mji.capabilities.aug.2009.pdf

MOSKOWITZ JACOBS INC.Strategic Brand Developers: Research & Consulting

Accomplished Strategic Partners

We work through all phases of the product/service

innovation and development process

A Research & Consulting Firm focused on accelerating

the innovation process

New Product

Development

Re-Stage

Efforts

2

3Assisting Clients Access Every Region of the Globe

3

4

“The Learning is in the Stimuli”

Customers don‟t know what they want in terms

of specific features, benefits, or ingredients

…until they see it, taste it or smell it

The most effective methods

Test the broadest range of variables

Reveal patterns in the data to identify

drivers of consumer behavior

Use systemized approaches for maximum

discovery

MJI‟s Research Methods Are Based On a

Simple Fact

MJI Suite of Business Marketing Tools

IdeaMap® Direction for agency

creative

development

Optimize positioning for

personal care product line

Optimize health claims for

ice cream, snacks, and

beverages

ChoiceMap™ Competitive

market simulation

Optimize loyalty program

Optimize on-package benefits

for OTC healthcare product

Concept

Optimizer

User-Friendly

Marketing Tool

Clients have access to data

Clients revisit the optimizer

for years after the research is

completed

StyleMap™ Graphic Design

optimization

Optimize logos

Design packaging for infant

care product

Addressable Minds Continuously

integrate Voice of the

Customer

Create a real-time one-to-one

marketing optimization

platform (in development)

Product Engineer Drivers of Product

Liking; Recipe

Optimization

Category Assessments

Ingredient Optimization

Marketing Optimization Solutions

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IdeaMap® - The Industry Standard

Web-based, self-directed

or full service

quantitative survey

Uncovers the conceptual

themes which drive

interest

Identifies the specific

ideas that are most

compelling

Reveals attitudinal

mindsets in your

customer base

Exposes potential niche

markets

Capture insights from

hundreds of consumers

fast and cost effectively

When you want to…

Have many options to measure

Discover „drivers‟ of motivation

Understand the full competitive frame

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IdeaMap Method to Identify…On A

Conceptual Basis…What Consumers Want

» IdeaMap is rooted in conjoint (trade-off) analysis

Recognizes that in reality, purchase decisions are made by evaluating bundles of

attributes

Consumers trade-off sets of bundled attributes against each other

IdeaMap allows the identification of the contribution of each element in the bundle

to the overall rating

» IdeaMap is based on a stimulus-response

We know the response we want to elicit (e.g., interest) …the stimuli most effective

at eliciting that response

» IdeaMap uses an experimental design – identifies causal relationships, not just

correlations

ChoiceMap™ / ChoiceMap.Net

Web-based, self-

directed or full

service quantitative

survey

Built on the same

principles as

IdeaMap®

Side-by-Side

comparisons of

your products vs

competition

When you want to…

Identify the elements that will capture market share from competitors

Measure how your customer respond to you and if you might

inadvertently be pushing them to consider your competition!

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Concept Optimizer™

Optimal Concepts are built from the

highest scoring elements in each

category

Bringing Compiled Data to the Next Level

For pre-defined customer segments

and

Attitudinal / behavioral segments which

emerge from the surveys

Total Panel Segment

Total Score = 85Total Score = 85

Winning Concept Winning Concept ––OptimizedOptimized Losing PropositionLosing Proposition

Total Score = 38Total Score = 38

Optimal Concepts are built from the highest scoring elements in each category. Scored by adding the sum of the

utility scores to the constant

• Special blend of anti-irritants sooths

skin and minimizes puffiness

• Alleviates dryness

• Lipids strengthen skin; optical diffusers

scatter light for a softened effect

• De-puffs; minimizes appearance of dark circles

• Ultra-hydrating eye cream that lifts, tones and

smoothes the eye area

• Anti-oxidants help fight free radicals

For Illustrative Purposes Only

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StyleMap®

Instead of elements, Advertising features are varied:

Headlines

Visuals

Copy

Positioning statements

Web-based, self-directed or full service

quantitative survey

Built on the same principles as IdeaMap®

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IdeaMap survey Identify Segments, Create Typing Tool Deliver the right message

