Digital Living Room- Innovation in the Age of Sameness
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The document discusses innovation challenges in a marketplace characterized by sameness, particularly in consumer electronics. It outlines tools for predicting market potential and optimizing product launches using various simulation techniques to assess consumer appeal and differentiation. Key strategies include considering brand personality, consumer perception, and the importance of creating buzz alongside advertising to drive purchase intent.
Digital Living Room- Innovation in the Age of Sameness
- 1. Innovation in the Age of Sameness Developing the Next Winner December, 2011 Predicting market potential for business initiatives, with 20+ years validated history Nobody’s Unpredictable
- 2. Ipsos Vantis’ Innovation Focus Predicting Market Potential for business initiatives, with 20+ years of validated history Identify winning initiatives Optimize & simulate launch scenarios A suite of powerful, fast, and affordable A suite of customizable forecasting tools services to help you identify winning for optimizing price, features, product initiatives early in development by design, and marketing. Used for modeling assessing their true market potential. new products, portfolios, and categories. Predict market potential Forecast units, revenues, profits Prioritize features, ideas, & concepts Feature simulation Define the consumer target Pricing simulation Measure the strength of the message Product & Prototype Design simulation Identify key/motivating phrases in the Measure Incrementality vs. message Cannibalization Measure buzz potential Competitive war-gaming Marketing plan simulation 2 © 2011 Ipsos
- 3. How Do Brands Differentiate When… - Every TV is a Smart TV? - Every phone a smart phone? - Every tablet does basically the same thing? - Every music/entertainment service delivers a similar experience? Most Digital Living Room Offerings Illustrate a Degree of “Sameness” 3 © 2011 Ipsos
- 4. How Do You Compete When… Apple is more associated with “innovation” than any other brand 56% 29% 22% 19% 18% 15% 14% 13% Source: Ipsos Vantis Innovation Index Q4 2011 Tie 12% N = 1,014 Q. Which three consumer electronics products and services brands do you associate with being the most 11% innovative today? 4 © 2011 Ipsos
- 5. Development, Measurement, and Marketing is Hard! Illustrative example- Tablet launch example Hypothetical data 5 © 2011 Ipsos
- 6. “Share, Revenue, and Profit are Tradeoffs” Illustrative example- Tablet launch example Hypothetical data 6 © 2011 Ipsos
- 7. Every New DLR Offering Starts Out as an Idea/Concept 3D TV XBOX Kinect Android Smartphone Dish Network TV EverywhereTM 7 © 2011 Ipsos
- 8. Today, Purchase Intent is Really Driven By Many Factors Seek Information Consumer need drives appeal Intent to Purchase Consumer appeal + value perceptions drive purchasing Intensity of Liking Price/Value Consumer But purchase intent is Purchase not high if other Uniqueness Intent measures also not strong. Believability Need Fulfillment 8 © 2011 Ipsos
- 9. Start Thinking About Your Next DLR Idea as a “Personality” Look for patterns or “archetypes” in key measures vs. simply looking for “high scores.” Top Winner performer Under-priced archetypes Good concept Breakthrough Over-priced Niche/targeted Potential future hit Middle Me too ? Performer archetypes For Want Value Average Too premium Atypical Value resistant Skeptical Unbelievable Commodity Unconvincing Caught in middle Branding Poor performer Dog archetypes 9 © 2011 Ipsos
- 10. Design Digital Living Room Offerings To Stand Out Market Success Scores Hulu Ultraviolet DISH TVEverywhere Spotify Xbox 360 Kinect iPad 2 Vizio XVT TVs Apple TV Nintendo 3DS Sony Reader 0 50 100 150 200 10 © 2011 Ipsos
- 11. And Creating Buzz is as Important as Advertising 180 Boxee Box iPad 2 160 Xbox 360 Kinect PS3 Motion Ctrlr Message Power Score 140 Nintendo 3DS 120 Best Buy Buy Back Spotify Google TV Apple TV 100 DISH TVEverywhere Ultraviolet 3D Blu-ray Player VIERA Cast Tab PSP2 Sony Reader 80 FloTV Hulu Plus 60 iBig Box 40 20 20 40 60 80 100 120 140 160 Buzz Power Score 11 © 2011 Ipsos
- 12. Thank You! Randy Giusto, SVP, Innovation Research 508.254.7975 [email protected] @IpsosVantis @randygiusto www.innovationpov.com