Group Influences and Diffusion

of Innovation!

Crest Whitestrips.

Cocaine Energy drink.

Consumer Reference Groups

• Environmental influences:FamilyFriendsCo-workersExpertsCompaniesCelebrities

Society’s influence on consumer

motivationsWESTERN CULTUREPeople with white teethviewed as being more:• Attractive• Confident• Trustworthy• And financially successful

SOUTHEAST ASIAN CULTURE

Women with bloody lips

and black teeth viewed

as being more:

• Beautiful

• Healthier

• Stronger

• Alert

Crest Whitestrips + Dentists

• Endorsed by dentists.

• Associated with celebrity; Ryan Seacrest through commercials.

• Made around $100 million in sales their first year – 2001.

• Product sold to over 14 million people worldwide since 2001.

Dynamically continuous innovation

• Procter and Gamble have significantly altered a process which once was done, uncomfortably and expensively at the dentist, but can now be done cheaply in the comfort of your own home!

Most products fail in first 2 years!

• Nine out of ten new products fail.

Common Reason:

• Company hasn’t understood the consumer decision making process and has failed to make or meet customer motivations.

• Key example: Cocaine.

Cocaine Energy Drink

• Banned by the FDA for inappropriate association to an illicit drug.

• Failed within 6 months.

• Associated with a substance which causes:“… untold death, family destruction, and corruption”.

Misunderstanding the ‘Energy Drink’

Consumer• Redbull successfully associated

itself with sports, health, and mental help for college exams – things their consumers were motivated to achieve and aspired too.

• Cocaine misunderstood it’s market by assuming a gimmicky brand would entice loyalty from customers.

• Not even retailers were prepared to risk association with Cocaine – 7-11 wouldn’t carry it.