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<ul><li>1.BRAND DEVELOPMENTArt OR Presented by:ScienceDavid G. Elliott B.A. (Lon) MBA Executive Management (Hull) MCIMCopyright and intellectual property of: www.dgeconsultancy.co.uk Copyright and intellectual property of: www.dgeconsultancy.co.uk</li></ul> <p>2. David G. Elliott Health and Beauty Marketingbackground: Reckitts, Seven Seas,Dumex. Consultant since 1994. Business &amp; Brand Development. Guest lecturer CIM, University of Hull.Open Innovation Reckitt Benckiser, GSK &amp; Boots.Copyright and intellectual property of: www.dgeconsultancy.co.uk 3. For the purpose ofthis talk focusing onNew ProductDevelopmentCopyright and intellectual property of: www.dgeconsultancy.co.uk 4. ArtThe use of skill and imagination inthe creation of aesthetic objects,environments, or experiences thatcan be shared with others. Encyclopdia BritannicaCopyright and intellectual property of: www.dgeconsultancy.co.uk 5. Truetheres lotsTechnologyof skill &amp;imagination inNPD Personal Care www.youtube.com/watch?v=9eVCFXxgn2MHousehold http://www.goodhousekeeping.com/pro duct-reviews/innovative-products- awards-2011#slide-1http://www.premiumbeautynews.com/en/boots-laboratories-launches-the,3924 Copyright and intellectual property of: www.dgeconsultancy.co.uk 6. ScienceA systematic enterprise that builds and organises knowledge in the form of testable explanations and predictions.Copyright and intellectual property of: www.dgeconsultancy.co.uk 7. If NPD is a science and is predictable why is itThe rate of introduction of 86% ofnew brands and brandextensions has fallen byNPD fails21 per cent, and theirsuccess rate has fallenfrom one in six to one inwithin oneseven. The window ofopportunity for success isalso getting narrower newyear.launches are peakingearlier.March 2012 Copyright and intellectual property of: www.dgeconsultancy.co.uk 8. ?What is that themanufacturers of the1 product out of 7that succeedsgetting right?Copyright and intellectual property of: www.dgeconsultancy.co.uk 9. AThey adopt or developa strategic approachto achieve a uniqueexpectation that isrelevant to their brand,the CONSUMER andthe SHOPPER.Copyright and intellectual property of: www.dgeconsultancy.co.uk 10. Stage-Gate Matrix ExampleProduct Innovation &amp;TechnologyStrategy for the Business Climate,Resources: Businesss NewCulture, Teams CommitmentProduct &amp; Leadership &amp; PortfolioPerformance ManagementIdea-to-Launchhttp://www.stage- System:gate.com/downloads/FoStage-Gate rmulafor_Success_in_New_Product_Development.pd Stage-Gate is a trademark off Product Development Institute Inc.Copyright and intellectual property of: www.dgeconsultancy.co.uk 11. Ansoffs Matrix PRODUCTSExistingNewSellingSelling NEW ExistingMORE of theMarketProduct products toSAME to thePenetration Development EXISTINGSAME types MARKETSof consumer customers Selling Selling NEW EXISTING Market products to New Diversificationproducts to DevelopmentNEWNEW typescustomers of consumerAnsoff, I.: Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5, Sep-Oct 1957, pp 113-124Copyright and intellectual property of: www.dgeconsultancy.co.uk 12. Ansoffs Matrix -PRODUCTS ExistingNewSelling Selling NEWExistingMORE of the MarketProduct products toSAME to the Penetration Development EXISTINGSAME typesMARKETSof consumercustomers Selling Selling NEW EXISTINGMarketproducts toNewDiversificationproducts toDevelopment NEWNEW typescustomers of consumerhttp://businesscasestudies.co.uk/beiersdorf/growing-a-business-by-developing-products-and-markets/conclusion.html Copyright and intellectual property of: www.dgeconsultancy.co.uk 13. Ansoffs Matrix - PRODUCTSExistingNewSellingSelling NEW ExistingMORE of theMarketProduct products toSAME to thePenetration Development EXISTINGSAME types MARKETSof consumer customers SellingSelling NEW EXISTING Marketproducts to New Diversificationproducts to Development NEWNEW types customers of consumer http://www.nurofen.co.uk/heritage.phpCopyright and intellectual property of: www.dgeconsultancy.co.uk 14. ? HOW?Copyright and intellectual property of: www.dgeconsultancy.co.uk 15. How?How?Cross-functional teamResearchR&amp;DLegalProduction Finance Cat-ManMarketingCreative Copyright and intellectual property of: www.dgeconsultancy.co.uk 16. How?How?Understand Your MarketCopyright and intellectual property of: www.dgeconsultancy.co.uk 17. How?How?Brand FootprintADULTSTRONGSPEEDPROBLEM