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

SUMMARY

Abstract

Overview

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

Scope

• Identifies consumer needs and 'on-trend' product and marketing opportunities that arise from the individualism 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

Report 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

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 individualism related sub-trends that should be driving NPD and marketing efforts
• Understand the most pertinent opportunities to drive brand growth and NPD investment

TABLE OF CONTENTS

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • INTRODUCTION: Using trend frameworks develops the means toboost the quality and frequency of insight generation and new productplanning
    • There is a funnel approach to identifying themanifestation of trends
  • TREND: Innovation is a major driver of growth but is achallenging process
    • A number of internal problems can lead to ineffectiveapproaches to innovation
    • Four different types of innovation strategy exist
    • One of the major hurdles to successful innovation appearsto be capturing consumers' imagination
  • TREND: Individualism reflects the value that consumersplace on self-expressive and more personalized goods and services
    • The rise of individualistic values and attitudes isvisible in consumer behavior and society at large
    • The market maturity that characterizes more developedconsumer societies also drives individualism
    • There are a number of personal motivations/benefitsassociated with customization opportunities
  • TREND: Offering customization possibilities has been oneof the most profound areas of packaged goods' marketing and innovation
  • INSIGHT: Occasion and body part specific products arebeing used as a way of helping consumers to maximize enjoyment whilecreating a 'just-for-the-moment' positioning
  • DATAMONITOR VERDICT: Occasion specificity is a potentiallycompelling draw, but there are limitations
  • INSIGHT: Consumers are empowered by additional choice andthe new possibilities to adjust and adapt the benefits offered by a broadrange of product formats
    • DATAMONITOR VERDICT: Empowering consumers, especially theyounger 'Generation C', with customization possibilities is likely to bean important marketing tactic in the coming years
  • INSIGHT: Gender customization is an increasingly importantroute to satisfying specific consumer needs
    • DATAMONITOR VERDICT: Formulating and positioning productsto specifically appeal to males and females is 'on-trend', but not withoutlimitations
  • INSIGHT: Age customization reflects the more overtformulation and positioning of products to meet the needs of specific ages
    • DATAMONITOR VERDICT: Age is still an important marketsegmentation tool
  • INSIGHT: Nutrigenomics/'personalized nutrition' is anemerging scientific discipline which is expected to have a growing impacton the CPG industry in the coming years
    • DATAMONITOR VERDICT: Nutrigenomics is an area of researchthat the food and beverage industry will be hearing a lot more about inthe next 25 years as the idea of 'personal wellness' resonates
  • INSIGHT: Situational and personally adaptive beautysolutions are an emerging area in personal care
    • DATAMONITOR VERDICT: The desire to customize, and to beseen as an individual, will have an increasingly big impact on thepersonal care industry
  • TREND: Self-expressive consumers increasingly valueadaptable, participative goods and services
    • Trends in entertainment and media consumption reflect theparticipation era
  • INSIGHT: Manufacturers are giving consumers the ability tocustomize and express themselves through branded products via packagingand basic aesthetic modifications
    • DATAMONITOR VERDICT: Even the most minor of customizationpossibilities can help to separate brands from mass market rivals
  • INSIGHT: Many brands now invite consumers to share ideas,concepts, flavors, recipes and so forth, often via competitions withattractive prizes
    • DATAMONITOR VERDICT: Allowing consumers to participate inbrand building will become a well-established part of marketing,especially for high-passion/high involvement brands
  • INSIGHT: A proliferation of product and service conceptsnow allow consumers complete autonomy to develop products to meet theirown needs and desires
    • DATAMONITOR VERDICT: Losing control of brand developmentdoes heighten risk, but consumers increasingly want to interact withbrands on their own terms
  • INSIGHT: Interactive advertising is a way of empoweringindividuals through marketing communications
    • DATAMONITOR VERDICT: Innovative brands can now createtruly interactive advertising campaigns
• APPENDIX
  • Definitions
  • Methodology
  • Further reading and references
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Figures
  • Figure 1: Datamonitor's mega-trends are having along-term and substantive impact on the marketing landscape and can begrouped into two categories
  • Figure 2: Consumer behavior and the innovationstargeting it inevitably fit into a 'trend hierarchy'
  • Figure 3: There are four different approaches toinnovation and six kinds of innovativeness rating
  • Figure 4: Attitudes towards innovation vary markedly andinfluence the inability of new products to capture the imagination of CPGshoppers
  • Figure 5: Individualism is driven by self expressiveconsumers seeking to make their own mark on the world
  • Figure 6: Four key personal benefits as well as theadditional ease of customizing have driven the trend toward morepersonalized consumer packaged goods
  • Figure 7: Occasion specificity is an approach tomarketing that helps to personalize a product, with particular prevalencein soft drinks
  • Figure 8: Customized vending and adjustable packagingare two ways industry players have empowered consumers, helping them topersonalize benefits in the most relevant manner
  • 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 andreformulate products to make them appeal to a specific gender
  • Figure 10: Products formulated and marketed for agespecific ailments and problems remain an important way of communicatingproduct relevance and thus tapping into the individualism mega-trend
  • Figure 11: Situational and personally adaptive beautysolutions is an emerging area in personal care
  • Figure 12: Dermalogica's 'body mapping' offers apersonalized service for personal care customers
  • Figure 13: Consumers' media orientations are changing,with participative and engaging social media becoming more important
  • Figure 14: Manufacturers are giving consumers theability to customize and express themselves through branded products viapackaging and basic aesthetic modifications
  • Figure 15: Häa gen-Dazs, Hershey, Wendy's and Kraft haveall sought to involve consumers in the product development process
  • Figure 16: There are a number of products and servicesoffering consumers close to complete autonomy
  • Figure 17: Interactive advertising is a way ofempowering individuals through marketing communications