not what they WERE
- 36. Yet, brands ARE different things to different consumers, just as they WERE different things
- 37. Nostalgia has a role, but seldom a defining one
- 38. Heritage, reputation and tradition are important differentiators, but must be used as stepping stones in evolutionary progress
- 39. Hyundai
- 40. Domino’s Pizza
- 41. ChevroletTurning up the heatThe best way to develop a brand is by understanding---and then driving---positive experiential uniqueness, cultural and emotional connections to certain enthusiastic consumers…and finding more like them Find the smoke & you find the fire
- 42. Choosing vs. UsingSimply encouraging purchase is not enough. The unfortunate curse that's befallen some brands is that they are "cupboard captives"--owned but not used.
- 43. Dr. Pepper’s “10, 2 & 4” Great brands create & drive new experiences with them.Arm & Hammer Baking SodaiPod > iPhone > iPadCheeriosToyota PriusStarbucksBest Buy Geek SquadCostco
- 44. UsingA series of studies showed homemakers a series of advertisements for canned soup, cranberry sauce, and gelatin.
- 45. The "choosing" soup ad touted soup as hot and nutritious;
- 46. the "using" ad described soup as a hot and nutritious option for a snack.
- 47. The "using" ads increased the amount used by an average of 73%
- 48. Positioning a brand as a substitute for products in other categories .
- 49. Encourage consumers to eat Philadelphia cream cheese instead of butter on bread; to eat Special K breakfast cereal instead of cookies in the afternoon; to serve Wheat Thins instead of potato chips and peanuts as a snackPackagingMore than a container; an integral part of the brand itself.A brand’s tangible selfThe conduit for usageA product in its own rightPackaging must promote usage; win the ease-of-use battle with competitors, be environmentally responsible.Size, resealable, portion control, reusability, green
- 50. Emotional ConnectionsThe most significant characteristics that separate one brand from another may not be the most obvious ones.
- 51. Understanding the deeper meanings of brands to the people who use them
- 52. Discovery of the underlying emotional, or higher-order, attributes of the Subject Brand is the gateway to discovering and enabling the experiential value proposition.
- 53. Good ideas become great ideas when they are stimulated, supported and sold-in by credible dataResearch is a process of discovery and enlightenment.The best use techniques that:Are themselves innovative & proprietaryStimulate advanced thinking/envelope-stretchingAre grounded in commercial realitiesOffer Go-to-Market insightConfidently support bold initiatives
- 54. Data Collection Challenges When you ask a rational persona rational question,you’ll get a rational answer.Key issues:Question framing Subconscious bias to helpSubconscious bias NOT to look stupidGroup think
- 55. Framing the QuestionTo understand a person, we are told to “listen”To gain a better understanding, we are told to ask questionsBut answering a question changes the relationship with the respondentMost of the time, respondents think “what types of answers will fit the question?” Therefore a question GUIDES (Frames) the answerCan’t find out answers to questions you don’t askIn closed-end surveys, you can’t get answers you haven’t pre-defined
- 56. Bias to “Help”The “classic” Def/prob question: Please indicate your interest (intent) in purchasing the above Cake Mix the next time you’re in the market for a cake mix. Definitely would buyProbably would buyNeutral (not sure)Probably would not buyDefinitely would not buy
- 57. Bias to “Help” Model calibration can adjust for overstatement … but only practical for select questions with dependent variable measuresWhat about the other questions?
- 58. “Cutting Edge” Data Collection Principles for both quantitative and qualitative approaches:Avoid asking “questions”Develop situations to measure responsesEngage respondents in scenariosPsychiatric interviewing techniquesAvoid “Group Think”Anchor individual opinions – engage in safe debateAvoid bias for Rational answersProjective techniques
- 59. Our tool kit for innovatorsIncreasingly granular levels of consumer insight made possible using a menu of options:NAB: Needs, Attitudes & BehaviorsbrandDelphi™: value proposition discoveryIdeaMap: value proposition optimizationGMAX: Go-to-Market variables optimizationSkuuber®: product optimization at the SKU level
- 60. NAB: Needs, Attitudes, BehaviorsA NAB study is a survey designed to uncover insights on three critical aspects of how consumers relate to a product: NEEDS: How does a product/brand fulfill against basic category needs? How does it fit into their life? What unmet needs may exist? ATTITUDES: What do consumers know and think about a product/brand? What perceptual and personality attributes are most closely associated with a brand? BEHAVIORS: How do consumers actually shop for and use the product/brand? Are there special types of usage situations? Is the brand pantry-loaded, or targeted for immediate consumption?Screening (N= 500-600 consumer users)Awareness and familiarity with a list of brandsQuota of n=150 for Subject Brand usersN=350 for other, competitive, sell-against brandsSubset N=100 of known priority targets (optional)
- 61. brandDelphi™ Value Proposition DiscoveryOnline idea generation tool which collects and analyzes consumers’ actual verbatim comments in response to thought-provoking scenarios. These scenarios will be crafted to elicit how consumers see Subject Brand’s total value proposition relative to key competitor brands. In addition, we will probe for unmet needs … what consumers would like to see as their Subject Brand category experience.
