Marketing Research for Early Stage and Start Up Companies

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Marketing Research for Early Stage and Start Up Companies
July 8, 2020

Mark Peiser Profile
Principal consultant, PeiserMarketing LLC (established 2010, peisermarketing.com)
Consulting practice includes marketing research, statistical analysis, early stage data sources/technology
Former VP Consumer/Market Insights, News Corp, News America Marketing division
Former Director Consumer Insights, Georgia Pacific
Started career in market research at General Mills
MBA, University of Michigan Ross School of Business SB, University of Chicago (statistics, economics)

Topics
Overview of Market Research Introduction to Market Research Tools Business Applications
Services and Costs
Case Studies

Key Concepts
Marketing Research: gathers information about target markets and customers to inform decision making to drive business results
There are different types of market research. Selecting the right type of research is important to obtaining meaningful results

Types of Market Research
Quantitative
Qualitative
• Large numbers of customers
• Definitive measurements
• Limited answers
• Brand awareness
• Brand image
• Intentions
• Likes/dislikes
• Customer targets Primary
Customized for your business
Data collected about
A market and shared across brands
• Small number of customers
• No measurements
• Probing questions
Behavioral
• Sales
• Market share
• Purchase behavior
(how many buy, how often)
• General overview of an industry
• Typically not specific to a brand
Or market
Attitudinal
Syndicated
Third Party

Types of Market Research: Commonly known Services
Quantitative
• Surveys
• Nielsen
Surveys Focus Groups
Primary
• Surveys and focus groups
• Focus Groups
Behavioral
Attitudinal

Sales tracking like Nielsen, IRI Media Ratings like Nielsen Habits and Practices Syndicated

Nielsen, IRI sales data Nielsen media ratings Google Analytics
National Eating Trends (NPD)
• Mintel, IBIS
Qualitative
Third Party

Business Applications: Strategy

Consumer attitudes and product usage Consumer targets and market segments
Marketing tactics such as sources of information and interest in promotion for media and promotion strategy
Retailer shopper interest (for new distribution)
Can be quantitative and/or qualitative or even use several research tools, often focuses on psychological motivations

Business Applications: Tactics
• New product ideas/line extensions
• Product satisfaction
• Brand positioning/business concepts
• Advertising
• Flavors
• Pricing attitudes
• Packaging
• Marketing spend effectiveness
• Naming
• Distribution

Services and Costs
Research investments should be in proportion to the business opportunity; don’t spend more on the research than the long term profit potential
Costs depend on

Research tool
For surveys:
Source of qualified customers (own list vs. third party survey panel) Difficulty of finding qualified customers
Number of customers
Amount of data collected (number of questions)
Client service (writing questions, data analysis, etc.)

Estimated Costs: Tactical
Tactical survey – Survey Monkey platform – no client service
– Using a customer list (if you have emails) no cost under Survey Monkey
– Purchasing survey samples via Survey Monkey
– Client service would include questionnaire development and data analysis
– If a product test, account for cost of product
Sample size (50% incidence)

Estimated Costs: Tactical (with full service)
Tactical survey – ECI full service vendor
– Purchasing survey samples
– Client service includes questionnaire development and data analysis
– If a product test, account for cost of product

Estimated Costs: Other
Strategy Research – target development, general category attitudes, etc.
– Typically uses 250-500 customers
– Client service includes objectives/strategy development,
– questionnaire development, data analysis and business implications
– Depending on qualifications, cost is approximately $5-8,000 (as a benchmark, large
marketers spend $75,000 or even more for more elaborate strategy research)
Qualitative research
– Informal interviews can be done at no or low cost
– Professionally conducted focus groups typically cost $3,500+ or greater
– Note that qualitative is appropriate for exploratory purposes, but not providing definitive
answers
Behavioral (Syndicated) research
– Ongoing sales tracking can cost $50,000+ depending on scope and support;
– One time data pulls can be less
Third Party
– May be available at no cost through Connecticut Small Business Development Center

