1. CPG INNOVATION FROM IDEATION TO AISLE: New Techniques for Staying Ahead of Consumer Trends
2. Justin Wheeler VP of Product Innovation Todays Speakers Phil Lempert The Supermarket Guru
3. INNOVATION TODAY: Why Dont We Innovate More?
4. 85% of new products fail1 85% of American household needs are filled with same 150 items2 Less than 3% of new CPG products exceed $50M first-year sales3 Nielsen 2015 Breakthrough Winners came from companies $25M to $90B4 Challenges of Launching New Products 1 Joan Schneider and Julie Hall, Why Most Product Launches Fail, Harvard Business Review, April 2011. 2 Ibid. 3 Ibid. 4 Taddy Hall and Rob Wengel, Nielsen Breakthrough Innovation Report, Nielsen, June 2015.
5. Recent Breakthroughs Source: Taddy Hall and Rob Wengel, Nielsen Breakthrough Innovation Report, Nielsen, June 2015. Susan Viamari, New Product Pacesetters: Key Cobblestones Along the Path to Growth, IRI, April 21, 2015.
6. Defining Innovation What Makes a Product Innovative? Sales performance? New category creation? Consumer interest? Cultural impact? Is It Time for a New Definition?
7. GETTING YOUR BEARINGS: The State of the CPG Industry
8. Consumer needs change and evolve The retail landscape is changing: smaller stores, more food service, fewer front ends Technology and social media are creating a new world for producing, buying and preparing foods, beverages and snacks What Were Looking at Now
9. The World Is Getting Smaller Size of stores will decrease dramatically in coming years Market consolidation as mergers and acquisitions continue The Online World Is Getting Bigger Amazon Prime will continue to gain traction with consumers and other e-commerce companies will follow suit 20% of Amazon Prime members who have purchased grocery products online expect to buy more in the future; 12% who currently do not expect to do so in the future5 25% of people globally already order products online for home delivery and more than half (55%) are willing to do so in the future6 Issues Impacting Innovation Today 5 Patrick Hadlockm Shankar Raja, et al., The Digital Future: A Game Plan for Consumer Packaged Goods, The Boston Consulting Group, April 22, 2014. 6 More Than Half of Global Consumers Are Willing to Buy Groceries Online, Nielsen, April 29, 2015.
10. The Shopper Experience Is Fragmented Traditional media consumption (television, radio, OOH) is lower with younger generations, while overall media consumption is up Engaging with customers online and product evangelists on social is critically important Younger Generations Are Changing Consumer Taste Millennials, and soon Gen Z, will be primary consumers Dollar share of CPG for Millennials to increase from 17% today to 29% in 2020; 40% of Millennials are multicultural7 7 Robert I. Tomei, The 2020 Shopper and What It Means for CPG Marketers, IRI, 27 June 2015 IRI. Issues Impacting Innovation Today
12. All mobile? More fresh? More artisan? More expensive? More delivered? What Will It Be Like in 2025?
13. A new type of food store that combines freshness, authenticity, prepared foods and on-site services (beer gardens, catering, nutritional guidance), becoming a hub for the community The Supermarket Opportunity Smaller Stores From 50,000 sq. ft. to 20,000 sq. ft. Less Assortment From 40,000 SKUs to 20,000 SKUs More Service Chefs, RDs, butchers, fishmongers and sommeliers
14. Grazing Golden Agers Smoked everything Fermented foods Craft foods Gen Z: the new chefs New nutrition labels Grocerants Instant delivery Trends to Watch
15. Connection, Conversation and Community Food raves Food trucks High college debt Low-paying jobs Living at home Generation child-free Millennials Are Passionate
16. The Future Cater to health and wellness Create a WOW experience Celebrate food, preparation and taste
17. CONFIRMING TRENDS: Supporting Observations with Data
18. CPG companies launch 25,000 new products each year How do you keep track of competitive launches and get ahead of trends? We have to go straight to the source and go in-context with consumers at the shelf Staying Ahead of Innovation
19. Our preferences arent stable We arent guided by consistent beliefs and rational thought Why Context Matters
20. Better Hindsight Better Insight Better Foresight The Value of In-Context
21. Crowdsourcing Insights via Mobile
22. Collects evaluations of new products from Instantly Mobile Army (~37,000+ shoppers daily) Incentivized participation (cash and contests) Alerts companies when and where products are launched and provides ongoing shopper sentiment Fully syndicated data set delivered via a SaaS interface with data API Real-Time Retail Insights Instantly Product Watch
23. How It Works Grocery, mass merchandiser, drug and C-stores are geofenced (US, UK) Consumers invited via mobile to go on a scavenger hunt Consumers find new products on shelf, take photos and answer a short survey Photos are coded and tagged for brand, product, price, category and attributes Clients access insights via live dashboard and email notifications Instantly Product Watch
24. Anatomy of a Product Watch Submission Brand Name Product Name Shelf/ Row Context Key Attributes Unit Size Promotion Price Retail Price Flavor/ Variety Information Gathered From Shopper Photos
25. Anatomy of a Product Watch Submission Additional Mobile App Data Store (brand) Store (location) Consumer demo UPC Date/time Full shelf photo (new) Additional Consumer Survey Data Purchase intent Value/price Salience (stand out) Augment/replace existing Brand fit/permission Shopping impact Leadership Success prediction
26. DATA-DRIVEN IDEATION: How to Prioritize New Ideas
27. Early-stage data on new ideas is critical to success With real consumer feedback, you can: Refine your number of concepts before next stage Eliminate gut decisions Better understand your target consumer Early-Stage Concept Testing
28. Instantly Concept Test Online tool for early-stage assessment of new product and promotion ideas Load new concepts and launch tests in under five minutes Collect insights from a nationally representative online or mobile audience of 300 Rank and compare concepts by key performance indicators, attributes and open-end responses Concept Testing Reimagined
29. Justin Wheeler VP of Product Innovation, Instantly firstname.lastname@example.org | (866) 872-4006 | www.instant.ly Questions? Phil Lempert The Supermarket Guru email@example.com | (310) 392-0448 | www.supermarketguru.com
30. References Hadlock, Patrick, Shankar Raja, et al., The Digital Future: A Game Plan for Consumer Packaged Goods, The Boston Consulting Group, April 22, 2014, https://www.bcgperspectives.com/content/articles/digital_economy_consumer_products_digital_futur e_game_plan_consumer_packaged_goods/?chapter=2 Hall, Taddy and Rob Wengel, Nielsen Breakthrough Innovation Report, Nielsen, June 2015, http://www.nielsen.com/us/en/solutions/capabilities/breakthrough-innovation1.html. Schneider, Joan and Julie Hall, Why Most Product Launches Fail, Harvard Business Review, April 2011, https://hbr.org/2011/04/why-most-product-launches-fail. Tomei, Robert I., The 2020 Shopper and What It Means for CPG Marketers, IRI, 27 June 2015 IRI, http://www.iriworldwide.com/insights/blog/May-2015/The-2020-Shopper-and-What-It-Means-for- CPG-Markete. Viamari, Susan, New Product Pacesetters: Key Cobblestones Along the Path to Growth, IRI, April 21, 2015, http://www.iriworldwide.com/IRI/media/IRI-Clients/NPP-April-2015-vFINAL2.pdf More Than Half of Global Consumers Are Willing to Buy Groceries Online, Nielsen, April 29, 2015, http://www.nielsen.com/us/en/press-room/2015/more-than-half-of-global-consumers-are-willing-to- buy-groceries-online.html.