Yougov Plc · LSE:YOU
Yougov — Investor Presentation (April 2013)
22 slides from Yougov's investor presentation, April 2013
Slide 1: From Innovation to Execution
FROM INNOVATION TO EXECUTION
Slide 2: From Innovation to Execution
Executive summary FROM INNOVATION TO EXECUTION - Idea generation Idea screening Amount of investment Concept development Marketing strategy Business analysis Product development Test marketing + LAUNCH 2
Slide 3: Launch Execution
Executive summary LAUNCH EXECUTION… • If innovation is the process of creating a new product…the launch is the practical realisation of innovation itself…when an idea meets reality • …it is a crucial step in the innovation process. The moment, or more accurately the ‘period’ of truth • Even at this
Slide 4: Consumer Product Landscape
Executive summary CONSUMER PRODUCT LANDSCAPE • Over 150,000 new products launched each year globally; 1 every 3 minutes • Increased competition. Rise in mega retailers own labels • Shorter product lifecycles i.e. rapid product obsolescence. Pressure on companies to achieve success earlier in the lif
Slide 5: The Benefit of Getting It Right
Executive summary THE BENEFIT OF GETTING IT RIGHT • ‘Difficulties mastered are opportunities won’ • High performing consumer product companies average c.60% of their sales from successful launches of new products • Companies which generate 80% of their revenue growth from new products typically doub
Slide 6: But Odds Stacked Against Success
Executive summary BUT ODDS STACKED AGAINST SUCCESS • 95% of new consumer products are failures i.e. don’t meet company objectives or withdrawn from market within 12-18 months • In the US less than 3% of new consumer packaged goods exceed first year sales of $50m – considered the benchmark of a succe
Slide 7: What This Means for Product Innovation
Executive summary WHAT THIS MEANS FOR PRODUCT INNOVATION • Most launches fail either because customer needs have not been well defined or the launch misses the original schedule or is over budget • Re-launches and ‘me-too’ products have become the norm as the space for genuinely new territory dimini
Slide 8: Re-balancing the Risk/Reward Equation
Executive summary RE-BALANCING THE RISK/REWARD EQUATION • As finding genuinely new concepts gets harder, improving launch execution becomes ever more important • This in turn has helped to create new ways of doing launches better; - Test and learn formats - Consumer feedback loops - Continuous insig
Slide 9: Concept Risks vs Execution Risks
Executive summary CONCEPT RISKS VS EXECUTION RISKS • We need to distinguish between the two… • CONCEPT . Does the product concept, specifically its Features, Benefits and Advantages appeal to target consumers? • EXECUTION. Do our decisions about Price, Placement, Promotion and Packaging help to real
Slide 10: Managing Executional Risk
Executive summary MANAGING EXECUTIONAL RISK • PROMOTION. Is advertising driving awareness amongst target consumers? • PLACEMENT. Are we well positioned in-store to drive trial purchase? • PACKAGING. Do we stand out on the shelf out against category rivals? • PRICING. Is our pricing encouraging trial
Slide 11: Adjusting As You Go
Executive summary ADJUSTING AS YOU GO • Identifying when to adjust the allocation between above and below the line advertising • Refining product and marketing-messages to build consumer engagement • Increasing in-store sampling to drive trial purchase rates 11
Slide 12: Outlines of a Solution
Executive summary OUTLINES OF A SOLUTION • Launch Monitor is a WEEKLY polling tool which tracks the introduction of new consumer & FMCG brands, line extensions and re-launches • Measures and evaluates consumer reaction in the first 8 weeks of launch - Awareness levels - Trial and repeat purchase rat
Slide 13: Carlsberg Experience
Executive summary CARLSBERG EXPERIENCE •A •B Objectives Outputs Benefits •C Carlsberg wanted a faster, more frequent and cost-effective way 1 Results reported every • Shortened lead time between launch and Monday morning of tracking the performance of feedback new product launches. Specifically it w
Slide 14: Just Robust Enough
Executive summary JUST ROBUST ENOUGH • Nationally representative sample of 18–74 years old where the product is mass market. Specific sample groups e.g. Pregnant mothers., where the product is niche • 500 completes per week. 8-10 weeks is typical • Data weighted to fit national norms (Age, Gender an
Slide 15: Faster & More Frequent
Executive summary FASTER & MORE FREQUENT • Shorter lead times through standardised modules – 1 week set up time • Greater frequency of reporting – Every Monday morning vs. end of the month • Frequency enables regular tactical responses and adjustments 15
Slide 16: Flexible
Executive summary FLEXIBLE • Core vs non core modules • Optional non-core modules including: - Advertising testing - Taste evaluation - Price evaluation - Cannibalizational level for other brands - Market growth potential 16
Slide 17: Benchmarked
Executive summary BENCHMARKED • Actual vs. internal company launch targets – set for brand awareness, trial rates, repeat purchase etc • Actual vs. category norms for similar products or launches - to ascertain what ‘good’ looks like 17
Slide 18: Practical
Executive summary PRACTICAL • Revising the allocation between above and below the line • Initiating product-/marketing-message adjustments • Increasing in-store sampling to drive trial rates 18
Slide 19: Practical: Identifying Need for In-Store Sampling
Executive summary PRACTICAL: IDENTIFYING NEED FOR IN-STORE SAMPLING •A •B •C 19
Slide 20: Practical: Issues with Product Quality
Executive summary PRACTICAL: ISSUES WITH PRODUCT QUALITY •A •B •C 20
Slide 21: Summary
Executive summary SUMMARY • Lack of preparation is a key reason for failure – have a plan and stick to it • Set objectives and launch targets upfront • Record key launch phase metrics frequently and objectively. • Be prepared with response actions if a change of course is needed 21
Slide 22: Questions or Comments?
QUESTIONS OR COMMENTS? • E: [email protected] • T: +44 (0)20 7012 6000 • W: yougov.co.uk