IPSOS MORI UNVEILS NEW TECHNIQUE FOR MAXIMISING BRAND PORTFOLIOS
‘Line Evolution’ promises to improve decision-making for manufacturers and marketers
Ipsos MORI's Insight division is this week launching ‘Line Evolution’, a new research methodology to explore product range optimisation and inform strategies across brands.
Designed to help manufacturers and brand teams accurately identify the most favourable variants to produce and promote, the new research tool will predict the likely impact and performance of both existing and new concepts.
Line Evolution builds and improves on current approaches to brand optimisation, which rely predominantly on measuring the total unduplicated reach and frequency (TURF) of new variants –where, for example, one variant might appeal to fifty per cent of a population, a second variant to a further twenty per cent, a third to a further five per cent and so on.
Evolving from the idea that buying decisions are driven by more than just availability and choice, the tool extends the traditional reach model with specific insights into customer ‘needs’ and buying behaviours around specific occasions. This is achieved by using existing market information and combining it with qualitative data and research via a pre-selected omnibus.
By exploring the optimum number of potential consumer needs and occasions, ‘Line Evolution’ can be used to identify with greater accuracy which products in a range will have the maximum appeal to the greatest number of customers; it can also be a vehicle for testing the likely penetration of new spin-off products.
The Insight team has already trialled the new tool with several major FMCG manufacturers, who have revised many of their range decisions as a result, and it is now available to other organisations.
Mark Burgess, Deputy Managing Director of Insight at Ipsos MORI, commented:
"Manufacturers are often in one of two positions – stuck with a range that has become too broad and complicated or eager to develop further but unsure which new concepts to launch. In either case, ‘Line Evolution’ promises to be an effective way of testing out new and existing concepts and identifying how to maximise market opportunities. It will also be a very powerful tool to influence the ranging and stocking policies of retailers”.
Kevin Ford, UK board director and author of “Brands Laid Bare”, the best selling book on how consumers relate to and absorb brands, added:
“Range proliferation is a huge issue for manufacturers, do you grow or consolidate a brand? If a product is strong, will extending the range improve it or simply dilute the offering? This new tool promises to provide a more authentic landscape from which to make decisions on your brand portfolio. It tackles the hot challenges of minimising cannibalisation within a portfolio and maximising the efficiency of stretching a brand into new territory”.
Ipsos Group recently announced the acquisition of MORI in the UK, and has been merged with Ipsos UK. The merged company now stands with a joint turnover of over £100m in the UK. In 2004 Ipsos UK provided research services for over 500 UK blue chip businesses and with MORI also handling a similar number, Ipsos MORI now has a client base of over 1,000 clients.
Ipsos MORI is a part of the Ipsos Group, a global network of research companies, with a combined turnover exceeding 700m Euros. In 2004 the Ipsos Group completed over 10m interviews worldwide and, according to results published in February 2005, recorded strong organic growth for the sixth consecutive year, again outstripping market growth.