December 7th, 2009

Agenda
Who are Prosumers? How to identify Prosumers Conducting a quantitative Prosumer study Conducting a qualitative Prosumer study

Who are Prosumers?

Who Are Prosumers?

% Consumers

Like Momentum 2.0 and Decipher, Prosumer is a future-focused tool 15-25% of men and women who make and break markets in every category and geography Leading edge consumers who help us understand whats next Predict what consumers will think, feel, say, or buy in the next 6-18 months

1525%

PROSUMERS

618 months

Source: Euro RSCG Worldwide Prosumer Studies, 20022009

The Ultimate Influentials

Prosumers are 2.5x more likely to be extroverts

Prosumers are most influenced by each other

Prosumers are 1.5x more likely to entertain friends and family at home several times a month Prosumers are 2.3x more likely to regard themselves as leaders
Prosumer Pulse 20042005

Lets Be Clear
We are not interested in targeting a nicheeven a large one We track Prosumers in order to anticipate the direction in which the bulk of consumers will soon move Prosumer is a tool that can easily be used in conjunction with client research tools, focus groups, and online surveys No matter what size the group, the algorithm allows us to identify the Prosumers within it

Prosumer Assets: Knowledge Exchange and Know Publications

***Need a definition of Knowledge Exchange*** from Ann ***Need images of Know study covers*** from Paige

Identifying Prosumers

Identifying Prosumers: The Prosumer Survey

For each of the following answer either:
5 strongly agree 4 somewhat agree 3 neither agree nor disagree 2 somewhat disagree 1 strongly disagree

1. Im typically the first person I know to try new things; I consider myself a real independent thinker. 2. I am frequently the one doing the newest thing(s) first. 3. When I have a great or an awful experience with a new brand, product, service, vendor, venue, anything, I tell lots of other people. 4. I am often consulted by my peers for counsel and recommendation on a range of topics. 5. I trust what I read in newspapers and magazines, and believe what I hear on television and radio.* 6. I consider myself far behind the times and not very engaged in either consumerism or pop culture.

Identifying Prosumers: The Prosumer Algorithm

Strongly Agree or Somewhat Agree
Im typically the first person I know to try new things; I consider myself a real independent thinker.

I am frequently the one doing the newest thing(s) first.

When I have a great or an awful experience with a new brand, product, service, vendor, venue, anything, I tell lots of other people. I am often consulted by my peers for counsel and recommendation on a range of topics.

Neutral, Somewhat Disagree or Strongly Disagree

5. I trust what I read in newspapers and magazines, and believe what I hear on television and radio.*

Somewhat Disagree or Strongly Disagree

6. I consider myself far behind the times and not very engaged in either consumerism or pop culture.

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Working with Prosumers

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Working with Prosumers: Selecting a Study Type

Quantitative
What is it? The typical quantitative Prosumer study is an online survey of 250-300 participants Provides hard data that allows you to compare the opinions of Prosumers to the general population providing FutureFocused insight When should it be used? Comparing data over time Linking to a brand tracking study When interacting with a data-driven client What is it?

Qualitative
Qualitative studies allow for interpersonal interaction with Prosumers Any qualitative method can become a Prosumer exercise if the Algorythm is used in recruitment There are a wide variety of Qualitative methods, including: focus groups, ethnographies, panels, and innovation sessions

When should it be used?

When there is a need for a two-way dialogue Idea generation Insight generation NPD development

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Quantitative Example from Charles Schwab

I consider myself to be a regular person who has done well.

