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New lessons for launch
And their implications for enhancing the
launch capability inside your company

Doblin is a member of Monitor Group
© 2012 Monitor Company Group LP
Confidential and not for distribution
96%
of all new products/services fail




         www.flickr.com/photos/cafemama
www.allthingsd.com/20120112/iphone4s_launch_china
New Principles For Effective Launches

Reframe the market based on deep
customer insight
Diagnose unmet needs and how your
customers perceive value intuitively

Rethink the boundary between R&D
and launch
Use launch to learn, foster trial and reduce
friction, and build toward platforms
Reframe the market based on deep
customer insight…
1998   2012
Reframing how customers’ perceive your brand
The context for Hyundai in 2008…
Fight back by tuning into customers emotional state
300


                                                            250          250


                                                            200          200


                                                            150          150


                                                            100          100


                                                             50           50
APR‘11   MAY   JUN   JUL   AUG   SEP   OCT   NOV   DEC   JAN‘12   FEB   MAR
Principle 1
Begin With Deep Customer Understanding

Diagnose how customers perceive value –
both rationally and intuitively

Relate to customers’ personal narrative

Minimize customer uncertainty

Over-communicate, especially when
something will be different
Rethink the boundary
between R&D and launch…
The survey says…


                                       81%
       58%                            feel under-
    have a clearly                 prepared for what
     defined and                     happens post
  understood launch                     launch
       process

                                                            66%
                                                       think their ability
                       80%                               to launch new
                   feel this process                      products and
                  prepares them for                      services lacks
                        launch                          differentiation
“Wheels when you want them”
Start with a core base of users…and build from there


                           • Initially focused on
                             college segment—
                             tolerant early adopters
                           • Launched in 3 cities
                           • Marketing budget of
                             $1000/market/month
                           • Iteration to refine the
                             experience and
                             operations
Start with a core base of users…and build from there

• Expansion into corporate fleet management
• Recent partnership with city of Boston
Build toward a platform from the start




                                     "An iPod, a phone, an internet
                                     mobile communicator. An iPod,
                                     a phone, an internet mobile
                                     communicator.... these are
                                     NOT three separate devices!"
Re-think the R&D and launch sequence
Re-think the R&D and launch sequence
Principle 2
Re-think the boundary between Launch and R&D

Focus launch on a minimum viable product (MVP)

Gather rapid-feedback through customer trials

Start witha small group of lead users

Build toward a platform from the start
The new launch model check-list…


Recruit for customer insight to rewrite their narrative

Use scenarios formore than just forecasting

Empower launch teams to stray from business-as-usual

Streamline decision rights to increase agility

Learn from lean startups to generate low cost learning

Establish new metrics for success to evaluate lessons
learned, not just outcomes
Thank You
Jeff Wordham
jeff_wordham@monitor.com

Doblin is a member of Monitor Group
© 2012 Monitor Company Group LP
Confidential and not for distribution

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How To Think About And Organize For Launch

