Hits and Misses Insight Presentation - June 2011 - ANZSEA Final v[1]

8/3/2019 Hits and Misses Insight Presentation - June 2011 - ANZSEA Final v[1]

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Hits & MissesLessons Not to be Ignored in Product Innovation

Mintel Insight Presentation

June 2011



• Global brands

• Keep the brand exciting without compromise

• They know what their consumers want

• They do what they do well



© 2010 Mintel International Group. All rights reserved. Confidential to Mintel.

Innovation – Many Definitions

The classic definitions of innovation include:

• The process of making improvements by introducing something new.

• The act of introducing something new: something newly introduced

(The American Heritage Dictionary).

• The process of translating new ideas into tangible societal impact (Krisztina Holly, Vice Provost,University of Southern California, and Executive Director of USC Stevens Institute for Innovation)

• The introduction of something new. (Merriam-Webster Online)

• A new idea, method or device. (Merriam-Webster Online)

• The successful exploitation of new ideas (Department of Trade and Industry, UK)

• Change that creates a new dimension of performance Peter Drucker (Hesselbein, 2002)

• A creative idea that is realized [(Frans Johansson)] (Harvard Business School Press, 2004)

•

"The capability of continuously realizing a desired future state" ([John Kao, The Innovation Manifesto, 2005])

• "The staging of value and/or the conservation of value." (Daniel Montano 2006.)

www.Wikipedia.com

4



© 2010 Mintel International Group. All rights reserved. Confidential to Mintel.5

The Consumer: Rethinking The Way They Consume

The global consumer landscape has changed. This changehas caused people to reconsider the way they consume.




Over Consumption Without Consideration

Causing The Rethink: Lifestyle

Our PersonalLives

Finances/Health

The Wider

Community

Global and LocalProducers

TheEnvironment

Reckless consumption has its limits

The “New Consumer” is rethinking the way they consume




New Consumer Priorities

Globalisation in Reverse

Movement from:Mass / globally produced items

Movement to:Local / ethical

Simplicity

Movement from:Complicated / over ambitious products

Movement to:Simplicity / focusing on the essentials

Smart Shopping

Movement from;Overly luxurious / expensive items

Movement to:Value initiatives

Togetherness

Movement from:Individual indulgence

Movement to:Shared experiences




Simplicity

People are simplifying their lives to hold on to what is important and stripping out the unnecessary

Simplicity

Source: Mintel Inspire




Simplicity – the Translation To Products

90% of US

respondents aresimplifying their livesafter the recession

Simple, honest,believable claims on

pack

Organic, natural andlocally produced

products on the rise

Average number of ingredients per product

is in decline in the US

Source: Mintel American Lifestyles Jan 2010




The Impact On New Product Development

Market DrivenUnsophisticated

Consumer

FirstAbsence / Minus

The removal of the not sodesirables

NextPositive / Plus

Functionality – with/withoutthe science

NowBalance

Health ManagementFresh

Natural

RealSimplicity

Ingredient reduction?

Consumer DrivenWanting greater clarity

Increasing overweight and obesity issues

1990’s Uncertainty

Consumers accepting of health& food messages

2000’s Change

Increased confusionregarding health messages

NowAccountability

Consumers actively seekinginformation

11




The Enemy




Michael Pollan: Keeping it Simple

1. Avoid food products that contain morethan five ingredients.

2. Avoid food products containingingredients that a third-grader cannotpronounce

3. Avoids food products that make a health

claim

4. Don’t ingest foods made in places whereeveryone is required to wear a surgicalcap.

5. Get out of the supermarket whenever youcan




Simple Language




Simplicity With Beauty

15



Top New Performers




Special Edition Yoghurt – Single PotUK

Hovis Heart Healthy BreadUK

Belvita Satiety WholegrainBreakfast Biscuits - UK

Available as a special edition yoghurt, the product consists of juicy peach and tangy passionfruit

mixed with a full, creamy textured luxury yoghurt

Baked with 50% oats and 50% wheatflour. Themanufacturers claim their bread will help

maintain normal cholesterol levels, which hasbeen approved by H.E.A.R.T UK

Crunchy biscuits designed for consumption at breakfast time, designed to provide a gradual

release of energy.

Performance – Units per store perweek: 108



Total Sales - £504,466 in 15 weeks onshelf

Total Sales - £5,227,370 in57 weeks on shelf


17

Top New Performers: Food




Caffeine and Sugar Free Coke(330ml can)- Spain

Mountain Dew Energy Soft DrinkUK

Organic Arabica Senseo Coffee PadsFrance

Coca-Cola Zero Sin Cafeína (Carbonated Soft Drink without Caffeine) is now available. This

product retails in a 330ml can.

