ESOMAR Ideation PDF

ESOMAR Worldwide Qualitative Research Conference
Cannes (France), November 2004 1
USING CUSTOMER-BASED
IDEATION TO DRIVE NEW
PRODUCT DEVELOPMENT
Jim Thomas
Mark Silverberg
This paper demonstrates how companies charged with new product

development can use an effective, low-cost, qualitative market research
methodology to drive the development of new, market-driven products.
Most companies face the challenge of developing new products. However,
many products fail to recognize the customers needs at the earliest stages
of new product development. The unfortunate result is often market and
financial failure. Companies can avoid this risk by applying a unique
Ideation Research Methodology that is designed to provide companies
with insightful consumer input for new product ideas.
While the paper is directed at development of new products and features
in future automobiles, this ideation methodology has application to every
industry seeking to develop new and innovative products for their
customers. The paper outlines the unique steps of this qualitative research
methodology supported by client examples of how the results of this
research have been incorporated into their own product development
process.
Copyright by ESOMAR 7KH:RUOG Association of Research Professionals

2 Jim Thomas, Mark Silverberg
BACKGROUND OF THE ISSUES

The battle for retail customers is a never-ending one. In the case of most
companies, their success or failure is based on keeping ahead of the
competition by developing innovative products and services that are perceived
by customers to have more value than competitive offerings.
Staying ahead of the competition is paramount to survival in the automotive
industry. While brand loyalty is a still a factor for many customers, model
proliferation in the U.S. market has negated many of the strong ties that
customers used to have when only a few brands and models from GM, Ford
and Chrysler dominated the marketplace. As shown in figure 1, the number of
models offered in the U.S. automotive market has experienced phenomenal
growth over the last 60 years. Immediately after World War II, there were 33
major nameplates, virtually all of them domestic, on sale in the United States.
The number has grown to about 230 individual nameplates today and is
projected to increase to 275 nameplates by 2009.
Figure 1
GROWTH IN AUTOMOTIVE NAMEPLATES
250
200
150
100
50
0
1945 1954 1959 1968 1971 1976 1985 2000 2004
Source: Autopacific Consulting (14 June 2004)
This growing proliferation of new models combined with a relatively stable

industry sales level has clear implications for the auto industry in the United
States. In the post war years, sales per major nameplate approached 200,000
per year, and automotive plants were designed for production runs of a quarter
of a million of the same model every year. Today that relationship equates to
an average production run of about 74,000 of the same model. That means that
auto manufacturers are challenged with the need to develop a plethora of

Using customer-based ideation to drive new product development 3
models that differentiate themselves within their own brand of vehicles, as

well as from competitors models.
This challenge to develop models that are more unique and exciting is
accentuated by the fact that another major brand differentiator has almost
become a non-factor in the consumers purchase choice mindset. The difference
among brands has been lessened further due to the narrowing of the quality
gap among major manufacturers. As published by J.D. Powers and Associates,
the quality level of new vehicles sold in the U.S. market over the last seven
years (1998-2004) has improved substantially. Problems per 100 vehicles have
dropped from an industry average of 176 problems to 119 problems per
vehicle, which represents an industry wide 32% improvement in quality levels
during this time. Importantly, as illustrated in figure 2, the quality gap among
branded nameplates (Domestic, Japanese, European and Korean) has been
narrowed from a difference of 116 problems per 100 in 1998 to only 12
problems per 100 in 2004.
Figure 2
INITIAL QUALITY OF NEW VEHICLES
300
Problems per 100 Vehicles
250
200
150
100
50
0
1998 1999 2000 2001 2002 2003 2004
Domestic Japanese Europeans Korean
Source: J.D. Power and Associates, 2004 Initial Quality Study
So what happens when you have hundreds of brand and model offerings that
have fewer and fewer quality differences? Brand loyalties become less
important as consumers are able to obtain about the same quality level in the
model offerings of many manufacturers. The result is that manufacturers are
forced to provide non-product reasons to entice the customer to purchase their
product clones.

