Digital Living Room- Innovation in the Age of Sameness

Innovation in the Age of SamenessDeveloping the Next Winner

Nobody’s Unpredictable

Predicting market potential for business initiatives, with 20+ years validated history

December, 2011

�Predicting Market Potential for business initiatives,with 20+ years of validated history

Ipsos Vantis’ Innovation Focus

A suite of powerful, fast, and affordable A suite of customizable forecasting tools

Optimize & simulate launch scenariosIdentify winning initiatives

© 2011 Ipsos2

A suite of powerful, fast, and affordable services to help you identify winning initiatives early in development by assessing their true market potential.

� Predict market potential� Prioritize features, ideas, & concepts� Define the consumer target� Measure the strength of the message� Identify key/motivating phrases in the

message� Measure buzz potential

A suite of customizable forecasting tools for optimizing price, features, product design, and marketing. Used for modeling new products, portfolios, and categories.

� Forecast units, revenues, profits� Feature simulation� Pricing simulation� Product & Prototype Design simulation� Measure Incrementality vs.

Cannibalization � Competitive war-gaming� Marketing plan simulation

�- Every TV is a Smart TV?

�- Every phone a smart phone?

�- Every tablet does basically the same thing?

�- Every music/entertainment service delivers a similar experience?

How Do Brands Differentiate When…

© 2011 Ipsos3

Most Digital Living Room Offerings Illustrate a Degree of “Sameness”

�Apple is more associated with “innovation” than any other brand

How Do You Compete When…

56%

29%

22%

19%

18%

© 2011 Ipsos4

Source: Ipsos Vantis Innovation Index Q4 2011N = 1,014Q. Which three consumer electronics products and services brands do you associate with being the most innovative today?

18%

15%

14%

13%

Tie 12%

11%

Development, Measurement, and Marketing is Hard!

�Illustrative example-� Tablet launch example

� Hypothetical data

© 2011 Ipsos5

“Share, Revenue, and Profit are Tradeoffs”

�Illustrative example-� Tablet launch example� Hypothetical data

© 2011 Ipsos6

Every New DLR Offering Starts Out as an Idea/Concept

3D TV XBOX Kinect

© 2011 Ipsos7

Android Smartphone Dish Network TV EverywhereTM

Today, Purchase Intent is Really Driven By Many Factors

Seek Information

Intent to Purchase

Intensity of Liking

�Consumer appeal + value perceptions drive purchasing

�Consumer need drives appeal

© 2011 Ipsos8

Price/Value

Uniqueness

Believability

Need Fulfillment

Consumer Purchase

Intent

�But purchase intent is not high if other measures also not strong.

Start Thinking About Your Next DLR Idea as a “Personality”

�Look for patterns or “archetypes” in key measures vs. simply looking for “high scores.”

Top performer archetypes

� Winner

� Under-priced

� Good concept

� Breakthrough� Over-priced � Niche/targeted � Potential future hit

����

© 2011 Ipsos9

MiddlePerformerarchetypes

� Breakthrough

� Me too

� For Want

� Value

Branding

� Over-priced

� Average

� Too premium

� Commodity

� Niche/targeted

� Atypical

� Value resistant

� Unconvincing

� Potential future hit

� Skeptical

� Unbelievable

Caught in middle

Poorperformer archetypes

� Dog����

?

Design Digital Living Room Offerings To Stand Out

Xbox 360 Kinect

Spotify

DISH TVEverywhere

Ultraviolet

Hulu

Market Success Scores

© 2011 Ipsos10

0 50 100 150 200

Sony Reader

Nintendo 3DS

Apple TV

Vizio XVT TVs

iPad 2

Xbox 360 Kinect

And Creating Buzz is as Important as Advertising

Apple TV

iPad 2

Google TV

DISH TVEverywhere

Boxee Box

Xbox 360 Kinect

Nintendo 3DS

Ultraviolet

SpotifyBest Buy Buy Back

PS3 Motion Ctrlr

120

140

160

180

Message P

ow

er

Score

© 2011 Ipsos11

Apple TV

Sony Reader

DISH TVEverywhere

Hulu Plus

Ultraviolet

PSP2

VIERA Cast Tab

iBig Box

3D Blu-ray Player

FloTV

20

40

60

80

100

20 40 60 80 100 120 140 160

Message P

ow

er

Score

Buzz Power Score

Thank You!

Randy Giusto, SVP, Innovation Research

508.254.7975 randy.giusto@ipsos.com

@IpsosVantis @randygiustowww.innovationpov.com