PROVIDING VOICE OF THE CUSTOMER ON A TIGHT BUDGETLINDA DALY, CONSUMER OPTICS RESEARCH MANAGER BRITAX CHILD SAFETY, INC

April 20th, 2012

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Texture of my background…

• Currently work with Britax Child Safety; Car Seats, Strollers, Baby Carriers, Bike Seats

• Previously worked with Sea Ray boats; Sport Boats, Sport Cruisers, Sport Yachts, Yachts

• HON Industries; Office Furniture, Gas and Wood Burning Fireplaces

• Bissell; Deep Cleaners, Vacuums

NPD Research Process

• Qualitative research- identify customer needs-Phase 0• Quantitative research- prioritize customer needs-Phase 1• Ideation- design to solve for customer needs-Phase 1• Concept Evaluation- evaluate solutions designed to address

customer needs-Phase 1• Product Validation I- validate solution with a working prototype-

Phase 2• Final Product Validation II- second round of customer validation-

Phase 3• Installation trials- ease of use evaluation-Phase 3• Customer Satisfaction- measure success-Phase 5 & 6

How to reduce cost and time

• Research more often– Iterative feedback

• With fewer participants– Highly qualified participants-currently in the moment

– Measure behavior• Base conclusions on behavior rather than projections• Include participants currently involved in the “category”• Observe consumer interaction with product or service• Use props to communicate features and function (pre-prototype)

– If possible, combine projects• Only if timing and participant groups overlap

Research in “context”• Get into the consumers’ “world”

– What is happening in “their” surroundings?– What is relevant to “their” experience?– Who else is a participant in “their" experience?

• Develop Expert Panels– Panel is recruited annually and includes only referred participants.

• Currently active in the category• Loyal customers, dealers, outside designer, industry experts • May or may not require compensation.

– Gratuity typically includes product "gifts‘

• Be Creative– Be targeted– Be sure you are listening to the right people at the right time– Make sure they know you want “their opinion”

• You are there to learn from them

OVERVIEW OF RESEARCH ACTIVITIES

New Travel SystemInfant Car & Stroller

Exploratory Research-Phase 0Observational Research Objectives

• To observe 3 categories of car seat safety products in the user context

– Infant car seats alone and used as part of a travel system

– Convertible car seats (forward and rear facing)

– Booster or youth seats

• To characterize unmet needs (articulated and unarticulated) of the user

• To define key product attributes for the product categories

• To highlight lifestyle trends centering on child/caregiver interactions that impact on product choice and use

Infant carrier features

Ease of use Light weight

Great for sleeping baby

After market adds

Safety concerns

Infant carrier install

Accommodating base for no fail install Securing in base click and go

Stroller features

Dual positions Easy fold

Universal Stroller

Collapsing strollers

Compact stroller

Infant Safety Seats: Features parents want

Infant Safety Seats: Features parents want (cont’d)

Chaperone

Consumer Feature Importance Ratings

Importance ratings

1= very important to me, 5 = not important - it would not play a role in my decision making process

1 2 3 4 5

Single step folding process 52.5% 21.5% 11.5% 6.8% 6.9%

Full lay-back recline 40.5% 25.5% 17.9% 9.0% 7.1%

Smooth ride (with suspension) 36.8% 28.7% 19.8% 9.6% 5.1%

Child tray with beverage holder 34.8% 26.2% 19.8% 12.0% 7.3%

Fully enclosed sun canopy (clam shell design) 33.1% 30.9% 20.6% 8.4% 6.9%

Single foot action brake that locks both rear wheels 33.1% 31.8% 18.9% 9.5% 6.6%

Adjustable height handles 30.2% 26.2% 22.5% 14.2% 6.9%

Fabric type 25.3% 32.8% 25.3% 12.7% 3.9%

Oversized parent beverage holder large enough to hold a typical 20oz water bottle (larger than a 12oz can).

