digital living room- innovation in the age of sameness
DESCRIPTION
This was a presentation given by Randy Giusto, SVP of Innovation Research at the Digital Living Room event in San Jose in December, 2011. How do brands differentiate when every TV is a Smart TV? Every phone a smart phone? Every tablet does basically the same thing? Every music/entertainment service delivers a similar experience? How do you compete when Apple is more associated with “innovation” than any other brand?TRANSCRIPT
Innovation in the Age of SamenessDeveloping the Next Winner
Nobody’s Unpredictable
Predicting market potential for business initiatives, with 20+ years validated history
December, 2011
�Predicting Market Potential for business initiatives,with 20+ years of validated history
Ipsos Vantis’ Innovation Focus
A suite of powerful, fast, and affordable A suite of customizable forecasting tools
Optimize & simulate launch scenariosIdentify winning initiatives
© 2011 Ipsos2
A suite of powerful, fast, and affordable services to help you identify winning initiatives early in development by assessing their true market potential.
� Predict market potential� Prioritize features, ideas, & concepts� Define the consumer target� Measure the strength of the message� Identify key/motivating phrases in the
message� Measure buzz potential
A suite of customizable forecasting tools for optimizing price, features, product design, and marketing. Used for modeling new products, portfolios, and categories.
� Forecast units, revenues, profits� Feature simulation� Pricing simulation� Product & Prototype Design simulation� Measure Incrementality vs.
Cannibalization � Competitive war-gaming� Marketing plan simulation
�- Every TV is a Smart TV?
�- Every phone a smart phone?
�- Every tablet does basically the same thing?
�- Every music/entertainment service delivers a similar experience?
How Do Brands Differentiate When…
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Most Digital Living Room Offerings Illustrate a Degree of “Sameness”
�Apple is more associated with “innovation” than any other brand
How Do You Compete When…
56%
29%
22%
19%
18%
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Source: Ipsos Vantis Innovation Index Q4 2011N = 1,014Q. Which three consumer electronics products and services brands do you associate with being the most innovative today?
18%
15%
14%
13%
Tie 12%
11%
Development, Measurement, and Marketing is Hard!
�Illustrative example-� Tablet launch example
� Hypothetical data
© 2011 Ipsos5
“Share, Revenue, and Profit are Tradeoffs”
�Illustrative example-� Tablet launch example� Hypothetical data
© 2011 Ipsos6
Every New DLR Offering Starts Out as an Idea/Concept
3D TV XBOX Kinect
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Android Smartphone Dish Network TV EverywhereTM
Today, Purchase Intent is Really Driven By Many Factors
Seek Information
Intent to Purchase
Intensity of Liking
�Consumer appeal + value perceptions drive purchasing
�Consumer need drives appeal
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Price/Value
Uniqueness
Believability
Need Fulfillment
Consumer Purchase
Intent
�But purchase intent is not high if other measures also not strong.
Start Thinking About Your Next DLR Idea as a “Personality”
�Look for patterns or “archetypes” in key measures vs. simply looking for “high scores.”
Top performer archetypes
� Winner
� Under-priced
� Good concept
� Breakthrough� Over-priced � Niche/targeted � Potential future hit
����
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MiddlePerformerarchetypes
� Breakthrough
� Me too
� For Want
� Value
Branding
� Over-priced
� Average
� Too premium
� Commodity
� Niche/targeted
� Atypical
� Value resistant
� Unconvincing
� Potential future hit
� Skeptical
� Unbelievable
Caught in middle
Poorperformer archetypes
� Dog����
?
Design Digital Living Room Offerings To Stand Out
Xbox 360 Kinect
Spotify
DISH TVEverywhere
Ultraviolet
Hulu
Market Success Scores
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0 50 100 150 200
Sony Reader
Nintendo 3DS
Apple TV
Vizio XVT TVs
iPad 2
Xbox 360 Kinect
And Creating Buzz is as Important as Advertising
Apple TV
iPad 2
Google TV
DISH TVEverywhere
Boxee Box
Xbox 360 Kinect
Nintendo 3DS
Ultraviolet
SpotifyBest Buy Buy Back
PS3 Motion Ctrlr
120
140
160
180
Message P
ow
er
Score
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Apple TV
Sony Reader
DISH TVEverywhere
Hulu Plus
Ultraviolet
PSP2
VIERA Cast Tab
iBig Box
3D Blu-ray Player
FloTV
20
40
60
80
100
20 40 60 80 100 120 140 160
Message P
ow
er
Score
Buzz Power Score
Thank You!
Randy Giusto, SVP, Innovation Research
508.254.7975 [email protected]
@IpsosVantis @randygiustowww.innovationpov.com