Transcript Document 7372069

presents:
NEW PRODUCT DEVELOPMENT
BASED ON THE MIND GENOMICS OF
FLAVORS
Kantha Shelke, Ph.D.
MARCH 1, 2012
Hyatt Regency O’Hare Hotel
CHICAGO IL
MIND GENOMICS
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The science of needs /
wants/ communication
of everyday life
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Experimentation to
create winners
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A system that uses
targeting science …the
right product for the
right person
IMPLICATIONS FOR STORE BRANDS
FLAVORS
• Packaging can get you a purchase
• Flavor can get you REPEAT purchase
FRAGRANCES
• The REASON (after functionality) why
someone chooses your product
• Fragrances CONVEY functionality (e.g. my
hair smells clean!)
Source: Jeb Allured, Perfumer & Flavorist
PROVEN SUCCESS IN RETAIL
YOU CAN MAKE BETTER PRODUCTS…
FAR BETTER PRODUCTS
AT LOWER COST
FASTER
MIND GENOMICS APPLIES TO ANY NEW PRODUCT
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DISCLOSURES & SOURCES
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Not affiliated with any
of the companies
mentioned in today’s
presentation
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No confidential or
proprietary information
included
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Moskowitz Jacobs Inc
SB & B Research
Perfumer & Flavorist
Listservs
Editorial duties
Corvus Blue insights
KEY TAKE AWAYS
• Buyers do not always know or cannot always
express what they want
• Buyers can tell you what they want when
they see it, touch it or taste it
PREPARING FOR THE FUTURE
TREND & FLAVOR FORECASTS
LESSONS FROM THE PAST
LEATHERHEAD TOP 10 TRENDS
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Health and wellness
Sustainability
Convenience
Flavor solutions
‘Free from’ foods
Natural
Budget conscious still seek affordable luxuries
Quality linked to location
Over 55 and fitter than ever
Softer claims
MINTEL TOP FLAVORS—2012
BELL FLAVORS TOP FLAVORS—2012
SWEET FLAVORS
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Chocolate Soufflé
Honey Vanilla
Red Velvet
Caramel Macchiato
Yumberry
Coconut Crème
Sweet Potato
Ginger Peach
Mint Citrus
French Toast
BEVERAGE FLAVORS
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Blood Orange
Yumberry
Coconut Water
Maqui Berry
Cupuacu
Elderflower
Caramel
White Grape
Rambutan
Snake Fruit
SAVORY FLAVORS
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Black Garlic
Rich Umami
Truffle Oil
Aged Cayenne
Nuc Maum
Calamansi Lime
Demi Glace
Harissa
Aji Panca
Paneer Cheese
BELL FLAVORS TOP FLAVORS—2012
SWEET FLAVORS
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Chocolate Soufflé
Honey Vanilla
Red Velvet
Caramel Macchiato
Yumberry
Coconut Crème
Sweet Potato
Ginger Peach
Mint Citrus
French Toast
BEVERAGE FLAVORS
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Blood Orange
Yumberry
Coconut Water
Maqui Berry
Cupuacu
Elderflower
Caramel
White Grape
Rambutan
Snake Fruit
SAVORY FLAVORS
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Black Garlic
Rich Umami
Truffle Oil
Aged Cayenne
Nuc Maum
Calamansi Lime
Demi Glace
Harissa
Aji Panca
Paneer Cheese
BELL FLAVORS TOP FLAVORS—2012
SWEET FLAVORS
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Chocolate Soufflé
Honey Vanilla
Red Velvet
Caramel Macchiato
Yumberry
Coconut Crème
Sweet Potato
Ginger Peach
Mint Citrus
French Toast
BEVERAGE FLAVORS
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Blood Orange
Yumberry
Coconut Water
Maqui Berry
Cupuaçu
Elderflower
Caramel
White Grape
Rambutan
Snake Fruit
SAVORY FLAVORS
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Black Garlic
Rich Umami
Truffle Oil
Aged Cayenne
Nước Mắm
Calamansi Lime
Demi Glace
Harissa
Aji Panca
Paneer Cheese
SNAKE FRUIT
SNAKE FRUIT
YUMBERRY | CUPUAÇU
NUOC MAM (FISH SAUCE)
FLAVOR TRENDS
FLAVOR TRENDS
FLAVOR TRENDS
SETTING THE BASELINE
NEW PRODUCT DEVELOPMENT
THE CLASSICAL TRADITIONAL WAY
TYPICAL TRADITIONAL STAGE GATE PROCESS: LINEAR
Mind Genomics
Idea Maps
Category Appraisal
Focus groups?
