Views from the Hills by R. E. Stevens, GENESIS II (The Second Beginning) E-Mail views@aol.com

Standard Rules = Less Thinking, But at What Risk?

Standard rules are usually based on typical behaviors and events, but what about the non-typical? Back in November 1995, I wrote about "Pair Test Losers and market Winners." At that time the purpose of the memo was to point out that requiring a product to be a pair test winner before going to market could result in missing a real market leader opportunity. History shows that products like Ivory Bar Soap, Tide and Pampers could not win a paired comparison blind test. The bottom line of the paper was "Winning a paired comparison blind test has little to do with a product's potential market success."

Many companies have a rule in place that before a product may be introduced into the market, it must be a paired comparison blind test winner. I wonder if the people instituting these rules would be willing to stand up to their management and say they do not want brands with market shares like Tide (Papers or Ivory Bar Soap)? Market leaders do not have to be category blind test winners.

Also, profitable ventures do not have to be market leaders. There are a lot of very profitable niche brands. By definition, these brands would not win a paired comparison blind test among random category users.

Just before leaving P&G, I was involved in what was really a cost savings venture that could not win the paired comparison blind test, but it could, upon market introduction, change the complexion of the total category (as well as other categories). That little venture was Ultra Cheer and within six months Ultra Tide. If a paired comparison blind test was a barrier to market introduction, Ultras would probably not be here today.

There are evolutionary products. Evolutionary products will usually win the paired comparison blind tests. But seldom does the revolutionary product win one. Companies that set their goals through pair test winners will not be the trend setters of the market. There is no doubt that it is safer to be an evolutionary brand company but is it the most profitable?
 


Standard Rules Fit Standard Problems

Happy Holidays to All!


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