Creating Winning Concepts

Far more new product ideas are conceived than resources exist to introduce them. The great majority of ideas are unfit for introduction. According to Booz Allen Hamilton, for every seven concepts that enter the new product process only one becomes a commercial success, and 46% of resources devoted to new products are spent on products that fail or are cancelled.

To fight back, companies are adding rigor to their new product development process. A systematic approach incorporates seven steps:

1. Developing an innovation strategy (the platforms to be pursued)
2. Identifying the prospects within the innovation platforms selected (includes identifying consumer targets and the associated consumer insights)
3. Generating ideas (turning the prospects into fully articulated concepts)
4. Assessing those ideas (concept screening/testing)
5. Developing and assessing the product (product use)
6. Evaluating all the commercialization issues (pricing, packaging, advertising/promotion, trade)
7. Launching

The importance of the third step, which involves creating well-written concepts, cannot be understated. You might waste a great, well-articulated consumer insight if you create a poorly written concept. Poorly written concepts are perhaps the leading killer of good ideas.

What is a concept?

A concept is a short description of a product idea expressed in the form of a simple proposition or promise to the consumer. A concept proposes a consumer insight: a way to solve an unmet need in a unique way. To be successful, a concept must clearly state the need, identify the discriminator (how the product idea will meet the need uniquely), provide reasons to believe (convincing proof), provide a rational benefit, and convey the emotional benefits consistent with the rational benefits and the consumer insight.

Take, for example, the concept for a fictitious new ice cream product:

Concept Name: Dilly's Ice Cream with Calcium

Insight: Mothers with young children want to include calcium in their diet and in their kids' diet in a simple way

Discriminator: Extra calcium in an ice cream product, a food people enjoy

Reasons to believe: Calcium is good for you and it helps to have more than you get in your current diet

Rational Benefit: Healthy, tastes good, easy

Emotional Benefit: I will feel good about myself knowing that I am taking care of my family

Why do a concept test?

A concept test evaluates each aspect of what a concept does: Does the concept solve a need better than other products? Do consumers believe the product will work? Do consumers see both the functional and emotional benefits? Will consumers buy it? A concept test should also provide suggestions on how to improve the concept, and may provide a preliminary volume estimate and recommendations on pricing or product line.

An integral part of executing a meaningful concept test--one that will accurately uncover winning concepts and weed out losers (and consequently save product developers lots of time, expense and pain)--is to expose respondents to a well-written concept. But how does one develop well-written concepts?

How do you write concepts?

First you must do all your homework upfront; develop an innovation strategy and platforms, identify prospecting areas, and generate ideas. As you write, consider how the consumer will read your concept. Eye tracking shows that as people view a concept they see Visuals, Headlines, Price, Varieties/flavors and then the Concept Statement. A standardized approach to concept writing minimizes consumer confusion and allows for enhanced analytics and benchmarking. Concept authors should follow a blueprint on what must be included in what order. Standards should exist for writing style, font type and size, size of illustration, color format, spacing, and number of words.

The Headline: The headline must grab your attention and contain a clear and distinct discriminator so the reader knows how this product idea is different and wants to continue reading.

The Body: In a few sentences, communicate whether the concept is a new product, line extension or restage.

The Core Idea: In a few sentences or one paragraph articulate the core idea, or main benefit of the product. Clearly explain who you are, what differentiates the product, and the reasons to buy the product. Secondary benefits may be included after the primary benefit has been thoroughly explained. The body should end with an emotional appeal which links to what you have said.

Varieties, Store Location: When appropriate, the text should include the varieties/flavors and the store location.

The Price: A major decision is whether or not to show the price of the product. Most finished concepts, especially those in bargain price and premium price categories, should include price. Concepts should not include price when you're testing a core concept and you just want consumer reaction to the idea (early in the process); when the concept is being tested among children; nor when the test objective is to determine the price.

Length: Since we want the respondent to read the entire concept description, a good rule of thumb is to stick with a 130 maximum word count.

Format: The format should be standard: headline copy, body copy, illustration, product pricing, and line items always appear in the same location.

Illustrations: Most concepts include illustrations, except core concepts (concepts at early development stages). An illustration can be anything from a color photo to a line drawing and should be appropriate to the current product development phase. Color photos work best, though at intermediate stages line drawings or "rough" visuals may be adequate. Visuals are most effective when they clearly illustrate the product and improve understanding.

Branding: It can be confusing to the respondent to see multiple brands. When testing line extensions or restages don't show the parent brand or competitors unless you plan to show those same brands when you advertise.

Finishing Touches: Add the finishing touches. Use bold or italic type to make unique words stand out. Include logos in the concept anywhere your brand appears.

To better the staggering odds of creating a successful new product, savvy companies are demanding a systematic approach to new product development. Concepts can make or break a new product idea: undervaluing the concept stage or poorly written concepts make waste of good ideas, but clear, well-researched concepts can give new products the edge over competitors.

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