Addressable Minds

Message

Optimization and

Targeting

#1 Use IdeaMap to segment customers and optimize message

#2 Create Typing Tool And Classify Prospects

#3 Deliver The Right Message To Specific Customer

One Example of the Future Happening Now

…Customer Typing Tool

What to say…

And to whom

IdeaMap.Net and Addressable Minds™

-Relevant Messaging to ReceptiveTargets-

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How It Works

Categories

Provide organization

of ideas

e.g. Benefits, RTB‟s,

Service, Offers,

Experience, Brand

Selection, Delivery,

Trust, Emotional

Messages

“Bite sized” ways of

describing a product,

service or idea

Can be either words or

pictures

Organizing Principle:

Categories

Promotes flexibility &

creativity

Collaborative effort; cross

functional

Can be sourced from:

Brainstorming

Focus Groups

Previous studies/internal

data

Current messaging

Competitive advertising /

packaging

Defining the Scope:

Input Elements

Statistical modeling

simulating the

respondent‟s interest in

learning more about the

product is built through

regression modeling

techniques

Utility scores assigned to

each tested element

Optimized product

concept and / or

messaging by segment

identified

Output & Analysis:

Regression Modeling

Building the Concepts

Systematically

combines elements

from different

categories

Consumer/Professional

Response

Respondents are

exposed to these

combinations or

concepts one at a time

They respond to the

whole entity, not its

individual parts

Experimental

Design

IdeaMap®

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Addressable

Minds

Enables one-to-

one targeted

communication

with the right

message, to the

right person,

at the right time.

Research Methodology

Results

Expertise In Action …

Stimuli Tested

RESEARCH METHOD

In our approach – IdeaMap.Net ®and Addressable Minds ™

We have a true torture test of the ideas

Every element appears against other elements in small, easy to

read combinations

Everyone sees different combinations

Test up to 36 elements, separated into 3 to 10 categories.

A category is a collection of like-minded ideas.

These categories with examples of elements are shown on the

next page.

Whatever comes up to the top must be strong…otherwise it would

fade against the onslaught of the other elements

IdeaMap.Net used for 20+ years to understand consumer minds

For product design & marketing

For the law (jury selection and communication…where it

creates very large jury awards)

Communication (identifies what to say to prospective

customers)

Optimal Concept

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Sensitivity Analysis

A Recent Success Story

Recent Press Release …

High profile lawyer, Rex Parris, uses MJI’s Addressable Minds, powered by

IdeaMap.Net to optimize trial arguments in historic $370 million award

» White Plains NY and Los Angeles CA – July 28, 2009 Moskowitz Jacobs Inc. (MJI), a global leader

in Messaging Optimization Solutions, today announced that R. Rex Parris, the lead attorney for the

employees in a defamation law suit, was instrumental in having $370 million awarded to his

clients after utilizing IdeaMap.Net‟s Addressable Minds solution to optimize his arguments.

» IdeaMap.Net‟s Addressable Minds solution quickly identifies the most compelling combination of

arguments in their case to maximize the likelihood of achieving the desired verdict. IdeaMap.Net‟s

Addressable Minds assesses and optimizes relevant content including framing statements, evidence,

collateral factors, and even the nature/tonality of the witness.

»

1

5

“This quantitative technique really helped me frame my courtroom

arguments…The net result…The jury returned one of the biggest verdicts in

the history of Los Angeles County for a defamation case”, said R. Rex Parris,

the lead attorney. “The tested messages were dead-on. I knew exactly what to

say and what not to say.”