That translates into auto manufacturers arming themselves with costly market
incentives and steep discounts on new vehicles to entice consumers to
purchase their vehicles over their competitors products. As shown in figure 3,
four years ago, the average industry incentive (domestic and import combined)
amounted to about $1,500 (U.S.) per vehicle. Over the last year or so, the
average incentive has now doubled to more than $3,000 (U.S.) per vehicle.
Regardless of brand, there are heavy monetary incentives being offered by
domestic and import brands alike, although in the first half of 2004, incentives
on stronger Japanese branded products were only one-third the incentive levels
of their domestic counterparts ($904 - $1,731 vs. $3,508 - $4,224 per vehicle).
Figure 3
AVERAGE INDUSTRY INCENTIVE PER VEHICLE (US$)
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
9
2
0
3
1
04
3
00
-9
-0
-0
-0
-0
0
0
n-
n-
n-
n-
n-
c
c
c
c
De
De
De
De
De
Ju
Ju
Ju
Ju
Ju
Source: desrosiers Automotive Consultants (February 2004); Autodata Corporation

(August 2004)
This may be a financial boom for the retail customer, but it has become a
financial disaster for the automobile industry which operates on relatively slim
profit margins on its new vehicle sales. For example, over the last four years,
auto manufacturers have been operating at less than 2% operating margins.
So what is it going to take for automobile manufacturers to break out of this
financial quagmire of offering costly financial incentives to enable sales of
their numerous model offerings? We believe the answer lies in the products
themselves. Some automobile manufacturers have already discovered that
many savvy customers move from brand to brand based on which
manufacturer is offering the hottest product. In the automotive market, hot
can be characterized by new vehicles that offer excitement through innovative

styling, design and new feature offerings. In the future, those auto
manufacturers that have the strongest portfolio of winning products, supported
by winning product features in those products, will win the battle for new and
repeat retail customers.
Many new product features are developed by the parts and component
suppliers that support the automotive manufacturers. So while the auto
manufacturers are battling for their share of retail customers, the auto suppliers
are in their own battle for wholesale customers (the auto manufacturers).
These auto suppliers are contending with the ever-tightening budgets of the
auto manufacturers as they struggle to control their costs in order to fund the
markets appetite for costly incentives. This financial battle is draining the
coffers of many auto suppliers as they succumb to price concessions and
discounting to win the business of the auto companies. To survive, auto
suppliers must also develop and sell winning product features to their
automotive customers (i.e., the manufacturers).
We contend that tomorrows automotive battleground will be different as it
returns to a product battle to win over new customers. Tomorrows winners
will be those auto manufacturers and their suppliers that can develop and offer
the most innovative and exciting new products to their customers. In response
to this industrys need to develop new products, the customer-based ideation
methodology outlined in this paper was developed for our clients use.
CLIENT ISSUE:
CONFRONTING TECHNOLOGY PUSH WITH MARKET PULL
So what should drive the development of those new winning products
technology or the customer? Many companies develop products because the
technology is there, only to find out later that there is no customer interest in
those products. These companies allowed technology to push their products to
market rather than allowing the customer to pull their products to market. The
result can be market and financial failure.
How can companies avoid this risk? Companies need to have both new
technologies and the needs of the customer in mind before proceeding into the
development of a new product. We have found that most successful new
products are based on identifying customer needs and wants and then
developing an engineering or design solution based on new and emerging
technologies. This balanced approach lessens the investment risk of
developing a new product without a market to sell to.
Most auto manufacturers and their suppliers have an established process in
place to guide their new product development activities. In its simplest form,

the entire Product Development process should start with the identification of
the customers unmet needs in a vehicle and end with a design and engineering
solution that meets those needs in the marketplace.
As shown in figure 4, this simplified process for product development can be
expanded into five unique stages based on the time it takes to bring a new
product (vehicle or feature) to market. Visually it can be seen as an ever-
narrowing funnel that begins with a broad set of needs leading to possible
product solutions (i.e., new product concepts). Before being approved for
development and eventual product introduction, each product solution must
pass through successive filtering phases, or stage gates. At each of these stage
gates, the product solution must pass internal thresholds related to its
manufacturing feasibility, sales potential, cost, return on investment and
consumer acceptance.
Figure 4
THE PRODUCT DEVELOPMENT FUNNEL
Customer Needs Product Product Product Product

Identification Concepts Design Development Manufacturing
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Time to Market
Lets look at this product development funnel in terms of the new feature
development that is needed in tomorrows vehicles. New feature development
starts with automotive customers expressing their unmet needs and wants in a
vehicle not in terms of a feature (e.g., intermittent windshield wipers), but
in terms of a need that is not being met (e.g., I need to automatically keep my
windshield clear in light rain or mist).
These unmet needs provide fodder for design engineers and planners at auto
companies and their suppliers to come up with new product ideas and
technological solutions to address these unmet needs. The best solutions pass
into a concept, design, development and manufacturing stage.