An energy positioned and an "extreme" soft drink that contains more caffeine than the Mountain

Dew Soft Drink sold in the USA for an extra kick

Made from high quality 100% arabica beans and UTZ Organic Certified




Total Sales - €5,427,350 in45 weeks on shelf


Total Sales - €284,066 in16 weeks on shelf

18

Top New Performers: Beverages




Sensodyne Repair ProtectToothpaste - UK

Limited Edition Shower Wash(Eastern Spirit Scent) – UK

Dettol Hand Wash SystemFrance

Features a unique concentrated calcium formula

claimed to continuously repair, strengthen and protect sensitive teeth with the exclusiveNovamin technology

The limited-edition Radox Eastern Spirit Shower

Therapy has been inspired by the Orient and combines extract of delicate lotus flower withorange blossom oil to help soften the skin and

rejuvenate the senses

Formulated with moisturising agents and is

claimed to kill 99.9% of bacteria, helping to stopthe spread of germs. The wash systemautomatically dispenses soap, for cleansing

without dripping or mess





Total Sales - £895,381 in37 weeks on shelf

Total Sales - €1,771,020 in 28 weekson shelf

19

Top New Performers: Personal Care




Bacteria-control DishwashingLiquid - UK

Sneeze Shield on-the-go TissuePacks - USA

“Exhilarations” mood-lifting FabricSoftener (750ml) - UK

Features antibacterial action to control bacteriaon a sponge. The product is retailed in a 433ml

bottle featuring the British Skin Foundation logo.

Eight packets with ten three-ply tissues with„Sneeze Shield‟, a unique coating that preventsgerms from going onto the hands and spreading

viruses

Exhilarations Wild Bluebell & Bergamot Thrill variety is said toelectrify the senses and uplift the

spirits. The product also acts as an ironing aid




Total Sales - £2,564,302* in36 weeks on shelf


Total Sales - €284,066 in16 weeks on shelf

20

Top New Performers: Household

*(2 fragrance variants)



Mintel’s Global “Hits”




Innovation Pillars

Health & Wellness

Simple

Targeted

Lifestyle

Trading Up

Value

Convenience

Portability

Ease of Use

Ethical

Human

Environmental

Segmentation by Age and Gender

22




Key Product Trends

23

Food & Drink

Claims Categories, Food & Beverage, Global% of new products, Last 12 Months

Non-Food

Claims Categories, Beauty, Household, Pet & Health/Hygiene, Global

% of new products, Last 12 Months




Mintel’s Market Hits

24

Hit #1: Innocent




Innocent: Meeting Consumer Need

Idea Origin:

The three founderswere:

Not wanting to wait ata juice bar in the

morning

Wanted somethingtotally natural

“ Supermarkets don‟t even return your calls at first. Then they say no and then if you are

persistent you get a chance”

25




Innocent: Meeting Consumer Need

All NaturalSmoothie

Packaging ReflectsSimplicity

Fruit to Vegetable

Consumer

Need

Consumer

EngagementNew OfferingsSimple Story

Ethical Appeal

26




Recent Success: Basic Apple Juice

27

Performance – units per storeper week: 85

£1,977,130 in 15 weeks

Innocent: Continued success with

a simple, natural story





28

Hit #2: Tide




Tide: Results Driven

Original Proposition

Simple / EffectiveCleaning

Achieved viaNo frills

High results




Tide: A Period of Experimentation

Back to BasicsWater-lessCleaning

ClothesBeautification

30

Traditional

High performancecleaning

Did Tide stray too far from the brand & the category?




Tide: Delivering New Lifestyle Benefits

31

Scented lintroller

Aromatherapybenefits

On the goformats

Sports – OdourEliminators

Added softenerPerpetual

fragrance release

Continued SuccessSticking to the brand /

proposition

New lifestyle benefitsperpetuate interest

Safe territory within thecategory




Top Performing SKUs: US Automatic Detergents

32

Tide plus Downy FabricSoftener (150.00 fl. oz)

Performance: Units perstore per week: 11

$49,242,500 USD in 94weeks on shelf

Top 5 Performing SKUs by Performance Rate Jan 2004 – June 2011

Wisk 2x UltraConcentrated (50.00 fl. oz)



All Oxi-Lift 2-in-1(50.00 fl. Oz)



