Eighty-five percent of new products fail. How do you beat those odds? Instantly VP of Product Innovation Justin Wheeler and Supermarket Guru Phil Lempert offer up different solutions to make sure your next new product avoids failure. Click here for the full recording of Wheeler and Lempert during our August 6, 2015 webinar: http://bit.ly/1P7zL2c

1. CPG INNOVATION FROM IDEATION TO AISLE:
New Techniques for Staying Ahead of Consumer Trends

2. Justin Wheeler
VP of Product Innovation
Today’s Speakers
Phil Lempert
The Supermarket Guru

3. INNOVATION TODAY:
Why Don’t We Innovate More?

4. • 85% of new products fail1
• 85% of American household
needs are filled with same 150
items2
• Less than 3% of new CPG
products exceed $50M first-­year
sales3
• Nielsen 2015 Breakthrough
Winners came from companies
$25M to $90B4
Challenges of Launching New Products
1 Joan Schneider and Julie Hall, “Why Most Product Launches Fail,”
Harvard Business Review, April 2011.
2 Ibid.
3 Ibid.
4 Taddy Hall and Rob Wengel, “Nielsen Breakthrough Innovation
Report,” Nielsen, June 2015.

5. Recent Breakthroughs
Source: Taddy Hall and Rob Wengel, “Nielsen Breakthrough Innovation Report,” Nielsen, June 2015.
Susan Viamari, “New Product Pacesetters: Key Cobblestones Along the Path to Growth,” IRI, April 21, 2015.

6. Defining Innovation
What Makes a Product Innovative?
• Sales performance?
• New category creation?
• Consumer interest?
• Cultural impact?
Is It Time for a New Definition?

7. GETTING YOUR BEARINGS:
The State of the CPG Industry

8. • Consumer needs change
and evolve
• The retail landscape is
changing: smaller stores,
more food service, fewer
front ends
• Technology and social
media are creating a new
world for producing, buying
and preparing foods,
beverages and snacks
What We’re Looking at Now

9. The World Is Getting Smaller
• Size of stores will decrease dramatically in coming years
• Market consolidation as mergers and acquisitions continue
The Online World Is Getting Bigger
• Amazon Prime will continue to gain traction with consumers and other
e-­commerce companies will follow suit
⁃ 20% of Amazon Prime members who have purchased grocery products online expect to
buy more in the future;; 12% who currently do not expect to do so in the future5
⁃ 25% of people globally already order products online for home delivery and more than
half (55%) are willing to do so in the future6
Issues Impacting Innovation Today
5 Patrick Hadlockm Shankar Raja, et al., “The Digital Future: A Game Plan for Consumer Packaged Goods,” The Boston Consulting Group, April
22, 2014.
6 “More Than Half of Global Consumers Are Willing to Buy Groceries Online,” Nielsen, April 29, 2015.

10. The Shopper Experience Is Fragmented
• Traditional media consumption (television, radio, OOH) is lower with
younger generations, while overall media consumption is up
• Engaging with customers online and product evangelists on social is
critically important
Younger Generations Are Changing Consumer Taste
• Millennials, and soon Gen Z, will be primary consumers
⁃ Dollar share of CPG for Millennials to increase from 17% today to 29% in 2020;; 40% of
Millennials are multicultural7
7 Robert I. Tomei, “The 2020 Shopper and What It Means for CPG Marketers,” IRI, 27 June 2015 IRI.
Issues Impacting Innovation Today

11. Market Share Projections: 2013-­2018
Source: Willard Bishop
Traditional grocery:
36.2% (▼2.9%)
Non-­traditional grocery:
40.1% (▲1.1%)
C-­store:
16% (▲1.1%)
Fresh format:
2.1% (▲0.9%)
Dollar stores:
3.0% (▲0.5%)
Other:
2.6%

12. • All mobile?
• More fresh?
• More artisan?
• More expensive?
• More delivered?
What Will It Be Like in 2025?

13. A new type of food store that combines freshness,
authenticity, prepared foods and on-­site services
(beer gardens, catering, nutritional guidance),
becoming a hub for the community
The Supermarket Opportunity
Smaller Stores
• From 50,000 sq. ft. to 20,000 sq. ft.
Less Assortment
• From 40,000 SKUs to 20,000 SKUs
More Service
• Chefs, RDs, butchers, fishmongers
and sommeliers

14. • Grazing Golden Agers
• Smoked everything
• Fermented foods
• “Craft” foods
• Gen Z: the new chefs
• New nutrition labels
• Grocerants
• Instant delivery
Trends to Watch

15. Connection, Conversation
and Community
• Food raves
• Food trucks
• High college debt
• Low-­paying jobs
• Living at home
• Generation “child-­free”
Millennials Are Passionate