The end result is a new winning feature that is introduced in new vehicles
with a high chance for market success. The new feature is likely to be a winner
because its development began with identifying the unmet needs of automotive
customers as its first critical step. Unfortunately, we have found that many
companies product development processes skip over this critical customer
needs identification or ideation phase. This is the most important phase of any
Product Development Process as it sets the foundation for all successive
phases.
MARKET RESEARCH ISSUE: CONFRONTING

CONVENTIONAL APPROACHES TO COLLECTING UNMET NEEDS
So what is the role for market research during the earliest phase of this Product
Development process? The sole purpose of market research at this early stage
is to identify unmet consumer needs and wants which can be used by company
engineers and designers to generate ideas for new products and features.
Most conventional market research approaches have shortcomings at this early
stage, as they tend to use linear rather multi-dimensional data collection
methods to identify unmet consumer needs. Some of these approaches include
the use of:
{ Future visualization which attempts to capture the consumers unmet
needs in the context of tomorrow rather than today
{ Collage building through which consumers attempt to project their unmet
needs using pictures and other visual means
{ Ethnographic studies where consumers are observed and behaviors
analyzed to identify their unmet needs and wants
{ Journal building where consumers record their usage and habits along
with their thoughts about unmet needs
{ Focus group session (in-person, online) where consumers come together
for the purpose of the moderator facilitating a discussion about their unmet
needs
We have developed a very effective research approach which uses a

combination of various elements of these other approaches. This approach
utilizes four key steps in an ideation methodology called Auto-Ideation. The
following discussion will highlight the use of this unique methodology in an
automotive application, although the methodology itself is adaptable to any
industry that relies on the development of new products and services in its
business.

Step 1 - Confronting the issue of conventional respondents

Many clients and most market research suppliers have been involved with
conventional focus groups, where respondents are recruited on the basis of
targeted demographic profiles and/or product ownership relevant to the subject
for discussion. Often clients and suppliers find themselves with only one-half
of a group who truly participates in the discussion and the exchange of ideas.
Unfortunately, clients and suppliers pay the same price for the non-
contributing, non-participatory respondents who make up the other half of the
group as they do for the respondents who are adding value to the discussion.
The result is often frustration on the part of the client and supplier as these
respondents represent lost opportunity to collect insightful comments and input
from all members of the group.
Auto-Ideation overcomes this issue by applying a screening and recruiting
process that identifies people who are articulate, bright, insightful, creative and
outgoing in nature. This process intentionally screens out potential respondents
who are likely to be non-contributing members in their focus group session.
The screening process is based on a proprietary questionnaire that includes key
personality traits we are seeking that can be identified through some of the
questions in the Meyers-Briggs Type Indicator test. These MBTI screening
questions are included with other questions to further identify intelligence and
product interest.
So, Step 1 in this automotive application was to screen and recruit the right
target of creative respondents. This targeted screening was critical to the
success of this type of ideation market research. Once screened on these
criteria, respondents were invited to participate in a three-week project that
included two group meetings and an intervening period for homework.
Step 2 - Orientation meeting

This next step involved meeting with these creative respondents in group
sessions of 10 - 12 vehicle owners each. The objective of this first meeting was
to create the appropriate task mindset with respondents. This meeting stressed
the importance of three aspects of their role in this research study including:
Identification of needs, not solutions

Respondents were taken through an orientation on their role in this research,
which was explained as identifying unmet needs and wants in their new
vehicles. It was made clear that we did not want them to design new features
in their vehicles, as solutions development would be the role of the designers,
planners and engineers who would be receiving the results of this study. The
task of the consumers in this study was to drill down to their raw unmet need

without being constrained by thinking about how their need would be met. The
benefit is that the raw unmet need could potentially be addressed by several
different types of possible solutions, some of which may be simple or
complex, inexpensive or costly, etc. The goal of the research was to identify
raw needs and leave solutions development to the client who needed to assess
feasibility, complexity, cost, return on investment and other issues.
Mind expansion and creative thinking

