Fostering open communication throughout the research process.
Veronica Gotto, Panera Bread
Mike Linck, Prodege
Veronica Gotto from Panera Bread and Mike from Prodege discuss a case study of a refrigerated salad dressing, Everything Ranch, that failed to meet initial sales expectations. Gotto used the 4P marketing model (Price, Placement, Product, Promotion) to narrow down the issue, ruling out price and placement. Prodege then designed a hybrid research approach combining receipt capture to identify category buyers with a mobile mission to send them to stores to purchase the product for at-home trial. The results showed strong product performance, with high ratings for exceeding expectations, likability, and repurchase intent, indicating a communication rather than a product issue. The focus then shifted to how to improve communication and drive trials through packaging redesign and targeted promotions.
Key Quote:
“We think 85 percent repurchase intent. That’s a pretty stable business.”
Key Takeaways:
- Product launch failures are common: Many products fail to meet initial expectations despite clearing stage gates.
- The 4P marketing model is a useful framework: Price, Promotion, Product, and Placement can help diagnose the root cause of a product’s underperformance.
- Traditional quantitative surveys aren’t always the best solution: In this case, a targeted approach was needed due to limited product distribution and sales data.
- Hybrid research methodologies can be effective: Combining receipt capture with mobile missions and in-home use tests (IHUTs) provided valuable insights.
- Targeting category buyers is crucial: Ensuring the sample consists of individuals likely to purchase the product category improves the relevance of the findings.
- Product trial can significantly impact perception: Consumers’ positive experience with the product in-home contrasted with the initial concept testing results.
- Communication issues can hinder product success: Even with a great product, poor communication can prevent consumers from understanding its value proposition.
- Packaging plays a vital role in communication: Redesigning packaging can be key to conveying the product’s benefits and driving trial.
- Further research is often needed: A successful study often raises new questions that require further investigation.
- Collaboration is essential: The partnership between Panera and Prodege was crucial for developing and executing the research plan.
Extended Abstracts for Each Takeaway (500 words each):
1. Product launch failures are common:
The session highlights the reality that even with careful planning and execution, product launches can fail to meet expectations. This underscores the complex nature of consumer behavior and the many factors that can influence a product’s success. While a robust product development process and thorough market research can increase the odds of a successful launch, they cannot guarantee it. Unexpected market changes, competitor actions, and even simple miscommunications can derail a product’s trajectory. This reinforces the need for ongoing monitoring and evaluation of product performance, as well as the agility to adapt strategies as needed. It also suggests that organizations should have contingency plans in place to address potential launch failures and minimize their impact.
2. The 4P marketing model is a useful framework:
The 4P marketing model (Price, Promotion, Product, Placement) provides a valuable framework for diagnosing the causes of a product’s underperformance. By systematically evaluating each of these elements, marketers can identify potential issues and prioritize areas for improvement. In the Everything Ranch case study, Veronica Gotto used the 4Ps to quickly rule out price and placement, narrowing the focus to product and promotion. This structured approach allowed her to efficiently identify the most likely culprits and develop a targeted research plan. The 4Ps framework is a versatile tool that can be applied to a wide range of marketing challenges, making it an essential part of any marketer’s toolkit.
3. Traditional quantitative surveys aren’t always the best solution:
The session demonstrates that traditional large-scale quantitative surveys are not always the most effective way to address specific research questions. In this case, the limited distribution and sales data for Everything Ranch made it difficult to reach a representative sample of consumers using conventional survey methods. This highlights the importance of considering alternative research methodologies that are better suited to the specific circumstances. The Prodege team’s creative solution, combining receipt capture and mobile missions, exemplifies the value of thinking outside the box and adapting research approaches to meet the unique challenges of each project.
4. Hybrid research methodologies can be effective:
The Everything Ranch case study showcases the power of hybrid research methodologies. By combining receipt capture, mobile missions, and in-home use tests, Prodege was able to gather rich data that would have been difficult or impossible to obtain using a single method. Receipt capture allowed them to identify category buyers, mobile missions facilitated product trial, and IHUTs provided insights into the consumer experience. This integrated approach demonstrates the value of combining different research techniques to gain a more comprehensive understanding of the issue at hand. It also suggests that researchers should be familiar with a wide range of methodologies and be willing to combine them in innovative ways.
5. Targeting category buyers is crucial:
The session emphasizes the importance of targeting category buyers in research studies. By focusing on individuals who have already demonstrated an interest in the product category, researchers can ensure that their findings are relevant and applicable. In the Everything Ranch study, targeting individuals who had purchased ranch dressing in the past ensured that the sample consisted of consumers who were likely to be interested in trying a new ranch product. This targeted approach increased the efficiency of the research and improved the quality of the data. It also highlights the need for effective screening and recruitment strategies to ensure that the sample is representative of the target audience.
6. Product trial can significantly impact perception:
The Everything Ranch case study demonstrates the powerful effect of product trial on consumer perception. While initial concept testing yielded moderate results, the in-home use test revealed that consumers who actually tried the product were significantly more enthusiastic. This suggests that the product’s benefits were not fully communicated through the concept alone. The positive trial experience led to high ratings for exceeding expectations, likability, and repurchase intent, indicating that the product itself was a strong performer. This highlights the importance of providing consumers with opportunities to try new products, particularly in categories where experience is crucial for understanding the product’s value proposition.
7. Communication issues can hinder product success:
Even with a high-quality product, poor communication can prevent consumers from understanding its value and drive trial. The Everything Ranch case study suggests that while the product itself was well-received by those who tried it, the initial communication about the product may have been lacking. This highlights the importance of crafting clear and compelling messaging that resonates with the target audience and effectively communicates the product’s key benefits. It also underscores the need for testing communication strategies to ensure that they are effectively conveying the intended message.
8. Packaging plays a vital role in communication:
Packaging is often the first point of contact between a consumer and a product, making it a crucial communication tool. In the Everything Ranch case study, the presenters suggest that the packaging may have played a role in the communication gap. They discuss the possibility of redesigning the packaging to better communicate the product’s benefits and drive trial. This highlights the importance of considering packaging as an integral part of the marketing mix and investing in design that is both visually appealing and informative.
9. Further research is often needed:
The session illustrates that even successful research studies often lead to more questions. While the Everything Ranch study identified a communication issue rather than a product problem, it also raised new questions about how to best communicate the product’s value and drive trial. This highlights the iterative nature of research and the importance of being prepared to conduct further studies to address emerging questions. It also suggests that organizations should view research as an ongoing process rather than a one-time event.
10. Collaboration is essential:
The Everything Ranch case study demonstrates the value of collaboration between clients and research partners. The close partnership between Panera and Prodege was crucial for developing and executing the research plan. By working together closely, they were able to overcome challenges and arrive at a solution that met Panera’s needs. This highlights the importance of building strong relationships with research partners and fostering open communication throughout the research process.