81% Agree 65%

4% Disagree 9%

Prosumer

Consumer

Source: Euro RSCG Mass Affluent Investor Poll for Charles Schwab, 9/04

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Qualitative Example from Reckitt Benckiser

3-day Product Innovation session with 2 dozen Prosumer homemakers Results:
60+ new product concepts; among them: 14 product ideas put into BASES testing Net: 250% more productive than previous innovations initiatives undertaken by RB

So successful, partnership has continued

Innovation training for RB European employees Expert immersion Frenchs workshop

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Conducting a Quantitative Study

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Steps to Conducting a Quantitative Study

1. Determine market(s) and sample size 2. Create questionnaire 3. Contact Research Vendor: Market Probe International. Copy Phillip Buehler on all correspondence. 4. Work with Market Probe to finalize questionnaire 5. Test online survey 6. Approve for launch 7. Analyze the data / share findings 8. Submit results to Ann OReilly for posting on the Knowledge Exchange

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Quantitative Step 1: Determine market(s) and sample size

Typical sample size for a 1-market study would be 250 to 500 and would cost approximately $12,000 to $15,000 to field Translating the questionnaire for a multi-country study will add to those costs

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Quantitative Step 2: Create the questionnaire

Maximum-length survey should take approximately 20 minutes to fill out For sample questionnaires from past studies, contact Ann OReilly Include Prosumer algorithm questions. (Important: Please check with Phillip Buehler for the most recent version of Prosumer questions and algorithm for your market; the algorithm is currently being tweaked.) It may be useful to include questions from previous surveys (agency or outside) to allow for comparisons over time Circulate draft questionnaire to anyone who might have productive input

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Quantitative Step 3: Contact Research Vendor

Contact Alan Appelbaum at Market Probe International for price quote and to arrange fielding. Indicate desired demographics and segmentations for crosstabs (e.g., age groups, male/female, parents). Be sure to copy Phillip Buehler on all correspondence.
Alan Appelbaum, President & CEO, Market Probe International, Inc. Phone: 212-725-7676 Ext. 13 Fax: 212-725-7529 Website: www.marketprobeint.com

Note: If the study is 100% locally funded and you would prefer to use a local research vendor, you may do so. However, Market Probe is highly experienced with Prosumer studies, having conducted them since 2004. If you use a local vendor, you must have them sign the confidentiality agreement that is located on the Knowledge Exchange site prior to sharing with them the Prosumer questions and algorithm.

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Quantitative Step 3: Contact Research Vendor

Contact Alan Appelbaum at Market Probe International for price quote and to arrange fielding. Indicate desired demographics and segmentations for crosstabs (e.g., age groups, male/female, parents). Be sure to copy Phillip Buehler on all correspondence.
Alan Appelbaum, President & CEO, Market Probe International, Inc. Phone: 212-725-7676 Ext. 13 Fax: 212-725-7529 Website: www.marketprobeint.com

Note: If your research is unfunded, you can Note: If the study is 100% locally funded and you would prefer to use a local research use do-it-yourself services like vendor, you may do so. However, Market Probe is highly experienced with Prosumer SurveyMonkey.com studies, having conducted them since 2004. If you use a local vendor, you must have them
sign the confidentiality agreement that is located on the Knowledge Exchange site prior to sharing with them the Prosumer questions and algorithm.

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Quantitative Steps 4 through 8

Step 4: Work with Market Probe to finalize questionnaire Step 5: Test online survey (Market Probe will handle this) Step 6: Approve the survey for launch Step 7: Market Probe will return data sheets with crosstabs in Excel and Word. Have your team analyze the data and prepare one or more reports and/or PowerPoint presentations to share findings with colleagues, clients, and prospects. Step 8: If the results are English-language, submit the resultant report(s) and/or presentation deck(s) to Ann OReilly for posting on the Knowledge Exchange. Please indicate study authors so they may be properly credited.

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Working with Prosumer Quantitative Data

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Prosumers Ahead of the Curve in Online Shopping

How much do you agree with each of the following statements? Strongly/Somewhat Agree

Even if I dont make purchases online, the Internet is a very important part of my shopping Prosumers:
99% 88% 92% 92%

I do lots of [consumer] research online Prosumers:

88% 70% 84% 88%

Overall:
81% 76% 78% 81%

Overall:
67% 42% 65% 66%

For major purchase decisions, my first step is usually the Internet

Prosumers:
92% 94% 92% 88%

The Internet has had little to no impact on my shopping

Prosumers:
6% 17% 5% 25%

Overall:
75% 71%

Overall:
75% 71%
10% 22%

11%

21%

Source: Future of Shopping, 2008

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Prosumers Quicker to Adopt Healthy Lifestyles