Oxi Clean with StainFighters (150.00 fl. Oz)



Tide Sports with OdourEliminators

(100.00 fl. Oz)






Mintel’s Global Hits

33

Hit #3: Haagen-Dazs




Extending into “better for you” formats Simple HealthFull indulgence

Premium Healthier Options Without Compromise

Haagen-Dasz: Delivers On It’s Brand

34




Haagen-Dazs Five: Simplicity Defined

Sales

Accumulative Sales:Approx 30 Million (USD)

Average Weekly Sales:Approx 360,000 (USD)

Still Selling

Flavours

Vanilla BeanMint

GingerCoffee

Sugar (Brown)Chocolate (Milk)

Lemon

35

Source: Mintel IRIS Product Sales Data

Häagen-Dazs Five - Vanilla Bean - 14.00 fl. oz (US)

Häagen-Dazs Five - Coffee - 14.00 fl. oz (US)

Häagen-Dazs Five - Milk Chocolate - 14.00 fl. oz (US)

Benchmark: Haagen-Dazs excl Five (17 SKUs)





36

Hit #4: Olay




Olay: Heritage of Youthful Beauty

37

Original Proposition

Younger looking skin

Achieved via

Light, non-greasy formulaQuick absorption

Effective moisturisation




Olay: Staying True to Principles

Basic HydrationProfessional

Results

Anti-agingBenefits

“7 signs of ageing”

38

Continually delivering younger looking skin




Olay: Real People, Real Results

39

Continued brand strength

through proven results

Olay‟s re-invents the brand over time while continuing to deliver

on it‟s original promise

Olay‟s recent campaigns show real anti-ageing results inreal people over time





40

Hit #5: Absolut Vodka




Absolut: Delivers an Experience

COMPLETE PACKAGE

Authentic ingredients

Hero/standout flavours

Successful ad campaign

Quality bottle packaging

41




An Absolut Chameleon

Absolut continues to tell a story withnew chapters….

42

b l f h




Absolut – Be Part of the Experience

43

Ab l t N L R i d




Absolut: No Logo Required

No Logo Required

The latest variant from Absolutis nude – no logo, no imagery,

no message

44

Mi t l’ M k t Hit





Hit #6: Red Rock Deli

45

R d R k D li A P i t f Diff




Red Rock Deli: A Point of Difference

46

Elevated yet simple offering

Highly developed market – yet lack of premium, affordableoptions

Consumer desire for more flavour choice and better quality

Si l P i Si l Off i




Simple Premise, Simple Offering

47

Real Real potatoes,real flavourings

SimpleA real chip -

big in flavour, low

in fat

FreshFoil for freshness;

locally sourcedpotatoes

UniqueElevated

flavourings; unique

combinations

R d R k D li Si l b t U i




Red Rock Deli: Simple….but Unique

Flavour Purpose

Moroccan Chicken Locational

Dijon Mustard and HoneyComplimentary but

striking

Honey Soy ChickenComplimentary but

striking

Lime and Black PepperComplimentary but

striking

Sweet Chilli and SourCream

Familiar andcomplimentary

Tzatziki Dip category inspired

Sea Salt Natural and simple

Sea Salt & BalsamicVinegar

Familiar yet elevated

Simple and familiar flavours combined tocreate something unique in the market

48

Delivered on a Consumer Need




Delivered on a Consumer Need

49

Meeting the need – with success

Since 2002, the Red Rock brand has solidifieditself firmly in the Australian snack market and

continues to evolve

Potato Salty Snack – Australia Market Shares 2010

Olive Oil 75% less fat variant






50

Hit #7: BeroccaTwist’n’Go

Berocca: History of Energy Delivery




Berocca: History of Energy Delivery

51

Original proposition

Natural energy – B vitamins

Daily boost

“Pick me up”

Berocca: Extending into Energy Drinks Market




Berocca: Extending into Energy Drinks Market

52

Simple packaging idea= new category, new

sales

Berocca: Knowing When to Cross Over




Berocca: Knowing When to Cross Over

53

Australian Energy Drinks Market – Spend per Capita

Trusted brand, natural energy High growth, developing market





Mintel s Market Hits

54

Hit #8: Sunrice

Sunrice: From Commodity to Convenience




Sunrice: From Commodity to Convenience

Convenience, not commodity

Original positioning – easy & quick mealsolution

Convenient packaging

Simple product – new uses & cuisines

55

Sunrice: Evolving the Convenience Element




Sunrice: Evolving the Convenience Element

56

What else can a rice be?