Case History.. From the Food Industry

» The client manufactures healthful snacks…now using probiotics to increase product

healthfulness

» Probiotics are the healthful bacteria in yogurt, which can now be added to baked goods

with the same customer benefit

» Where is the opportunity…and what specifically to say and to whom

» This test used a combination client‟s own marketing material and new messages

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Flexibility to Test Broad Range of Elements

- Showing 8 Out of 24 Test Messages -

Specific Ingredient / Health Benefit

Each portion is worth its weight in health – 100

calories per 2 oz. serving…no need to settle for

smaller portions

Comes in deliciously rich flavors to hit your

sweet spotResearch Methodology

Results

Stimuli Tested

Helps reduce cholesterol

Taste Promise

Minimize Calories

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Get the most out of your breakfast

General Benefit

Optimal Concept


Probiotic

Closing Benefit

Contains probiotic bacteria, treats gastrointestinal ills

Get the energy you need while keeping it gentile on your

stomach

The Complete List…Six Silos, Four Phrases Each

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In the Study..We Begin by Orienting Participants

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A Concept

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RESULTS


Results

Expertise In Action

Stimuli Tested

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Optimal Concept


A statistical model simulating the respondent‟s interest in buying

an 8 pack of muffins is built through regression modeling

techniques.

Input 2

Respondent’s Answers

Input 1

Combinations of ideas (Experimental design)

Regression Analysis

Output: Additive Model simulating respondent‟s behavior

The additive model shows the impact, or value, of each individual idea (element) to the respondent‟s behavior.

Drive behavior to learn more (drivers)

Prevent from learning more (inhibitors)

Have no impact (neutrals)

Understanding the Additive Model

Each concept element is assigned an impact score that represents the importance

contribution of that element.

In addition to the individual element impact scores, the regression analysis yields

a “Constant”.

Think of the constant score as a “baseline” level of motivation to start from when

building a concept.

Positive values indicate

that the respective

element enhances

customer reaction.

Scores that are near zero

indicate respondents are

indifferent to inclusion of that

element.

Negative values

indicate that the

respective element

detracts consumer

reaction.

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Constant (C) IndividualElements (I)

TotalImpact (T)

What we discovered

What the data show us from the evaluation by 172 respondents of

different combinations of messaging

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How to Read the Results

» Let‟s look at interest

% rating 7-9 „I would buy the product‟ (like the top 2 box)

» Begin with the constant

% saying I accept, with no elements

Baseline…estimated from the ratings by regression (also called the additive constant)

It is 28 here..28% of the people would say „I‟m interested‟..even without any elements

» Look at the contribution of each element beyond the constant

E1: Contains probiotic bacteria, which treat gastrointestinal ills (+7)

An additional 7% of the respondent would change from “base line”to interest (from 28 to 35)

» Build a new selling message by combining (at most) one element from each of four silos

Additive constant + impact values (utilities) tell you how many people interested

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Relate Presence/Absence of 24 Elements to Interest

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Today‟s Advertising Practice Messages…not-targeted, not-relevant

» Retailers / Manufacturers ->

» ...Traditional advertising messaging targeted

to large audiences …based on simple

classification descriptors and what they

purchase …it‟s how media is bought

» Your Customers….Advertising strategy

assumes/hopes for group homogeneity…Men

want “Y”, Women want “X”

» Result…Lots of messages without regard to

„true/effective‟ messages & motivators „that

really work‟ for each customer

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Demographics, Behavior

Mindsets Create Business Opportunities

» People differ from each other

Conventional methods divide them by easy-to-buy information (geo-demos)

Other methods divide them by high-level psychographics (general world views)

Still others divide people by what they buy, etc.

» We are going to segment the 172 respondents based on how they react to these new ideas

This is called mind-set segmentation

It is granular, specific to the particular product and opportunity

And it is up-to-date

» We uncovered two different mind-sets, based on the patterns of reactions to the elements

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The Addressable Mind™ Solution

Targeted by Mind-Set, Very Relevant Messaging

» Retailers / Manufacturers ->

» IdeaMap.Net Foundation Database / test for

each retailer / manufacturer

» Discover Segments, Create Typing Tool,

Identify Message Drivers

» Classify new population into

segments…THEY LOOK THE SAME BUT

THEIR MINDS ARE DIFFERENT

» Now, Target best messages to each segment

and do it by each manufacturer and retailer

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IdeaMap.net

Discover Mind Segments:

- Green Conscious

- Only The Best

Identify Mechanism

For Segmentation

Identify Importance

Of Each Message by

Total, Segments etc.

