On-Trend' Innovation & Marketing Concepts: The Individualism Mega-Trend

Introduction

Innovation is a major driver of growth yet statistics suggest that around 80-90% of all new products fail and industry executives are generally disappointed in their ability to stimulate innovation. This report is designed to help by effectively aligning NPD activity with substantive consumer trends. It does so by identifying 'on-trend' opportunities that arise from the individualism mega-trend

Report Highlights
Highlights

One of the major problems associated with innovating successfully is capturing consumers' imagination. The annual US based ""Most Memorable New Product Launch Survey 2007"" found that even among those with strong brand names, 77% of respondents could not name one of the top 50 new products of 2007 on an unaided basis The trend towards personalization is becoming more pronounced, with a 'just-for-me' ethos driving a desire for products, services, and experiences that cater to specific needs and identities. As a result, shoppers will increasingly expect additional possibilities by which they can co-create and self-customize By providing a platform for customization possibilities, companies also enhance the probability of benefiting from word of mouth multiplier effects. Enabling 'participative consumption' also offers an opportunity to command price premiums
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TABLE OF CONTENTS
DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
INTRODUCTION: Using trend frameworks develops the means to boost the quality and frequency of insight generation and new product planning 2
There is a funnel approach to identifying the manifestation of trends 3
TREND: Innovation is a major driver of growth but is a challenging process 5
A number of internal problems can lead to ineffective approaches to innovation 5
Four different types of innovation strategy exist 6
One of the major hurdles to successful innovation appears to be capturing consumers' imagination 8
TREND: Individualism reflects the value that consumers place on self-expressive and more personalized goods and services 10
The rise of individualistic values and attitudes is visible in consumer behavior and society at large 10
The market maturity that characterizes more developed consumer societies also drives individualism 10
There are a number of personal motivations/benefits associated with customization opportunities 11
TREND: Offering customization possibilities has been one of the most profound areas of packaged goods' marketing and innovation 11
INSIGHT: Occasion and body part specific products are being used as a way of helping consumers to maximize enjoyment while creating a 'just-for-the-moment' positioning 12
DATAMONITOR VERDICT: Occasion specificity is a potentially compelling draw, but there are limitations 14
INSIGHT: Consumers are empowered by additional choice and the new possibilities to adjust and adapt the benefits offered by a broad range of product formats 15
DATAMONITOR VERDICT: Empowering consumers, especially the younger 'Generation C', with customization possibilities is likely to be an important marketing tactic in the coming years 17
INSIGHT: Gender customization is an increasingly important route to satisfying specific consumer needs 18
DATAMONITOR VERDICT: Formulating and positioning products to specifically appeal to males and females is 'on-trend', but not without limitations 20
INSIGHT: Age customization reflects the more overt formulation and positioning of products to meet the needs of specific ages 22
DATAMONITOR VERDICT: Age is still an important market segmentation tool 24
INSIGHT: Nutrigenomics/'personalized nutrition' is an emerging scientific discipline which is expected to have a growing impact on the CPG industry in the coming years 25
DATAMONITOR VERDICT: Nutrigenomics is an area of research that the food and beverage industry will be hearing a lot more about in the next 25 years as the idea of 'personal wellness' resonates 27
INSIGHT: Situational and personally adaptive beauty solutions are an emerging area in personal care 28
DATAMONITOR VERDICT: The desire to customize, and to be seen as an individual, will have an increasingly big impact on the personal care industry 30
TREND: Self-expressive consumers increasingly value adaptable, participative goods and services 30
Trends in entertainment and media consumption reflect the participation era 30
INSIGHT: Manufacturers are giving consumers the ability to customize and express themselves through branded products via packaging and basic aesthetic modifications 32
DATAMONITOR VERDICT: Even the most minor of customization possibilities can help to separate brands from mass market rivals 34
INSIGHT: Many brands now invite consumers to share ideas, concepts, flavors, recipes and so forth, often via competitions with attractive prizes 35
DATAMONITOR VERDICT: Allowing consumers to participate in brand building will become a well-established part of marketing, especially for high-passion/high involvement brands 36
INSIGHT: A proliferation of product and service concepts now allow consumers complete autonomy to develop products to meet their own needs and desires 37
DATAMONITOR VERDICT: Losing control of brand development does heighten risk, but consumers increasingly want to interact with brands on their own terms 39
INSIGHT: Interactive advertising is a way of empowering individuals through marketing communications 40
DATAMONITOR VERDICT: Innovative brands can now create truly interactive advertising campaigns 43
APPENDIX 44
Definitions 44
Methodology 44
Further reading and references 44
Ask the analyst 45
Datamonitor consulting 45
Disclaimer 46
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LIST OF FIGURES
Figure 1: Datamonitor's mega-trends are having a long-term and substantive impact on the marketing landscape and can be grouped into two categories 3
Figure 2: Consumer behavior and the innovations targeting it inevitably fit into a 'trend hierarchy' 4
Figure 3: There are four different approaches to innovation and six kinds of innovativeness rating 7
Figure 4: Attitudes towards innovation vary markedly and influence the inability of new products to capture the imagination of CPG shoppers 9
Figure 5: Individualism is driven by self expressive consumers seeking to make their own mark on the world 10
Figure 6: Four key personal benefits as well as the additional ease of customizing have driven the trend toward more personalized consumer packaged goods 11
Figure 7: Occasion specificity is an approach to marketing that helps to personalize a product, with particular prevalence in soft drinks 14
Figure 8: Customized vending and adjustable packaging are two ways industry players have empowered consumers, helping them to personalize benefits in the most relevant manner 17
Figure 9: Categories traditionally perceived to be 'gender neutral', or even exclusionary on the basis of gender appeal (e.g. beer), are changing as manufacturers offer gender specific lines and reformulate products to make them appeal to a specific gender 21
Figure 10: Products formulated and marketed for age specific ailments and problems remain an important way of communicating product relevance and thus tapping into the individualism mega-trend 24
Figure 11: Situational and personally adaptive beauty solutions is an emerging area in personal care 29
Figure 12: Dermalogica's 'body mapping' offers a personalized service for personal care customers 29
Figure 13: Consumers' media orientations are changing, with participative and engaging social media becoming more important 31
Figure 14: Manufacturers are giving consumers the ability to customize and express themselves through branded products via packaging and basic aesthetic modifications 34
Figure 15: Häagen-Dazs, Hershey, Wendy's and Kraft have all sought to involve consumers in the product development process 36
Figure 16: There are a number of products and services offering consumers close to complete autonomy 40
Figure 17: Interactive advertising is a way of empowering individuals through marketing communications 43
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