Can You Change Your Innovation’s Destiny? NATURE VS. NURTURE

The Impact of Marketing on an Innovation's Personality

THE GREAT INNOVATION DEBATE Is an innovation’s destiny fixed from the start

or can skillful marketing nurture it to success?

“We do NO MARKET RESEARCH. And, I think we’re pretty good at having the right discipline to think through whether a lot of people are going to want it, too.” – Steve Jobs

NATURE

“…the people who buy and use P&G products are valued …as a rich source of INFORMATION AND DIRECTION.” – A.G. Lafley

NURTURE

What We Know Every Innovation Has Its Own Personality

Niche

Breakthrough

Me-Too

Winner

Decide how to market innovations

Understand innovations in a strategic context

Identify and prioritize ideas and concepts

SOME PERSONALITIES HAVE A BETTER CHANCE OF SUCCESS THAN OTHERS

Promising

Winner

Good Start

Underpriced

Inspiring

Breakthrough

Atypical

Handle with Care

Unconvincing

Restart

Overpriced

Depends on Strategy

Me-Too

Niche

Value

Premium

How do we uncover an innovation’s personality?

Share the idea or concept with consumers

Look at different combinations of ratings to form personality profiles

Ask consumers to rate the idea or concept

on key metrics

WINNER Volume well beyond fair marketplace share

BREAKTHROUGH Potential for (sub) category creation

IDEA #1 A dishwasher detergent that cleans your dishes and dishwasher at the same time.

Relevance STRONG

Differentiation STRONG

Believability WEAK

IDEA #2 A hybrid electric-petroleum car that is environmentally friendly.

NICHE Strong acceptance among a limited audience

BREAKTHROUGH Potential for (sub) category creation

Relevance WEAK

Differentiation STRONG

Believability STRONG

IDEA #3 A disposable cutting-board that you throw away after use to avoid food contamination.

RESTART Weak overall performance

UNCONVINCING Skepticism that product will fulfill need and deliver on promise

Relevance WEAK

Differentiation STRONG

Believability WEAK

OUR INNOVATIONS DON’T ALWAYS

HAVE THE PERSONALITIES

WE WANT

Will nature prevail?

Or, do we have the power to nurture it into a higher potential opportunity?

OUR INVESTIGATION: IS PERSONALITY CHANGE POSSIBLE?

Tracking Innovation Personalities from IDEAS CONCEPTS

IDEA = NATURE A single statement defining the innovation.

A dishwasher detergent that cleans your dishes and dishwasher at the same time.

CONCEPT = NURTURE The evolution of the idea that has been nurtured to include brand, price, emotional benefits, reasons to believe, etc.

IDEA PERSONALITIES

PROMISING

Winner

Good Start

INSPIRING

Breakthrough

Atypical

DEPENDS ON STRATEGY

Me-Too

Niche

HANDLE WITH CARE

Unconvincing

Restart

CONCEPT PERSONALITIES (TAKE INTO ACCOUNT EXPENSIVENESS)

PROMISING

Winner

Good Start

INSPIRING

Breakthrough

Atypical

DEPENDS ON STRATEGY

Me-Too

Niche

HANDLE WITH CARE

Unconvincing

Restart

Premium

Underpriced Value Overpriced

CASE STUDY 1: FAST FOOD RESTAURANT CHAIN

BUSINESS OBJECTIVE: Generate a mix of close-in, niche and farther out ideas for future development

IDEA SCREENING: Tested 54 sandwich ideas (different names, toppings and preparation)

BREAKTHROUGH

4%

ME-TOO

28%

UNCONVINCING

20%

RESTART

9% 23% Database

CASE STUDY 1: IDEA STAGE PERSONALITIES

6% Database 7% Database

14% Database

2

BREAKTHROUGH

2 BREAKTHROUGHS

IDEA STAGE CONCEPT STAGE

10

ME-TOO

15 ME-TOOS 3

RESTART

1

PREMIUM

1

WINNER

5

UNCONVINCING

11 UNCONVINCING 2

BREAKTHROUGH

2

UNDER-PRICED

1

RESTART

1

ATYPICAL

2

NICHE

5 RESTARTS 1

WINNER

1

VALUE

1

RESTART

Did Nature or Nurture Prevail?

Did Client #1 Nurture Its Ideas into Better Opportunities?

Not able to nurture Breakthroughs

Limited success in nurturing Me-Toos

Some success in nurturing Unconvincing

Better success in nurturing Restarts

CASE STUDY 2: CONFECTIONERY COMPANY

BUSINESS OBJECTIVE: Generate strong products with broad appeal including some breakthroughs

IDEA SCREENING: Tested 27 chocolate Ideas (different positionings, packaging, indulgence and sensory attributes, shapes and forms)

CASE STUDY 2: CONFECTIONERY COMPANY

BREAKTHROUGH

19%

ME-TOO

19%

RESTART

30%

7% Database

14% Database 23% Database

2

GOOD START

5 BREAKTHROUGHS 2 1

BREAKTHROUGH RESTART

IDEA STAGE CONCEPT STAGE

8 RESTARTS

ME-TOO

4

UNCONVINCING RESTART

1 3

5 ME-TOOS 1

WINNERS

1

PREMIUM ME-TOO

1

RESTART

2

Did Nature or Nurture Prevail?

Did Client #2 Nurture Its Ideas into Better Opportunities?

Some success in nurturing Breakthroughs

Good success in nurturing Me-Toos

Limited success in nurturing Restarts

IMPLICATIONS

Marketers may start with personalities that do not align with their strategy

Marketers have more success nurturing:

Breakthrough Ideas Good Starts or Winners

Me-Too Ideas Good Starts or Winners

Unconvincing Ideas Breakthroughs

Marketers differ in their commitment to nurturing innovations

Remember the first idea in our Personality Quiz?

A dishwasher detergent that cleans your dishes and dishwasher at the same time

$150 million in Year 1

Topped IRI 2014 Pacesetters List

NURTURE PREVAILED – MARKETERS ADDRESSED POTENTIAL BELIEVABILITY ISSUES AND INTRODUCED A WINNER

NATURE VS. NURTURE

Profile the personalities of

your innovation ideas

Determine the likelihood of nurturing your ideas into more

desirable personalities

Target the innovation personalities

that fit your strategy

NATURE AND NURTURE DRIVE AN INNOVATION’S DESTINY