Mind expansion was also a key objective in the first meeting with these
consumers, so that they understood what it meant to cast out conventional
thinking and embrace the concept of thinking outside the box for the next
several weeks. Our objective was to use several cleverly designed creativity
exercises to demonstrate how to look at things differently than one normally
would. This opened their mind to the idea of looking at their vehicle and their
surroundings with an enhanced sense of awareness. Creativity exercises
included:
{ Showing a symbol that at first observation appears to be a mosaic, stained
glass window, spider, racetrack, etc., but upon further inspection was a
symbol representing all the letters of the alphabet as well as the numerals
1 - 9 and 0.
{ The left hand which was used as a focal point for examination of
something that is taken for granted every day. After examining their
hands, respondents were asked to list ideas on what they dont know about
it, and how they would change it if they could. Respondents were asked to
use this approach when thinking about their vehicle needs over the next
several weeks. Our objective was to raise their awareness level about their
vehicle, which they also use and take for granted every day.
{ Mind-mapping where respondents participated in a brainstorming exercise
which demonstrated how one idea can lead to other inter-related ideas,
which eventually can be grouped into a more meaningful understanding of
the initial idea. Respondents were encouraged to use this mind-mapping
approach as they thought about their needs during their homework period.
Using tools for documentation

It was important for the participants in this study to collect and document their
unmet needs over the course of the next two weeks. To facilitate this
documentation process, we provided several different kinds of collection tools.
First and foremost was a written journal in which all respondents were asked
to record the unmet needs that they identified relative to their vehicles,
transportation, business and family activities.

We anticipated that some people would be more comfortable using visual aids
to communicate their thoughts, in addition to just writing words in a journal.
To accommodate these types of individuals, we provided each respondent with
a camera so that they could support their written needs with photos of related
objects or activities.
We also anticipated that people might have a new idea or thought when it was
not convenient to write it down in their journal. To help respondents from
losing these fleeting, but potentially vital thoughts and ideas, each participant
was given a micro-cassette recorder to use when they could not write their
thoughts in their journals. These voice recorders proved invaluable while
people were driving, shopping or awakening at night with a flash of inspiration
from a sleep state.
Step 3 - Immersion in the homework period

Research participants left this first meeting with full knowledge of how to
approach their homework assignment, which was to identify their unmet needs
during the following two-week period of idea collection. This immersion or
soak period provided the time needed for these consumers to think about
how they use, or would like to use, their vehicles and record their thoughts,
ideas and opinions using the data collection tools they had been supplied. They
were reminded to take into consideration the learnings from the creative
thinking exercises they had experienced to expand their thinking while
identifying and documenting their unmet needs.
During this homework period, respondents focused their efforts on identifying
unmet needs and wants that are not currently being addressed by anything in
todays automotive market. Unmet needs identification was targeted on ideas
that would improve their own driving experience or the driving/riding
experience of other family members.
This immersion time is key to the Auto-Ideation process as participants
spend time with their vehicles, their family and job-related surroundings with
an enhanced sense of awareness. The two-week period represents a time for
discovery when respondents are immersed in uncovering latent, as well as
their more overt unmet needs in their vehicles. This process allows
respondents to capture their thoughts and unmet needs using the
documentation tools we gave them so that they would be fully prepared to
share their ideas with us at the next group meeting.
Step 4 - Data Collection in follow-up brainstorming sessions

Respondents returned after their two-week immersion for a second focus
group session which was the method used to collect all of the rich needs

information that participants had collected. Our first surprise was that almost
100% of the respondents spread over 24 brainstorming sessions in two cities
returned to participate in these crucial meetings. This is a reflection of the
recruiting of these creative respondents, their personal commitment to the
study, and to the nature of the study itself, which provided consumers with a
convenient means to convey their vehicle needs to our clients. Now that our
respondents had returned, bristling with ideas they had thoughtfully entered
into their prized journals, it was up to us to just as thoughtfully extract each
respondents written needs. To do this successfully, the brainstorming session
relied upon the following key elements.
Collection process
Respondents brought their journals and any support materials (pictures,
drawings, sketches, magazine clippings, etc.) which they had developed over
the immersion period. The process used in this brainstorming meeting was to
have each respondent bring up a need or want they had documented in their
journal. All members of the group were encouraged to listen and to comment
on this need and to bring up their own ideas and needs if they related to the
need being discussed. In this way every respondent had an opportunity to
listen, add to, or convey a different but related need that they had also
identified. This needs generation process kept all respondents engaged in the
discussion and in the crucial process of identifying and capturing consumer
needs.
Consensus on needs statements