SOLVING TARGETS PAINSCIENTIFIC PROVEN INNOVATIVEREASSURANCEEFFECTIVE RELIEFCOMFORTING SUPERIOR QUALITYINTELLIGENTTASTE FREE (Nurofen Brand Engram - Shopper Insights 2003) Copyright and intellectual property of: www.dgeconsultancy.co.uk 18. How? How?Technology Push Copyright and intellectual property of: www.dgeconsultancy.co.uk 19. How?How?ResearchGetting intothe mind oftheconsumerand shopper.Copyright and intellectual property of: www.dgeconsultancy.co.uk 20. How? How?ResearchThere are plenty ofconventional researchmethods but we are also atthe dawn of a new age:New technologies can now pinpoint moreprecisely which brain regions are active aspeople respond to products or make brandchoices or are exposed to advertisements.The neuroscience dream of being able topeer into the functioning brain has beenmade possible through technology.(2007 Dr. Max Sutherland Australian Neuromarketing Symposium)Copyright and intellectual property of: www.dgeconsultancy.co.uk 21. The Experiential consumerResearch Social ContextConsumers and shoppers are smart, sophisticated, promiscuous, dealconscious, cynical of marketing and advertising.2010s CHANGE CULTURE: Reviewing and changing our spending habits Full-time employment work hours grown from 40 to average to 47 hours (2011 Office of National Statics) TV viewing 25 hours per person per week but challenged by growth in on-line activity 1 in 3 Households own a computer and use it for 10 hours per week (imrg.org) YOY Increase in UK on-line purchasing 2009-10: 22%2010-11: 16%2011-12: 13% (imrg.org) UK debt family debt increased 48% 2011-2012 to 7,944 in unsecured borrowing (The Guardian: Jan 2012) Plan more: shopping lists growing (Shopper Insights:18% 2003 to 27% 2011) Price sensitivity / deal seeking or switching to deals increasing. Less loyalty to one brand, growth in repertoire purchasing or doing without. Frequency of grocery visits increasing. Most visit 3+ stores / retailers regularly. Average grocery shopping trip in UK down from 44 to 21 minutes. More health, eco and sustainability aware but product / service has to be affordable. Copyright and intellectual property of: www.dgeconsultancy.co.uk 22. ResearchConsumer Life-Stage &amp; EventsMaslows Hierarchy of Needs(original five-stage model) Life -events Self-actualisationpersonal growth and fulfilment43 prioritised andEsteem needsachievement, status, responsibility, reputationcommon lifeevents whichinfluenceBelongingness and Love needsconsumption and family, affection, relationships, work-group, etcshopping behaviour.Safety needs Holmes &amp; Rahe protection, security, order, law, limits, stability, etc.(Social readjustment Rating Scale)Biological and Physiological needs basic life needs air, food, drink, shelter, warmth, sex, sleep, etc. alan chapman 2001-4, based on Maslows Hierarchy of Needs.Copyright and intellectual property of: www.dgeconsultancy.co.uk 23. ResearchConsumer PyschographicsSince the 1950s classical marketing has profiled consumers by attitudes andbehaviours to quantify opportunity and target products and communication:AIO - Activities, Interests &amp; Opinions = Psychographics Demographics Demographics Lifestyle LifestyleConsumer BehaviourConsumer Behaviour Self-concept Self-concept Personality Personality Wells, W.D. (1975) Pyschographics: a critical review, Journal of Marketing Research 12 Mehotra, S and Well W.D. (1979) Pyschographics and buyer behaviour: theory and recent empirical findings, Consumer and Industrial Buying Behavior, 49-65.Copyright and intellectual property of: www.dgeconsultancy.co.uk 24. ResearchConsumer Motivations - Why We BuyPhysiological needsBuy products and services which allowconsumers to function in their day today lives: - Food - Housing - Transportation - Clothing - Information - Health Copyright and intellectual property of: www.dgeconsultancy.co.uk 25. Other motivations of experiential shoppers ResearchConsumer Motivations - Why We Buy FunctionalConsumers desirechoice becausebrands and productsplay roles in theirlives which are notjust physiologicalthey fulfilpsychologicalneeds.Copyright and intellectual property of: www.dgeconsultancy.co.uk 26. Experiential needs ResearchConsumer Motivations - Why We BuyExperiential Needs Products and services which areprimarily bought because of feelings theygive consumers.Holbrook and Hirschman (1982)The experiential aspects of consumption, Journal of Consumer Research 9 The experiential