Jeff Wordham, partner at Doblin/Monitor Innovation, gave this presentation at Brandworks: How To Think About and Organize for Launch. Outlining smart principles for those thinking about the launch process (and ways to improve it,) the presentation includes persuasive examples from companies including Procter & Gamble, Hyundai and, yes, Apple.
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
11. 300
250 250
200 200
150 150
100 100
50 50
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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
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
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!"
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
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.
- 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
- 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
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
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
-- 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.
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.
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.
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
-- 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.
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
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
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
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
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
-- Now they’re moving into fleet management for corporations -- Last month they partnered with the city of Boston, building on agreements with Chicago
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.
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
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
The upshot:Think about launch as a series of experiential steps, not as a hand-over from R&D to marketing.
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