- 62. brandDelphi™ Value Proposition Discovery Study respondents will select and rate ideas generated by other participants; Scoring algorithms allow the most relevant and important ideas to be identified. The output from the brandDelphi™ study will be used to inform development of strategic, consumer-focused positioning alternatives, as well as to identify tactical opportunities for improvement of operations, merchandising, etc. as suggested by consumers.
- 63. IdeaMap® Value Proposition Optimization A methodology rooted in decision based conjoint…or trade-off… analysis. Unlike standard surveys, which ask respondents to answer questions and rate various attributes in the abstract, IdeaMap® presents a series of concepts (developed in a rigorous experimental design) to the respondent and measures a single reaction to each gestalt/whole concept. The method falls into a class of experiments known as Rule Developing Experimentation (RDE). IdeaMap®’s underlying experimental design permits conclusions of causality – not just simple correlation.
- 64. IdeaMap® Value Proposition Optimization Messages are typically framed into between 4 and 6 “categories” or groupings, testing alternative expressions for each category. Example categories follow:Brand namePositioningExperience descriptorsMerchandising ideas suggested from Phase 1Loyalty program attributesCall-to-action statements
- 65. IdeaMap® Value Proposition Optimization Two Outputs:1. The constant2. Element scores
- 66. IdeaMap® Value Proposition Optimization How to Read the DataThe constant is the percentage of consumers interested in the basic idea (based on top-3-box interest scores)The element scores: represent the extent to which a specific idea (sound bite, visual, etc.) adds or subtracts from interestConsumers are turned on by motivatorsConsumers are turned off by inhibitors
- 67. IdeaMap® Value Proposition Optimization What the Data DeliversWhich “Hot Buttons” optimize the value propositionUncovers what to say AND how to say itReveals basic level of interest in the basic idea (the constant score)Allows us to rank each contributing element according to its overall contribution to interest
- 68. GMAX: Go-to-Market variables optimization Compile data set of
- 69. Dependent variable (e.g. sales velocity, visits)
- 70. Independent variables (e.g. marketing spend, # skus, #displays)
- 71. Analyze:
- 72. Relationships between variables and dependent variable
- 73. Impact of factors on dependent variable
- 74. Looking for convergence – same findings/patterns found via different analyses
- 75. Develop/examine genetic programming models
- 76. ALL variables
- 77. Marketing activity variables only
- 78. Develop structural equation models
- 79. Integrating the learning into a “systems view” 40GMAX: Go-to-Market variables optimization Uses genetic computer programming to solve problems without being explicitly programmed. The computer applies hundreds of statistical techniques – building conclusions from those that are determined to have the “best fit”. In the explanation of genetic modeling above, we mentioned “unrelated sets of information”. Here’s a good example of what we mean – for a client with frequent product innovations, we were asked to analyze the effectiveness of launch marketing investment among direct mail, online adverting, catalogs, print advertising, and pricing. The datasets generally are not comparable. But by using GMAX, our Genetic Modeling tool, we are able to take the guesswork out of media innovation. We are able to conclude which combination of media would be the best investment
- 80. Skuuber®: product optimization at the SKU levelOverviewObjective demand certificationLike an SAT Score for consumer productsEvaluates concepts as executionsAvoids translation lossesPredictive modeling of initial retail salesSurvey 500 US GenPop consumers Demand modelingComprehensive diagnosticsDIY web application www.skuuber.com
- 81. Skuuber®: product optimization at the SKU levelDiagnostic deliverablesSkuuber Score™ projection of retail volume potential Household trial estimates: category users & non-users Price elasticity of demand Demographic trial intensities Channel management options Uniqueness ratings Price/value ratings Purchase driver ratings Needs-improvement ratings
- 82. Tool Kit ApplicationsNew product developmentNew services developmentNew business developmentBrandingPositioningCompetitive benchmarkingROMIMessagingGtM optimizationCategory developmentMarket sizingKey Success FactorsWhite Space IDValidation/Proof of ConceptMore…
- 83. BenefitsModular, adaptive methodologies to support all stages of innovation from conceptualization through actualizationDesigned to stimulate, not audit, the generation of ideasReflects how the market decides, not just how it thinksTakes a commercially practical viewBreaks big ideas into their most valuable componentsProvides support and confidence for breakthrough thinking
- 84. ContactRick Hill, Founder & CEO Skuuber, LLC877-823-7758Email rickhill@skuuber.comJeff Ewald, Founder & CEO Optimization Group248-459-1194Email jewald@optimizationgroup.com