Once upon a time, store brands were considered cheap, generic, inferior – what you would buy when you are on a budget or seeking a bargain. These days, that fairy tale is over. Store brands and private labels have become … Read More…
Articles Posted in CPG
In a nutshell, this article in my estimation describes the key problem that many manufacturers and retailers have encountered: They’ve forgotten the shopper. How could that happen? Isn’t that why they are in business?
It isn’t often that you see a sign like this: THIS IS VERY IMPORTANT. There’s a message that will stop you in your tracks and prompt you to read more. Many of us at Ipsos did, especially when we realized, with delight, that our colleague’s article was named as The Most Important Presentation at Esomar Congress.
Within CPG, the impact of so-called “daily deals” today really rests on their ability to impact traditional marketing drivers such as awareness, distribution, trial and repeat. At a minimum a service like Groupon can be used to launch new products, induce trial, and create another distribution channel. Beyond that, if these services can truly be made to be social (though such examples are few at this point), the value increases exponentially. So experiment now. But do start with an end objective in mind, like you would with any marketing initiative.
If a successful company like P&G – with a claimed 50% success rate for new products, versus an industry average of 15-20% – spends eight years developing Tide Pods, don’t our good ideas deserve just a bit more nurturing than we are giving them? A good idea, poorly executed, will fail – same as a poor idea, well executed. A successful concept requires both a good idea and proper execution. Success of this nature can absolutely happen on a deadline, but it’s less likely to happen if you procrastinate right up until the deadline.
As with the review website Metacritic, the static database problem runs rampant in Market Research, if you look for it – inherent in any rating where we ask people for a monadic evaluation without understanding current behavior and competitive context. Whether in CPG or other areas of life, the question isn’t whether you like something – it’s whether it would replace what you are currently doing. Next time you go to conduct a Market Research study, ask yourself these two questions. (1) Did I start by understanding current consumer behavior? (2) Did I force consumers to make a choice within a competitive context, by comparing to their current behavior? If the answer to either of these questions is “no,” you might end up with the Metacritic problem. Unless it turns out you truly do live in Lake Wobegon, and all your ideas are above average.
Pixar represents a company whose innovation process we should study and emulate within the CPG world. We should think about how their process works, and how they align with the way CPG companies operate. I’d argue within CPG we often take “relevant” and try to make it “different,” whereas Pixar takes different and tries to make it relevant. Same principles, different approach, better outcome.