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New Market Space in Consumer Goods. Agenda Finding new market space Examples of new space in consumer goods Developing a process to claim new space.

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Presentation on theme: "New Market Space in Consumer Goods. Agenda Finding new market space Examples of new space in consumer goods Developing a process to claim new space."— Presentation transcript:

1 New Market Space in Consumer Goods

2 Agenda Finding new market space Examples of new space in consumer goods Developing a process to claim new space

3 Redefining market space – do not focus on needs, but on jobs consumer are trying get done 3Copyright 2013 New Markets Advisors Needs Better acceleration More precise handling Increased headroom Larger storage capacity Competition Mid-sized sedans Jobs Express myself Park in tight spaces Show my ecological sense Have fun Competition Fashion, scooters, Prius, Smart, Cayenne WHATWHY

4 Where do jobs come from? Functions Attitudes Circumstances Seek X because it leads to Y Seek X because it fits with who I am Seek X because of whats happening right now 4Copyright 2013 New Markets Advisors

5 Defining the challenge tightly, beyond just the job ElementBrief Description JobsWhat are people trying to get done, regardless of what they are currently buying? Approaches and Pain Points What do people do today? Where does there appear to be non-consumption? What are the pain points? CompetitionWhat is the real competition? What do analogies and benchmarks suggest about underlying jobs? CriteriaHow do people evaluate new solutions? ObstaclesWhat hinders adoption of new solutions? 5Copyright 2013 New Markets Advisors

6 Example – Tackling frequent obstacles to adoption of new consumer goods Leverage Existing Behavior Febreze Swiffer VitaminWater Listerine Agent CoolBlue PedEgg Tackle New Occasions Tide to Go Cameraphone iPod Desktop copier RedBull Find Purchase Triggers Ticket insurance Extended warranty Airline clubs Auto accessories Home deep freezes Affordable, Not Inexpensive Razors / blades Microfinance Freemium JiffyLube Easy to Trial / Know it Works Video games High definition TV Quicken software Free samples in grocery 6Copyright 2013 New Markets Advisors

7 Agenda Finding new market space Examples of new space in consumer goods Developing a process to claim new space

8 Kraft released its Sizzling Salads Dinner Kits, which include a bottle of salad dressing and a bottle of cooking sauce sold in a kit All the cook has to do is mix the dressing into the salad, add the cooking sauce into the chicken they plan to cook, and toss it into the salad The prep time is 20 minutes, making it a quick meal that is still homemade Copyright 2013 New Markets Advisors8 Reconceive categories by underlying jobs to be done Example – Kraft Sizzling Salads Source: USA Today

9 Laser-target a benefit for the jobs of unaddressed market segments Example – Ensure with Revigor According to Ensure, if you are over 40, you could be losing 8% of your muscle every 10 years, and exercise alone might not be enough to fight that off Ensure Muscle Health has Revigor, the amino acid metabolite HMB, and protein to help rebuild muscle and strength naturally lost over time While there have been many protein supplements for weightlifters, fitness gurus, and normal people looking for meal replacements, there has not been one directed towards those who are aging and want to preserve their muscle mass Copyright 2013 New Markets Advisors9 Source:

10 Leverage cues to address under-addressed jobs, e.g. know it works Example – Berocca Twist 'N' Go effervescence From Bayer Australia, Twist N Go is a revolution in drink packaging by using a patented cutting mechanism within the lid which, when twisted, cuts open a blister packet, automatically dispensing a vitamin tablet into purified water Since vitamin tablets typically degrade when exposed to water, delivering premixed vitamin drinks has traditionally been very difficult, and Berocca sought to fix that Copyright 2013 New Markets Advisors10 Source: Invetech

11 Tackle pain points in the consumption process Example – Smuckers Uncrustables Smuckers Uncrustables sandwiches are premade peanut butter and jelly sandwiches without the crust and are perfect for picky kids They can be frozen to ensure prolonged freshness and come in a variety of flavors, which include new varieties on whole wheat bread with strawberry, grape, or raspberry spread Copyright 2013 New Markets Advisors11 Source:

12 Smuckers Goobers has every kids favorite sandwich, peanut butter and jelly, in one jar With either grape or strawberry jelly mixed with peanut butter, the job of making this sandwich is simplified Copyright 2013 New Markets Advisors12 Source: Tackle pain points in the consumption process Example – Smuckers Goobers

13 Nearly two in three people say they don't have enough energy, but nearly 40% don't believe energy drinks are good for you, which is where V8 comes in with its V-Fusion + Energy drinks When the drink made with fruits and veggies rolls out this new product, the label will clearly spell out where that energy comes from: 80 mg of natural green tea Copyright 2013 New Markets Advisors13 Address obstacles to category adoption Example – V8 V-Fusion + Energy Source: USA Today

14 Address obstacles to frequent use Example – Off Clip-On Off Clip-Ons provide protection from mosquitoes without a spray, lotion, or citronella candle or lamp By clipping it onto your pants or shirt, the quiet, battery-powered fan circulates repellent all around you, giving you your own bug-free bubble It uses an active ingredient with no scent, and each refill provides up to 12 hours of head-to-toe protection Copyright 2013 New Markets Advisors14 Source:

15 Agenda Finding new market space Examples of new space in consumer goods Developing a process to claim new space

16 Embrace a process that creates customer-centric solutions, driven by clear growth strategy Develop consensus about your current situation, your present strategy, baseline knowledge, and key upcoming decisions Undertake primary, qualitative research with target stakeholders to see the world through their eyes and understand their jobs to be done Quantify the resulting job-based segments and the job drivers Rigorously define the challenges target customers grapple with, and create total solutions that put you in a competitive class you can own Develop business plans focused on mitigating key risks, validating success drivers, and rapidly reaching milestones that improve odds of success – Reduce risk before investing for scale – Avoid false precision in financial estimates. Focus instead on what you have to believe financial assumptions and achieving certainty behind those assumptions – Explicitly link near and long-term decisions to underlying strategy 16Copyright 2013 New Markets Advisors

17 Relevant services from New Markets Light-touch counsel on strategy-shaping process Facilitation of consensus-building meetings Deeper involvement in strategy and solution creation Structuring of primary research and interpretation of results Business plan creation Copyright 2013 New Markets Advisors17

18 Who is New Markets? Experts in reframing market space and generating growth Senior experience Creative and pragmatic First-class consultants, thought leaders, and entrepreneurs Recent Clients Copyright 2013 New Markets Advisors18

19 Our teams publications have appeared in: Copyright 2013 New Markets Advisors19

20 Contact Stephen Wunker Managing Director New Markets Advisors 245 First Street, 18 th Floor Cambridge, MA 02142 USA Tel. +1 617 337 3060 Fax +1 617 337 3070 Copyright 2013 New Markets Advisors20

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