How understanding implicit influences gets brands bought

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© decode marketing ltd page 1 Matt Hunt Marketing Director Hovis Phil Barden decode marketing ltd How understanding implicit influences gets brands bought FDIN Seminar, June 2014

Transcript of How understanding implicit influences gets brands bought

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Matt Hunt Marketing Director HovisPhil Barden decode marketing ltd

How understanding implicit influences gets brands bought

FDIN Seminar, June 2014

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The World Of Bread

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A category bought on a little belief – not a heap of knowledge...

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Welcome to buying on Autopilot – the epitome of a low involvement category

Time invested in the purchase decision

£ in

vest

ed in

th

e p

urc

has

e

LOW HIGH

LOW

HIGH

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Buy

Reflective processing5-10%

90-95%Implicit processing

Overload

Motivation to process information

Time pressure

Complexity

Pilot

Autopilot

The Autopilot dominates our decision-makingunder any one of four conditions

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Should you ever trust what consumers tell you?

‘The problem with market research is that people don’t

think how they feel, they don’t say what they think and they

don’t do what they say!’

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Some of us learnt the hard way!

OLD

NEW

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Consumers told us ‘we want to see the fresh, natural bread!’

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In fact all they were looking for was...

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• £100k of physical quantified research had resulted in a summer of stagnant

sales and declining share in a category with high fixed costs!

• I required a robust research solution for a category that consumers consider

little and can articulate less

• I had read a book that turned on a few light bulbs!

• I wanted to learn more…

Business issue

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System 1 and 2 are NOT about ‘emotional’ vs ‘rational’.

‘Perceptual fluency’ is an autopilot (System 1) process that causes the right-hand pack to have a purchase interest 20% higher than the left. This process is implicit has nothing to do with ‘emotion’.

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System 1 and 2 are NOT about ‘emotional’ vs ‘rational’.

Similarly, System 1 perceives the discount in the lower example to be greater than that in the upper example since we learn to equate magnitude with distance. This is neither ‘emotional’ nor ‘rational’.

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System 1 and 2 are NOT about ‘emotional’ vs ‘rational’.

‘Fluency’ is ease of cognition; the brain associates like with like because it’s easy. Sales of Mars bars rose during the 1997 Pathfinder space exploration to the planet Mars because ‘Mars’ was highly salient.

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Importance of implicit – are all banks the same?

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Deppe, M.; Schwindt, W.; Kugel, H.; Plassmann, H.; Kenning, P. (2005): Non-linear responses within the medial prefrontal cortex reveal when specific implicit

information influences economic decision-making, in: Journal of Neuroimaging, Vol. 15, No. 2, 2005, pp. 171-183

Two brains illustration – the ‘no-brainer’ in action!

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The brain has a known set of neuro-psychological ‘goals’

Brands are instrumental in helping us achieve these goals

Functional Benefits

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Functional Benefits

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Previous implicit research results

We understood the ‘psycho-logic’ of the category and the brand i.e. what motivates purchase

We confirmed which explicit goals were critical to own

We found which implicit goals we needed to strengthen to take share from competition

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When it came to our next business issue, Decode was the research partner we turned to…

How does a brown bread brand sell more white bread, disrupting the fixture without the risk of sales going backwards?

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Key questions to be answered from research

What is the impact of moving from the current to the new pack in terms of;

Difference in implicit associations

Impact on shelf – can users locate their brand quickly and easily? Can non-users find white bread?

Impact on explicit measures (purchase intent, consideration, relevance)

What does ‘white’ bring to the party i.e. its impact on the Hovis brand equity

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Requirements to measure associations within the autopilot– automated (vs. reflective)

– fast (vs. slow)

– behavioural (vs. opinion)

How we measure the implicit system

Care

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man

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man

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Research results

We found out what ‘white’ brought to the party

We understood what implicit goals were associated with the current and new design

In particular, the new design triggered a key association that the brand lacked vs competition

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Commercial results

Since launching our new white bread packaging, Hovis share of the largest sub category in bread has grown 7%*

This in the face of multi million ATL investment and NPD from a competitor with the launch of Great White

Additionally we know that as 2014 progresses, nationalistic flag waving fervour will generate saliency and fluency of the iconic imagery that celebrates Hovis provenance.

*IRI Total Grocery share end April 2014 vs 2 weeks of May with new packaging

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Book Science Updates

www.decodemarketing.co.uk

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Thank you!

[email protected]

@philbarden

www.decodemarketing.co.uk