Case Study 1: Kelly’s Four Plus Granola
• Business Issue: Line extensions with functional benefits such as energy, immunity
• Recommendation: Tactical research survey
– Consumers are screened for target requirements (200 respondents at 50% incidence)
– Rate each functional benefit for purchase interest
– Approximate cost $1000 (includes some consulting support on questionnaire design etc.)
– If conducted among current customers using their Four Plus email list, cost would be even lower
Measure Purchase Intent
Tactical 200
Survey respondents
Benefits Concepts
Cost $1000

Case Study 2: Maia Yogurt
• Business Issue: After a market hiatus, Maia is re-entering the yogurt market. The category has changed due to many new entries. Maia needs to understand target market and other go to market tactics in light of the changes.
• Before conducting research, look for industry publications on the yogurt market through the CT small business development center
• Recommendation: Strategy survey with some tactical questions
– Consumers are screened for target requirements (300 or 600 to include subgroups at 35% incidence)
– Collect attitudes and behavioral data for the category
– Include Maia benefit statement to report results from consumers interested in Maia
– Assess match of consumers to Maia benefit to identify most promising target
– Tactical questions such as package graphics options
– Approximate cost $8,000 for 600 respondents, $4,500 for 300 respondents; consulting support is recommended for this type of research
Strategy 300 to 600 Attitudes/ Tactical Cost $4,500
Survey Respondents Behavior Topics to $8,000 Maia concept

Case Study 3: Fire ox
• Business Issue: Fire Ox is launching a line of frozen vegetable entrees and some grocers have said they will accept the brand if they can be sold at a $ 7.99 price point, but to make necessary margins, they may need $ 8.49 or $ 8.99 to be successful financially…how can they use some research to help them understand their pricing and positioning?
• Recommendation: Tactical survey among target consumers who shop at the grocers (recommend survey sample for each grocer)
– Consumers are screened for target requirements (300 per grocer, assumes large retailer like Whole Foods or Stop and Shop)
– Show product concept
– Half see $7.99 price point, half see $8.99 price point
– Measure purchase interest
– If higher price is not a significant barrier to interest, use results to show each grocer that the higher price point is acceptable to their shoppers
– Approximate cost $2,000 for two grocers
Tactical Survey
300 interviews Fire Ox Test $7.99 Measure Cost $2000
Per grocer concept and $8.99 price Purchase Intent For 2 grocers points

Summary
Market Research can help your business more effectively meet customer and retailer needs
There are many market research tools to address information needs. It is important to select research tools that

– Are appropriate for the business issue and will provide meaningful results
– Are worth the investment (comparing research cost to business opportunity)
– Are affordable and actionable
If possible, seek advice on research initiatives
Questions: contact Mark Peiser; website: peisermarketing.com

Link to the PDF

The Path to Packaging Success

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Planting the Seeds of Brand Possibility

CULTIVATING THE POSSIBILITIES
The history of SnapDragon.
Hugh Montgomery founded HMS Design 25 years ago and grew it into a small but mighty package design firm in Fairfield County, CT known for a crafted, thoughtful aesthetic and quick turn around time.
Hugh recognized a shift in the business landscape, and in 2017, brought industry-leader Elle Morris in to transform HMS’s agency model and sell her the firm.
Within two years, Elle successfully expanded HMS’s strategic offering — leading strategic branding initiatives for H.P. Hood, Blue Diamond Growers, Hain Celestial and Strength of Nature — while adding a global network of resources she acquired throughout her career.
SnapDragon was born when Elle purchased the assets of HMS Design in July 2019. Hugh is retired and enjoying life with his wife, Callie, and their family.

