This was a presentation given by Randy Giusto, SVP of Innovation Research at the Digital Living Room event in San Jose in December, 2011. How do brands differentiate when every TV is a Smart TV? Every phone a smart phone? Every tablet does basically the same thing? Every music/entertainment service delivers a similar experience? How do you compete when Apple is more associated with “innovation” than any other brand?

1. Innovation in the Age of Sameness
Developing the Next Winner
December, 2011
Predicting market potential for business initiatives, with 20+ years validated history
Nobody’s Unpredictable

2. Ipsos Vantis’ Innovation Focus
Predicting Market Potential for business initiatives,
with 20+ years of validated history
Identify winning initiatives Optimize & simulate launch scenarios
A suite of powerful, fast, and affordable A suite of customizable forecasting tools
services to help you identify winning for optimizing price, features, product
initiatives early in development by design, and marketing. Used for modeling
assessing their true market potential. new products, portfolios, and categories.
Predict market potential Forecast units, revenues, profits
Prioritize features, ideas, & concepts Feature simulation
Define the consumer target Pricing simulation
Measure the strength of the message Product & Prototype Design simulation
Identify key/motivating phrases in the Measure Incrementality vs.
message Cannibalization
Measure buzz potential Competitive war-gaming
Marketing plan simulation
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© 2011 Ipsos

3. How Do Brands Differentiate When…
- Every TV is a Smart TV?
- Every phone a smart phone?
- Every tablet does basically the same thing?
- Every music/entertainment service delivers a similar experience?
Most Digital Living Room Offerings Illustrate a Degree of “Sameness”
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© 2011 Ipsos

4. How Do You Compete When…
Apple is more associated with “innovation” than any other brand
56%
29%
22%
19%
18%
15%
14%
13%
Source:
Ipsos Vantis Innovation Index Q4 2011 Tie 12%
N = 1,014
Q. Which three consumer electronics products and
services brands do you associate with being the most
11%
innovative today?
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© 2011 Ipsos

5. Development, Measurement, and Marketing is Hard!
Illustrative example-
Tablet launch example
Hypothetical data
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© 2011 Ipsos

6. “Share, Revenue, and Profit are Tradeoffs”
Illustrative example-
Tablet launch example
Hypothetical data
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© 2011 Ipsos

7. Every New DLR Offering Starts Out as an Idea/Concept
3D TV XBOX Kinect
Android Smartphone Dish Network TV EverywhereTM
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© 2011 Ipsos

8. Today, Purchase Intent is Really Driven By Many Factors
Seek Information
Consumer need drives appeal
Intent to Purchase
Consumer appeal + value perceptions drive
purchasing
Intensity of Liking
Price/Value
Consumer
But purchase intent is
Purchase not high if other
Uniqueness
Intent measures also not
strong.
Believability
Need Fulfillment
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© 2011 Ipsos

9. Start Thinking About Your Next DLR Idea as a “Personality”
Look for patterns or “archetypes” in key measures vs. simply looking for
“high scores.”
Top Winner
performer Under-priced
archetypes Good concept
Breakthrough
Over-priced Niche/targeted Potential future hit
Middle Me too
? Performer
archetypes
For Want
Value
Average
Too premium
Atypical
Value resistant
Skeptical
Unbelievable
Commodity Unconvincing Caught in middle
Branding
Poor
performer Dog
archetypes
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© 2011 Ipsos

10. Design Digital Living Room Offerings To Stand Out
Market Success Scores
Hulu
Ultraviolet
DISH TVEverywhere
Spotify
Xbox 360 Kinect
iPad 2
Vizio XVT TVs
Apple TV
Nintendo 3DS
Sony Reader
0 50 100 150 200
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© 2011 Ipsos

11. And Creating Buzz is as Important as Advertising
180
Boxee Box
iPad 2
160 Xbox 360 Kinect
PS3 Motion Ctrlr
Message Power Score
140
Nintendo 3DS
120 Best Buy Buy Back
Spotify Google TV
Apple TV
100 DISH TVEverywhere Ultraviolet
3D Blu-ray Player VIERA Cast Tab
PSP2
Sony Reader
80 FloTV Hulu Plus
60
iBig Box
40
20
20 40 60 80 100 120 140 160
Buzz Power Score
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© 2011 Ipsos

12. Thank You!
Randy Giusto, SVP, Innovation Research
508.254.7975
randy.giusto@ipsos.com
@IpsosVantis @randygiusto
www.innovationpov.com