  • 1. New lessons for launch And their implications for enhancing the launch capability inside your company Doblin is a member of Monitor Group © 2012 Monitor Company Group LP Confidential and not for distribution
  • 2. 96% of all new products/services fail www.flickr.com/photos/cafemama
  • 4. New Principles For Effective Launches Reframe the market based on deep customer insight Diagnose unmet needs and how your customers perceive value intuitively Rethink the boundary between R&D and launch Use launch to learn, foster trial and reduce friction, and build toward platforms
  • 5. Reframe the market based on deep customer insight…
  • 6.
  • 7. 1998 2012
  • 8. Reframing how customers’ perceive your brand
  • 9. The context for Hyundai in 2008…
  • 10. Fight back by tuning into customers emotional state
  • 11. 300 250 250 200 200 150 150 100 100 50 50 APR‘11 MAY JUN JUL AUG SEP OCT NOV DEC JAN‘12 FEB MAR
  • 12. Principle 1 Begin With Deep Customer Understanding Diagnose how customers perceive value – both rationally and intuitively Relate to customers’ personal narrative Minimize customer uncertainty Over-communicate, especially when something will be different
  • 13. Rethink the boundary between R&D and launch…
  • 14. The survey says… 81% 58% feel under- have a clearly prepared for what defined and happens post understood launch launch process 66% think their ability 80% to launch new feel this process products and prepares them for services lacks launch differentiation
  • 15. “Wheels when you want them”
  • 16. Start with a core base of users…and build from there • Initially focused on college segment— tolerant early adopters • Launched in 3 cities • Marketing budget of $1000/market/month • Iteration to refine the experience and operations
  • 17. Start with a core base of users…and build from there • Expansion into corporate fleet management • Recent partnership with city of Boston
  • 18. Build toward a platform from the start "An iPod, a phone, an internet mobile communicator. An iPod, a phone, an internet mobile communicator.... these are NOT three separate devices!"
  • 19. Re-think the R&D and launch sequence
  • 20. Re-think the R&D and launch sequence
  • 21. Principle 2 Re-think the boundary between Launch and R&D Focus launch on a minimum viable product (MVP) Gather rapid-feedback through customer trials Start witha small group of lead users Build toward a platform from the start
  • 22. The new launch model check-list… Recruit for customer insight to rewrite their narrative Use scenarios formore than just forecasting Empower launch teams to stray from business-as-usual Streamline decision rights to increase agility Learn from lean startups to generate low cost learning Establish new metrics for success to evaluate lessons learned, not just outcomes
  • 23. Thank You Jeff Wordham jeff_wordham@monitor.com Doblin is a member of Monitor Group © 2012 Monitor Company Group LP Confidential and not for distribution

