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

Datamonitor
May 21, 2008
SKU: DFMN1791188

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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 sensory mega-trend

Scope

Identifies consumer needs and 'on-trend' product and marketing opportunities that arise from the constantly evolving sensory consumer mega-trend Global coverage: offers examples of 'on-trend' innovation from across the globe both within and outside of consumer packaged goods Detailed recommendations and interpretation offering practical strategies based on the trends and insights uncovered in the report One of a series of six trend specific reports designed to help FMCG companies innovate more successfully

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 Today's consumers have transcended more immediate physical or economic needs as a result of developed lifestyles and are seeking higher levels of experiential pleasure and sensation from products. In particular, they are looking for more variety and new ways to experience their favorite brands Details about production, whether touting provenance or overall quality of ingredients or processes provides shoppers with an interesting story that they can potentially share with family and friends. This is indicative of how authentic/provenance driven positions provide additional possibilities in branding

Reasons to Purchase

Ideation and inspiration: spark new ideas by learning from innovative on-trend products and marketing campaigns in the FMCG industry Trend understanding: familiarize yourself with the key sensory related sub-trends that should be driving NPD and marketing efforts Understand the most pertinent opportunities to drive brand growth and NPD investment.

Additional Information

Reports provide a unique mix of market intelligence, insightful analysis and forecasting based on primary quantitative and qualitative research. A single report will give you the key data and detailed analysis of a market, issue or trend

Overview: Catalyst; Summary; Table of Contents; Table of figures; Analysis; INTRODUCTION: Using trend frameworks develops the means to boost the quality and frequency of insight generation and new product planning; There is a funnel approach to identifying the manifestation of trends; TREND: Innovation is a major driver of growth but is a challenging process; A number of internal problems can lead to ineffective approaches to innovation; Four different types of innovation strategy exist; One of the major hurdles to successful innovation appears to be capturing consumers' imagination; TREND: New sensual products and concepts are emerging as consumers seek more pleasure, intensity and sensation from consumption; TREND: Enjoyment driven consumers are becoming more experimental which makes an emotional connection all the more important; INSIGHT: Manufacturers must capitalize on the desire to experiment by arousing curiosity; DATAMONITOR VERDICT: Manufacturers must actively tempt today's inquisitive consumers; INSIGHT: Manufacturers are creating additional sensual appeal by manipulating the key sensory attributes of products; DATAMONITOR VERDICT: Intensifying product sensory appeal must be an important innovation objective; INSIGHT: 'Scent-sory Marketing' reflects how industry players are using scent in a creative and innovative manner to engage shoppers; DATAMONITOR VERDICT: Marketers are beginning to realize that scent is extremely powerful in shaping perceptions and forging an emotional connection with consumers; INSIGHT: 'Sonic Branding' is another emerging discipline in the broader discipline of 'sensory marketing'; DATAMONITOR VERDICT: A branded audio identity can help differentiate brands in crowded marketplaces; INSIGHT: 'Sensory Packaging' is a powerful tool for evoking consumer desire; DATAMONITOR VERDICT: Any packaging concept that enhances the sensory properties of products has the potential to be a key differentiator and is thus highly valued by shoppers; INSIGHT: 'Erotic branding' and 'shock advertisements' are marketing concepts being used to bring brands into consumers' consciousness; DATAMONITOR VERDICT: Marketers should approach evocative, shock based marketing with caution; INSIGHT: Offering 'brand experiences' has become an important branding imperative in the 'experience economy'; DATAMONITOR VERDICT: 'Experiential Marketing' and 'Experiential Retailing' will grow in relevance and popularity because it provides a foundation for brand interaction, product trial and brand engagement; INSIGHT: Multi-sensory marketing brings together many of the above sensory platforms into one compelling selling proposition; DATAMONITOR VERDICT: Multi-sensory branding can help to establish an emotional connection with shoppers; TREND: The trend towards authenticity and provenance is beginning to impact mass market products; INSIGHT: Origin specific and traceable goods have added appeal to today's discerning shoppers; DATAMONITOR VERDICT: Being more open and transparent will become a key feature of marketing communications in the future, especially with more brands using provenance as a point of differentiation; INSIGHT: The growing importance of authenticity and provenance means that touting brand heritage becomes increasingly important; DATAMONITOR VERDICT: Terms like 'heritage', 'authenticity' and 'personality' can be seen as the building-blocks of an aspirational brand image; TREND: More affluent and expectant consumers are trading up more frequently; INSIGHT: Manufacturers must re-align products to reflect changing perceptions of what is considered to be 'premium' or 'luxury'; DATAMONITOR VERDICT: Being a mid-market brand is a dangerous place to be; INSIGHT: Premium is still a high price related to extraordinary factors perceived and experienced by consumers
APPENDIX: Definitions; Methodology; Further reading and references; Ask the analyst; Datamonitor consulting; Disclaimer
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; Figure 2: Consumer behavior and the innovations targeting it inevitably fit into a 'trend hierarchy'; Figure 3: There are four different approaches to innovation and six kinds of innovativeness rating; Figure 4: Attitudes towards innovation vary markedly and influence the inability of new products to capture the imagination of CPG shoppers; Figure 5: There are numerous factors influencing sensory trends in consumer packaged goods; Figure 6: The sensory mega-trend reflects consumers' desire for experiential pleasure, intensity and sensation from products; Figure 7: People are looking for new consumption experiences so industry players must carefully consider how to arouse consumer curiosity and induce product trial; Figure 8: Marketing communications and actual product features can be manipulated to maximize the visual dynamics and sensory appeal of brands; Figure 9: Beer manufacturers are actively targeting more adventurous palates with fruity beers; Figure 10: Food and beverage marketers are delivering additional sensory excitement with new textures, bolder flavors, flavor blending and co-branding with iconic branded flavors/ingredients; Figure 11: Manufacturers are looking to reinforce the sensual credentials of products though engaging brand names and written communications while Guinness typifies efforts being made to help consumers replicate 'third-place experiences' and quality within the comfort of their own homes; Figure 12: Opportunities exist to use scent in a more creative and engaging manner; Figure 13: A variety of brands have been using brands in different ways to create a 'sonic' identify; Figure 14: Easily confusable, active packaging and intelligent packaging are actually two distinct concepts; Figure 15: There are a number of new smart packaging/label innovations entering the market; Figure 16: Packaging materials can be manipulated to enhance the sensory experience for consumers; Figure 17: Brands are using edgier, erotic and shock tactics to get noticed in an increasingly cluttered marketplace; Figure 18: Experiential 'third-places' are becoming an established part of experiential marketing campaigns; Figure 19: Experiential marketing exists on different levels; Figure 20: The search for authenticity reflects consumers' active pursuit for higher quality experiences from consumption; Figure 21: Health and provenance conscious consumers want to know about the products they ingest or topically apply so manufacturers are making greater efforts to be transparent; Figure 22: Provenance/locality and production details are issues that increasingly matter to shoppers; Figure 23: Iconic imagery can add an authentic aura to a marketing communication; Figure 24: Touting brand heritage becomes increasingly important in light of the growing importance consumers attach to growing importance of authenticity and provenance; Figure 25: Using 'ordinary' people in marketing looks set to become a more established feature of marketing campaigns; Figure 26: Firms in the middle need to move either up or down-market or face death in the middle; Figure 27: Mass market brands are having to premiumize just to stay relevant; Figure 28: While many brands should be looking to premiumization opportunities, PJ smoothies is an example of how industry players must be prepared to re-align products towards the lower end of the market as well; Figure 29: Manufacturers must excel - more than competitors - in the provision of factors associated with the Premium Price Index (PPI)

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

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