Objectives - Concept Development Module

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Objectives - Concept Development Module

• Know the difference between concepts and
  advertisements
• Understand how product concepts are written and
  evaluated
• Know the factors common to successful new
  products

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Concept Development

• Module Outline
• Sources of Ideas
• Writing Concepts
• Evaluation of Concepts
• Successful New Products

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PERCEPTUAL MAPS
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DEFINITION of a CONCEPT

• A Concept Is.
• A printed or filmed representation of a procduct
  or service. It is a promise a product makes to
  resolve an unmet consumer need, the reason why it
  will satisfy the need, and a description or
  portrayal of any key element that will affect the
  perception of the product.
• Translation Whats in it for me, the consumer,
  and why should I believe it?

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ELEMENTS ESSESTIAL to a CONCEPT STATEMENT

• Product name and clear product description
• Headline
• Accepted Consumer Belief
• Benefit
• Reason to Believe

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EXAMPLES OF HEADLINES

• Competitive
• New and Improved
• Unique

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EXAMPLES OF ACEPTED CONSUMER BELIEFS

• Statement of Existing Beliefs/Perceptions
• Statements Which Set Up a Problem or Describe a
  Paradox
• Statements Which Establish a Competitive
  Positioning

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BASIC KINDS OF BENEFITS

• Product benefits describe the product advantage
  in objective terms
• - Product Performance
• - Superior, fresher, protects, etc.
• People benefits describe the product in
  subjective terms
• - Personal value
• - Pride, confidence, less hassle, etc.

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EXAMPLES of REASONS TO BELIEVE

• Technical Performance
• Quality of the Ingredients
• Special Product Feature
• Special Ingredients
• Endorsement
• Visual Demonstrations
• Product Aesthetics
• Lack of Ingredients
• Torture Tests
• Based on Heritage or Image

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FORMAT for a CONCEPT BOARD
INTRODUCING (BRAND X)
Pictrure of Product
The (brand of) that (benefit)

• Key Benefit Support
• Describe Product
• Secondary Benefit
• Product Details - ingredients,
  preparation, storage, etc.

• Varieties
• Sizes location
• Pricing

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GUIDELINES FOR WRITING CONCEPTS

• Need Driven NOT Technology Driven
• Use Consumer Language
• Keep Statement Clear and Single-Minded
• Be Realistic
• Avoid Idle Superlatives

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CONCEPT for a NEW CEREAL

• Introducing new Nuggets, the high nutrition
  cereal that combines three grains - oat, barley
  and wheat - with the vitamins , minerals and
  fiber you need to start your day. Simply top
  with cream or milk, and enjoy. Nuggets can also
  be served warm, simply by heating in your
  microwave. New Nuggets, the healthy cereal that
  gives you the total and balanced nutrition you
  need.

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BETTER CONCEPT for a NEW CEREAL

• Introducing new Nuggets, the delicious and
  nutty-tasting high nutrition cereal that combines
  the natural sweetness of crunchy oat, barley
  and wheat - with all the vitamins , minerals
  and fiber you need to start your day. Simply top
  with cream or milk, and enjoy. Nuggets can also
  be served steaming hot, simply by heating in your
  microwave. With Nuggets, you can have both high
  nutrition and great taste. New Nuggets. the
  healthy cereal that really tastes great.

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MARKET RESEARCH OPTIONS
Depth Interviews
Qualitative
Focus Groups
Expert Judgement
Surveys
Product Use Tests
Concept Tests
Lab Test Market
Perceptual Maps
Quantitative
Test Market
Conjoint Analysis
Pre-Prototype Post-Prototype
Stage
Stage
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MARKET RESEARCH METRICS

• Purchase Intent
• Concept Uniquiness
• Relevance to Consumers Needs
• Importance of main Idea
• Expected Frequency of Purchase
• Reason for Purchase Intent
• Likes/Dislikes

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Factors Common to Successful New Products

• Unique and superior product
  .
• Homework done prior to start of development
  .
• Early product definition
  .
• Strong market orientation
  .
• Quality execution of marketing, technological
  and production activities

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Key Takeaways - Concept Development Module

• Concepts need to be well written
• Good concept evaluation helps pick the winners