US
Please indicate how much you agree with each statement % Agreeing Completely/Somewhat Prosu mers Others Prosu mers Others Prosu mers Others Prosu mers Others Prosu mers Others Prosu mers Others

UK

France

Germany

China

India

Base: Total Respondents

I am much more aware of the nutritional/health value of the food I eat than I used to be I read the nutritional information labels on food packaging I take vitamins and/or other dietary supplements Overall, I eat a healthy and balanced diet When I go to a fast-food restaurant, I try to make healthy choices I'm more likely to go to a fast-food restaurant that offers healthful selections Combined virtuousness

82

77

85

71

70

58

49

46

77

64

89

79

74 70 54

69 65 51

70 49 62

55 49 57

57 27 59

46 21 58

38 35 37

36 34 35

61 42 61

49 35 53

70 64 86

65 58 79

55

50

47

41

52

46

35

31

59

51

67

61

48

48

43

39

60

50

36

31

74

59

66

57

383

360

356

312

325

279

230

213

374

311

442

399

Source: Prosumer Pulse 2004

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Prosumers Adopt Technology Quicker than the Young

Total

Prosumer

Consumer

Male

Female

Age 1834

Age 3554

Age 55+

HHI <$50K

HHI $50K99.9K

HHI $100K+

Which of the following do you own or have access to for personal use?

Base: Prosumer 2004

DVD player Standard cell phone High-speed home Internet connection

1,982

382

1600

991

991

775

812

395

844

698

211

82 73 56

91 77 68

79 72 54

84 74 62

80 72 51

90 74 66

85 76 58

58 63 35

77 66 49

87 79 59

88 84 79

Laptop computer
Personal digital assistant (e.g., Palm, iPaq) Personal video recorder (e.g., TiVo ) Cell phone with additional functions

36
19 18 17

51
33 24 26

33
16 17 15

45
26 21 20

28
13 15 14

46
24 21 26

36
20 17 15

19
8 14 5

26
13 16 14

39
21 17 18

65
43 29 35

Portable MP3 player

Portable e-mail device (e.g., Blackberry) None of the above

16
4 4

29
6 2

13
3 5

23
5 4

10
2 5

23
5 1

16
3 3

4
1 15

12
2 7

17
3 2

36
12 0

Source: Prosumer Pulse 2004

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Conducting a Qualitative Study

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Example Qualitative Methodologies

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Example Qualitative Methodologies

Focus Groups
Most traditional form of qualitative research Enables you to field the opinions of a larger number of respondents 6 to 8 at a time

Ethnographies
In-depth interactions with individuals Typically take place in the respondents natural environment (e.g. At home with moms or at a bar with beer drinkers) Allows for rich insight, but timeconsuming/expensive

Panels
Allow for on-going research with a consistent group of respondents Valuable in exploring category issues concept/ad testing and identifying new trends Difficult to maintain interest/attendance over the long term

Innovation Sessions
CBI lab in addition to client and agency personnel can incorporate Prosumers in ideation process

X-Plorer Prosumer immersion session, where you allow prosumers to do thinking for you

More detail on X-Plorer to follow

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Qualitative Methodology Example: X-Plorer

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What Is X-Plorer?
X-Plorer Defined Intensive Prosumer immersion sessions (a day, a weekend, or longer), during which you have Prosumers do the thinking for you

Goal: To identify opportunities for new products and innovations in response to genuine Prosumer needs
When should I use X-Plorer? NPD ideation To identify emerging brand issues before they become a problem

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Why Use X-Plorer as the Example for a Qualitative Methodology?

