16.04.2008 - test 1

From Innovation to Product

Success

Einar Risvik

Research Director

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Focus on the use of sensory science

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Innovation means a lot of things

• Minor adjustments or changing an ingredient, process adjustments

• Small change or improving a product, making a product better

• Substantial change or reformulation

• Copying a competitor

• Real innovation or making a novel product

• Breaking new ground completely

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• I will distinguish between three types of innovation, as the strategy is very different

1. Incremental innovation

2. Expanding the market

3. Breaking new ground

• Almost all innovations are in the first two categories

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1. Incremental innovation

• Process adaptation

• Change of ingredients or reformulation

• Incremental changes towards a common standard

• Maintaining product image

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Small changes

• The consumer should not notice

a difference

• Flavour and especially texture

changes are important

• Typically use of sensory

profiling and simple preference

tests to see that the change is

not perceived

• Be aware of subtle changes

with long term effects

• Differences must be in line with

product image

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Vodka as an example

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Sensory profiling of 10 vodkas

• Varieties of Absolute and competitors

• Intensity scales, and three replicates

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Soft, grainyButter, raisin , seed,

plums

Higher alcohols,

unclean,

Hospital,

DetergentPrickly, clinical

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All natural

Clinical

Fusel

High end

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Take home message

• Changes in sensory profile can distort comunication

• Perceived product must be consistent with image

• Sensory profile can distort or support and underline commercial image

• Sensory profile is important for success

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2. Expanding the market

• There is something interesting in the UK and we wantsomething similar here

• Our compettitor is very successful with a new soft drink, wemust have something like it

• Our competittors are doing better in the market than us, is thisbecause they have a better product, better packaging or a bettercampain?

• We need to expand the market and want to try our establishedproducts in a brand or line exension

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Example from Elisabeth Lesschaeve et al

Alcohol Aftertaste, Oaky

Sweet & Smooth

Moderately Sweet to Sour, Low Flavor

High Favor, Sweet

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Sweet TasteFruity Smelland Flavor

Intense Smell and FlavorSome Vanilla

Toasted Oak Flavor

AlcoholSmell and

Flavor

LingeringAftertaste

Sour Taste

Bitter Taste

Dry, Puckery

Berry

Smooth

Spicy oak

Lesschaeve et al., 2001

White wine Preference map

Ideal

Alcohol Aftertaste, Oaky

Sweet & Smooth

Moderately Sweet to Sour, Low Flavor

High Flavor, Sweet

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No sales share

Sweet TasteFruity Smelland Flavor

Intense Smell and FlavorSome Vanilla

Toasted Oak Flavor

AlcoholSmell and

Flavor

LingeringAftertaste

Sour Taste

Bitter Taste

Dry, Puckery

Berry

Smooth

Spicy oak

Lesschaeve et al., 2001

White wine Preference map4 Market Segments

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Analysis of market situation

• Include as much variation as possible

• Know your market situation

• Apples as an example

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Has taken more than 30% market shareand much more in profit margins

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Beating the competition

• Well established market segment

• You believe there is an opportunity in line extension or brand expansion

• New uses of the product

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Image must not be distorted

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Defining a new market segment

• Beer for women

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Recreating one of the most successfulinnovations

Fruity, less bitterSoft texture

Window of opportunity

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Sensory differences

Softer, sweeter,

more fruity, less bitter

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Took large market shares

• Biggest in the market

• Old attitudes stood in the way for success

• Has been copied many times by others

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3. Breaking new ground

• Something novel in the market

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Break through innovations are rare

• Demand very good knowledge of the market

– Understand consumer demand and needs better than theconsumer

– Detailed information about needs in particular niches

– Understand attitudes, values and behaviour

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Innovations

• Microwave food

• Dried soups

• Sous-vide food

• Examples of sectors for innovation driven by new technologies

• Very many break through products are driven by technology, not market orientation

• Market orientation as a driver for a break through is difficult

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Very difficult to find an exampleThis is an attempt

• Maybe it is a bubble

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Chewing gum

• Originally used by people in Greece

To clean teeth Launched as candy To clean teeth

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Botteled water

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Norwegian water sold in US for 25USD/l

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Harmony in all perspectivesPeer users

Image is everything

Design

Taste

All natural

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For all innovations: All perspectives must be

though through and contain the same message

Thank you for your attention