GREEN GREENGREENGREENBEST BEST BEST BEST

Mindset 1 – It‟s About Calories

Mindset 2 – It‟s About Health

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Opportunity Analysis of the Segments

» It will be all about building interest in the brand and selling to more people

We learn that from the high interest scores

For this product

» Let‟s look at Segment 2 – your prospects for the product benefits

They are more than half the sample (97 out of 172 respondents)

They have a modest interest in the product (constant of 29)

» But you can add another 16% (i.e. go from 29 to 45)

How..by putting in ONE of the top two scoring elements

E.g., Contains probiotic bacteria, which treat gastrointestinal ills

And then build on that by adding another hot button for segment 2

All natural with no artificial additives or preservatives (adds another 5)

» NOTE ON IMPACT OR UTILITY VALUES

5-10 are very good, keep

10-15 are breakthrough

> 15 are blockbuster for the group

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Results

Expertise In Action

Stimuli Tested

OPTIMAL CONCEPT

& SENSITIVITY ANALYSIS

These concepts for each subgroup are the result of a computer program generated selection routine that focuses on the highest-scoring elements across the categories. It is an example of how the optimization process works. The Optimal Concepts are examples of high-impact bundles

of elements. Other combinations can also be built from this research. These scores are calculated by adding the sum of the utility

scores to the constant

The Optimal Sensitivity Chart on the following page (read across) identifies on the diagonal the predicted sum of the Optimal Concept for each sample group as calculated by a combination of the constant + the additive values of the elements in the optimized concept:

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Optimal Concept


Optimal Concept Example

- Total Sample -

Sample Data

Do Not Quote

Optimized for: Total Sample Seg 1 of 2 Seg 2 of 2

Total Sample 53 45 59

Seg 1 of 2 48 60 41

Seg 2 of 2 45 22 60

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Total Seg 1 of 2 Seg 2 of 2

Base Size: (172) (75) (97)

Baseline: 28 27 29

E1 Contains probiotic bacteria which treats gastrintestinal ills 7 -5 16

B2

Maximize satisfaction with minimum calories…low fat and high

in fiber and nutrients 7 11 3

F2 Our mission is simple: to make healthy and delicious baked goods… 6 6 6

D1 Contains less sugar and more vitamins and minerals than an apple 5 6 5

Total Impact 53 45 59

Optimal Concept


Addressable Minds Scratch Testing

Turn your website visitors into

Addressable Minds™

Improve your website… mind-type

visitors and direct them to the proper

pages based on their mind-set

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The Scratch Test

With a segmented world..and enormous

segment responsiveness….you have to find

your segment 2 people to whom you can really

sell…

We use a 45 second scratch test.. With five

questions and a scoring key

Put this on your website, let your prospects

score themselves, and give them the „right

message‟35

Finding, directing, messaging your target with

a 5-question scratch test

36Segment 1

Segment 2

Not in a

segment

Data Mine Using Customer Minds At the

Granular Level of Today‟s Messaging

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Change the Data-Mining Game…Designed for the

Data-Miner Trying to Increase Lift

When You Can‟t Mind-type Individual People

In Your Database…What to do?

» All you know are today‟s current messages

» You know who responds by sub-groups and segments

» You know the strength of each message

» That‟s already demonstrably more than any of your competitors know

» Given the above…who in your database is likely to respond to your client‟s offer

» Maximize your client‟s lift rapidly

Simulate 10,000 Alternative 4-Element Messages

» Look at how each key subgroup responds to each of the 10,000 test combinations

» If you don‟t profoundly understand your messaging or your database customers…then

who should you message to

» What elements in your current messaging are really working for and among whom

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Using the results to assess strategy ..

Who do you mail to (mining your database)

» Don‟t want to use probiotics this year in selling message

We looked at 20 of the 24 messages (no probiotics messages)

All of these are current messages

Now what do we do?..to whom do we mail?