FOUNDING SNAPDRAGON WAS ABOUT DOING THINGS DIFFERENTLY.
To show our industry that you can ground your business in truth- telling and transparency, and that inclusivity is not just a platitude, but state of being. I wanted to create a team of strong, smart women with ideas and a point of view, and men who embrace us, value us, and love working with a bunch of tough dames who love what we do.
Together, we approach every situation with unpretentious curiosity. We ask all the questions—because assumptions need to be challenged. We push ourselves to make each design better than the last. And we make powerful human connection our number one goal for every single thing we create.
At SnapDragon, we’re showing our industry what can happen when everyone is invited in and empowered to be their brilliant, amazing selves.

Elle Morris
President & CEO
SnapDragon

CORE OFFERINGS
Diverse experiences and expertise.

BRAND STRATEGY
Trends & Forecasting
Semiotics Audits/Analysis
Competitive Positioning Audits
Retail Audits
Positioning Whitespace Analysis
Equity Building Workshops
Equity Assessment Research
Brand Positioning Workshops
Brand Architecture
Consumer Research & Insights
Equity Foundation Development
Consumer Segmentation & Activation
Brand Tone of Voice
Nomenclature Development
Content & Copy Writing
Brand Brief
Brand & Culture Safaris

INNOVATION STRATEGY
Portfolio Architecture
Upstream Innovation Ideation
New Concept Creation
Product Positioning

DESIGN STRATEGY
Brand Identity Design
Package Design
Industrial Design
Brand Experience Design
Retail Activation
Design/Pillar Themes
End Benefit Visualizations
Visual Identity Toolkits
Design Standards & Guidelines
3D Visualization

ON TODAY’S CALL

ELLE MORRIS
FOUNDER & CEO

KELLY GLOTZER
VP CLIENT SERVICES

TIFFANY BRENNAN
SENIOR CLIENT MANAGER

BEN JURA
ASSOCIATE CREATIVE DIRECTOR

A SIMPLE HUMAN TRUTH
SEQUENCE OF COGNITION
Our minds process information in the following order:
1. Color
2. Shape
3. Symbol
4. Word

WHY DOES THIS MATTER?
Understanding how people process information allows us to create an effective design process and packaging that captures the hearts and minds of consumers in an omni-channel world.

5 STOPS IN AN EFFECTIVE DESIGN PROCESS
1. EQUITY RESEARCH
Test potential & current brand visual equities and brand perceptions with current and new users in order to determine how far the brand can stretch.

2. SEMIOTICS & WHITESPACE MAPPING
Review the positioning and design strategies competitive brands are using in the market landscape in order to gain insight into ownable whitespace opportunities.

3. A FOCUSED BRIEF
Galvanize everything we know about the brand, the category, the consumer, and how she shops in order to inspire the design process.

4. DESIGN THEMES
Explore different routes for brand expression both visually & verbally in order to build design consensus with key stakeholders along the way.

5. CONSUMER VALIDATION (RECO: A “QUALI-QUANT” APPROACH)
Obtain consumer feedback in order to evaluate design directions against predetermined performance metrics prior to launch. (This takes conference room subjectivity out of the mix.)

Link to the PDF

Title Triggers Technique

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Stuck on encapsulating your marketing brief, blog, or pitch with a ‘please read more’ title?

Food’NBevCT advisor Bryan Mattimore shared his ‘title triggers’ technique recently for those looking to title something: a new speech, blog, book, article… or whatever.

To illustrate, here are Bryan’s methods for creating a title for a new speech.

First pick a noun or verb that reflects an essence of your subject matter expertise that could relate to a new talk title. So, for me for instance, I picked “creativity.”

With this key word theme in mind, imagine placing this key word in one or more of the hundreds of possible talk or blog titles. The talk title triggers themselves were generated from several online sources. (see list of resources below)

We often do this kind of “key word” triggering in our ideation sessions, especially when we are looking for creative ways to position, promote, and/or create new tag lines for our clients’ brands. I have, however, never done this for creating talk titles. Nor have I ever used the specific links I’ve shared.