As previously mentioned, any qualitative study can become Prosumer-centric when using the Prosumer algorithm in the recruitment process The objective of the X-Plorer session, product-innovation, is a task uniquely suited to Prosumers

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X-Plorer: Examples
Prosumer moms create new products they wish they had for their homes Now a standard feed into RBs normal product-development process RB deemed it so successful they asked us to conduct a similar session with their top global product-development staff

New examples needed

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Conducting a X-Plorer Study

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Steps to Conducting a X-Plorer Study

1. Determine project parameters 2. Recruit participants who represent the target or key target segments 3. Write Introductory Briefing 4. Create session materials 5. Build an Agenda 6. Present findings to client

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X-Plorer Step 1: Determine Project Parameters

Working together with the client team, determine the following: What are your goals and objectives for the session? Be very specificAre you looking for extensions for an existing product line? A new product line? Improvements to existing products? Who are you looking for in terms of participants? (e.g., working moms, single parents, grocery shoppers, affluents, technology enthusiasts) How long will the session be? (Can be anywhere from a half-day to a weekend or longer, depending on objectives and budget)

Where will it take place? If possible, use offsite location such as a spa, hotel, or a conference or training center
Who will be involved besides the prosumer participants (within the agency and client teams)? Who will facilitate?

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X-Plorer Step 2: Recruit Participants

Once you determine your target group, recruit 15-20 Prosumers within that group As the majority of X-Plorer sessions are immersive, multi-day programs, attempt to recruit people you feel will be able to maintain concentration/enthusiasm throughout the process

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X-Plorer Step 3: Create Introductory Presentation

Prior to the X-Plorer session, it is helpful for the agency team to create a presentation to brief participants on the overall category and brand, key trends (current and emerging), and customer profile (current and desired) Clearly state objectives for the X-Plorer session and what their role is (what do you want to come away with?) The idea is simply to get everyone up to speed and in a creative mindset

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Qualitative Step 4: Create Session Materials/Exercise

Create session materials (e.g., discussion guides, workshop exercises)
For multi-day sessions, a combination of group exercises, presentations, and group discussions works best Moderated discussions (typically centered on needs, desires, issues, frustrations, wish lists) Exercises based on homework submitted by participants in advance of arrival: behavior or usage logs Ideation exercisesinventing new products or services

Design the exercises to suit the issues at hand

Use templates to force thinking and creativity toward specific ends More loosely structured for brainstorming Have teams work on the same exercises if possible Often, courses of action become evident through the commonality of thinking among the different teams

Alternate these creative exercises with presentations of the thinking by each team to the entire group
Subsequent exercises often build on results of preceding exercises Generally, the teams challenge each others thinking and drive each other to better results

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X-Plorer Step 4 (contd): Example Exercise A

Warm-Up: Provoke! Exercise Provocative ideas are fun, but provoking colleagues can be even more fun! For the next 15 minutes you have free reign to provoke as many of your colleagues as possible. Your mission? To complete the following worksheet by finding people in this room who fit each of the 10 descriptions and provoking them into divulging their habits, preferences, likes, and dislikesthose qualities that make them human, that make them consumers. At the end of the session, the person with a worksheet filled with the most provocative (ahem, within reason) responses wins For Example 1.Find someone who hates your favorite movie
Provoke this person into admitting one thing that would make them see the sequel (if there were one)

2.Find a cat loverpreferably one who hates dogs

Provoke this person into listing the top ten best things about man's best friend (and, no, we're not talking about Rex)

3.Find someone who claims he or she has never watched reality television
Provoke this person into describing the one reality series he or she would watch

4.Find a vegetarian
Provoke this person into a discussion about his or her favorite meat-based meal prior to becoming vegetarian. What was it and why did it taste better than most vegetarian meals?