» We don‟t know who will buy the „new product‟..but we do know from our audit how

prospective customers respond to current messaging

Instead of guessing, we simulated different messages, and „ran them by our data set‟

So ..we‟re replacing previous behavior (which we may/may not have) with attitudes

to the precise current messaging the client will use

We created 10,000 random „4 element mini ads‟ representing what could be sent

Now let‟s see what consumer groups will be turned on

» Now we can estimate distribution of interest for our new strategy

Which of our groups is most likely to respond to an offer

These are our likely responders

And…we easily simulated and scored the current strategy!!!!40

Groups Highlighted in Green are the Target for a

Strategy (No Probiotics)…Good Idea or Not?

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Without Probiotic

MessagingTotal

Sample Q1_Male Q1_Female

Q2_30-

38

Q2_39-

44

Q2_45-

52

Q2_53-

64

Q2_65

and

above

Segment 1

of 2

Segment

2 of 2

Base Size 172 43 129 21 20 42 68 17 75 97

Constant 28 37 25 25 30 30 23 42 27 29

Mean 44 39 46 45 33 58 40 42 50 40

Median 44 38 46 46 33 58 40 42 50 39

St.Dev. 2.5 4.9 2.7 7.0 6.4 4.6 3.1 7.1 4.6 3.6

% greater than 25 100% 100% 100% 100% 90% 100% 100% 98% 100% 100%

% greater than 30 100% 98% 100% 98% 70% 100% 100% 94% 100% 100%

% greater than 35 100% 78% 100% 93% 40% 100% 94% 84% 100% 91%

% greater than 40 95% 34% 99% 78% 16% 100% 52% 62% 97% 45%

% greater than 45 36% 14% 65% 51% 3% 100% 8% 34% 86% 8%

% greater than 50 0% 1% 7% 26% 0% 94% 0% 12% 52% 0%

% greater than 55 0% 0% 0% 9% 0% 73% 0% 2% 13% 0%

% greater than 60 0% 0% 0% 2% 0% 33% 0% 0% 0% 0%

% greater than 65 0% 0% 0% 0% 0% 5% 0% 0% 0% 0%

% greater than 70 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Using the Results to Assess Updated Strategy ..

Who do You Mail to (Mining Your Database)

» We looked at all 24 of the 24 messages

All of these are current messages

Revised strategy.. pursue probiotics this year

Now what do we do?..to whom do we mail?

» Then we created „4 element messages‟

10,000 new messages .. With the probiotic messages ..to reflect the new strategy

One or no element from each silo

And estimated level of interest

» Now we can estimate distribution of interest for our new strategy

Which of our groups is most likely to respond to an offer

These are our likely responders

Simulated and scored the new strategy allowing in probiotics !!!!

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Groups Highlighted in Green Are the Target

for a Strategy (Use Probiotics)

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Marketing Message: With

ProbioticsTotal

Sample Q1_Male Q1_Female Q2_30-38 Q2_39-44 Q2_45-52

Q2_53-

64

Q2_65

and

above

Segment 1

of 2

Segment 2

of 2

Base Size 172 43 129 21 20 42 68 17 75 97

Constant 28 37 25 25 30 30 23 42 27 29

Mean 45 37 47 45 31 57 43 44 42 47

Median 45 37 47 45 31 57 43 44 42 48

St.Dev. 2.8 4.7 3.3 7.7 6.3 4.5 4.4 7.1 7.2 6.5

% greater than 25 100% 100% 100% 100% 84% 100% 100% 99% 100% 100%

% greater than 30 100% 96% 100% 97% 56% 100% 100% 96% 97% 100%

% greater than 35 100% 69% 100% 89% 27% 100% 97% 89% 84% 97%

% greater than 40 96% 25% 99% 72% 8% 100% 73% 71% 58% 83%

% greater than 45 48% 9% 76% 49% 1% 100% 32% 45% 32% 65%

% greater than 50 3% 0% 22% 25% 0% 93% 6% 18% 18% 39%

% greater than 55 0% 0% 0% 9% 0% 68% 0% 5% 4% 10%

% greater than 60 0% 0% 0% 2% 0% 26% 0% 1% 0% 0%

% greater than 65 0% 0% 0% 0% 0% 3% 0% 0% 0% 0%

% greater than 70 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

% greater than 75 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

ChoiceMap

Market Simulation

Think of Vectors Influencing Each

Other (Psychological Cross-

Elasticities)