Even with my familiarity with these kinds of triggers, I was surprised how truly effective they were in generating new titles, some of which were really great: both for their originality and for their keen interest from other group members. In literally less than 10 minutes, everyone at the meeting had generated three to five, often-great new speech topics and titles. Pretty efficient… and yes, I guess I’d say creative, too!

Online title trigger tools

https://tweakyourbiz.com/title-generator
https://www.portent.com/tools/title-maker
https://www.hubspot.com/blog-topic-generator
https://soovle.com/

title triggers techniques

Opening the Tent

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Thirteen brand members of Food’NBevCT were onsite October 3rd to showcase their products and meet with our rapidly growing food and beverage community for our “Opening the Tent” event to help strengthen and build out the network.

Over 100 people – from service providers to investors, from distributors to manufacturers – attended to help build upon this entrepreneurial community with the goal of reaching more brands to provide them with the expertise needed to continue their growth.

The evening was co-hosted by Business Council Board Director Tim Brown, President & CEO Americas, Upfield (and former President, Chobani and Nestlé Waters), Rep Caroline Simmons, House Chair of the Commerce Committee and Gary Breitbart, Managing Director, Food’NBevCT, an initiative of The Business Council of Fairfield County.

The Beginning and the Vision

The grassroots initiative, now one-year old, is currently accelerating 15 Connecticut brands with the professional expertise of over two dozen industry advisors and investors.  The brands are each growing 35+% per year and are rapidly expanding their distribution in the U.S. and beyond.

Now, as the accelerator looks ahead to year two, Tim Brown, a member of the Food’NBevCT’s Executive Advisory Panel, and Gary Breitbart shared their plans and vision for the next year of growth.

Reflecting on the initiative’s origins, Breitbart early on identified the food and beverage sector as one with growing potential but one, if it were to succeed, needed to connect the individual brands to each other and to the wider community of related professionals.

“We have accomplished this on a grass roots level but to drive real sustainable economic growth we need to increase our investment to build out support for more brands,” Breitbart added. “We couldn’t have got to this stage without the support of our sponsors and advisors.”

Joining Gary on the dais was Rep. Caroline Simmons, who as House Chair of the Commerce Committee, has been an active supporter of the vision of growing and supporting these Connecticut based entrepreneurs.

The Passion and the Community

“This is personal for me,” Tim Brown began. “I owe my life to the food business, and I feel like I have to give back.”

“These people have guts, dedication and talent,” as Brown described the entrepreneurs in the room, “some will make it, some won’t. But they won’t be sorry for trying and we are all better off for supporting them.”

“If we can get this going,” he continued, “we could be looking at supporting 30 companies next year. I go to Boulder, Austin, Nashville. It could be here, but certain things need to happen to make it possible here.”

Brown then identified the three critical ingredients needed from those in attendance – sponsorship, investment and mentorship.  By supporting an ecosystem where young talent wants to be, by investing in companies for the future, and by providing the expertise these entrepreneurs need, a community currently boot-strapped can become one that is profitable and one that grows jobs.

“This is an amazing opportunity. I really hope in a couple years they are talking about this at Expo West,” concluded Brown. “But for now I just want to express my gratitude to all of you who came here to participate, to give action, and to advise. Let’s hope we are on to a really big thing.”

Summer brings new flavors, brewery expansion and new distribution

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Cross Culture Kombucha – our favorite kombucha company – has released a new limited edition flavor in bottles and it’s flying off the shelves. . .Hibiscus Elderberry. In kegs, seasonal flavors continue to sell out – every time and without fail – in the taproom and at events. That’s the fun of summer!

This company has also been working on regional expansion up through New Haven and won a few new larger accounts. Notably, starting in late August/early September, Yale University will be Cross Culture territory! They will be on tap and in bottles at the cafe in the new science building which is due to finish construction around Labor Day.

