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YOUR INNOVATIONS
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
July 2018
• *Data from live polling of CPG executives at Consumer 360 North America, 2016. 2
HOWEVER, NOT ALL INNOVATIONS MEET
EXPECTATIONS
100%
2%
50 - 75%
14%
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
25 - 50%
18%
1 - 25%
39%
0%
27%
66%
“What percent of innovations met your expectation for growth last year?”; data from live polling of CPG executives at Consumer 360 North America, 2016. 3
WHY DOES INNOVATION SO OFTEN DISAPPOINT?
Lack of consistent performance across all three phases:
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
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THE FORMULA FOR SUCCESS: 3D INNOVATION
DISCOVER DEVELOP
a compelling proposition a winning execution
… to DELIVER
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
incremental
growth and share
DEPLOY
with excellent in-market activation
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SPECIFICS FOR WINNING IN ALL 3DS
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Be Better Give enough reason to believe Limit the battles
Meet the consumer needs Give consumers sufficient reason to
The product is free of
or wants in a way other believe you will deliver on your
Be Relevant
promises. detractors, like side effects,
Be relevant to products do not.
that prevent consumers using
consumer needs it.
and/or wants.
Be in the right places
This entails finding you in
the right outlet(s), in the
right section of the store,
Communicate with and on shelf.
focus
Convey your key selling
proposition in a single-
minded way, without
clutter.
Win the value
Land your message equation
Convey your key selling Price and other “costs”
message in a simple & discovered at the shelf
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Get noticed!
Stand out in
executional ways, Deliver on product
using the full promises
marketing mix to break Product performance
through clutter. exceeds consumer’s in-
going expectations
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Ability to pinpoint strengths & risks
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Success is not about doing one thing really well, but doing everything you need to do sufficiently
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EXTENDED AND GLOBAL EXPERIENCE
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
GREAT GLOBAL
EXPERIENCE CONSISTENCY
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NIELSEN INNOVATION MODELING PARADIGM
PROMOTION
DISTRIBUTION
PROMOTION
▪ Contribution by Channels
MARKETING
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
▪ TV GRPs
▪ Non-TV Advertising Spending
INTERESTED UNIVERSE
CONSUMER CLAIMS
OVERSTATEMENT ADJUSTMENT ▪ Purchase Intent
CONSUMER
▪ Purchase Unit
RESPONSE CONSUMER INTEREST ▪ Purchase Frequency
DATA ▪ Value Perception
▪ Product Performance (if available)
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ASSESS SIZE OPPORTUNITY AND ROI ON
DIFFERENT ACTIVATION
FORECASTING MULTIPLE
MARKETING PLAN SCENARIOS
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PIONEERING IN SALES FORECAST
EXTERNAL Our volumetric projection model is the 1st and only forecasting model in the industry to
RECOGNITION receive the endorsement of the Marketing Accountability Standards Board (MASB) audit.
2,000
“
forecast
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
”
demonstrated its leadership in transparency and helping
GLOBAL VALIDATION marketing and financial executives come together and
ACCURACY make confident investment decisions for their business.
500,000
forecasts Margaret (Meg) Blair, CEO of MASB
▪ Average forecast is within
delivered 9% of actual sales
▪ 9 out of 10 cases are within
20% of actual sales
Millions ▪ We can conduct forecasts
invested in 60 countries providing a
annually in consistent global way to
R&D evaluate all initiatives
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PRODUCT LIFE CYCLE
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
CREATIVE
IDEATION
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
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A NEW MINDSET TO THE INNOVATION PROCESS
NIELSEN OPTIMIZER
Expand potential through
collaboration and create even BASES II
a stronger proposition Validate
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
product and
assess LINE & NEW LAUNCH
SNAPSHOT size of the PRICE
ASSESSOR DESIGN
Assess launch readiness for prize OPTIMIZER
the initiatives and how to Assess which FRAMEWORK DIAGNOST
BIG BETS refine DESIGN initiatives will Track launches ICS
IDEA NAVIGATOR help to bring confidently and
Win
SCREEN Valide pack incrementality diagnose
design consumers
to the core performance
PLAN BASES SNAPSHOT and define for clear with the
Assess if worth investing II portfolio and actionability right POS
Validate price
product and architecture
BASES I assess
Validate Concept size of the
Viability and assess size of prize
QUICK WIN prize
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
SOLUTIONS
NIELSEN INNOVATION SOLUTIONS
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DISCOVER
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QUICK SCREEN
Compare and rank ideas overnight
WHEN
SHOULD IT BE USED?
Consumers see several sets of ideas, 4 ▪ Which ideas should I prioritize?
To screen and evaluate new ideas to alternatives at a time, and evaluate them on ▪ Which idea is the most unique?
know which ones to prioritize in a 2 critical dimensions validated to be the ▪ Which one is the most relevant?
fast and efficient way. most predictive of in-market performance: ▪ How do the ideas rank relative to one
another?
Need /Desire and Uniqueness.