24.0% 25.0% 24.5% 16.9% 9.6%

Upright folded storage (unit can stand on-end) 20.9% 27.4% 25.0% 15.9% 10.1%

Carry handle to carry stroller when folded 20.4% 23.8% 30.7% 18.2% 6.1%

Wheel style 20.4% 30.1% 24.8% 15.0% 9.6%

Bag hook on handle 16.0% 23.6% 27.2% 22.5% 10.6%

Fashions that match infant carrier 15.4% 19.1% 25.0% 19.6% 20.9%

Current fashion colors 14.5% 18.8% 29.6% 21.8% 15.4%

Carry bag to place stroller in (when travelling) 13.2% 11.5% 21.5% 27.4% 25.7%

Frame color 11.3% 22.3% 33.4% 20.4% 12.5%

Umbrella holder 8.8% 11.3% 21.6% 22.1% 36.1%

Please rate the following stroller features. (1= very important to me, 5 = not important - it would not play a role in my decision making process)

Zoomerang web-based survey conducted 6.18.07and 6.19.07592 completed surveysHousehold income $75,000+Currently pregnant OR have children under 3 years old

Must haves

Nice to haves

Neutral or Not important

Chaperone-IdeationTravel System

Initial Research Concepts

Concept Evaluation –Phase 1 Methodology

• Focus groups conducted in Chicago August 20, 2007 and Encino August 23, 2007– Mothers of children ages 0-3 years old or currently

pregnant– Income level >$80,000– 50 participants

Process• Strollers were provided for participants to operate and compare the

folding mechanism of the XXX ”flat fold”, YYY “compact fold” and ZZZ “lift and fold”

• Two-dimensional images of the Chaperone concept were used to illustrate the design and features

• A list of product attributes of the Chaperone was provided to the participants

• Britax was not identified as the sponsor of the Chaperone study prior to the concept evaluation

• Participants were asked to rate the chaperone concept against their own infant carrier and stroller

Chaperone images

Folding process

Concept Evaluation- Phase 1

Product Validation I-Phase 2Research Objectives

• Britax is ready to validate the Britax Chaperone Travel System with the target customer who purchases child safety systems through the current distribution channels. The research objectives are to evaluate the following assumptions.– The Chaperone Travel System appeals strongly to new and expecting

parents with children <0-2 years – The premium price of the Britax Chaperone travel System is

acceptable to the target customer group.– The product features and design of the Chaperone Travel System are

preferred over the current alternatives on the market today.• Validation of the side impact head piece design• Expected weight capacity of the car seat and stroller• Ease of fold and unfold, transport and storage• Feature/benefit set• Fashion and design• Price/Value

Methodology

• Focus groups conducted in Encino February 25, 2008 and Chicago February 27-28, 2008– Mothers of children ages 0-2 years old and/or

currently pregnant– First time pregnant moms– Income level >$100,000– 48 participants

Process• Participants were asked to evaluate the following travel systems on several

features and functions– XXX– YYY– ZZZ– Chaperone prototype

• Due to the functionality of the Prototype, the following functions were demonstrated for the participants on all travel systems– Installation of base to vehicle– Installation of infant carrier to base– Installation of infant carrier to stroller– Folding of the stroller

• A list of product attributes of all the travel systems were provided on shelf talkers to the participants

• Britax was not immediately identified as the sponsor of the study until the prototype model was presented

• Participants were asked to rate the Chaperone Travel System against the top 3 systems currently on the market today

Product Validation I-Phase 2

Product Validation II-Phase 3Research Objectives

• In February 2008 focus groups were conducted in Chicago and Encino to validate the Chaperone prototype I

– The Chaperone rated significantly lower on ease of folding compared to the XXX and YYY

• The additional steps of lowering the handle and moving the foot rest were considered cumbersome and awkward

– Participants also suggested making the under seat storage on the Chaperone higher and further into the stroller, for security.

– Some parents noted that the flat area on the XXX handle fit better on the arm than the round handles of the other infant carriers.

– In response to the findings from the first round of research, the design team made changes to the stroller to minimize the number of steps in the folding process, improve the under seat storage, and flatten the handle on the infant carrier for easier carrying.

• Britax is ready to re-validate the Britax Chaperone Travel System prototype II with the target customer who purchases child safety systems through the current distribution channels. The research objectives are to evaluate the following assumptions.

– The Chaperone Travel System appeals strongly to new and expecting parents with children <0-2 years

– The premium price of the Britax Chaperone travel System is acceptable to the target customer group.

– The product features and design of the Chaperone Travel System are preferred over the current alternatives on the market today.