During the course of discussion on someones particular need, we captured it
by typing the statement into a computer. The emerging needs statement was
projected onto a full size screen which could be seen by everyone in the room.
The initial needs statement was captured, scrutinized, edited and then restated
for the group to consider. Once all input on the statement was captured, the
originator of the need as well as the group was asked to indicate their
agreement that the statement reflected the need of that respondent. A further
test was whether the statement could stand by itself and be clearly understood
by an engineer, designer or planner who might be responsible for coming up
with potential solutions to meet the need.
Needs categorization
Once there was a consensus from all parties that the needs statement met these
tests, it was printed, categorized and posted on the wall into emerging needs
categories (e.g., safety, comfort, convenience, storage, etc.). Each group of
respondents developed between 70 to 120 individual needs statements that met
with group consensus in this way. What emerged was a wall of needs that

would serve as a starting point for client assessment for ideas and solutions for
new features development.
Needs ranking
Before dismissing the group members, they were asked to go up to the wall of
needs and to individually indicate what the top three needs were that emerged
during the course of their three hour brainstorming meeting. The result was a
qualitative ranking of importance that was used by clients to assess the most
important of the 1,759 needs that were collected over the course of the study.
STUDY REPORTING
The process used to identify, collect and document the needs statements from
this qualitative market research was instrumental in being able to consolidate
and rationalize 1,759 needs statements into a database which had structure and
organization. Each of the statements was entered into a spreadsheet and
classified by city and vehicle segment of the focus group respondents. Each
needs statement was further coded using a primary and secondary coding
process so that similar needs could be sorted and grouped as necessary for
reporting.
The end product was a Management Report which allowed for summation to a
high level of understanding and also for a drill down to the raw needs
statement itself. The written report was augmented by a DVD containing all of
the consumer journals which were scanned to capture all written entries along
with their related photos, sketches, etc. These scanned journals were also
coded in the same manner as the Management Report so that clients could
search, sort and view individual journal entries of interest. This brought added
richness and value to the reported information. Video tapes of the
brainstorming sessions were also made available to clients for the same reason.
EXAMPLES OF FINDINGS GATHERED FROM THE STUDY

Once the 1,759 needs statements were coded into primary needs categories,
major areas of need became evident. For example, as shown in figure 5, safety
related needs emerge as the most important, followed by needs related to
convenience, visibility and so forth.

Figure 5
MOST IMPORTANT UNMET NEEDS OF MOTORISTS*
Safety
Convenience
Visibility
Telecommunications
Comfort
Servicing
Storage
Performance
Damage Protection
Entry/Exit
Appearance
Security
0% 5% 10% 15% 20% 25%

* Based on Motorists Ranking of Most Important Needs among 1,759 Needs Identified
Each of these primary needs categories represents summations of the

individual needs within these categories. Examples of needs within the Safety
and Convenience categories are illustrated in figure 6.
Figure 6
EXAMPLES OF UNMET NEEDS
Safety Needs
(Unmet Need: Collision with Objects)
1. Vehicle alerts of obstacles in the

road ahead of the drivers line of
sight.
2. Vehicle warns driver that they
are closing too quickly on a
vehicle in front of them.
Convenience Needs
(Unmet Need: Fueling a Vehicle)
1. Vehicle provides means to

automatically fuel the vehicle
without getting out of the vehicle.
2. Vehicle provides gas filling
opportunities on both sides of
vehicle.