16. The Future
Cater
to health and wellness Create
a WOW experience
Celebrate
food, preparation
and taste

17. CONFIRMING TRENDS:
Supporting Observations with Data

18. • CPG companies launch 25,000
new products each year
• How do you keep track of
competitive launches and get
ahead of trends?
• We have to go straight to the
source and go in-­context with
consumers at the shelf
Staying Ahead of Innovation

19. • Our preferences aren’t stable
• We aren’t guided by consistent
beliefs and rational thought
Why Context Matters

20. Better
Hindsight
Better
Insight
Better
Foresight
The Value of In-­Context

21. Crowdsourcing Insights via Mobile

22. • Collects evaluations of new
products from Instantly Mobile
Army™ (~37,000+ shoppers daily)
• Incentivized participation (cash
and contests)
• Alerts companies when and where
products are launched and
provides ongoing shopper
sentiment
• Fully syndicated data set delivered
via a SaaS interface with data API
Real-­Time Retail Insights
Instantly Product Watch™

23. How It Works
• Grocery, mass merchandiser, drug and
C-­stores are geofenced (US, UK)
• Consumers invited via mobile to go on
a scavenger hunt
• Consumers find new products on shelf,
take photos and answer a short survey
• Photos are coded and tagged for brand,
product, price, category and attributes
• Clients access insights via live
dashboard and email notifications
Instantly Product Watch™

24. Anatomy of a Product Watch™ Submission
Brand
Name
Product
Name
Shelf/
Row
Context
Key
Attributes Unit
Size
Promotion
Price
Retail
Price
Flavor/
Variety
Information Gathered From Shopper Photos

25. Anatomy of a Product Watch™ Submission
Additional Mobile App Data
• Store (brand)
• Store (location)
• Consumer demo
• UPC
• Date/time
• Full shelf photo (new)
Additional Consumer Survey Data
• Purchase intent
• Value/price
• Salience (stand out)
• Augment/replace existing
• Brand fit/permission
• Shopping impact
• Leadership
• Success prediction

26. DATA-­DRIVEN IDEATION:
How to Prioritize New Ideas

27. • Early-­stage data on new ideas
is critical to success
• With real consumer feedback,
you can:
⁃ Refine your number of
concepts before next stage
⁃ Eliminate gut decisions
⁃ Better understand your
target consumer
Early-­Stage Concept Testing

28. Instantly Concept Test™
• Online tool for early-­stage
assessment of new product and
promotion ideas
• Load new concepts and launch
tests in under five minutes
• Collect insights from a nationally
representative online or mobile
audience of 300
• Rank and compare concepts
by key performance indicators,
attributes and open-­end
responses
Concept Testing Reimagined

29. Justin Wheeler
VP of Product Innovation, Instantly
justin.wheeler@instant.ly | (866) 872-­4006 | www.instant.ly
Questions?
Phil Lempert
The Supermarket Guru
phil@supermarketguru.com | (310) 392-­0448 | www.supermarketguru.com

30. References
Hadlock, Patrick, Shankar Raja, et al., “The Digital Future: A Game Plan for Consumer Packaged
Goods,” The Boston Consulting Group, April 22, 2014,
https://www.bcgperspectives.com/content/articles/digital_economy_consumer_products_digital_futur
e_game_plan_consumer_packaged_goods/?chapter=2
Hall, Taddy and Rob Wengel, “Nielsen Breakthrough Innovation Report,” Nielsen, June 2015,
http://www.nielsen.com/us/en/solutions/capabilities/breakthrough-­innovation1.html.
Schneider, Joan and Julie Hall, “Why Most Product Launches Fail,” Harvard Business Review, April
2011, https://hbr.org/2011/04/why-­most-­product-­launches-­fail.
Tomei, Robert I., “The 2020 Shopper and What It Means for CPG Marketers,” IRI, 27 June 2015 IRI,
http://www.iriworldwide.com/insights/blog/May-­2015/The-­2020-­Shopper-­and-­What-­It-­Means-­for-­
CPG-­Markete.
Viamari, Susan, “New Product Pacesetters: Key Cobblestones Along the Path to Growth,” IRI, April 21,
2015, http://www.iriworldwide.com/IRI/media/IRI-­Clients/NPP-­April-­2015-­vFINAL2.pdf
“More Than Half of Global Consumers Are Willing to Buy Groceries Online,” Nielsen, April 29, 2015,
http://www.nielsen.com/us/en/press-­room/2015/more-­than-­half-­of-­global-­consumers-­are-­willing-­to-­
buy-­groceries-­online.html.