Product Validation II-Phase 3

Shelf Talkers

Britax Chaperone Travel System

Product Features:• Carrier:

– True Side Impact Protection offering deep sides wings with energy absorbing foam for optimum side impact protection and head containment.

– Quick-adjust one-hand harness and headrest adjustment – Anti-Rebound Bar – minimizes seat movement during crash event– Premium LATCH connectors– Built-in vehicle belt lock-offs – Liquid filled level indicators on both sides of carrier

• Stroller– One hand, flat fold stroller (folds up to user) – Adjustable handle height– Parent tray with 2 cup holders and storage compartment – Child tray with drink holder– Oversize storage basket

•Infant Carrier with True Side Impact Protection• Rear facing: 4 to 30 pounds (32”)

•Stroller – one hand fold• 6 months to 50 lbs.

$529.98Britax Chaperone Travel System

Product Installation Trials-Phase 3

Customer Satisfaction-Phase 5 & 6

• First 5000 seats shipped include an invitation card to participate in a brief customer satisfaction survey

• Incentive, $10 coupon off items available from our web-site

• Customer completes web-based survey 30 days after ownership– Reason for purchase– Evaluation of instructions, installation, fit and adjustment of

harness, quality of material, fashion and overall weight and ease of transporting

• Likelihood of recommending the seat to a friend or relative

Product Installation Trials-Phase 3

Concept Evaluation–Phase 1

Product Validation–Phase 2, Phase 3

Consumer Touch Points

Consumer Products Business to business (HON, Haworth)

Luxury goods (Sea Ray boats) Secrets to minimizing cost

Qualitative research- identify customer needs-Phase 0

12-18 participants($2,000-$3,500)

10-12 participants($2,000-$2,400)

10-12 participants ($2,000-$2,400)

In consumer products, draw on participant referrals. Business to Business and Luxury goods, draw on dealer recruiting. This is an activity you want a refreshed group each time, but potentially they may be a good participant in later activities

Quantitative research- prioritize customer needs-Phase 1

qualified consumers, minimally 300, cost of participants sample ($2,500)

May take longer-rely on dealer network to provide names-be brief in survey ($0)

May tag on to "Event" AQUAPALOOZA ($0)

Web-based survey-direct to customer, may include multiple groups (consumer, decision maker, designer). May tag on to "Event", could require a "small promotional gift"

Ideation- design to solve for customer needs-Phase 1

($10,000-$20,000) Includes facilitator and facility

($10,000-$20,000) may require participant travel expenses

($10,000-$20,000) may require participant travel expenses

Include at least 50% of participants, outside the internal design team. Could include dealer network, designers, experts in related field, loyal customers.

Concept Evaluation- evaluate solutions designed to address customer needs-Phase 1

focus groups-at least 2 cities ($20,000) internally facilitated

Individual-one on one interviews-may require travel to participants site or remotely via internet with and phone conversation

May tag on to regional "Event" include a product related gift ($400-$1,000)

May go back to previous participants, may be able to provide concepts in web-based survey/phone

Product Validation I- validate solution with a working prototype-Phase 2

focus groups-at least 2 cities ($20,000) internally facilitated

focus groups-at least 2 cities ($20,000) internally facilitated

focus groups-at least 2 cities ($20,000) internally facilitated

Typically do not want to go back to previous participants. May need to segment participants in groups (i.e., current owners/ non-owners, designer/customers)

Final Product Validation II- second round of customer validation-Phase 3

focus groups-at least 2 cities ($20,000) internally facilitated

focus groups-at least 2 cities ($20,000) internally facilitated

focus groups-at least 2 cities ($20,000) internally facilitated

Include new participants. May be eliminated, if product on target in Validation l

Product trials- Phase 3

10-20 participants, participant gratuity ($1,000-$2,000)

Typically done with internal members, cost too high externally

Typically done with internal members, cost too high externally

Depending on goal, provide product to users to evaluate over a 1-2 week period and provide feedback. May require participants to "return product" after trial or it can it given (or discounted to them) as gratuity.

Customer Satisfaction- measure success-Phase 5 & 6

First 100 participants incentive($1000)

May or may not require incentive

May or may not require incentive

web-based survey, include invitation to participate "on product" at time of purchase. May rely on contact information from sales data.

Total Budget * $70,000-$90,000 $42,400-62,400 $43,400-$63.400*does not include travel expenses