The brand is also getting ready to operationalize their new 10 barrel bite tank, new glycol chiller and pumps, and everything else needed to keep up production to match their over 100% growth rate over the past year. They have also put taps into their new chilled delivery van so they can do more live events and extend their regional reach. Team that with the addition of several new taproom and production employees and they are ready to continue their growth . . . Wow!

Plan on traveling up to Danbury on September 20th when they celebrate their first year anniversary in their taproom with a big event.

Asarasi sales climb as funding and strategic discussions continue

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Asarasi has expanded distribution with Chex Finer Foods and has been accepted into 160+ Fresh Market stores in 22 states through this relationship.

The brand is growing internationally as well, with new distribution in Japan in 330 stores through a Suntory owned chain called Pronto Café. Asarasi is also now exporting this month into the United Arab Emirates and has been selected by LaComer, a premium specialty retailer in Mexico and will begin shortly distributing directly to the retailer.

Asarasi is now in conversations with a number of potential strategic partners to continue to hyper-accelerate the growth of the brand with capital and internal resources, and would welcome additional conversations at the strategic partner level as well. Lastly, the Asarasi team is beginning to put together a $2M round of financing and is interested in discussing investment opportunities with investors, VC’s and others.

For UCAN a year of growth including new flavors, expanded facilities, new press

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Overall, sales are up 28% for the first half of 2019, with online sales through www.generationucan.com and Amazon up over 37%. In fact, online sales are up 8 months in a row!

UCAN is involved through sponsorships in several worldwide events including the San Francisco and Dallas Marathons, as well as the 20K National Championships held in New Haven. UCAN also supports our local communities, participating and sponsoring events including the Fairfield Half-Marathon, the Cheshire Half-Marathon and many other local events and charitable causes.

A key part of UCAN’s growth strategy has been to endorse and support teams and athletes. UCAN provides their one-of-a-kind performance products to over 100 professional and college teams and supports world class athletes including Meb Keflezighi, the only person to win the Boston and New York Marathons, as well as medal at the Olympics. In addition, UCAN recently sponsored Tim O’Donnell, one of the world’s most successful long-course triathletes, with over 22 wins worldwide.

This summer, the UCAN story was featured on the cover of Seasons of New Haven magazine. Continuing to further the science and understanding of SuperStarch™, one of their recent scientific studies showed a relationship with improved cognitive abilities in soccer players.

UCAN has several new flavors under development as they continue to innovate to meet the needs of the market. And they are also meeting the needs of their growing workforce, recently doubling the size of their corporate headquarters in Woodbridge.

Unbakeables expands in Southwest through UNFI and Whole Foods

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Unbakeables continues to expand by building on their new UNFI relationship and added the remaining Whole Foods stores in the Northeast region (Fairfield County, NY, Northern NJ) as well as entering into the Southwest region (TX, OK, AK, LA).

They are now available in a total of 66 stores, 42 in New England  (29 new) and 25 in the Southwest. Initial sales have been growing as they define their base down in the Southwest region and introduce flavors and their brand to a net new audience.

Unbakeables is also continuing to change their new design and packaging, including introduction of a single serving package meant for both samples and for sales at food service and office cafeterias. They are also continuing to follow up with people they met at the UNFI table top show, NOSH Live, as well as the Summer Fancy Food Show, so more growth should be ahead soon!

What’s Gary Thinking About Now?

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Food’NBev Connect is now going into its 3rd quarter of existence, and as a start-up initiative, I have to say it’s been a truly rewarding experience.  We have found 15 growing companies that have embraced our virtual format, we have brought together almost two dozen advisors and fostered great brand-advisor relationships that have added value and we have gained some important recognition from around the region and nationally.

Our involvement and attendance at NoshLive and BevNetLive in NYC in May further validated that we have a number of nationally (even internationally) competitive brands that are infusing innovation into the market and that distributors and larger manufacturers and retailers want to work with.  All this, topped with an expanding top line growth for virtually all of our companies in excess of 35% bodes well for our future path and continued operation.  I am humbled to have the opportunity to work with the entire community every day.