Linear process
HUT
Acceptance Tests
Preference Tests
Expert Panel
Consumer Panels
CLT
Package design
Reverse Engineering
Experimental design
& optimization
60/40 Tests
Triangle tests
(cost
reductions)
Source: MJI Inc & SB&B Research
3RD GENERATION NPD TO CREATE WINNERS
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IN AMERICAN REFRIGERATORS TODAY
Source: www.markmenjivar.com
HOW TO GET GOING
• The algebra of the mind
• Looking under the hood
• Keeping it simple/relevant
UNDERSTAND | APPLY | TRANSFORM
STAGE 1: OFF-THE-SHELF KNOWLEDGE
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Mind Genomics™
Based on the Technology of Informatics
-Technique: Data Mining
-Approach: Leverage useful information from existing
corpus of knowledge (over 30 years). Presented in nice, neat
buckets predigested and ready to be used immediately.
-Process: Execute need-gap analysis as initial seeds for
ideation, to spot the next ‘big thing’.
-Objective: To intercept the trend, ride it with novel
offerings, and propose a plan on how to succeed, by being
there first.
Source: MJI Inc & SB&B Research
STAGE 2: DECODING CONSUMER CONTEXT
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The
5Keys
Model
5Keys™
Exploratory Research
-Technique: Qualitative
-Approach: A holistic framework, integrating psychological
& therapeutic approaches, to dimensionalize consumer
experience.
-Process: Unlocks the five key dimensions to hidden
consumer truths, based on cognitive, emotive, behavioral,
physiological and personality derivatives.
-Objective: To help R&D conceptualize & appreciate the
multi-dimensionality of consumer schema, distilled into a
rich, self-explanatory template.
Source: MJI Inc & SB&B Research
STAGE 3: PRODUCT CREATION
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Creating…Valuable IP
-Multiple Techniques: Experimental psychology, Conjoint
analysis, Internet-based testing and Research.
 -Approach & Process: An optimum prototype created.
R&D challenged to identify 4 variations with 2
alternatives, (e.g. low vs. high intensity). Experimental
design generates 8 systematic variations, with 36 key
elements for 6 silos. Target segment presented with
randomized, computer-generated permutations in the
form of vignettes. Frequent iterations of multiple options
applied to discover which factors drive wins or losses, and
with which mind set(s).
-Objective: Identify ‘new-to-the-world’ areas. Segment your
BIG opportunity!
Source: MJI Inc & SB&B Research
STAGE 4: COMPELLING COMMUNICATION
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Dynamic Concept Optimization
-Approach: IdeaMap™ uncovered the product(s) and
Addressable Minds™ identified which messages resonate with
different mindsets.
-Process: Consumer ‘drivers’ were used to create the ‘pull’
and now we have shortlisted concepts.
-Technique: Iterative concept optimization testing done via
qualitative research.
Objective: Optimize ‘dynamite selling concepts’ which will
be more persuasive.
Source: MJI Inc & SB&B Research
SUCCESS STORY: TROPICANA PREMIUM
Optimization – Line Extension
• Revolutionized the refrigerated OJ business
• Doubled business to S1,000,000,000
 U.S. / Europe
• Optimization
 Response Surface
 5 variables
• First brand with Pulp
 Used “waste” as new ingredient
 Product created
- Grovestand
- Homestyle
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THE THREE TIERS OF PRODUCT DEVELOPMENT
Tests are
Measurements
Product Screening
Test a handful of products
-even prototypes
Winners/Losers
Benchmarking
performance against
in-market products
Direction for product
improvement
Product acceptance by
subgroups
Product line
extension/ constriction
Looking for Drivers
and Opportunities
Category Appraisal
Test lots of products
Experiments
For Rules
Product Optimization
Sensory drivers of liking
Use a Design of
Experiments to create
variables and levels
New product
opportunities
Look for Optimal
ingredient formulations
Sensory segmentation
Sensory Optimization
Using Reverse
Engineering
Find the Optimal
formulation given cost/
manufacturing
constraints
Brand equity
measurement
Identify Ingredient
drivers of liking
Competitive analysis
Source: MJI Inc & SB&B Research
ADRESSABLE MINDS vs. SEGMENTATION
What makes it so Unique?
