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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Innovation Revelation: A New Model for Success

Vicki Gardner, SVP, Product Innovation Nielsen

Todays presenter
Vicki Gardner SVP, Product Innovation, Nielsen
Vicki Gardner serves as Senior Vice President, Product Innovation for Nielsen. Vicki is responsible for innovation services which include the BASES suite of services, for North America clients. Her role is to help Nielsens clients be more successful in selecting and marketing their new products. Vicki joined the organization in 1995 and has held positions of increasing responsibility in client consulting. In addition to working with a wide variety of CPG manufacturers in the US, Vicki has also lived in Belgium, providing innovation consulting in Europe, the Middle East & Africa. During her tenure with Nielsen, Vicki has also worked in Business Process Improvement, focusing on quality improvement and cycle time reduction for Nielsens Global Operations. She is a certified Master Black Belt. Vicki holds a Bachelors degree from Wittenberg University and a Masters degree from the University of Cincinnati.

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Our goal Improve odds of new product success

~50%

~10% 10%

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Our goal Improve odds of new product success

50% ~50% ~10%

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Our goal Improve odds of new product success

SUCCESS ~10% ~50%

Better advice and better decision making

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Our Innovation R&D had two goals:

1
Measure all that matters to consumer adoption

2
Focus on how these relate to success

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Original metrics still vital but they dont tell the whole story
successfully communicating? breaking through the clutter? being relevant? meeting a consumer need?
Traditional K ey Measure s

generating buzz?
Purchase In tent Liking Value Uniquenes s Units per P urchase Frequency of Purchase Performanc e versus Expectatio ns

having a competitive advantage? winning at first moment of truth? offering true innovation?
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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

One of the industrys largest R&D efforts of the decade

Identify

Measure

Predict

Success

Built a patented consumer adoption framework 20,000 concepts tested with framework 600 items tracked in-market to understand success
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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

12 key steps to consumer adoption

Advantage
Be better

Credibility
Give enough reason to believe

Need/ Desire
Be relevant

Acceptable Downsides

Limit the battles

Clear, Concise Message

Communicate with focus

Findability
Be in the right places

Message Connection
Land your message

Acceptable Costs
Win the value equation

Attention Catching
Get noticed

Product Delivery
Deliver on product promises

Distinct Proposition
Offer true innovation

Product Loyalty
Be strong in the long run

Nielsen BASES
Factors for Success

SUCCESS

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Successful new products stand out from the competition

Distinct proposition

Attention catching

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Successful new products communicate an understood, concise and persuasive message

Message connection

Clear and concise message

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Successful new products generate interest by providing a distinct solution

Need/Desire

Advantage

Credibility

Acceptable Downsides

13

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Successful new products convert attention to purchase

Findability

Acceptable Costs
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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Successful new products achieve lasting consumer adoption

Product Delivery

Product Loyalty
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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Our Innovation R&D had two goals:

1
Measure all that matters to consumer adoption

2
Focus on how these relate to success

16

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Grading performance against competition is not enough

Overall Purchase Intent* Liking Value Claimed Claimed Annual Units per Purchase Uniqueness Purchase** Frequency** 100% 80%

60% Average 40%

20% 0%

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Overall purchase intent represents a weighted combination of all five boxes of purchase intent. Copyright 2011 The Nielsen Company Confidential and proprietary ** Shown among consumers with positive purchase interest.

Innovation Revela

The key is linking performance to success for all 12 factors

Outstanding

Ready

Risky

Failure

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Example: Product Delivery factor for success versus in-market survival

Probability of Endurance Assuming Sufficient Support

Probability of two-year survival based on that new model for each decile of the product delivery measure in BASES Key Measures Database This modeling exercise was repeated for every success factor for each definition of success

Ready

Outstanding Ready Risky

Failure

1
Risky Ready Outstanding

Failure

port
0%ile

20%ile 40%ile 60%ile 80%ile Rank in BASES Key Measures Database

100%il

0.9

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

New model of success the world is no longer in fifths

Old

All measures 100%ile

Above average

80%ile
Somewhat above average

Ready Risky

60%ile
Average

40%ile
Somewhat below average

20%ile
Below average

0%ile

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

New model of success the world is no longer in fifths

Future: Initiative performance linked to success
Old

New
Rank in BASES Key Measures Database 100%ile Outstanding Ready Risky Failure

All measures
Above average

80%ile
Somewhat above average

60%ile
Average

40%ile
Somewhat below average

20%ile
Below average

0%ile

Distinct Proposition

21
Need/ Desire Credibility Product Delivery

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

You are only as strong as your weakest link

Overall success is heavily driven by the weakest link
In-market success is not about doing one thing really, really well Rather, it is about doing everything you need to do well

Guidance is then given around how and where to improve if not yet ready

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Understand probability of success

