The arrows are flying

Editor’s note: George Ciardi is executive vice president of product development and innovation, new product forecasting and normative databases, at TNS, a Stamford, Conn., research firm.

The objective of a concept test is to propose a solution to a perceived unmet need (big or small), measure the consumer’s interest and optimize the proposition. But how do you present new product ideas in a manner that allows consumers to provide the proper evaluation and feedback during their review of a concept?

Many organizations face this challenge in the innovation development process. Through testing and evaluating thousands of ideas across hundreds of categories over the years, we have gathered key learnings about the development of a good, testable concept - and we’re conscious of the odds against introducing a successful product.

A majority of the resources allocated to new-product development projects are spent on efforts that never reach commercial success. Why? The most common reasons for new-product failure include a general lack of market understanding, product defects, inadequate marketing push and competitive reactions. And, frankly, many “new” ideas simply aren’t that new and different. Part of the problem stems from a frequently-employed ad hoc process that starts with a directive to “Innovate!” and results in random, one-off ideas.

Before rushing headlong into concept writing, it’s important to pause to consider whether you’re truly ready. Before writing begins, it’s important to:

  • insure that the organization is aligned on the strategic goals for the project;
  • conduct foundational research with consumers to define the opportunity;
  • fully explore the territory through ideation to uncover truly unique ideas;
  • consider the launch window and related parameters up front.

When these issues are adequately addressed, then you know it’s time to start writing.

Optimize the proposition

When presenting concepts to consumers, clear understanding of the concept is needed to better optimize the proposition. Think of the elements about which we expect them to provide feedback. The most common measure for evaluation at each stage is purchase interest, or consumer choice, which captures consumer persuasion. (Predefined thresholds, often referred to as the hurdles in a Stage-Gate process, are a key part of the development process.)

In addition, there are a number of other important measures and questions to consider. What is the underlying strength of the idea? Does it fill a need identified through a fact-based strategic plan? Is it relevant? Is it appealing? Is it believable? Does it fit with brand or corporate positioning?

Linked directly to the foundational research itself, there are clear and identifiable concept components that to be included, listed in order of importance:

1. Identify the insight/unmet need being addressed by the new product.

2. Clearly communicate the consumer benefit.

3. Convey the reason to believe (the value proposition).

4. Provide relevant information (headline, brand, picture, price, sizes, channels).

Insight or unmet need

Need states can be occasion-based, emerging, functional, emotional or some combination of the above; an idea that doesn’t fill an unmet need will score as such - and even a good idea will score lower if the unmet need is not clearly communicated through the concept.

Many industry leaders feel that unmet needs are not always apparent to consumers. Therefore, it is crucial to state the unmet need. (Don’t provide a solution, just set the stage.) Failure to state the need may lead to poor scores if it isn’t obvious to all consumers what need the concept fulfills.

Consumer benefit

The expression of the benefit brings the insight to life for consumers because it proposes a solution. (This statement should be a single sentence or two at most.) For example, let’s consider Fridge Packs, which entered the market a number of years ago. Through ethnography insights it was revealed that messy and cluttered refrigerators made it difficult to find your favorite can of soda. The benefit statement for this concept should demonstrate findability and convenience. “The new Fridge Pack is a convenient storage system that is placed directly in your refrigerator, making your favorite soda easy to find.”

Reason to believe

The objective is persuasion to act. Key motivation triggers are brought to life through emotional references, functional aspects, example uses, occasion references.

Some questions that can help define/refine reasons to believe include:

  • How does it work or deliver against the benefit?
  • What are the connections between need, benefit and reason to believe?
  • What are the most persuasive triggers (functional, emotional or a combination)?

A highly-recommended concept design includes the same or similar words from both the unmet need statement and the benefit statement. A clear connection can really make a concept pop and should be part of the communication strategy. It is also recommended that brand equity be utilized - “brought to you by…”, “from the makers of…”, or a simple reference to the parent brand name.

Keep the promise real. Do not oversell a concept. It may score higher on purchase interest, but could suffer from low believability. If increased consumer expectations set the bar higher than the product can perform, it will become another in-market failure. Even if initial trial is high, after-use (repeat) measurements will be weak and sales will fall.

Relevant information

When it comes to writing copy, keep in mind that using too many words may create confusion and disinterest, while using too few may not tell the full story. The key is to concisely demonstrate how the new offering will satisfy the unmet needs in a meaningful way.

A concept outline that works well for most research includes:

  • a short, pointed headline;
  • a statement of the unmet need to consumers;
  • a brief explanation of how the need in fulfilled (reason to believe);
  • copy - functional/rational and emotional drivers intended to persuade (purchase product, call a toll-free number, visit a financial advisor, go to a showroom, visit a Web site, etc.);
  • an illustration of the product; and
  • a callout of available features (sizes, options, price, location of product, etc.).

Copy length should closely mirror how a consumer will become aware of the new offering once it is available in market. If awareness will source primarily from the shelf, with no advertising or mass-marketing support, then use a package shot without a positioning statement. In these scenarios, the package will be the message piece and the picture of the package is recommended as the stimulus. On the other hand, if consumers will likely become aware through more traditional mass-communication channels, then the copy should mirror how it will be conveyed through in-market messages.

The copy (proposition statement) includes the call to action and should be placed in close proximity to the illustration. These elements are very closely linked and often convey similar information that resonates with consumers.

Helps define

A fully-executed concept should include sizes, prices, branding and distribution information. This tactical information, which many consider optional, complements but also helps define a concept.

Branding

It is a fact that branding is part of the communication. For example, a new spicy chicken fillet sandwich invokes a different set of perceptions and expectations among consumers depending on if it’s being offered by Burger King, McDonald’s or KFC.

In recent years, co-branding has gained in popularity. When testing co-branded concepts, the importance of branding is unquestioned because it is one of the fundamental reasons for the new offering.

Price

At the later stages of concept development, pricing is a crucial element of a product’s positioning and is just as important as branding or other product attributes. Price makes a statement about the offer. A premium-priced product carries a very different set of expectations than a parity-priced product. In some cases, price itself is the unmet need. Store brands emerged in the 1970s entirely on this premise.

An un-priced offer means different things to different people. In side-by-side research, purchase interest scores were volatile when the concept was presented to consumers both priced and unpriced. The direction of the bias went in both directions, seemingly without reason.

Illustrations

The old adage that a picture is worth a thousand words is certainly true when it comes to concept design. Shelf pop is crucial and the lack of it can kill the best ideas. In addition, quality is important. Graphical errors, low-quality pictures or too many pictures can distract from the key selling points and benefits.

From a testing perspective, there may be little measurable difference between black-and-white and color graphics. (Research has shown that concepts tested under a still shot, in color, score nearly the same [+2 percent] when tested in black-and-white, and similarly if they are tested in video format.) However, a color graphic may have a significant impact in testing concepts where color plays a key role in accurately conveying the concept benefits. For example, a new blueberry cereal requires a color graphic to provide the most appealing visual of milk, corn flakes and blueberries and to convey the quality and health benefits.

One step closer

Good concept design provides the basis for more refined concept testing, taking strategic ideas one step closer on the path to successful launch. Overall, a concept must clearly communicate in a manner the consumers will understand, and include the essential elements that will persuade them to buy the offering. Concept organization and presentation should be appropriate to the idea, the elements in harmony with each other. If there is a struggle to provide the insights in the presence of the idea, it may be an indication that more development is needed.