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Discovers the EXACT WORDS to use with the market as a whole
and with each segment
 What works for one group may not work for another
Uncovers WHAT NOT to say
Quicker way to evaluate segment-specific products & messaging
15 Second Easy Scratch Test determines individual segment
membership
More accurate, precise data mining
Deeper insight into preferences of customer and prospect
NOT JUST KNOWING WHAT WINS, BUT ALSO
WHAT DRIVES LIKING
Consumer
Liking (y)
Optimum – Intermediate Level Is Best…the world is not flat!
Total
Sample
Ingredient Under R&D Control (x)
Source: MJI Inc & SB&B Research
WHAT’S NEXT? MASS OR NICHE?
Optimal point satisfies both segments, but
not as well as the optimal segment levels
Consumer
Liking (y)
Seg A
Seg B
Ingredient Under R&D Control (x)
Source: MJI Inc & SB&B Research
SUCCESS STORY: PREGO PASTA SAUCE
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Objective: find the next flavor
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Result: Maximized the
perceived taste while
minimizing the cost of the
ingredients needed to produce
it
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RESULT: $2.5 Bn over 20 years
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“New category worth hundreds
of millions of dollars” (source:
The Ketchup Conundrum)
Source: MJI Inc & SB&B Research
SUCCESS STORY: ORE-IDA® CRINKLE CUTS
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Goal: what consumers
sought in the frozen retail
potato category
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Result: A crispier, more
golden brown French fry
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"Early market results
exceeded our expectations"
…President and Chief
Executive William R.
Johnson
SUCCESS STORY: DEL MONTE® KETCHUP
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Goal: Wanted parity with
market leader
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Tested: ingredients based
on cost of goods as
constraint
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Result: Better sensory
profile with lower cost!!!
SUCCESS STORY: MAXWELL HOUSE® 1892 COFFEE
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Goal: revitalize an old brand
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Result: “Rich French Roast",
"Colombian Supreme", and
"1892" (a “slow-roasted”
formulation) launched in
1989
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RESULT: Major product
success after 20 years +
commodity economics (right
beans at the right cost)
BE CAREFUL WH0 YOU SEEK!
Sex:
Male
Age:
50+
Nationality:
British
Family status:
Married
Annual income: 10 Mio+ €
Hobbies:
Music, Art
THE BENEFITS
• You get to learn about the product quickly
• You increase the likelihood of a hit ..by
exploring different regions
• You save a lot of time...you discover what
works
• Homework pays out ..you are on the way to
developing intellectual property along with
the product
…BECAUSE, JUST BEING CHEAP WILL NOT BE GOOD ENOUGH
TO WIN – FOCUS ON THE FUTURE
Observe and gain insights that
engage customers and instill loyalty
UNDERSTAND | APPLY | TRANSFORM
ON THE HORIZON…
GIVAUDAN BETS ON MOUTHFEEL WITH Sense It™
FOR YOUR OVERALL BUSINESS…
• Improve the success rate of New Products
• Cost-effective dynamic process that focuses
on people’s needs and expectations
• Shorter time to market by fast-forward /
backward feedback mechanism
• Optimized SGP+Lean+Agile process
TO YOUR SUCCESS IN THE MARKETPLACE!
Kantha Shelke, Ph.D.
312 951 5810
[email protected]
Ms. Batool Batalvi
SB&B Research
Suite# 4001
Tel 416.417.4559
[email protected]
Dr. Howard Moskowitz
Mr. Bert Krieger
Moskowitz Jacobs, Inc.
Tel 914 421 7456
[email protected]