Phil Glowatz & Associates--New Product Development, Positioning, Focus Groups

This article appeared in Brandweek Magazine, April 1, 2002:

New Products From the Opposite Side:
Creative tactics that give you an advantage.

By Phil Glowatz and Jacques Chevron

Until late in the 18th century, most travelers walked or rode on the left side of roads. This came about because soldiers usually fought with their swords in their right hand, and being on the left side of the road made it easier to engage an enemy. The soldiers demanded all travelers follow suit.

Napoleon changed this practice. To give an edge to his armies, he ordered soldiers and travelers to the right side of the roads. The resulting flow of refugees fleeing on the "wrong" side of the road during conflicts had the effect of slowing down his opponents' armies. And, when enemy patrols were met on the road, there was confusion that Napoleon's men were expecting and prepared for, giving them a tactical advantage.

With marketing, and particularly in new product development, doing things differently can also pay big dividends. Yet, most of those in new products use the same tactics-the same development and research tools-in very similar ways. Ergo, they get similar results, and category after category is filled with products that are not distinguished from one another and lack competitive advantages.

To change this, new product developers should inject creativity into the process, and use their methods and tools in different ways. For example:

Brainstorm anonymously. Traditional group brainstorming sessions actually inhibit ideation. Human nature being what it is, some people are shy in a group, while others are reluctant to voice what might be viewed as a "bad" idea. (The mantra of "no bad ideas" is often subverted by the group's non-verbal reactions; some ideas get built on immediately, while others evoke silence.) So, consider brainstorming anonymously using an online "ideation chat room" (each participant is identified only by a code number). This allows all group members to open up and new product ideas to flow freely. There are several software programs available for this.

Encourage consumers to bring the products they use to focus groups. Show and tell works. When consumers can point to the actual products they use as they discuss them, a clearer understanding of attitudes can emerge. In developing eyewear, for example, we had consumers bring in their eyeglasses--most had several or more current pairs-and explain the usage occasions for each one. This helped us understand more sharply the potential (and limitations) for premium eyewear concepts. We've done the same with a range of consumer products.

Explore a benefit that is the opposite of what should work. Throwing an outrageous concept into the mix can get consumers talking about your category in different ways. For example, in developing a new deodorant, you might explore a product idea that claims to let some of the body's natural odor come through. For spaghetti sauce, create a concept that promises a smooth texture with absolutely no herbs and spices. These "opposite" concepts can stimulate a focus group discussion and lead to insights that might not otherwise be uncovered.

Observe the product being used. Have the members of the new product team go into homes and watch how consumers actually use a product. Some years ago, we worked on a dishwashing liquid which, as most brands still do, claimed a superior grease-cutting ability: "A few drops are enough!" Accordingly, R & D was hard at work developing formulas where even fewer drops would be needed. Yet, during in-home visits, we observed that even the most dedicated product users weren't heeding the "few drops" message, and were squeezing out far more liquid than they really needed. The recommendation to R & D was to focus away from making a more concentrated product.

Do a quantitative analysis of qualitative verbatims. Regular focus groups, properly moderated, are a powerful tool already. But, analyzing them with a little creativity can lead to even more golden insights. One very effective technique is a computerized method called verbatim mapping (VerMap), that analyzes the transcripts of group discussions. Also known as "Self-Organizing Artificial Neural Network Analysis," it evidences words that are juxtaposed frequently, as well as those that show negative associations (i.e., when a particular word appears, others never do). These word/concept relationships can be subjected to sophisticated statistical analyses-e.g., cluster analysis-to provide insights that might otherwise remain hidden.

Of course, there are numerous other creative twists possible. The key lies in searching for ways to customize your research tools-by looking at possibilities on the "other side of the road"-to uncover the insights your competitors will overlook with traditional methods. You may not conquer the world, but you will surely increase your chances of developing a product with a compelling customer benefit, and a tactical advantage in the marketplace.

Note: Jacques Chevron is president of Jacques Chevron & Associates, a global branding group. We partner together on new product development projects, and I consider him a friend as well as a brilliant marketing strategist.

Phil Glowatz and Associates - new products, branding, positioning, repositioning, marketing experts.

On Positioning Your Product:

The consumer--in virtually any category--wants to know one thing: "Why should I spend my money on your product when there are 47 other choices?"

That's why you need to communicate a Single Compelling Benefit (SCB) to the consumer. It doesn't have to be a breakthrough benefit, either; it just has to make her/his life a little bit nicer. And, once you arrive at a positioning that works, stick with it and hammer it home, year after year after year. It's your position in the market, and if you keep changing it (many firms get "bored" with their own marketing messages), you'll evoke no clear image in the mind of the consumer.

On Rolling the Dice:

When it comes to getting a new product to market, some companies hem and haw for years, convincing themselves they're fine-tuning both concept and product. Actually, though, they're trying to guarantee they won't fail, which is a vain exercise. The usual result is missed opportunity. Other companies, such as my client, Nabisco, roll the dice, and are aggressive in introducing products. Yes, Nabisco has had several losers in the past few years, but their philosophy has also yielded Snackwell's, which is now a $500MM+ brand. And that pays for a lot of failures.

On Brands and Bottom Lines

Building and maintaining a brand means constant nurturing, in the form of marketing dollars. Advertising, promotions and on-going improvements in formulation, packaging, etc. are investments that inevitably yield long term profits and growth. Yet some firms can only look at these activities in one way-- as expenses which are easily cut whenever a higher dollar figure is needed for this quarter's or this year's bottom line. That's short term thinking, and a losing approach. It's also bad marketing.

On Brand Life Cycle:

Brand life cycle is usually a self-fulfilling prophecy. In most product categories, it simply doesn't have to happen. It all comes down to whether a firm is willing to invest in a brand on a long term basis rather than allowing it to reach a maturity stage and wither away. The key is to keep innovating. Don't rest on your product's laurels.

Tide Laundry Detergent, for example, was one of the very first laundry detergents, and has maintained the #1 position since the late 1940's (at a premium price, too) by always being a state-of-the-art product. They've done whatever it takes to keep their customers perceiving the product as the leader and the best -- enzymes, bleach alternative, drip-proof cap, a liquid version, a concentrated version, an unscented version, etc. The frequent innovations also mean Tide often has "news" to convey to the consumer, and "news" always has more cut-through-the-clutter power than the same old story. It also signals the consumer that someone back at the company is alive and listening.

Other companies, on the other hand, introduce a product, support it for a while then sit back, stop marketing it and attempt to "milk" profits out of it. After a few years of such non-marketing, customers start to defect. So then the company figures they have a mature brand in decline, and they support it even less. It's a self-fulfilling prophecy, though, and it doesn't have to happen.

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Phil Glowatz & Associates
New York City
phone: 718.343.6535
fax: 718.962.1027
e-mail: phil@glowatz.com