COST-BENEFIT ISSUE:
AUTO-IDEATION AS A SYNDICATED STUDY
Conducting this study on a proprietary basis for a singular client can be costly
due to the number of focus groups, collection tools and unconventional
logistics associated with the methodology. The qualitative research approach
itself had widespread interest among individual automotive manufacturers and
automotive suppliers alike, but a proprietary study was faced with an uphill
funding battle at each of these prospective clients. To make this high interest
study more attainable to clients, we eventually proposed Auto-Ideation as a
shared cost or syndicated study.
At first we were concerned because a syndicated qualitative market research
study is rare. To compound that concern, a syndicated market research study
for advanced product development is almost unheard of in the automotive
industry. The study overcame these unprecedented barriers of using a
syndicated approach and found immediate client acceptance because it was
seen to deliver high value information at an affordable price. Clients were
unanimous in recognizing the cost/benefit of this study on a shared cost basis.
A CLIENT PERSPECTIVE ON ACCEPTANCE OF

AUTO-IDEATION METHODOLOGY
Key selling points for the client revolved around the following four factors...
1. Unconstrained consumer thinking
The research was designed to target bare needs statements from automotive
owners. The context of the vehicle type (truck vs. luxury car, etc.) was
secondary to the overall objective of the research as many of the unmet needs
were universal needs with cross segment application. Major effort was made
by the supplier to keep the methodology pure with absolutely no pre-conceived
notions presented to consumers around what could or could not be done in
their vehicles. The consumers task was to only wonder and think about what
needs are not currently being met in their vehicles. The resulting output
revealed raw needs statements without any specific reference to features
themselves.
2. Cost sharing
The scope of the syndicated Auto-Ideation study was comparable to a small
scale strategic project. In many client companies, strategic market research
studies take a back seat to the needs of more immediate projects where a
business decision on a specific issue is usually more urgently needed. As a
general practice, specific issues tend to get priority over strategic issues when

it comes to the funding allocation of market research budgets. As a stand alone

project, this type of strategic needs study would most likely not have been
conducted as it would have cost Ford four to five times as much as their shared
cost of the syndicated study. Cost sharing made this type of strategic project
attainable for Ford and other syndicated members.
3. Added value information
The study output was data and concept rich, which made it of high value to
Ford Motor Companys new feature development process. The consolidation
of multiple owner groups into a formal written report made for a data source
that could be easily understood and taken forward into the development
process. Since the output of the study was a starting point for further efforts,
the non-proprietary nature of the information was not a strategic concern for
Ford. In other words, all of the syndicated study subscribers had the same raw
consumer information reported to them, but it was up to each subscriber to
apply the information to their own unique business strategies and new features
development opportunities.
4. Broad perspective
The consumer-based information was very broad in nature as needs ranged
across many types of categories such as safety, comfort, convenience,
visibility, etc. Most market researchers have a difficult task of shifting into a
broad perspective mode because most of their time and effort is focused on
more selective ad-hoc issues. In Fords case, the market research managers
time and energy was split among two to three studies currently in the field, two
to three studies about ready to begin fieldwork, and two to three more studies
in their concept planning stage. A broad based study like Auto-Ideation is a
prime opportunity for a market research supplier as clients do not normally
have time to manage these types of studies.
A CLIENT PERSPECTIVE ON WHAT IS NEEDED FOR

SUCCESSFUL APPLICATION OF THIS METHODOLOGY
From a client standpoint, there were three factors that led to the success of this
ideation-based study. They included:
1. Correct moderator
In a more conventional qualitative market research study, the neutrality of the
focus group moderator is generally beneficial to the study objectives. In the
case of Auto-Ideation, absolute neutrality is not essential or necessarily
beneficial to the needs collection process. The ability of the moderator to
extract information is far more important as consumers often will only discuss

