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#SKIMwebinar Share your thoughts online: Abigail Joffre Today’s webinar host Carlo Borghi Project Manager Concept Testing Consider all the possibilities

Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

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Imagine you are working on a new product development concept, a new package design, or a new creative campaign. What if the best concept is one you never even considered? When there are endless design possibilities, numerous internal stakeholders, and a tight deadline, the shortest distance between two points is a straight line. That's why SKIM's new Dynamic Optimization tool goes straight to the consumer to identify the best concept out of thousands of possibilities. Our presenters shared how this research technique can be used to optimize new product concepts but also packaging designs, brochures, ads, etc. SKIM's Dynamic Optimization marks a definite improvement over current practice, dominated by experts opinions and research that only provides validation, as opposed to true discovery and optimization. For more information about SKIM's webinars, visit www.skimgroup.com/webinars.

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Page 1: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

#SKIMwebinar

Share your thoughts online:

Abigail Joffre

Today’s webinar host

Carlo Borghi

Project Manager

Concept Testing Consider all the possibilities

Page 2: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Imagine you have a new product…

2 SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 3: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Creating a package design that has impact at point of sale is partly …

- Catch the eye

- Make the brand stand out

- Position the product and informs the consumer

- Optimize the mix of elements

- Utilize the full potential of the creative

design template

3

ART

CRAFT

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 4: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Many variables can lead to a high number of possible combinations

4

Color Claim

Graphics

Logo’s

Product

Description

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 5: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

We developed a simple yet effective approach to quickly drill down a wide range of possible combinations

5

An immense

search space

of potential

package designs,

combining ART

and CRAFT

A convergent

procedure

involving

consumer

opinions

Recommended concept or set of concepts

+

Scores of levels

from the regression, indicating

their performance

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 6: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

• 11-points scale purchase intent

measurements for pack designs

• Collect set number of observations

• Run Regression

• Define new parameter space by

dropping bottom ranking levels

6

nth parameter space

Smaller, (n+1)th

parameter space

We systematically limit the parameter space throughout the search steps

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 7: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Nice, but does it work?

It works!

In theory, we identified the

optimal pack design using

simulated data

In practice, we improved the

current package design and

were as good or better than

expert opinions

7 SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 8: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

We tested the effectiveness of our approach for a hypothetical product in the pet care category

8 SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 9: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

9 SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 10: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

10

Benefit statement: 20 levels

Design: 4 levels

Cat picture: 15 levels Insect logo: 3 levels

Vet logo: 3 levels

Color: 5 levels

Chemicals: 2 levels

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 11: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Parameter space for a pet anti-parasite pack design

Attributes (7) Levels Nature

Package concept 4 Visual concepts

Pet picture 15 Pet pictures

Package color 5 Integrated in pack concepts

Claims 20 Text statements

List of chemical components 2 Present / absent

Icons 3 Present (2 versions) / absent

Vet only icon 3 Present (2 versions) / absent

# of possible combinations 108,000

11 SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 12: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

12

Loop 1

108,000 comb.

Respondents go through the survey to narrow down the packages to 18 combinations

Optimal

18 comb

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Loop 2

15,552 comb.

Loop 3

2,592 comb.

Loop 4

384 comb.

Possibility to

include clusters

Levels deleted

according to pre-

specified order

Page 13: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

13

In a consumer survey we tested if our solution is better

than 1) the current package and 2) the expert opinion

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 14: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

The experts selected their suggested winners from the full set of pack alternatives

14

Current Optimization outcome Experts

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 15: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Our design process has delivered a better pack design than the current package design

8.21

8.78

8.82

8.87

9.01

6 7 8 9 10 11

Current package (n=415)

4th best (n=96)

3rd best (n=67)

2nd best (n=91)

Best from algorithm (n=76)

15

Purchase intent rating (1-11 scale)

These variations

would also be

“good enough”

All differences versus

current package are

statistically significant

at a 95% CL

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 16: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Two experts are as good as the algorithm Although expert opinions are not always consistent

8.10

8.21

8.78

8.82

8.87

8.98

9.01

9.30

6 7 8 9 10 11

Expert A (n=61)

Current package (n=415)

4th best (n=96)

3rd best (n=67)

2nd best (n=91)

Expert C (n=61)

Best from algorithm (n=76)

Expert B (n=61)

16

Purchase intent rating (1-11 scale)

Difference not

significant @ 95%

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 17: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Outputs: identify the best concept(s) and potentially optimize further!

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 18: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Deliverables

18

1. An optimal concept (or group of concepts) with corresponding absolute

purchase intent scores

An Excel-based simulation tool where concepts can be built and their purchase intent

scores simulated

2. Understanding of which parameters drive preference: relative importance

of each of the tested variables

3. Add-on (optional): Understand the reasons for preference and identify

ways to improve the best concepts even further

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 19: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

The importance of elements are measured and insights can be gathered on the spot

19

Insect Logo

Chemical

Colour

Cat picture

Benefits

Importance of the attributes Open-ended feedback

SKIM Webinar “Concept Testing: Consider all the Possibilities”

3-in-1 flea killing product – kills,

cares, prevents

Tells me exactly what it does 35%

3 benefits in 1 21%

Cares for my pet 15%

“It tells me all the fleas will

be killed while being gentle

on my dear Fluffy ”

Page 20: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Clickable Concept: What elements are most appealing to consumers?

20

Winning Concept

Respondents click on the

parts they like the most

(highlighted in green)

Respondents then click on

the parts they dislike the

most (highlighted in red)

SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 21: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Conclusions

21 SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 22: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

Conclusion: we have an effective approach to identify an optimal package design

Advantages over other methods (e.g., conjoint analysis) are:

• Show one package concept per screen (less exhaustive for respondents)

• Can handle a very large parameter space with many attributes and many

levels

• Embedded validation: recommended concept was evaluated by many

respondents

• Can target questions to the best packages such as extra scores or details

through the “why” question

22 SKIM Webinar “Concept Testing: Consider all the Possibilities”

Page 23: Webinar Concept Testing: Consider all the possibilities with SKIM Dynamic Optimization

From pack designs to concepts, brochures, adcepts..

23 SKIM Webinar “Concept Testing: Consider all the Possibilities”

[Product name]

The new [product name] combines the best aspects of a Notebook and a Tablet. Thanks to its flexible designs with [substantiation 1] and [substantiation 2] is both [material benefit 1] and [material benefit 2]

Furthermore, the new Windows 8 [Win8 benefit]. This means that

[benefit 1 brought to life]. Imagine [scenario 1]: you would be able to

[benefit 2 brought to life]. The new [Product name] will deliver

[performance comparison with notebooks] with the [tablets benefit] of

tablets.