New Market Space in
Consumer Goods
Agenda
• Finding new market space
• Examples of new space in consumer goods
• Developing a process to claim new space
Redefining market space – do not focus on
needs, but on jobs consumer are trying get done
Needs
• Better acceleration
• More precise
handling
• Increased headroom
• Larger storage
capacity
Competition
• Mid-sized sedans
WHAT
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Jobs
• Express myself
• Park in tight spaces
• Show my ecological
sense
• Have fun
Competition
• Fashion, scooters,
Prius, Smart, Cayenne
WHY
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Where do jobs come from?
Functions
Attitudes
Circumstances
Seek X because
it leads to Y
Seek X because it
fits with who I am
Seek X because of
what’s happening
right now
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Defining the challenge tightly, beyond just the
job
Element
Brief Description
Jobs
What are people trying to get done, regardless of
what they are currently buying?
Approaches and Pain
Points
What do people do today? Where does there
appear to be non-consumption? What are the
pain points?
Competition
What is the “real” competition? What do
analogies and benchmarks suggest about
underlying jobs?
Criteria
How do people evaluate new solutions?
Obstacles
What hinders adoption of new solutions?
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Example – Tackling frequent obstacles to
adoption of new consumer goods
Leverage Existing Behavior
•
•
•
•
•
Tackle New Occasions
•
•
•
•
•
Febreze
Swiffer
VitaminWater
Listerine Agent CoolBlue
PedEgg
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•
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•
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Razors / blades
Microfinance
Freemium
JiffyLube
•
•
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Tide to Go
Cameraphone
iPod
Desktop copier
RedBull
Affordable, Not Inexpensive
Find Purchase Triggers
Ticket insurance
Extended warranty
Airline clubs
Auto accessories
Home deep freezes
Easy to Trial / Know it Works
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•
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Video games
High definition TV
Quicken software
Free samples in grocery
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Agenda
• Finding new market space
• Examples of new space in consumer goods
• Developing a process to claim new space
Reconceive categories by underlying jobs to be done
Example – Kraft Sizzling Salads
• Kraft released its Sizzling Salads Dinner
Kits, which include a bottle of salad
dressing and a bottle of cooking sauce sold
in a kit
• All the cook has to do is mix the dressing
into the salad, add the cooking sauce into
the chicken they plan to cook, and toss it
into the salad
• The prep time is 20 minutes, making it a
quick meal that is still “homemade”
Source: USA Today
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Laser-target a benefit for the jobs of unaddressed
market segments
Example – Ensure with Revigor
• According to Ensure, if you are over 40, you could
be losing 8% of your muscle every 10 years, and
exercise alone might not be enough to fight that
off
• Ensure Muscle Health has Revigor, the amino
acid metabolite HMB, and protein to help rebuild
muscle and strength naturally lost over time
• While there have been many protein
supplements for weightlifters, fitness gurus, and
normal people looking for meal replacements,
there has not been one directed towards those
who are aging and want to preserve their muscle
mass
Source: www.ensure.com
Copyright 2013 New Markets Advisors
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Leverage cues to address under-addressed jobs, e.g.
“know it works”
Example – Berocca Twist 'N' Go effervescence
• From Bayer Australia, Twist ‘N’ Go
is a revolution in drink packaging
by using a patented cutting
mechanism within the lid which,
when twisted, cuts open a blister
packet, automatically dispensing a
vitamin tablet into purified water
• Since vitamin tablets typically
degrade when exposed to water,
delivering premixed vitamin drinks
has traditionally been very
difficult, and Berocca sought to fix
that
Source: Invetech
Copyright 2013 New Markets Advisors
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Tackle pain points in the consumption process
Example – Smucker’s Uncrustables
• Smucker’s Uncrustables sandwiches are
premade peanut butter and jelly
sandwiches without the crust and are
perfect for picky kids
• They can be frozen to ensure prolonged
freshness and come in a variety of flavors,
which include new varieties on whole wheat
bread with strawberry, grape, or raspberry
spread
Source: www.smuckersuncrustables.com
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Tackle pain points in the consumption process
Example – Smucker’s Goobers
• Smucker’s Goobers has every kid’s favorite
sandwich, peanut butter and jelly, in one jar
• With either grape or strawberry jelly mixed
with peanut butter, the job of making this
sandwich is simplified
Source:
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Address obstacles to category adoption
Example – V8 V-Fusion + Energy
• Nearly two in three people say they don't
have enough energy, but nearly 40% don't
believe energy drinks are good for you,
which is where V8 comes in with its V-Fusion
+ Energy drinks
• When the drink made with fruits and veggies
rolls out this new product, the label will
clearly spell out where that energy comes
from: 80 mg of natural green tea
Source: USA Today
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Address obstacles to frequent use
Example – Off Clip-On
• Off Clip-Ons provide protection from
mosquitoes without a spray, lotion, or
citronella candle or lamp
• By clipping it onto your pants or shirt, the
quiet, battery-powered fan circulates
repellent all around you, giving you your
own bug-free bubble
• It uses an active ingredient with no scent,
and each refill provides up to 12 hours of
head-to-toe protection
Source: www.off.com
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Agenda
• Finding new market space
• Examples of new space in consumer goods
• Developing a process to claim new space
Embrace a process that creates customer-centric
solutions, driven by clear growth strategy
• Develop consensus about your current situation, your present
strategy, baseline knowledge, and key upcoming decisions
• Undertake primary, qualitative research with target stakeholders to
see the world through their eyes and understand their jobs to be
done
• Quantify the resulting job-based segments and the job drivers
• Rigorously define the challenges target customers grapple with, and
create total solutions that put you in a competitive class you can
own
• Develop business plans focused on mitigating key risks, validating
success drivers, and rapidly reaching milestones that improve odds
of success
– Reduce risk before investing for scale
– Avoid false precision in financial estimates. Focus instead on “what
you have to believe” financial assumptions and achieving certainty
behind those assumptions
– Explicitly link near and long-term decisions to underlying strategy
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Relevant services from New Markets
Light-touch counsel on strategy-shaping process
Deeper involvement in strategy and solution
creation
Structuring of primary research and
interpretation of results
Business plan creation
Facilitation of consensus-building meetings
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Who is New Markets?
• Experts in
reframing
market space
and generating
growth
• Senior
experience
• Creative and
pragmatic
• First-class
consultants,
thought
leaders, and
entrepreneurs
Copyright 2013 New Markets Advisors
Recent Clients
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Our team’s publications have appeared in:
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Contact
Stephen Wunker
Managing Director
New Markets Advisors
245 First Street, 18th Floor
Cambridge, MA 02142 USA
Tel. +1 617 337 3060
Fax +1 617 337 3070
swunker@newmarketsadvisors.com
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