a part of the issue surrounding their need. The moderator must be able to listen
to small comments and extract or re-phrase on the fly to build the intended
needs statement. This ability is more important than pristinely capturing the
participants first thought.
It is difficult for automotive consumers to think of unmet needs without
thinking of vehicle features or feature solutions. It is critical that the moderator
be able to take the respondents comments, and where necessary, push back the
solutions and drill down to the raw need that is hidden behind their proposed
solution.
The moderator must keep the discussion fast paced in the brainstorming
sessions as each participant has collected a journal full of their most important
needs and ideas. Participants want to be able to share their needs with the
group and with the moderator. Time is needed to do that and each participant
must wait their turn in doing so. The process of allowing anyone to comment
or add to someone elses need provided the stimuli to keep all participants
engaged in the discussion. Each individually expressed need was fashioned
into a consensus statement of that persons need where each individual in the
group had an opportunity to help clarify, edit and agree with the final
statement of need.
The ability of the moderator to understand and paraphrase each participants
expression of an unmet need is critical to crafting a clear set of needs
statement during the brainstorming meeting. Each statement has to be
understood by other respondents in order to reach a consensus on the final
statement itself. In addition the objective of the moderator was to structure
each of the final needs statements so that they could be easily understood by
the clients reading the final report of the study. It is important to convey the
moderator dynamics to clients prior to watching the groups, as the moderators
role is far from what most clients would observe in a typical focus group
setting.
2. Correct participants
In this particular type of ideation research, the preparation of participants is
paramount to the studys success. Preparation involved many aspects from the
initial recruiting to the final collection of their individual journals. For
example:
{ Recruiting It is critical to get the right people to participate in this type
of qualitative research. Only uniquely qualified creative respondents
were invited to participate in the study. Once qualified, they were
instructed that participation involved a time commitment that included an
initial group meeting, an intervening homework period and a final
brainstorming meeting. This pre-group preparation ensured that

participants understood that this study was a serious undertaking and

would be an important commitment on their part. This helped to prepare
them for the unique demands on their time and personal involvement in
this study. It also confirmed their willingness to commit the time we
needed from them for the study to be a success.
{ Orientation meeting It was important that participants have a clear
understanding and appreciation for their involvement in this study. Any
misconceptions about their focusing on needs versus solutions were
clarified for them. They were exposed, through creativity exercises, to
what it means to think outside of the box, a critical aspect of raising
their awareness level about their vehicle and their surroundings. In
addition they were provided with the needed data collection tools (camera,
voice recorder and journal) to help them during their homework
assignments. Before leaving the meeting, they were instructed on how to
use all three tools. The importance of documenting their needs was
stressed as crucial to the studys success. They were now prepared to face
their daily activities and their vehicles with an enhanced sense of
awareness and a readiness to fully document their needs over the next
several weeks.
{ Brainstorming session The advance preparation of participants led to the
successful outpouring of unmet needs and ideas in the follow-up
brainstorming sessions. At this stage the participants were prepared to
share the unmet needs and related ideas that they had uncovered and
documented during their homework assignments. Now it was up to the
supplier to collect them and record them for reporting.
{ Accurate record keeping and the final report During the course of the
study, 1,759 needs statements were identified, recorded and collected by
the supplier. During each meeting the needs statements were finalized
through group consensus, printed off and pinned to the wall in logical
groupings of like needs. This process prevailed across all twenty-four
brainstorming sessions. This record keeping better prepared this detailed
information for summarization in the final report.
The individual needs statements were rolled up into higher themes so that end-
users were not faced with a laundry list of 1,759 needs statements to sort
through. The consolidation of needs across vehicle segments was very
manageable for the client. The Management Report provided for reading and
assessment from the broadest level down to each individual need statement
itself. The findings were viewed as unbiased due to the syndication of the
study; that is, the study was not being directed to serve the needs of any one
client.

The breadth of the information allowed clients the ability to apply the findings
to other studies and projects they are managing in their companys market
research portfolios. The scanned journals and videotapes of the brainstorming
sessions were just icing on the cake for those wanting to drill down for more
richness of detail than provided in the final written Management Report.
FIT OF AUTO-IDEATION IN FORDS

PORTFOLIO OF OUTSIDE PURCHASED MARKET RESEARCH
Ford Motor Company funds a sizeable number of market research projects
each year. Funding is for internal proprietary studies, as well as non-
proprietary studies from outside sources. Figure 7 is an illustration of the types
of outside purchased market research studies that Ford acquires and how they
are used in the organization.
Figure 7
OUTSIDE PURCHASED MARKET RESEARCH
General demographic trends

Demographic/Population Profile
(Population Focused)
Lifestyles & Attitudes General attitudinal trends

(Trends) (Population Focused)
New Vehicle
What auto owners want now
Customer Survey
(Vehicle focused)
(Tracking)
What is needed in future

Auto-Ideation TM
(Vehicle focused)
Fords first requirement is to have good sources of information on broad

population-based data. These include general demographic trends and profiles
to assess long term changes moving through the general population such as
shifts in age cohorts, disposable household incomes, etc. After that, their need
is to evaluate general lifestyle and attitudinal trends such as family formation,
internet usage, acceptance of technologies, etc.