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X-Plorer Step 4 (contd): Example Exercise B

Quick Thinking Exercise
Performed in groups of 3 This exercise requires a bit of mental and physical dexterity and the ability to come to consensus quickly. At your designed station, youll find an innovative producta good idea someone once hadand a worksheet. You will have 3 minutes to complete the worksheet for your product before you have to switch to the next station. Be creative, insightfuland quick about it. Getting Your Mind in Gear: Here are some of the concepts you will want to have top of mind going into this speed round. Rational Benefits: Rational benefits generally fulfill a need (versus a want) that the consumer is experiencing. Example: The rational benefits of purchasing a bicycle might include: Mobility, being able to get around independently Being environmentally responsible Gaining health benefits associated with cycling Saving money on gasoline and car maintenance Emotional Benefits: Emotional benefits generally deal with the want that moves someone to buy a product or service. Example: In buying a bicycle, the emotional benefits might include: For a child, the pride of mastering a big-kid machine For an adult, nostalgia for their first bicycle or wind through their hair The pleasure of doing something nice for oneself, nurturing a feeling of self worth The sheer joy of riding that brings a smile to the face Unique Selling Proposition (USP): The qualities, characteristics, benefits, or combination thereof that makes the product stand out from the crowd. The products standalone DNA.

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X-Plorer Step 4 (contd): Example Exercise B

Quick Thinking Exercise Worksheet Product:_______________________________________________ Rational Benefits:_________________________________________ Emotional Benefits:_______________________________________ USP:___________________________________________________

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X-Plorer Step 4 (contd): Example Exercise C

Making New Connections Objective: Getting energy levels up and inhibitions down There are no right answers in this exercise. The idea is to have fun, loosen up and maybe even surprise yourself. The trick is to work fast. Go with the first thing that comes into your head. Dont stop to thinkit slows you down and its less fun. Instructions: Get together with at least 3 other people (possibly three) A, B, C (and possibly D)
A says: Marriage is like [XXX whatever comes into As head] because. B completes the thought because [XXX whatever reason comes into Bs head] C says: Marriage is like [XXX whatever comes into Cs head] because. Next person A or D completes the thought because [XXX whatever reason comes into As or Ds head]

Example
A says: Marriage is like a Caribbean island because B completes the thought because a Caribbean island is fun for a while

Continue on the theme of marriage until the facilitator calls out the next theme.
After a couple of topics, change topic to product or service area of the workshop (e.g., Household cleaners are like XXX because)

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X-Plorer Step 5: Create an Agenda

Create the agenda; for multi-day sessions, build in plenty of relaxation and getting to know you time. (Sample multi-day agenda shown below)
X-Ploring Flavor May 14-15 Friday, May 14 Arrival, Registration, Welcome (Cocktails Served) Potluck Dinner Featuring Guest Selections and Grilled Entres Introductions, Orientation, and Opening Remarks Group Discussion: Foods, Flavors, and the Future of Cooking Saturday, May 15 7:008:00am 8:309:30 9:3010:30 (3 Teams) 10:3011:00 Team Presentations Yoga or Sleep In Breakfast and One-on-One Questionnaire Team Exercise on Flavor: New and Noteworthy Condiments 5:007:00pm 7:008:00 8:008:30 8:309:30 (3 Teams) Team One: Convenience-Based Solutions Team Two: Family-Focused Solutions Team Three: Solutions That Jump Off the Shelf 12:1512:45 12:452:00 2:002:30 2:304:00 Team Presentations Lunch/Break Presentation: On Our Tables and In Our Mouths: Trends Impacting the Food Industry Team Exercise on Dream Products That Fill the Void: Identifying and Solving Unmet Needs (3 Teams)

Team One: Feeding a Family Team Two: Singletons Team Three: Better-for-You Solutions 4:004:45 4:455:00 5:005:45 Team Presentations Break Product Stimuli Exercise: Recipe Reviver (Teams of 3) Grab-Bag Presentations and Discussion Relaxation Dinner

11:0011:15

Group Discussion: Ways to Expand Top Ideas/Take Them into Other Areas
Team Exercise on Packaging: Same Sauce; New Delivery

5:456:15 6:157:30 7:30

11:1512:15pm

*Individual team members will be excused for the 60+ minutes of their complimentary spa treatment

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X-Plorer Step 6: Report Findings to Client

Videotape sessions and interviews for client presentation Compile findings (product ideas) and present to clients Determine next steps

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