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IDEA SCREEN
Prioritize ideas to move forward
WHEN
SHOULD IT BE USED?
Consumers are exposed to 5-6 ideas ▪ Which ideas should I prioritize?
To screen and evaluate new ideas to statements and are asked 4 Factors For ▪ Which idea is the most unique?
know which ones to prioritize and to SuccessTM* questions. Results are then ▪ Which one is the most relevant?
understand their market-readiness. compared to BASES database. ▪ What is the success potential of each
idea?
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NIELSEN OPTIMIZER
Identify bigger, better propositions from a broad creative space.
WHEN
SHOULD IT BE USED?
Consumers are shown 2 concepts and they ▪ What’s the best positioning of the many
possible options we could consider?
To optimize communication aiming to select the one they most prefer. As they make
▪ What are the chances of success of the
create a most successful concept when choices, evolutionary algorithms learn what optimized winning concept?
you have a lot of possibilities. they like and dislike to determine 3 Top ▪ What are the areas of strenghts and
Concepts. Then they are evaluated on opportunity for our optimized
proposition?
BASES Key Measures and 6 Factors for
SuccessTM* to get its probability of success.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs 26
LEVERAGE COLLABORATION TO INCREASE
CHANCES OF MAXIMIZING POTENTIAL
EXPLORATION with collaboration OPTIMIZATION through Evolutionary Algorythms
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
51% MILLION
35%
OPTIMIZED LAUNCHES
OPTIMIZED LAUNCHES
OPTIMIZED LAUNCHES
INDUSTRY AVG
INDUSTRY AVG
INDUSTRY AVG
19%
$7.9
MILLION
Nielsen compared success rates and revenue from product optimization initiatives for its clients against all other initiatives across the CPG industry. (Each initiative was compared to others in the same category.)
Only products launched between 2003 – 2011 in the U.S. with at least 2 years of revenue data on record were included. For products with more than 2 years of revenue data on record, only the first 2 years were
used.
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QUICK SCORECARD
An early screening tool to shortlist concepts quickly
WHEN
SHOULD IT BE USED?
Consumers are exposed to one concept ▪ What is the success potential of the
new initiative?
To test consumer adoption of new and are asked BASES Key Measures and ▪ Which communication route/option to
concepts propositions. 6 Factors For SuccessTM* questions. be taken ahead
Results are then compared to BASES
database.
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QUICK PREDICT / SNAPSHOT
An early understanding of your initiative’s market-readiness
WHEN
SHOULD IT BE USED?
Consumers are exposed to one or more ▪ What is the success potential of the
new initiative?
To test consumer adoption and concepts and are asked BASES Key
▪ What are the areas of strengths and
market-readiness of new concepts Measures, a short list of attributes and opportunities for the new
propositions. custom questions and 6 Factors For propositions?
SuccessTM* questions. Results are then ▪ What is the financial potential of the
new product?
compared to BASES database.
What is my product’s overall What is the financial potential? Are consumers recognizing my
performance? product’s attributes?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
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SNAPSHOT – DELIVERABLES EXAMPLE
What is my product’s overall What is the financial potential? Are consumers recognizing my
performance? product’s attributes?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
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BASES I
Assess and Optimize your mix before Product Development with robust diagnostics
volumetric potential.
WHEN
SHOULD IT BE USED?
Consumers are exposed to one concept and ▪ What is the success potential of the
new initiative?
To test consumer adoption and are asked BASES Key Measures, a list of
▪ How do consumers perceive the new
market-readiness of the new concepts attributes and custom questions with deep product? How do they will use it?
propositions. diagnostic to support the decisions and 10 ▪ What is the size of the opportunity of
Factors For SuccessTM* questions. Results the new product?
are then compared to BASES database. ▪ What is the volume opportunity in its
first & second year in market?
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs, Acceptable Downsides, Findability, Message Connection, Clear Concise Message 34
BASES I – DELIVERABLES EXAMPLE
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DEVELOP
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DESIGN NAVIGATOR
Evaluate designs for prioritization and generate insights for refinement
WHEN Consumers evaluate design concepts ▪ Which of my design concepts are most
SHOULD IT BE USED? preferred?
amongst competition on stand out,
▪ Do they pop against competitors and are
preference and brand fit. They also provide they easy to find?
To evaluate and/or optimize designs
feedback for refinement. ▪ Do they reinforce my brand and key
for priorization based on consumer
messages?
feedback and quantitative research.
▪ Which aspects of my design concepts do
consumers most / or least like? Why?
*No Factors For SuccessTM are provided for this solution 37
LEVERAGE COLLABORATION TO INCREASE
CHANCES OF MAXIMIZING POTENTIAL
EXPLORATION a lot of design possibilities OPTIMIZATION through Evolutionary Algorythms
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
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DESIGN NAVIGATOR – DELIVERABLES EXAMPLE
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SNAPSHOT II
A lighter read on concept & product performance
financial potential.
