Northwest Research Group, Inc.

1. Northwest Research Group, Inc. Boise 225 North 9th StreetSuite 200Boise, ID 83702(208) 364-0171 Seattle 400 108th Ave. NESuite 200Bellevue, WA 98004(425) 635-7481 www.nwrg.com

2. Concept Development:The Researcher’s Perspective Presented by Jeff Etherton - Vice President Qualitative Research, Northwest Research Group From ‘98 QRCA Conference - Kathryn Alexander

3. Seminar Objectives • Examine Process of Concept Development • Review Different Research Techniques to Test Concepts • Experience Concept Development

4. Agenda • Purpose and Definition of Concepts • Creating and Building Concepts • Concept Testing

5. Why Do Concept Development? • To Develop the Communication of an Idea to the Consumer • To Understand Its Importance to Consumers -- Is It Something They Want and Need? • To Determine if the Need Is Sufficiently Widespread to an Acceptable Level of Business

6. Definition of a Concept • Marketing Application • A Promise Made by a Product to Resolve an Unmet Consumer Need • The Reason It Will Satisfy the Need • A Description of Portrayal of Any Key Element that Will Affect the Perception of the Product • A Concept Answers the Consumers’ Question…. What’s in it for me and why should I believe it?

7. Concept Versus Copy Development • Concept Development - Done to Identify a Potential Winning Strategy • Copy Development - Done to Execute a Winning Strategy

8. Concept Versus Copy Development • The Concept Development Phase is NOT to Develop Advertising Copy, but to Develop and Optimize the Core Product Idea. What is the consumer need and how will the product satisfy that need?

9. Create / Build Concept A Concept is... • A promise a product makes to resolve an unmet consumer need / end benefit • The reason why it will satisfy the need / Reason to believe • A description of any key element that will affect the product perception

10. Strong Concepts Have: • Headline - Expresses the Most Important Idea in the Concept • Accepted Consumer Belief (ACB) - Expresses the Target Consumer’s Frustration or Unmet Need • Benefit - The Promise - “What’s in it for me?” • Reasons to Believe (RTB) - Part of Concept which Gives Credibility to the Product Promise

11. Headlines Its Role: • The Headline Expresses the Most Important Idea in the Concept Examples: • Competitive - New Jif Tastes More Like Real Peanuts than Any Other Brand • New and Improved - Maximum Strength Pepto Bismol --Now you Can Have Twice the Pepto • Unique - New Pert Plus, the Only Shampoo and Conditioner in One Bottle

12. Headline Guide Guidelines: • Benefit-based Headlines Are Most Effective - Most Important Idea Is Usually the One That Answers “What’s in It for Me?” • Treat Headline Like It’s the Only Statement Consumer Will Remember • Make Headline Clear and Single-minded • Since It Summarizes the Concept’s Main Idea, Write It Last

13. Accepted Consumer Belief (ACB) Defined: • What Is an ACB? - A Statement That Expresses the Targets Consumer’s Frustration or Unmet Need • What Is Its Role in a Concept? - To Create a Context or Perspective for the Rest of the Concept; That Is, the Primary Benefit and Support Statements

14. ACB - Cont’d Guidelines: • Use consumer language • Focus on One problem or belief at a time • Stay realistic (don’t set up a problem you can’t solve) • Try not to say anything nice about the competition

15. ACB Cont’d Examples: • Statements of Existing Beliefs or Perceptions: • Dyed Hair Doesn’t Look Natural • Soap Dries My Skin • Detergents Strip Away Dyes, Leaving Colored Clothes Dull and Faded

16. Benefit Statement Defined: • A Benefit Statement Is a Promise That Answers the Target Consumer’s Question -- “What’s in it for me?” Its Role: • Addresses the Frustration or Unmet Need Described in the ACB and Describes the Primary Advantage of a Specific Product to the Target Consumer

17. Benefit Statement Cont’d Guidelines: • Use Consumer Words • Focus on a Primary Benefit (Also Known As a Single-minded Proposition) • Benefit Must Be Distinctive (for Category) and Important to Target Consumer

18. Benefit Statement -- Cont’d Examples of Two Basic Types of Benefits: • Product Benefits - Describe the Product Advantage in Objective Terms: • Crest Reduces the Formation of Tartar • Downey Softens Clothes • Bounce Controls Static • People Benefits - Describe the Product in Subjective Terms (Above Examples Converted to People Benefits) • Crest Makes Dental Check-ups Easier • Your Family Will Notice Downey Softness • No More Embarrassing Static Cling With Bounce

19. Reason To Believe (RTB) Defined: • Gives credibility to the Product Promise “What’s in it for me and why should I believe it?”

20. RTB -- Cont’d Its Role: • Explains to the Consumer Why a Product Will Deliver the Promised Benefit • Completes the Logic in the Concept and Can Become a Distinctive Element of Advertising

21. RTB Cont’d Guidelines: • Create Ideas Out of Consumer’s Experience -- Their Problems, Their Beliefs O How Thing Work • Supports the Main Benefit Statement • Don’t Be Too Technical

22. RTB Cont’d Types: • Logical Explanation: • Uses a logical argument to describe why the product will solve the consumer’s problem • Toilet tissue is softer because it’s quilted • Jif tastes better because it has a freshness seal

23. RTB Cont’d More Types: • Ingredients: • Crest With Baking Soda • Puffs With Aloe • Cover Girl With Clean Noxema Ingredients • Lack of Ingredients: • Fat-free Corn Flakes • CheerFree - Free of Dyes and Perfumes • Charmin - No Dyes, Inks, or Perfumes

24. RTB Cont’d More Types: • Special Ingredients: • Cheer with ColorGuard • Chlorinal in Comet • Quality of Ingredients: • Folgers Mountain Grown Coffee Beans • Brownie Mix with Real Hershey’s Chocolate

25. RTB Cont’d More Types: • Product Aesthetics / Special Feature: • Jif Smells More Like Fresh Peanuts / Freshness Seal • Instant Folgers Is Darker in Color • Technical Performance: • Pepto Coating Action • Cascade Sheeting Action • Dawn Cleans Glass After Cleaning Greasy Pans

26. A Strong Concept • Offers an Entirely New Benefit Not Offered by Existing Products • Has Strong Comparative Claims Versus Competition • Eliminates an Important Negative in Existing Products in Category