Core Observations

How to use research to choose winning product concepts

2009-04-13T14:44:00.000-07:00

Successful new products are generally more than the result of someone’s “gut feel”. While “lucky accidents” happen, companies that consistently win at the new products game go about it in a very disciplined manner, using their own PRIMARY research to:

· Understand high priority needs;
· Measure an idea versus other ideas they have considered.

In the 3 decades Core Strategies has been involved with new products, here are the 5 factors we have found to correlate with success:

1. Simple measures – There are only 4 consistently predictive measurements
a. Understandability
b. Differentiation
c. Purchase enthusiasm
d. Purchase interest in a price range

2. Benchmark – We routinely keep track of results and create benchmarks.

3. Control who you test with
a. Who is relevant to test among? Always test with them.
b. Keep track of any changes in your target definitions.

4. Test simple concepts
a. The simpler the concept, the truer the read.
b. Details are opportunities for consumer misunderstanding.
c. Pictures and videos are great. But be consistent.

5. Use both “average” and “polar” reactions
a. Track both the median or mean “score” on whatever scale you use.
b. But top and bottom scores reveal real “enthusiasm” and “aversion”
c. Use and track both measures

The Recession: Silver Lining For IP-TV

2009-03-01T11:43:00.000-08:00

Our clients have expressed a lot of interest lately on the consumer potential for IP-TV in the United States market. Top questions:

What do people want to do?
Who specifically wants to use IP-TV?
What is driving their desires?

Frankly, we were surprised at the accelerating demand we are seeing from our in-home ethnographies, web-based attitude measurement and survey research.

Top 4 Desired Activities

Watch favorite TV shows at work (on PC’s) or on smartphones/iPhones (Here's a cool YouTube video that shows you what people are doing)
Download movies from NetFlix, rather than go through the mail
Get specialty, ethnic programs not available on cable (without paying a lot)
Display on bigger screen TV at home

IP-TV Skews To . . .

22 to 35 year olds
Both male and female (with slight skew toward men)
PC and mobile phone technophiles
Urban, coastal areas

Underlying Drivers

Busy lives require shifting time and place of viewing
Recession pinching budgets for subscription services
Less money drives greater use of existing equipment (LCD TV, PC monitors, broadband)
Greater “buzz” and awareness of downloadable video services

Bottom Line: The recession seems to be providing “Silver Lining” for IP-TV adoption. 2009-10 could mark the inflection point on the adoption curve.

Winter of our discontent

2008-12-29T18:09:00.000-08:00

Welcome to the winter of our discontent.

We are poorer . . . have record pessimism and fear . . . yet are hopeful that the new breeze will invigorate us. This is what the latest research on consumer attitudes and expectations tells us. For all of us, these economic times mean a first-time trip DOWN Maslow’s Hierarchy of needs. For the last 60 years, developed country citizens have been travelling UP the pyramid. We have spent our time and money embracing social and spiritual values, distancing ourselves from the more primal needs.

Two recent data points illustrating the downshift: Gun sales have soared by 60% since the November election. More than half of America’s opera companies have cut or eliminated their season schedules since October.

MASLOW’S HIERARCHY OF NEEDS

Ironically, Abraham Maslow first created his Theory of Human Motivation in 1943. While it was characterized by global war, it was also a time of economic renewal. Americans were emerging from the Great Depression, and were able to look at meeting more than their basic needs for safety and survival. Once the war was won, people could turn toward expanding their personal and social horizons.

The technology and innovation brought to fruition from this explosion of human potential have defined our world and have created the American economic miracle. Do we REALLY think the last 60 years of growth are coming to an end? That somehow, we have peaked and the road only leads downward? We do not think so. Innovation is alive and well.

Consumers want the comfort of hope. They want to embrace the new, if it can be made affordable and understandable to them. As marketers, we need to use this time of turmoil to look beyond the derivative re-spin of old products . . . to true innovations that meet peoples’ needs up and down Maslow’s Hierarchy.

Have a very happy new year and prosperous 2009!

Extreme Observations

2008-12-23T11:36:00.000-08:00

It is no surprise to anyone that the current economic crisis dominates the conversations of everyone. Losing your job or losing half of your wealth merits more than a passing reflection.

But, I am surprised at how frequently people are describing the situation in extreme terms when it comes to the future of our economic system itself.

Over the past 4 weeks, I have talked to more than 200 people about the impact of the so-called "meltdown". At least one-third have made comments like:

It's the end of the financial system as we know it
We will see a new era of government-sponsored socialism
Government is nationalizing industry
It will all lead to Soviet and Chinese-style central planning
The middle class will evaporate completely
By exporting our manufacturing capability, we have lost our ability to create jobs in America
We will see Weimar Republic-style hyperinflation in 3 years as the government continues to print money with reckless abandon

I have not heard this level of extremism in my 30+ years in business.

What do YOU think? Is this really the end of capitalism as we know it? Or, is it simply a natural readjustment that comes from cyclicality? And, perhaps of greater importance, what should we doing differently about it?

MT