Getting Started with Conjoint Analysis

- Getting Started with Conjoint Analysis Many of you have asked about where one can find a good introductory book on conjoint analysis. Until now we didn't have a good answer, as available books on conjoint analysis have been somewhat technical and academic. Some textbooks have offered introductory chapters on conjoint analysis, but a more substantial and accessible treatment has been needed. We are pleased to announce the availability of a new introductory book on conjoint analysis, written by Sawtooth Software President Bryan Orme (publisher: Research Publishers LLC). Price: USD 25

La segmentaci??n de Wal-Mart

- La segmentaci??n de Wal-Mart Wal-Mart ha anunciado una nueva estrategia, consistente en segmentar sus hipermercados en torno a seis p??blicos objetivos: hispanos, afroamericanos, empty-nesters (hogares donde los hijos ya se han marchado de casa), clase alta, suburbios y rurales. La segmentaci??n consiste principalmente en adaptar la oferta al tipo de consumidores de cada centro: por ejemplo, un centro "hispano" tiene m?°s productos tradicionales hispanos, una panader??a especial y vende tacos para desayunar. Un centro "afroamericano" tiene una amplia selecci??n de m??sica gospel y rap, ropa deportiva y productos especiales para el pelo. La reestructuraci??n afecta a una parte bastante peque?±a de la tienda, unas 3.000 de los 100.000 referencias que se venden en sus Supercenters. Los primeros resultados son prometedores, con incrementos de ventas del 7% y m?°rgenes m?°s altos.

Focus Group

- The Testing Paradox: Is it accurate? by James Student from brandchannel.com I have worked at many agencies, large and small. I have also worked for a diverse range of clients. I have sat through focus groups, looked at vox pops and analyzed reams of statistical data. I have concluded that research is an absolute necessity. I have seen it transform mediocre executions into award-winning spots and potentially damaging creative into messages that clearly enhance brands. The client needs proof—or at least a degree thereof—that the proposed concept will meet the required objectives and not waste money. For many the result of focus groups is the closest thing attainable to some form of fiscal comfort. But for many an agency, an enclosed room with 12 paid individuals (who are now “experts”), a camera rolling and a research expert could not be further from the execution’s natural habitat. Further, the agency declares, this form of testing can easily dilute or kill groundbreaking concepts. I also agree. Confused? It only gets better from here. Focus groups, like all research methodologies, have their strengths and, therefore, their place. Groups can ascertain good ads from bad. They can isolate the delivered message as rational, emotive or both. Furthermore, they can even measure which ad is preferred over competitor ads. For different media, focus groups can test a range of hypotheses for which you will receive a reasonably accurate result. So what can’t focus groups do? They can’t measure the change in purchase propensity of the target audience toward the product or service tested. Yes, it may be determined it’s a good ad, but how good? It’s not possible to determine. There are simply too many variables to consider that a group environment cannot strike from the equation. Particularly because each person is an individual with his own unique desires, perspectives, needs, decision-making power and history and interaction with the master brand on trial and its competitors, the variables are endless. The solution lies in diversity. Test in as many different ways as possible and draw strengths from each. Here’s just a handful to start with: Use focus groups but be thoughtful about what you test in that environment. Film vox pops for opinion and/or subjectivity. Run two different executions of a print ad with two different phone numbers and see which gets a higher response rate . Use the same strategy as above for direct mail pieces on ten percent of your market before rolling out to the rest. If running a retail or direct-response ad, run it in an isolated economy such as a local town before going national. Assign tasks relating to information gathering from an Internet site and watch the user navigate his way through the site determining best practice Internet architecture. Become a mystery shopper. Gather feedback from your sales staff regularly. It’s guaranteed there will be trends in consumer behavior, the questions asked and the cognitive processes prior to purchase. Give sales staff different script guidelines and see which entices the most customers. Establish a sample booth in a supermarket. Give the consumer a sample of the product and ask him to choose the two most definitive adjectives from a list of five. These are but a start. There are infinite ways to test your product or service. By employing multiple approaches, different trends will emerge and greater depth to analysis will be possible, satisfying both client and agency.

Quest flavour prediction method

- Quest has launched a flavour prediction and design method that it claims could transform the flavour development process. The company said that its LISA method allows it to predict consumer preferences with unprecedented detail - by region, age and gender for example - across the globe. "The desired result, for food manufacturers, is more efficient and thorough NPD processes that, thanks to the flavours better satisfying consumer preferences, will help increase brand loyalty and market share," said Quest Flavours group vice president Cees de Jong. "Were excited about the possibilities and the initial customer feedback has been extremely encouraging." If this new method works as effectively as Quest claims it does, it could be of significant help to food manufacturers. Taste is a key driver in the €3.2 trillion global food industry and a greater understanding of the consumer preferences could lead to strong market advantages. In addition, competition in the $10.4 billion global flavour and fragrance sector is rapidly increasing. What sets the LISA (Linking flavour Ingredients and Sensory data to Acceptance) method apart, according to the firm, is the fact that it combines data on the flavour components that determine consumer liking with data on sensory attributes such as creaminess, juiciness, ripeness or sweetness and on consumer preferences. "It is the added insight that makes it feasible to thoroughly predict and optimise local flavour preferences in various consumer groups worldwide," said Jong. For instance, the method can predict that a male in France will prefer a juicy, slightly peel-like orange, while their counterpart in India will prefer a sweet, slightly mandarin-type orange. Alternatively, Brazilian females between 25 to 35 who are heavy users of orange juice like juicy, green oranges. Brazilians under-16 who are heavy users of orange carbonate on the other hand prefer candy, floral, sweet oranges. "The LISA methodology allows us to predict optimal flavour formulations for specific groups of consumers, based on quantitative research with consumers and sensory panel research," said Tom De Block, Quests consumer understanding systems manager. "Based on a customer brief, we can use LISA to determine how the presence of different amounts of certain flavour components positively or negatively influence flavour acceptance. In other words, we can accurately predict the flavour components that drive liking and those that have the opposite effect." Quest said that it plans to develop LISA into a database of all major global flavour icons and their preference drivers, establishing a reference source for flavour professionals. New customer briefs will be treated on a case-by-case basis. LISA was first developed as a prototype by Quest in 2001. Originally, it was a research programme funded centrally by the pioneering scientific innovation platform of parent company ICI. The global launch of the LISA model marks the culmination of a year of investment and growth for Quest. The investment has included new technical facilities in Asia-Pacific and the expansion of core flavour innovations, such as its ImpaQ Taste Technology and the QPEARL flavour delivery systems. Quest, a flavours and fragrances company, is part of the ICI group. It operates in over 30 countries and employs 3,400 people.

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