Sunrice identified opportunity to expand the natural convenience of ricethrough better storage solutions and new consumption situations

Diversifying the Humble Grain




Diversifying the Humble Grain

Gluten free & lowGI

Quick cook brownrice

Better Storage

On-table serving

Global rice variants

Entertainingblends

Snacks

Ready Meals

57

Sunrice: Exploring New Categories




Sunrice: Exploring New Categories

58

Extending the goodness

With a strong health profile and brandtraction, Sunrice extended into

confectionery to offer healthier options

Sunrice: Embraces its Category




Sunrice: Embraces its Category

59

Market Shares – Australian Rice Category 2009Mintel Global Market Navigator

Sunrice has continued to evolved it‟s offering within abasic category and perpetuate new consumption

occasions and new levels of convenience



Mintel’s Global “Miss” List

Mintel’s Market Misses




Mintel s Market Misses

61

Miss #1: Calorie ConceptFor All Markets

Basic H&W: Portion Control




“...The 100 calorie snack package, an industry that went from $0 to $200 million in a three yearperiod...”

“The concept of the 100 calorie package is a winner. Portion control, convenience, familiar and favouritefoods, all in one (slightly expensive) package add up to a dieter’s best friend”

Basic H&W: Portion Control

100 Calories – A Dieters Best Friend !

62

62

Basic H&W: Getting The Portion Right

http://c/sinatra/gnpd/images/zoom&id=891092&pic_num=0&xOff=0&yOff=0&destWidth=982&destHeight=936&origWidth=693&origHeight=417

http://c/sinatra/gnpd/images/zoom&id=891092&pic_num=0&xOff=0&yOff=0&destWidth=982&destHeight=936&origWidth=693&origHeight=417




Basic H&W: Getting The Portion Right

Claims 2005 2006 2007 2008 Growth2007 - 08

EnvironmentallyFriendly Package 37 65 616 3,568 479% Portionability 148 185 213 1,144 437%

Immune System(Functional)

87 87 286 433 51%

Glycemic

(Low/No/Reduced) 245 231 363 536 47% Cardiovascular(Functional)

172 241 434 624 43%

Selected Claims, All Food & Beverage(no. of new products, Jan 05 – Dec 08)

Top 5 Emerging Claims, All Food & Beverage(no. of new products, Jan 05 – Dec 08)

63

Bacardi: Considered the Local Context




Bacardi in the UK have recently launched 100 Calorie Breezer. They have replacedtheir previous lighter Half Sugar version. Bacardi said “the 100 Calorie variant was

created in response to consumers lack of understanding the calorie content inalcoholic drinks”

Bacardi: Considered the Local Context

Cadbury: Not The Right Concept




adbu y o g o p

Fast Benchmark: Chocolate Tablets (UK)

Dairy Milk - Low Calorie Chocolate Bar

Cadbury Low CalorieChocolate Bar

Averageweekly sales

£331

Total sales(over 46weeks)

£15,246

Sales Performance

65

Uncle Toby’s: Re-thinking The Concept




y g p

66

2008 2010

Getting the Message Right




g g g

67

A multitude of messages Explaining & educating

Mintel’s Market Misses




Miss #2: Febreze ScentStories

Scentstories: A Good Idea at the Time?




Innovation in scent alternation

Innovative packaging/device

Attractive consumer benefit – scent control & variation

First major launch of alternating scents in aircare

Scentstories powered aircare unit used “scent discs” with 5 scents which the user could select and alternate

Scentstories: Miscommunication and Confusion




Brand Launched Scentstories releaseShania Twain CDMarketed by ShaniaTwain

Consumers confused – music player or air-freshener?

Confused Consumers = Product Miss




Deliver a clear purposeand benefit

Keep the message simple

Febreze abandoned the range within a year and sold the brand to Yankee Candle, whocontinued to make the scent disks for consumers who invested in the original player.YC also abandoned the brand after a few years as consumer demand died off.




Lessons From The Hits

Meet Consumer Need Extend category

benefits

Deliver The Brand Know When to Cross

Over

Re-invent Be Unique but Simple

Embrace the Category Evolve But Stay True




Lessons From The Misses

Steal concepts with consideration Communicate a clear purpose

“To do a common thing uncommonly well brings success”



To do a common thing uncommonly well brings success

- Henry John Heinz, Founder



Mintel

www.mintel.com

Hits and Misses Insight Presentation - June 2011 - ANZSEA Final v[1]

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