Dave Siegel - Innovation Myth #4

Myth

Great Ideas Sell Themselves

DISREGARDS one of the UNDERLYING HINDRANCES of innovation!

Fact

Disregards Underlying Hindrances

Many times the reason behind a new product’s failure lies NOT in the idea itself!

Poor communication both INSIDE a company and/or BETWEEN the company and its consumer is oftentimes the culprit!

Reality

Poor communication internally results in companies not going forward with potentially great innovations.

Poor communication in concept tests results in great innovations receiving poor test results.

Poor communication in advertising/packaging results in great innovations that tested well….ultimately failing in the marketplace!

Reality

DUH !

DUH !

DUH!

Communication is difficult!

Understanding WITHIN a company is greatly biased by:

• EXPERIENCES• INTERESTS & NEEDS• PHYSIOLOGY

We see things not as THEY are but as WE are!

Time is NOT on our side!

Faster communication can cause more misconceptions—no body languagevoice tone!

Innovation communication is

even MORE difficult!• The newer or more unusual something is….the

harder it is to understand.

• People (whether inside company or consumers) do NOT like to take risks. – Nay saying is common.– Workers are busy enough without having to take on

something new!

Innovation communication is

even MORE difficult!• Many different people and departments within

a company are involved in developing and launching innovations.

• Our business world is ruled by NORMS, Procedures—THE PAST! Yet Innovation is in the NOW and FUTURE.

Who needs to be “sold?”

IDEA

BOSS/CEO

ENGINEERING/R&DMARKETING

DISTRIBUTORS RETAILERS

PACKAGING/ADVERTISING

FINANCE

CONSUMER

What they want to know?

• R&D/Engineering ………………..”How does it work?”

• Marketing………………………..” What does it do?”

• Retailers and Consumers………..”What benefit does it

have for ME?”

My Mistake

My Mistake

What do they need?

• R&D/Engineering – What’s the problem, the parameters. How does it work?

• Marketing – What’s it do? What’s the benefit.

• Brand – Make it turn-key. How am I going to get it done?

• Finance- Make it profitable, reasonable investment.

• Management/Boss- Fit with company (my personal need?)

What do they need?

• Owners/CEO- Fit with company objectives and vision.

• Distributors/Sales – What’s in it for retailer? Quota’s?

• Retailers-Will it grow my category? Increase Profits?

• Communications Agency/Package Designers - What’s the KEY selling proposition?

• Customers- What’s the benefit to me?

Who What NeededWhat to Tell

Marketing Make Job EasyWhat will be delivered

Make me a hero Volume estimates

Cost & Timing Cost & Timing

Fit with Brand Brand Rationale

Communication Grid

And… Communicating WITH the Consumer???

• Marketers know the importance of “impulse” buying yet they require consumers to be “logical” in research.

• Consumers don’t really know what they want or why they do things.

• When “testing” we are wedded to NORMS and PROCEDURES anchored in the PAST

What did they want?

Market-Focused Innovation

What did they want?

Market-Focused Innovation

What did they want?

Market-Focused Innovation

Focus Groups

Traditional Concept Testing

And… Communicating TO the Consumer???

• People see the same thing…..differently!

• Customers buy the SIZZLE not the STEAK!

• Customers do not know what you know!

• BASES new product testing cites communication breakdown as the #2 reason for product failure!

What do you see?

What did they see?

1988 Game of YearThe Sizzle!

#1 Leisure Product in the WorldThe Sizzle!

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CONCEPT

PERT PLUS Day Off

Daily washing of your hair is not only time-consuming, it can cause excessive dryness and strip the strands of critical nutrients.

That’s why we created PERT PLUS Day Off: a 2-in-1 shampoo plus nourishing conditioner specially designed to be used every other day. Not only will you save time with less shampooing, you will be giving your hair the optimum care and rest it needs.

P4

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HUH????

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COMMUNICATION – A shampoo that allows one to only have to shampoo every other day.

Men:•Confused….probably at least partly caused by men not understanding the need for this whatsoever.•Name means pest control.

Women:•Day Off = Bug Spray•Confusion on when to use the product—”Daily use optional” is not understood•Like the wording of Less Hair Stress•Seems like a dry shampoo•Very masculine and unappealing package

What did THEY know?

What did THEY know?

Why Unique Ideas Fail to Test Well

• Consumers do not take risks!• Communication is not relevant.• No real reason for being.

•Innovators – Brave,, will “pull” and help communicate•Early Adpts – Opinion leaders, will try but careful•Early Majorty – Thoughtful, will accept change carefully.•Late Majorty – Skeptic, will try only after majority uses.•Laggards – CRITICAL about new ideas. Will accept only after mainstream.

Why Unique Ideas Fail to Test Well

• Consumers do not take risks!• Communication is not relevant.• No real reason for being.

Therefore:• Take pains to show relevancy, frame of

reference• Root idea in an insight/reason for being

New Idea

An innovative extension of Pop Tarts toaster pastry that would remove the top pastry layer, providing an “open faced” more tasty filling experience.

(Pop Tarts are a brand of flat, rectangular, pre-baked toaster pastries

and have a sugary filling sealed inside two layers of thin pastry crust)

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Product X

A (Product X) that blows the lid off taste!

We’ve blown the top off our signature crusts to make room for delicious toppings with amazing texture and tastes like chocolate brownie, oat clusters and yummy fruit. And because they’re toaster and oven friendly, they taste even better warm.

Flavors:Fun ChipsChocolate BrownieStrawberry Oat ClusterCherry Chocolate Cluster

• No true insight (other than taste and that of course is a given for food)

• No consistency on package design• No true benefits or RTB's- NOT relevant!• Not rooted in a reason for being

What????

Sometimes, it’s the real ingredients you can see that are the most delicious. New Product X is the open-faced toaster pastry bursting with flavors that satisfy and start your day off right.

Product X is individually-wrapped, and made without a top crust to allow more room for edge-to-edge goodness and premium ingredients like big pieces of yummy strawberry, sweet brown sugar, cinnamon, oats, and a touch of honey. They all come together with a taste that can’t be beat. Whether straight out of the box or warmed in the toaster, each

bite is sure to brighten your morning every time.

Available in the following varieties, in packs of 5 for $X:• Strawberry Crisp

• Blueberry Crumble• Raspberry Chocolate Streusel

Introducing Product XWholesome, sweet, bakery-inspired delights in an individually-wrapped toaster pastry.

What

News is made…..November, 2009!

HUH??????

HUH????

WRONG TARGET…WRONG COMMUNICATION

• Sell CFO’s, Plant Managers….NOT Engineers• Communicate Benefits….NOT Attributes!

• Develop Communication Grid to make certain that the CORE IDEA is understood & RELEVANT to all Key Decision Makers.

• Develop consumer research that uncovers INSIGHTS not misleading FACTS.

• Do not be afraid to employ innovative testing methods more appropriate to the actual innovation and marketplace realities….Don’t be a slave to NORMS!

• Constantly re-check to make 100% sure that what you think you are saying is what the respondent is understanding.

• Double check all written, verbal and visual communications to consumers and make sure….in the end.. that what is “delivered is what was “tested.”

• In case of failure…..re-check the communication!

Actions

In Conclusion…..

THANKS!

Dave SiegelTinkThank Innovationdsiegel@tinkthankinnovation.com