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ChoiceMap Concept Screen

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Results

Stimuli Tested

Optimal Concept


SAMPLE SCREEN

ChoiceMap Example of Deliverables

Base

Sample

3+ Purchases

per Month

Loyal

Shoppers

Competitor

Shoppers

Base Size (1502) (603) (511) (452)

CONSTANT 12 5 12 5

OPTION C: Discounts of 30% to 50% 9 9 9 11

OPTION B: Discounts of 15% to 30% 6 5 5 9

OPTION A: Discounts of 10% to 15% 4 4 4 9

OPTION C: Available Both online and via phone 7 9 10 6

OPTION B: Available by phone only 4 7 7 3

OPTION A: Available online only 4 5 7 2

Feature 2: Panel of experts available for members to consult with via telephone or online 24 hr/day

Feature 5: Special quarterly discounts for members available through local gyms, rec centers, spas, online shopping partners and

other outside health partners:

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Results

Stimuli Tested

Optimal Concept


RESULTS

StyleMap Design Optimization- Same Principles As IdeaMap But Graphically

Based-

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Shampoo Bottle Case…Six Silos and 4 Graphical

Options Each

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Product Development

- Category Assessment

- Drivers of Liking

- Recipe Optimization

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MJI‟s Product Evaluation Competencies

Category Appraisal

Competitive analysis

Sensory drivers of liking

New product

opportunities

Sensory segmentation

Reverse Engineering

Brand equity

measurement

Product Screening

Winners/Losers

Benchmarking

performance against

in-market products

Direction for product

improvement

Product acceptance by

subgroups

Product line

extension/ constriction

Product Optimization

Optimal ingredient

formulation

Optimal formulation given

cost/ manufacturing

constraints

Ingredient drivers of liking

Sensitivity analysis

Optimizer Software

Today’s Focus

Product Hierarchy Based on Overall Liking

- Partial List of Products

7266

58

50

0

20

40

60

80

100

#304 #309 #290 #601

A difference of +/-10 points is significantly different at the 90% confidence level.

Overa

ll l

ikin

g

Toilet Tissue Products: Overall Liking

Sensory Profiles for Each Product Tested

-Partial List of Products and Attributes

#304 #309 #290 #601 Signifcant

Overall Liking 72 60 58 48 [+/-10]

Like Overall Appearance65 40 65 55 [+/-10]

Visual Thickness 63 45 59 80 [+/-10]

Like Overall Aroma 65 40 65 55 [+/-10]

Strength of Aroma 63 35 55 75 [+/-10]

Like Touch On Skin 68 57 49 44 [+/-8]

Thickness 65 59 45 85 [+/-8]

Softness 66 85 49 44

Is A Premium

Toilet Tissue

70 85 51 44 [+/-8]

Technical Measure 1 3.9 3.85 4.2 3.95

Technical Measure 2 402 385 425 299

[+/-8]

Category Appraisal

» Drivers of Liking Analysis

Create sensory response curves

Graphically shows the relationship of overall liking versus:

Sensory perception

Objective measures

Instrumental measures

Sensory Drivers of Liking and Sensory Targets

10

20

30

40

50

60

70

80

90

100

Ov

eral

l L

ikin

g

Softness Against Skin10 20 30 40 50 60 70 80 90 100

#309

#304

#601

Products in this area

represent sensory

targets to aid in

product improvement

#290

Category Appraisal

» Sensory Segmentation (requires larger base sizes)

Identify whether liking is homogeneous or whether different preference segments

exist

Based on stimulus response patterns

Was the basis for the segmentation approach used for IdeaMap

Consumer Segments With Opposing Sensory Needs

SEGMENT1: sq. mult. R= .81

SEGMENT2: sq. mult. R= .9310

20

30

40

50

60

70

80

90

100

Ov

eral

l L

ikin

g

Tissue Fragrance Intensity10 20 30 40 50 60 70 80 90 100

Stronger Fragrance

Segment

Weaker Fragrance

Segment

Category Appraisal

» Sensory optimization

An optimal sensory profile which maximizes overall liking can be identified.

