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WAVE 5 INNOVATION: Looking “Inside Out” & “Outside In” to Change the Game October 14, 2013 Ralph Blessing, Executive VP, GfK Innovation

Market Research SIG: Research for Products that Don't Yet Exist

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Page 1: Market Research SIG: Research for Products that Don't Yet Exist

WAVE 5 INNOVATION: Looking “Inside Out” & “Outside In”

to Change the Game

October 14, 2013 Ralph Blessing, Executive VP, GfK Innovation

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What Are Category Disruptions You Admire??

(No Apple or Facebook Mentions)

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What were they thinking?

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What were they thinking?

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What were they thinking?

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What were they thinking?

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Some Disruptions…..

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“The things we fear most in organizations –fluctuations, disturbances, imbalances – are the primary sources of creativity.” ~ Margaret J. Wheatley

"The achievement of excellence can only occur if the organization promotes a culture of

creative dis-satisfaction.” ~ Lawrence Miller

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SERTA  versus  TEMPUR-­‐PEDIC    A  Case  Study  

CONFIDENTIAL

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•  Key Point of Difference is cooling gel – some consumers complain that memory foam gets too hot

•  Positioned as ‘next generation’ memory foam

•  Focus on in-store materials (very beautiful displays) and co-op advertising with retailers

•  Priced a few hundred dollars less than Tempur-Pedic

•  Branding emphasized iComfort vs. Serta

Key Serta iComfort Strategies

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Some iComfort Materials

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iComfort Launch

Tempur-Pedic Slow to Initially React

Tempur-Pedic Stock

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Agenda

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Can’t Rely On Risk Adverse, Short Term Thinking

Don't worry about people stealing your ideas. If your ideas are any good, you'll have to ram them down people's throats.

~ Howard Aiken

“If you're not failing every now and again, it's a sign you're not doing anything very innovative.” ~Woody Allen

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Wave 5 Innovation A Definition

Innovation that

BREAKS OUT of existing category definitions or paradigms:

Often borrowing news from other categories/services

Creating solutions for specific user groups and/or occasions

[ ] [ ]

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Wave 5 Creating new category definitions

Fusion of core with secondary needs

Fusion of core needs (ex. Taste + Health)

More advanced expressions of core needs

Meeting basic core needs

Wave 4

Wave 3

Wave 2

Wave 1

5 Waves of Innovation – All Are Important!

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Customer / Consumer Buy Benefits

Peace of mind that I, my loved ones and

the planet will be safe from harm.

Safety

Feeling good - emotionally, physically,

socially and financially.

Wellbeing

Enjoyment of a product or service; pride of ownership.

“I’m worth it.”

Gratification

Saving time, energy, or money frees us up

for other things.

Freedom

Customers are Driven by Four Overarching Motivators (Core Drivers)

Each core driver can be dimensionalized

The importance of each dimension/sub-dimension varies by category

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Key Principle – Evolving Needs

Looking at today's needs isn't good enough – you need a future projection

of what is going to emerge as a longer term need/ benefit space

Safety Wellbeing Gratification Freedom

Future needs evolving here

Current needs & messaging here

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Wave 1

Wave 2

Wave 3

Wave 4

Wave 5

Categories evolve in waves based on customer needs, with core needs being addressed before secondary needs

A Model of Need State Evolution

Basic Security Basic Freedom Basic Gratification

Basic Wellbeing

Advancing Dimensions of Security

Advancing Dimensions of Convenience

Category          Today  

Fusion  Opportunity  Tomorrow  

Disruptive!