OUTSTANDING
Attention Catching

READY
Distinct Proposition Message Connection Clear, Concise Message Advantage Credibility Acceptable Downsides Acceptable Costs Product Delivery Product Loyalty

RISKY
Need/Desire

FAILURE
Findability

Overall Probability of Success

30
Failure

23

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Understand probability of success

OUTSTANDING
Attention Catching

OUTSTANDING
Distinct Proposition Need/Desire

READY
Distinct Proposition Message Connection Clear, Concise Message Advantage Credibility Acceptable Downsides Acceptable Costs Product Delivery Product Loyalty

READY
Attention Catching Message Connection Clear, Concise Message Advantage Credibility Acceptable Downsides Findability Acceptable Costs Product Delivery Product Loyalty

RISKY
Need/Desire

RISKY

FAILURE
Findability

FAILURE

Overall Probability of Success

30
Failure

Overall Probability of Success

24 Ready

70

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Consistent throughout phases of new product evaluation

Idea Snapshot Screening
Distinct Proposition Attention Catching Message Connection Clear, Concise Message Need/Desire Advantage Credibility Acceptable Downsides Findability Acceptable Costs Product Delivery Product Loyalty

PreBASES

BASES I

BASES II

Product Advisor

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Early examples

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

The old way: Not always a clear story

Pre-Use Performance
Database Ranking** Sample of Consumers Overall Purchase Intent (%) Definitely Would Buy Probably Would Buy Definitely or Probably Would Buy Might or Might Not Buy Probably Would Not Buy Definitely Would Not Buy Liking Value Uniqueness Favorable Consumers Claimed Trial Units Claimed Trial Frequency (770) 80-100% 34 30 65 21 10 4 4.6 3.5 4.1 (498) 1.8 18.3 80-100% 60-79%

Post-Use Performance

80-100% 40-59% 80-100%

Key Diagnostic Recommendation:

Mitigate store location confusion issues

BASES CVI:

73

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Key Issue: Findability

BASES Success Factors

The New Way: Focused and Actionable

OUTSTANDING
Distinct Proposition Attention Catching Product Delivery

READY
Internalized Message Clear, Concise Message Advantage Credibility Acceptable Downsides Acceptable Costs

RISKY
Need/Desire Product Loyalty

FAILURE
Findability

PROBABILITY OF SUCCESS

47 28
Risky

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Findability failure
Driven by confusion over location with the store Despite clearly stating the location in the concept, one-third of consumers would look in the wrong place Products that are not easily found risk low SKU velocity and removal from store shelves Beware repeat findability when bought on display Key actions: - Communicate shelving within copy - Leverage floor graphics or shelf talkers

ready
y risk

e lur fai

Consumers can easily find your product.. This entails finding you in the right outlet(s), in the right section of the store, and on-shelf.

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Scenario modeling helps clients understand the upside

ree. Current Product Loyalty Findability Need/Desire Probability of Success Risky Failure Risky 47 Scenario 1 Ready Failure Risky 49 Scenario 2 Ready Ready Risky 58 Scenario 3 Ready Ready Ready 76 30

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Ready for launch

Nielsen BASES Factors for Success

OUTSTANDING
Attention Catching Advantage Product Delivery Product Loyalty

READY
Distinct Proposition Internalized Message Clear, Concise Message Need/Desire Credibility Acceptable Downsides Findability Acceptable Costs

RISKY

FAILURE

PROBABILITY OF SUCCESS

87
Ready

31

Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Attention-catching outstanding
Use this strength to your advantage in executing marketing elements in a more efficient manner
outstanding

re a
risky

dy

Demand copy that breaks through the clutter Expect higher related recall scores

l fai

u re

Stand out in executional ways, using the full marketing mix to break through clutter.

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

What are our pilot clients saying?

Barry Calpino, Vice President, Innovation, Kraft Foods North America.

We feel Nielsens new method gives us a much richer and more indepth assessment of our initiatives. And importantly, its designed to suit the needs and realities of being an innovation project leader the person who uses the tool to help make our ideas bigger and better when we go to market.

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Taking this a step further

The next step is working with clients to:
Help set action standards based on the new lens of success

Examine by manufacturer where strengths and weaknesses are:

Analysis by brand and category may point to key areas of strengths or weaknesses.

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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary

Q&A Thank you for attending.

If you have follow-up questions or want more information, please contact your Nielsen Professional Services Representative. If you are not a current Nielsen client, please contact us by phone or email: Phone: 800-553-3727 email: CPGSolutions@nielsen.com OR if you have any questions regarding the content of this webinar, you can also contact: Vicki Gardner, email vicki.gardner@nielsen.com
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Innovation Revela
Copyright 2011 The Nielsen Company Confidential and proprietary