Practice in Reading: Why good ideas falter

Theoretical case study:

TF became a retail success in the 1970s when it succeeded in spotting homeware trends and meeting the needs of its then trendy young customers. However; by 2004, the IF stores were failing and a rethink was clearly necessary. Tibal Fisher, TF’s founder and CEO, decided to change its focus under the new brand name of TVs Nextstage. His aim was to recapture the now ageing customers that had given him his early success and target consumers aged 60+ with devices and gadgets specifically designed to assist them with the problems associated with ageing: mobile phones with screens that were easy to read; kitchen gadgets with comfortable grips; electronic devices that were easy to set and adjust. TF’s market research proved to be very positive, showing strong consumer support for the products

In 2007, stores underwent a $40 million remodeling and introduced a new brand. Each store was enhanced for comfort and included a coffee shop to drive foot traffic – Tibal believed that attracting customers to the stores would lead to natural product sales. However, by 2009, it became evident that the concept had failed, and the stores consistently remained empty. Customers criticized the new stores, saying they felt like retirement homes and reminded them of aging.

Feedback from expert

Expert 1: Donna Sturgess, global head of innovation at GlaxoSmithKline

The TReam’s approach to customer research illustrates a classic case of overlooking subconscious associations that influence consumers’ decisions. Tibal and his executives focused solely on surface-level attitudes. Because these attitudes represent only a small part of consumer responses, the executives remain unaware of the reasons behind poor sales. It is crucial for companies to recognize that every customer engages with a brand emotionally, and it is these emotions that either stimulate or hinder purchases.

That’s why we’ve focused on using emotional strategies behind branding for a number of years now. A great example Is Alli (pronounced ‘ally’), a drug to aid weight loss. The product deals with a highly emotional issue, so in marketing it, we faced the same challenge that the new TFstores are facing: the very thought of buying the product reminds customers that they have problems they feel negatively In the case of TF’s Nextstage, the problems are age and infirmity. In the case of Alli, the problems are excessive weight and all consequences. There’s always a risk that consumers’ negative feelings will discourage them from starting or staying on a diet. So, after extensive market research, we took a number of steps to inject emotions into the whole process of using the product.

Initially, we chose a name that conveys a sense of being a supportive partner. We also aimed to create a container that is both aesthetically pleasing and functional – not just for storing pills, but also for keeping diet guides and recipes. Traditional market research often fails to uncover innovative ideas like these, so we employ a diverse range of techniques. Even simple methods such as one-on-one interviews or ethnographic observations conducted in people’s homes to observe their behavior can yield valuable insights.

Expert 2: Alex Lee, President of 0X0 International, manufacturer of 0X0 Good Grips household products

This retailer can get back on track by remembering a principle that applies to consumers In general and those aged 60+ in particular: they’re attracted by brands they associate with the type of people they’d like to be – not the type they really are. That’s why marketing campaigns for surf gear feature surfers, not the city dwellers who will wear the products while doing their shopping

• Was reminded of this principle few years ago when we wanted to find out how far we could apply our design philosophy of makings things easier to use in order to move from our core business, kitchen tools, into other products. We conducted what are known as focus groups, where participants were asked to look at photos of people and pick those they are perceived to be users and nonusers of our products. Consistently they picked people who looked fit as the sort who would use our products, and people who look old and boring as the sort who wouldn’t. Yet the participants, all owners of our products, looked a lot more like the later than the former

While we carefully consider the needs of elderly users and those with declining vision or dexterity when designing new products, we also strive to appeal to younger demographics aged 20 to 30. We believe that labeling these products as aids would harm our brand in the eyes of our customers. Therefore, our philosophy of universal design, which aims to create products that are comfortably usable by the widest range of people possible, is implicit rather than explicit in our marketing strategy.

We have discovered that market research doesn’t always need to be highly sophisticated. For example, we have conducted simple surveys in the lobby of our office building, offering free products in exchange for people’s opinions. Some may view this approach as unscientific, but it has revealed valuable insights for us. Sometimes, the most critical signals come from an executive’s intuition. In Tibal Fisher’s case, this intuition could have revealed what his surveys and focus groups did not: that consumers over the age of 60 would not support a business that expects them to conform to their age.

Questions 1-5

Are the following statements consistent with the information provided in the reading passage? Record your answers in boxes 1-5 on your answer sheet.

TRUE           if the statement agrees with the information

FALSE             if the statement contradicts the information

NOT GIVEN    if there is no information on this

1 The TF Nextstage stores planned to sell products to make life easier for older people

2 TF’s market research indicated that people liked the products.

3 It cost more than expected to remodel the TF stores.

4 The TF Nextstage coffee shops sold their own brand of food and drink.

5 TF Nextstage customers liked the atmosphere in the new stores

Questions 6-13

Fill in the notes below.

Choose NO MORE THAN TWO WORDS from the passage for each answer.

Record your responses in boxes 6-13 on your answer sheet.

Feedback from experts

Donna Sturgess

Problems with customer research:

• TF team limited their research to attitudes that occur at a 6…  level in customers’ minds
• TF didn’t consider customers’ emotions

How my company dealt with a similar problem:

• Product: Alli
• Use: help people achieve 7 …
• Marketing aim: help customers see the product a positive way by:
• Giving the product a 8…  that seems helpful and supportive
• Giving the product a reusable 9 …

Market research

• Does not need to be complex
• Good information can come from interviews or studying the 10…  of consumers in the home

Alex Lee

Problem:

• Customers are attracted to the ideal not the reality, e.g. ads for surf gear

How my company dealt with a similar problem:

• We organised 11… to find out what images customers associate with our products
• We do not call our products helping tools in our marketing campaigns

Marketing research:

• Can be basic, e.g. by doing 12 …
• Company executives should follow their 13 …

Solution

1. TRUE (Đoạn 1, “His aim was to recapture the now ageing customers that had given him his early success and target consumers aged 60+ with devices and gadgets specifically designed to assist them with the problems associated with ageing”)

2. TRUE (Đoạn 1, “TF’s market research proved to be very positive, showing strong consumer support for the products”)

3. NOT GIVEN (Không có thông tin)

4. NOT GIVEN (Không có thông tin)

5. FALSE (Đoạn 2, “ Customers complained that the new stores felt like a senior center and reminded them that they were growing old”)

6. Surface (Đoạn 3, “Tibal and his executives looked only at surface attitudes.”)

7. Weight loss (Đoạn 4, “A great example Is Alli (pronounced ‘ally’), a drug to aid weight loss.”)

8. Name (Đoạn 5, “First we came up with a name that sounds like a helpful partner.”)

9. Container (Đoạn 5, “We also aimed to make the container both beautiful and functional”)

10. Behavior (Đoạn 5, “…or ethnographical observation that involves going into people’s houses to examine their behaviour”)

11. Focus groups (Đoạn 7, “We conducted what are known as focus groups, where participants were asked to look at photos of people and pick those they are perceived to be users and nonusers of our products.”)

12. (simple) surveys (Đoạn 9, “For instance, we have conducted simple surveys in the lobby of our building offering free products…”)