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Wave 1

Wave 2

Wave 3

Wave 4

Wave 5

Fusion of Needs – Oral Care Whitening (Gratification) + Health (Well Being)

Basic Security Basic Freedom Basic Gratification

Basic Wellbeing

Advancing Dimensions of Security

Advancing Dimensions of Convenience

Well  Being  +  GraEficaEon  (enamel  health  +  whitening)  

Fu

sio

n

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Wave 1

Wave 2

Wave 3

Wave 4

Wave 5

Moving to Wave 5 New Category Definition

Basic Security Basic Freedom Basic Gratification

Basic Wellbeing

Advancing Dimensions of Security

Advancing Dimensions of Convenience

Well  Being  +  GraEficaEon  (enamel  health  +  whitening)  

Fu

sio

n

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Outside-In Perspective From Around the Globe

Patches, adhesives, kits, strips, professional care…

Tracking news across categories, countries and time identifies innovation that is being seeded with customers

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How did Coppertone find a disruptive innovation that significantly altered sun care?

The Approach in Action

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The Approach in Action

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What comes next?

15  30  

45  50  

90  100  

Sunscreen evolution driven by Well Being – higher and better SPF

???  

4  

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The Approach in Action

Secondary need states were overlooked; sunscreen was underdeveloped in the other drivers, particularly Convenience...

Hard  to  Reach   Messy  Hard  to  Apply   “Future Opportunity”

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The Approach in Action

Sun Protection

Looking “outside-in” for inspiration:

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The work enabled Coppertone to start a Continuous Spray category revolution

Easy application – spray at any angle, no-rub

Convenient twist to close – no cap to lose

On-going protection – waterproof & sweat proof

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Wishbone bought Salad Spritzers in 2006; Newman's Own and others soon followed with their own “spritzer” versions

2006

At the Right Time: Before its Time:

1988

Don’t Forget Timing

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Don’t Forget Timing

Avert Virucidal Tissues by Kleenex

Kleenex Anti-Viral Tissues

2004  

At the Right Time: Before its Time:

1984  

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2012    Tesla  

1961    Henney  Kilowa4    

(Failed;  no  interest)      

1913    Thomas  Edison  with  the  

Detroit  Electric  Car  

Don’t Forget Timing

The Electric Car Re-launch at the Right Time?

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1.  Standard approaches and modeling just don’t work very well

2.  We find you have to: -  Look at “Leading Edge Consumers” for the ‘category

-  Place more weight on uniqueness and less on believability or top box purchase interest

-  Often we test unpriced early in the development

-  Do NOT include super ‘finished’ visuals. May test via an animatic or video vs. 2-D board

-  Map through diagnostics where the idea is delivering on benefit framework – how strong is the communication of new/fused benefits

Testing of Ideas “That Don’t Exist”

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“Leading edge consumers are most likely to shape the future — those that are early buyers, who are passionate about the category, and/or influence others in the category”

We have found that this group of pioneers helps us predict the later direction of the majority.

Lessons from GfK’s Leading Edge Consumers The future is here, if you know where to look

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“My Spaces”

White Spaces

LINKING

KNOWING WHEN TO LAUNCH

TAPPING OUTSIDE INFLUENCES

OBSERVING CHANGING PATTERNS

IDENTIFYING PRIORITY CONSUMERS and Benefits

Connecting ALL the dots to provide FORESIGHT

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And, don’t forget our greatest tool of all…

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Closing Thoughts and Q & A

1.  Identify how evolved your category is today (through a customer/consumer lens)

2.  Look for categories / geographies / services that are more ‘evolved’ §  Go ‘outside in’ §  Identify what news is being seeded with customers

3.  Link potential emerging desired benefits with emerging technologies / news – this can require a very extensive search outside familiar areas

4.  Develop specific innovation strategic platforms that can guide innovation short and longer term �  Use as a springboard for ideation

5.  Ironically – seeking Wave 5 identifies better Wave 2-4 ideas!

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Wave  5  InnovaEon…  SomeEmes,  You    Have  to  Swing  For  The  Fences!  

"Security  is  mostly  a  supersEEon.  Life  is  either  a  daring  adventure  or  nothing."    

~  Helen  Keller  

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Thank You.

Ralph Blessing, Executive VP, GfK [email protected]