Portfolio extension to drive incremental growth
New products and services are the very essence of business. But we live in a world where over 80 per cent of new products fail. At TNS, we know how to overcome the considerable barriers that innovation faces, and map out a truly successful strategy for portfolio development.
Our individual-based approach is different to traditional, aggregate modelling. We identify the real market impact of an idea from the outset, including its effect on the current portfolio. Our tools will allow you to focus innovation around the highest-potential concepts from the outset, deliver precise briefs for product development and create powerful launch strategies for genuine, incremental revenue growth.
Our precision approach has helped clients to:
- Exploit growth opportunities in new market segments
The brand leader in the imported beer market was not participating in the growing segment of lighter, more drinkable beers. The client wanted to explore opportunities in this sector to fuel their stalling sales and profits.
With Matrix’s systematic and comprehensive approach to unearthing and directing precise opportunities for innovation we evaluated the beverage landscape of over 50 different beers. We explored consumer needs on a recent occasion in great detail. Broader attitudes to the category and beyond to understand tensions and un-met needs in the market and uncover key target opportunities.
We identified a major gap in the largest need state for beer that satisfied the need for badge value, product quality and a lighter, but satisfying, drink-ability. Our growth plan convinced management that the risks were acceptable, and that implementation would drive incremental growth and enhance the core brand equity. The client developed a franchise expansion strategy to appeal to underdeveloped customers. They tailored the entire business plan to target the need-state we identified; positioning, brand identity, value proposition, on-and-off premise channel strategy and tactics and spending mix.
Precise plans for growth
The resulting product was launched and delivered well ahead of targets. In the first year the new brand exceeded sales goals by more than 50 percent.
- A new lease of life for a well-established juice brand
Just Juice’s brand share and value had eroded over time as the cold drinks market evolved. The client knew innovation was essential to survive, but recognised that simply developing new flavours and formats would not be sufficient. Growth potential could be seen in fizzy drinks, but the client didn’t know whether this was right for Just Juice.
Using NeedScope qualitatively, we explored the dynamics of the cold drinks market, revealing the functional and emotional drivers of brand choice, unmet needs and opportunities in the market. Future-influential consumers were recruited to help guide the innovation process.
We identified hybrid fruit juice & lemonade as Just Juice’s best innovation opportunity. Pinpointing the Just Juice brand essence and the emotional benefits of bubbles, guided brand positioning, as well as functional elements such as product and pricing.
Plans for growth
Just Juice Bubbles was successfully launched, with every element capturing the essential values of bubbly, lively fun. This became the company’s most successful new brand launch, with sales and profitability targets exceeded and achieving 35 percentage growth for the portfolio. The launch also successfully helped rebuild the core Just Juice brand.
- Success through building a powerful new brand
Our client was the market leader for scooters in India but had lost its leadership position in the two-wheel vehicle sector. Attempts to regain this position by launching a new motorcycle had been unsuccessful. Our client recognised that the problem was not just product but brand.
A qualitative and quantitative NeedScope programme investigated the dynamics of the market to identify the best growth opportunity for our client.
By going beyond the functional, we showed that motorcycles and scooters meet very different needs in the Indian market. NeedScope explained what riding a motorcycle was really about and revealed an opportunity for a segment of the market best described as ‘liberation’. A new brand was required to appeal to this segment - young, sporty and irreverent - with a sense of freedom and exploration at its core.
Plans for growth
A new brand was successfully launched, targeted directly at the youthful, irreverent side of liberation. The new brand resulted in a renewed passion within our client, a return to number one position as well as accolades in numerous prestigious motoring magazines.