Notas do Editor

  1. by Jeff Wordham, partner, Doblin/Monitor InnovationWe’re here talk about how to organize for a more effective launch.-- of course, as an innovation guy, I think a lot about creating new products, services and businesses. -- but this is a marketing conference – you think about how to sell those new products, services and businesses-- historical view of launch was that it created a hand-over point where the guys who know the customers (the marketers) take over from the guys who generated the ideas-- the challenge was how to bridge these two worlds.
  2. - we live in a world that is increasingly cluttered, confused and inundated with new products - 96% failure rate…mostly applies to products-- you need to find a way to stand out and resonate-- you need new ways to find new insights-- what’s needed are ways to blur the lines between development and launch and to begin to view launch as an extension of development process- the real question: how to cut through clutter and create meaning
  3. - this was the scene at the launch of the iPhone 4S in Beijing.--clearly this is a different outcome and a different experience from most product launches.- some tack it up to the genius of Steve Jobs. - but there’s more going on than just a product that people love.- the real challenge is to think about how to build something people intuitively love -- and then iterate / improve it- I’d like to share two key principles for more effective launches
  4. First principle:Behavioral economists and psychologists are heavily engaged in deep analysis of this field.People learn rationally and intuitively. What’s important is that there are real implications for how to design and communicatenew launchesSecond principle:The blurring between R&D and in-market activity has been deeply influenced by startupsThe key spirit for all to hold is the idea of being “always in beta”That’s especially true with connective technologies, social media
  5. To illustrate the first principle, let’s start with a story from one of the world’s best examples of a company that understands customers and regularly launches new platforms
  6. -- P&G launched Febreze in 1998- But what many people don’t know is that P&G initially got the product and the market wrong. Originally, Febreze was marketed as an “odor eliminator”. -- Even after a huge campaign to what they saw as a huge target market, Febreze remained a $140M business, a problem for P&G. -- So executives went back to the drawing board to take another look at insights with non-users and new users.
  7. It was then that they realized the disconnect in their story. Even those most in need of odor eliminators didn’t imagine that they actually needed the product.-- So P&G relaunched the product with a new tagline: “Breathing life into your home” --Febreze became less about odors and more about fresheners- It became about the regular tidying process vs. cleaning- The result? Febreze is now a billion dollar business for P&G while it has diversified into air freshener sprays, scented candles, and plug-ins -- Let’s look at another company that demonstrated deep understanding of customer narrative to influence its launch.
  8. For those of you who don’t remember, this is what Hyundai looked like in the 90s and early 2000sGlengarry Glenn Ross was a 1992 film with Alex Baldwin that showed the actor mouthing off about the car brand. Won’t do to repeat in polite company, but suffice it to say, Baldwin’s character wasn’t being complimentary.
  9. Then along came 2008, with the financial meltdown and a pretty stark businessenvironment. -- Hyundai didn’t have a financing arm-- So instead it tapped into customer narrative
  10. -- in 2009, they launched Hyundai Assurance program, -- The deal said that if anyone lost their job or went bankrupt, s/he could return the car with no questions and no impact on credit -- The campaign paid off. Sales rose 8% when most other car-makers declined.- The launch drove a trial for people looking to see better cars- During the life of program, only 350 people took advantage of the buy-back- So there we’ve dealt with insight and narrativeNow let’s think about managing uncertainty.
  11. Netlfix was launched in late 90s by Reed Hastings-- A start-up darling--Yet in September 2011, Hastings made an unexpected move, launching the new service, Qwikster-- Blog posts erupted; users defected-- Perhaps worst of all, the Qwikster twitter account was owned by someone who portrayed himself as a pot-smoking Elmo-- The debacle didn’t end well. Hastings had to issue not one but two apologies, Qwikster was quickly dispatched, while Netflix’s own stock went down 25%Smart as they undoubtedly are, the Netflix executives hadn’t thought about customer uncertainty and the impact that can have on business 
  12. So we’ve talked about the need for new insights and narrative-- Now let’s think about the boundary between R&D and launch, and the need to incorporate new insights throughout the launch process-- Think about experimentation and low cost trial-- Blur the boundary between R&D and launch-- Think like a start-up: have a core offering that excites customers, foster trial,generate lessons and then iterateBut I didn’t just want to come here and pontificate. So we thought we’d run a survey and hear from you guys on what you make of all this
  13. Andwe ran this survey among Brandworks attendees before the conference started. It outlines how you feel about the launch process:-- 60% of you have launch process. Congratulations. -- 80% suggest the process prepares you for launch. That’s also good.-- But when we dive deeper still, we see that 81% of you feel your existing process does not prepare for what happens after launch -- Moreover, 2/3 of you don’t feel it is differentiating – which I confess I found surprising given the caliber of the companies in the roomWhat does this mean? It means we all have processes, but frankly they aren’t necessarily preparing you for the messy reality of launch
  14. Zipcar started in 2000: there was a need for new transportation solutions, and this brought up the idea of car sharing and metered use-- It had a new business model-- Its Fast Fleet system tracks usage patterns and enable higher utilization-- Its fleet is filled with fun cars-- It’s all about green branding-- There’s convenient online engagement-- There are now well over 500,000 users and the company went public in 2010What’s more interesting to me is how they launched
  15. Zipcar was started by two young entrepreneurs in 2000. They had a passion for the shared economy and had a big vision for where the company would go They started small to experiment and learn
  16. -- Now they’re moving into fleet management for corporations -- Last month they partnered with the city of Boston, building on agreements with Chicago
  17. It’s a cliché to talk about Apple, but I already showed one Apple visual: now I’ll come back to the company-- Much of the talk we hear is about the product design or the marketing or the branding of Apple products. But actually they do a lot to lower risk, too:-- There was a 2 year gap between the launches of the iPod and the iTunes music store-- Apple actually entered into phones with the Motorola Rokr. Remember that?-- They test features with early prototypes and analyze user feedback-- Every step of the way they’re looking to find ways to de-risk--And the result is as we saw at the Apple store in Beijing, the product of an iterative launch and development process.But do remember. Not everyone can be Apple.
  18. Kimberly Dillon is the brains behind House of Mikko-- It’s a beauty product site and recommendation engine-- She launched even before the product was finished-- She launched with alanding page + survey to build engagement with lead users-- The business now has over 60,000 users, multiple interfaces and a relationship with customers many CPG companies aspire to
  19. Similarly, we’ve recently seen some really interesting experimentation in restaurants, one of the riskiest segments-- in Washington DC – Blind Dog Café has multiple incarnations throughout the day--Food trucks are also proving to be popular ways for chefs to experiment with cuisines and neighborhoods, etc
  20. The upshot:Think about launch as a series of experiential steps, not as a hand-over from R&D to marketing.
  21. So what does this mean for you?-- This is not an elaborate framework-- It’s a few practical suggestions-- Nothing on here is rocket science, but all too often we don’t see companies abiding by common sense