Compare against tested products to identify which of the tested products have

the most desired characteristics …REVERSE ENGINEERING

Use this to adjust existing products or create new ones

Reverse Engineering – How To Use It

Boxed number indicates the product is off by +/-3 points from the optimal product score for that

attribute.

Optimal

Product Description--> Product

Product Code--> 304 309 290 601

Overall Liking 72 69 63 57 54

Like Fragrance 55 64 62 51 48

Like Fragrance Intensity 50 46 49 43 49

Strength of Fragrance 55 53 53 48 55

Easy to Tear 58 66 62 53 44

Large Sheet 43 45 46 80 22

Soft vs. Firm Texture 62 65 62 56 51

Is a premium product 52 60 57 52 49

Expert 1 61 68 64 68 52

Expert 2 59 58 59 54 49

Expert 3 44 48 44 54 37

Objective Measure 1 0.25 0.20 0.08 0.55 0.51

Objective Measure 2 1251 1235 1300 900 800

Objective Measure 3 750 62 68 75 53

Product Optimization

» Why use this approach

Most direct approach to identify formulations that optimize consumer behavior

Optimal formulations are reported in terms of R&D ingredient levels

» Experimental research design helps estimate the link between ingredients and

consumers‟ perceptions and liking.

Enables R&D to systematically manipulate the ingredients and/or manufacturing

processes of a product

Reveals ingredient drivers of liking and perception within the ingredient set tested

Provides R&D with a recipe for formulation guidance

What is the best combination of ingredients on an absolute basis?

What is the best combination of ingredients at specific cost constraints?

Overall Liking of the Products

- 4 Continuous Variables; 3 Levels Each,

Individual recipes that consumers want:

» By systematically varying ingredients and processes, the following prototypes

beating the current product on an unbranded basis were produced.

Prototype Ing.A Ing.B Ing.C Ing.D Overall Liking

1 Low Low Low Low 74

2 Low Low High Med 71

3 Med High Low High 69

4 Low High High Low 69

5 High Low Low High 67

18 - Current 57

Do Consumers Track Formulation Changes? “As R&D created a thicker sheet consumers recognized the change”

20

40

60

80

100P

erce

ived

Thic

km

ess

R2 = .948

Sheet Thickness – R&D Controlled

0% 50% 100%0

Ingredient Drivers of Liking

- Sheet Thickness vs. Overall Liking -

SIMILAR CHARTS ARE CREATED FOR EACH INGREDIENT

0% 50% 100%

R² = 0.75

0

10

20

30

40

50

60

70

80

4 8 12 16 20 24

Overa

ll L

ikin

g

Thickness of Sheet - R&D Controlled

Product Modeling Approach

-No constraints and with 2 cost constraints

Constraints None Cost 1 (-5% ) Cost 2 (-20% )

Ing. A 65% 55% 50%

Ing. B 22% 25% 18%

Ing. C 13% 15% 8%

Ing. D 0% 5% 24%

Cost per unit $6.50 $6.18 $5.20

Overall Liking 79 74 63

Strength of Fragrance 65 62 56

Softness 60 65 75

Easy to Tear 65 58 50

A Premium Toilet Tissue 75 70 59

Optimal

We offer solutions with actionable results - each engagement delivers a unique set of solutions and benefits.

MJI - For more information…

Moskowitz Jacobs Inc. - 1025 Westchester Avenue, 4th Fl. - White Plains, New York 10604 -

(914) 421-7456 - www.mji-designlab.com

Bert Krieger

Executive Vice President

914-421-7456

[email protected]

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Howard R. Moskowitz, Ph.D.

President

Moskowitz Jacobs Inc.

Phone: +1-914-421-7408

Email: [email protected]

www.mji-designlab.com

www.ideamap.net

www.SellingBlueElephants.com

mji.capabilities.aug.2009.pdf

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