shopper has driven much of the recent expansion and development of retailing globally in the last 10 years.Copyright and intellectual property of: www.dgeconsultancy.co.uk 27. A few examples of experiential environmentsCosmetics Cafe Nike Running Track Copyright and intellectual property of: www.dgeconsultancy.co.ukHMV Music Stations Levis Shrink to Fit 28. Other motivations ResearchConsumer Motivations - Why We Buy SocialBrands, products or services that satisfy the need to affect or enhance a consumers relationship with other people.Solomon R (1983)The role of products as social stimuli, Journal of Consumer Research 9 Copyright and intellectual property of: www.dgeconsultancy.co.uk 29. Other motivationsResearchConsumer Motivations - Why We BuySymbolicPsychosocial need for consumersto express themselves throughthe products they buy, regardingpossessions as a part ofthemselves.Belk R W (1988) Copyright and intellectual property of:Possessions and the extended self, Journal of Consumer Research 14 www.dgeconsultancy.co.uk 30. Other motivations` ResearchConsumer Motivations - Why We BuyHedonicProducts consumed because oftheir sensory benefits.Hirschman and Holbrook(1982)Hedonic consumption, emerging concepts, methods and propositionsJournal of Marketing 46 Copyright and intellectual property of: www.dgeconsultancy.co.uk 31. Other motivations`ResearchConsumer Motivations - Why We BuyCognitive Products and services that satisfythe need to know.Copyright and intellectual property of: www.dgeconsultancy.co.uk 32. COMPLEXITYResearchShopper PsychologyRetailenvironments canbe immenselycomplex.The average shopper has tonavigate their way around thestore processing thousands ofproducts, promotions, signs, othershoppers and staff to find andselect the few products they want. Copyright and intellectual property of: www.dgeconsultancy.co.uk 33. ResearchShopper PsychologyShoppers are packfocused &amp; have developedlow attention cognitivestrategies to recognise,recall and pay attention toproducts of interestand make decisions.Copyright and intellectual property of: www.dgeconsultancy.co.uk 34. Research PROCESSING PACK DESIGNS Shopper PsychologySubconscious interaction1. Mnemonics: Shoppers look for UNIQUE visual clues in preference to words, often shape and colour.2. Visual Language: Look for use imagery or symbols in preference to words to illustrate a story. SUBCONSCIOUS PROCESSING OF PACKAGING DESIGN MINIMISES THE TIME AND EFFORT INVOLVED IN DECISION MAKING.www.dgeconsultancy.co.uk Copyright and intellectual property of: 35. Research Shopper PsychologyThey use core visual mnemonics (CVM) to triggerrecognition, recall &amp; decision-making. This is called theRecognition Heuristic. The CVM not only is arecognition tool it also provides reassurance. Nurofen In recognition and recall tests 94% of respondents recognised Nurofen from its core visual mnemonic (CVM).(Shopper Insights 2003)Copyright and intellectual property of: www.dgeconsultancy.co.uk 36. Research How?Shopper Psychology(Nurofen BrandEngram Research -Shopper Insights2003) ADULT STRONG SPEEDPROBLEM SOLVINGTARGETS PAINSCIENTIFICPROVENINNOVATIVEREASSURANCEEFFECTIVE RELIEF COMFORTINGSUPERIOR QUALITYINTELLIGENT TASTE FREECVM triggers Brand Engram... Copyright and intellectual property of: www.dgeconsultancy.co.uk 37. How? How?Channel or ChannelsCopyright and intellectual property of: www.dgeconsultancy.co.uk 38. How? How?Retailer NeedsRetailers are a market, just as consumers are. It is importantthey are considered at the START and not the end of theNPD process.Retailers see themselves as channels of DEVELOPMENT &amp;COMMUNICATION and as well as distribution.They have limited shelf space from which they mustmaximise profit if your new product takes space who is tobe delisted?Where is your product to be located?Retailers have there own customer profiles - who will buyyour new product? Copyright and intellectual property of: www.dgeconsultancy.co.uk 39. How?Timing Copyright and intellectual property of: www.dgeconsultancy.co.uk 40. ArtORScienceIf NPD is a SCIENCE of doing something NEW,then ART is in doing itwell! Copyright and intellectual property of: www.dgeconsultancy.co.uk 41. BRAND DEVELOPMENTArt ORScience Thank YouDavid G. Elliott B.A. (Lon) MBA Executive Management (Hull) MCIMCopyright and intellectual property of: www.dgeconsultancy.co.uk Copyright and intellectual property of: www.dgeconsultancy.co.uk </p>