Good market research is important. We cannot assume consumers live and think like we do. Fifteen years ago, at Waitrose, there was frustration in the organisation that customers weren’t giving the company enough credit for its meat. Huge effort going into quality, provenance and welfare – not recognised by customers.
So we did some research, and discovered that in fact customers did give Waitrose lots of credit for its meat. They didn’t know the detail – often they didn’t want to – but they were confident good things were happening, and trusted the meat. We had lost sight of this.
You’ve probably seen examples of innovation teams and marketeers developing product innovation which is too far out or too early for consumers. Research can help find the sweet spot. Things that are new enough to take consumers forward, but not so new that they refuse to come on the journey.
So, again, good market research is crucial. But when it comes to selling ideas to retailers, it is a mistake to rely too heavily on market research evidence and not enough on real-world thinking.
Getting into the ‘real world’
The market research approach will be familiar: 53% of people say they’ll definitely buy the innovation, 61% of sales will be incremental to the category… make that 82%. The research says so. Buyers, seeing innovation presented every week, must begin to wonder about these numbers. They’re never told purchase intent is low or sales won’t be incremental. But they know from bitter experience that innovation often doesn’t work.
So what thinking can brands bring from the real world to complement their market research?
First, film consumers talking and responding to innovation. Yes, in theory this can be staged, and buyers know that. Companies do need to be careful about leading the witness. But for many audiences, an authentic video of real people responding to innovation is compelling.
Second, show evidence of success in other channels, regions or countries. Hero’s Mighty Patch acne patches launched well in the UK. A part of its selling story would have been its success in South Korea and the US. Yes, different countries are different – but not that different. It is reassuring for retailers to know ideas have worked elsewhere.
Third, appeal to common sense. Beyond numbers, does the innovation stand to reason? When Belvita breakfast biscuits launched in 2010, did it stand to reason that sales might be incremental? Absolutely. They were obviously designed for an occasion where biscuits were weak. Common-sense rationales are especially important when you’re talking to senior stakeholders who are used to making decisions on instinct.
Evidence from market research is important in selling stories. But real-world thinking can be even more important. If brands can bring both to their sell, it will have a better chance of success.
Jeremy Garlick is a partner at Insight Traction
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