WHEN
SHOULD IT BE USED? Consumers are contacted door-to-door and exposed ▪ What is the success potential of the new
initiative?
to one concept and are asked BASES Key Measures,
▪ How do consumers consumed this new
To test concept adoption, product a short list of attributes and custom questions and 8 product? What is its acceptance?
performance and market-readiness of the Factors For SuccessTM* questions. They receive the ▪ Does your initiative has a concept-product
fit?
new product. product to test and are contacted a few days later to
▪ What is the financial potential of the new
get their product perceptions. Results are then product?
compared to BASES database.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs, Product Delivery, Product Loyalty 40
SNAPSHOT II – DELIVERABLES EXAMPLE
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
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BASES II
A deep read on concept & product performance
WHEN Consumers are contacted door-to-door and exposed ▪ What is the success potential of the new
SHOULD IT BE USED? initiative?
to one concept and are asked BASES Key Measures,
▪ How do consumers consumed this new
a list of attributes and custom questions with deep product? What is its acceptance?
To test concept adoption, product
diagnostic and 12 Factors For SuccessTM* questions. ▪ What is its strengths and weakness?
performance and market-readiness of the
They receive the product to test and are contacted a ▪ Does your initiative has a concept-product fit?
new product. Is there any opportunity for improvements?
few days later to get their product perceptions. Results
▪ What is the financial and volumetric potential
are then compared to BASES database. of the new product?
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs, Acceptable Downsides, Findability, Message Connection, Clear Concise Message,
Product Delivery, Product Loyalty 42
BASES II - DELIVERABLES EXAMPLE
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PRODUCT ADVISOR
To assess product performance when concept is ready or to re-test product after initial failure
product formulation)
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
WHEN
SHOULD IT BE USED? ▪ Does the product is now ready to be
Consumers are contacted door-to-door and
launched?
exposed to one concept and are asked BASES Key
▪ How do consumers consumed this new
To test product performance and adoption product? What is its acceptance?
Measures and a list of attributes. They receive the
when already done a Snapshot or BASES I ▪ Is there any opportunity for improvements?
product to test and are contacted a few days later
study before. ▪ Does product meet expectations?
to get their product perceptions, they are asked 2
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DEPLOY
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PRICE ADVISOR
Understand the price elasticity of your initiative
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LINE & PRICE OPTMIZER
Helps to maximize line, price and pack size strategies
WHEN
SHOULD IT BE USED? ▪ What is the most incremental innovations
Online, consumers choose between your new
(flavors, sizes and packs) to the current
offerings, current offerings and competitors’. porfolio?
To understand how to maximize your ▪ How does the new products cannibalizes each
Choice estimation techniques measure consumer
portfolio, identifying the best combination other and the current portfolio?
appeal, switching behavior and price / size
▪ What is the best price to maximize the volume,
of varieties, prices and pack sizes and the
elasticity. Simululation tool allows exploration of revenue and margin of the new initiatives and
incrementality of your launches. the whole line?
a wide range of line, price or pack mix scenarios.
▪ How should I adjust the price of my new
product if a new competitor enters in the
market in the future?
*No Factors For SuccessTM are provided for this solution 49
Simulated Shopping Experience
Using Nielsen’s interactive online interface, consumers choose between product concepts as if they were at a
store. Shelf sets are optimally designed to recreate expected in-market interactions and consumer trade off
decisions, leading to more accurate predictions.
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LINE & PRICE OPTIMIZER – DELIVERABLES EXAMPLE
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NEW LAUNCH ASSESSOR FRAMEWORK (NLAF)
Track launches confidently and diagnose performance for clear actionability
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*No Factors For SuccessTM are provided for this solution
NLAF – DELIVERABLES EXAMPLE
(Columns UPPERCASE letters - (PROPORTIONS) tested at the 95% confidence level - A/B.) 18
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Brand Imagery
Diagnostics on Ad liking
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PLAN BASES
Provides an initial understanding of likely sales potential, without extensive consumer testing.
WHEN
SHOULD IT BE USED? ▪ Is your static media (POS/shelves/OOH)
Respondents are recruited online/offline standing out and attracting shoppers?
Used to effectively and based on target criteria/study
systematically explore and evaluate requirements ▪ Does it communicate your brand effectively
a wide range of designs and POS and drive sales?
communication directly with Consumers evaluate visual design
consumers concepts on preference and brand fit. ▪ Which design option should be prioritized for
They then provide feedback for the right strategic messaging?
refinement.
*No Factors For SuccessTM are provided for this solution
▪ How should you further refine your designs?
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DESIGN DIAGNOSTICS – DELIVERABLES EXAMPLE
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
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RESTAGE
Understand if the Relaunch will be able to increase the appeal for the Current Proposition
the business objective *No database comparison on Factors For SuccessTM are provided for this solution. Only the Index in PI is compared to the database 57
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Himanshu Kadaskar
Innovation Business Partner
+91 09860369708
Himanshu.Kadaskar@nielsen.com
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