This doesn’t mean that we have figured it all out…we have introduced some solid classroom and workshop training, and with Bryan Mattimore’s efforts will host our 3rd workshop in September.  But more focused subject matter training with linked advising is needed, particularly in the areas of packaging (design, materials and sustainability), digital community building and on-line distribution (how to build your own community while also mastering various on-line distribution and fulfillment options, and competing in an Amazon world).  We need to add advisors in these areas and link with more strategic partners who can help us all get stronger.

In addition, financing remains a challenge for our seed and post-seed financed companies. They need more access to funders who are willing to come in earlier and help companies traverse the path from a few hundred thousand in run rate sales to the $ 2 – $ 4 million level. It’s a risky part of the investment spectrum, but the reward opportunity of helping companies up to these next levels will show that selectively, we can make a number of new impact growth firms with higher exit values. And helping create that stream of 2 – 4 brands per year will provide needed funding to our on-going operations.

Sustainable growth

This is the area that I am most focused on at this point of our summer. The state, through a renewed second year grant from CTNext, is helping us sustain minimal operations for our second year, but it just isn’t enough. We have three sources of income to help run the accelerator – state funding, sponsor contributions and membership fees. Together, like many of our brands, this created a seed investment to get us started, but we are now challenged to find more money to help us grow and improve our impact. We need more established players in the food and beverage space to get involved and help fund our operations, and we need investors to band together to form a focused fund for investment in these earlier rounds to make it easier and attractive to build, grow and stay in CT.

Together, this will sustain us and allow expansion in three areas:

  1. Let us support more growth brands – we are at capacity at this point…without expanding my time and personal investment, we have peaked at 15 – 16 brands, yet we know that we can easily expand to 20 – 25 if we had some more staff working with me that could help expand curriculum and work directly forging advisor involvement against identified need, as I continue outreach and market new brands, investors and strategics.
  2. We need a new base of operations – a clubhouse of sorts, where can have hosted meetings, bring together our brands more frequently and gain recognition beyond being housed here at The Business Council.
  3. Once we have dedicated space, we can also look to open a small incubator program for brands just starting and create our own “farm team” and can co-locate these start-up teams together with us so we can provide the intensive on-going daily assistance they need to come to market faster. We will also need to start thinking about providing a test kitchen space to help our brands improve formulations and get initial production started to support consumer validation and production planning assessments.

There is much to do as we think about moving into our second year and this is no time to rest. We believe we can create a $ 1.5 – $ 2 billion economic cluster opportunity here for Connecticut, as has happened in Boulder and Austin, by sustaining a focus on food and beverage fresh market brands and everyone should be excited by that proposition in a state that hasn’t had strong new sector growth.

I can’t thank our early primary sponsors enough – Robinson Cole, Bank of America, Martin DeCruze. But we will need more fire power if we are to realize our full potential and I am excited to begin reaching out with a plan to drive this growth in the Fall.

In the meantime, hit the beach and spend some time with the family . . . lots to do once things kick off in early September . . . all the best and call me if you have ideas how to help!

 

Town Hall on Brands and Innovation

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The Winter Town Hall featured a brand showcase with one on one advising sessions with our Food’nBev Connect subject matter experts and a conversation over dinner with Steve Rust, President Reserve and New Business, Diageo, facilitated by Tim Brown, a member of the Executive Advisory Panel and President, TB Ventures.  The dinner was hosted by Crowne Plaza Stamford Hotel.  A big thank you to Marcum LLP for sponsoring the Town Hall and to Votto Vines, our evening’s beverage sponsor.

“For the last 10 years Steve has been the primary driver of business development,” introduced Tim Brown. “He is responsible for cultivating new brands and concepts, and acquiring new brands for their portfolio. He is on the front line of innovation in spirits – relevant to all of us here.”

The conversation was focused on the process of growing new brands at Diageo.