Once they have this foundation of information in place, they look for
consumer data on vehicle ownership and behavior to gain an understanding of
what is happening in the current market. There are several different syndicated
automotive studies available in the U.S. which provide these types of
consumer data ranging from reasons for purchase, satisfaction with the
vehicle, satisfaction with the dealer and so forth. These syndicated data
sources are available to all manufacturers to acquire and use for their own
purposes. They provide an understanding of what automotive owners want
now in their vehicles (better quality, better dealer service, etc.).
Auto-Ideation is the next extension in this funneling down process of
outside purchased market research. The data from this study are still vehicle
focused, but the study targets on identifying what vehicle owners need in the
future. It provides forward looking insight which can be used for predictive
purposes in developing new products or features which bring some of the
customers needs to actual realization. A syndicated study like Auto-
Ideation rounds out Fords portfolio of market research studies it purchases
from outside sources. These types of studies are important as they are a
starting point for further business and research efforts that are proprietary in
nature. The following illustration demonstrates this point.
CLIENT APPLICATION OF THE

AUTO-IDEATION RESEARCH STUDY FINDINGS
The needs identified in this study range broadly from the not so enlightening
(feature may already exist on some vehicles) to the wow, I would never have
thought of that. What is important to keep in mind is that each client is only
looking for three to four good ideas to come out of this type of market
research. Most clients could not take many more than that number to follow-up
with further market research and/or development. In Fords case they pulled
out select findings that led into a very comprehensive market research effort.
The needs information was the starting point for new features assessment in an
advanced features research clinic. A features clinic is a market research study
conducted in a central location using a variety of physical properties that can
be evaluated by targeted consumers.
Needs based research has now been integrated into Fords overall Advanced
Features Development Process. The application of the Auto-Ideation
research findings is highlighted on the Advanced Features Development
flowchart in figure 8.

Figure 8
ADVANCED FEATURES DEVELOPMENT PROCESS
Auto-IdeationTM Consumer
Results Kickoff Trends
Determine Areas of Technology Available

Focus
Potential Features
Features & Technology

Short List
Auto-IdeationTM
Results Prioritization
Research List
(15-20 Features)
Auto-IdeationTM
Feature Descriptions Results
Features Clinic
Study Results
NO Need Met? YES
Why?
Price Auto-IdeationTM Understand Reasons
Execution Results Why
Mis-matched to need
Revise/Retest Reject Feature Execute Feature

As noted in the flowchart, the needs based findings are used multiple times in
Fords overall development process. Input into the process occurs during:
{ Project Kickoff When the Ford project team is evaluating new features to
research, they look at key consumer trends in demographics, lifestyles and
attitudes, vehicle purchase and usage and blend in the consumer based
needs information. Taking existing or emerging technologies into account,
the team determines which areas of focus to pursue (e.g., visibility, safety,
telecommunications, etc.) and identifies a potential set of new features to
evaluate.
{ Prioritization of Features The resulting list of features is generally too
long to be able to research effectively, so the results of the needs
information from Auto-Ideation is again reviewed to help prioritize to a
more manageable list of features to take into a market research clinic.
{ Test Property Descriptions in Questionnaire Advanced features in this
type of market research are shown to respondents in various formats
including feature prototypes, video animations, and story boards. In each
case, representation to respondents also requires some written description
of each new feature. The needs statements from the Auto-Ideation study
were used to help balance the descriptions to ensure that they were not
too feature heavy in content. Without this needs based input, additional
qualitative research at added cost to the project would have been required
to develop this consumer based input.
{ Interpretation of Study Findings The results of the advanced features
clinic were further evaluated on the basis of whether or not the need was
met by the advanced feature. If it was, this comparison helped to
understand the reasons why a feature met with favorable consumer
acceptance prior to the feature moving into formal product development. If
the feature failed to meet the original consumer need, it was examined to
understand why it was rejected (e.g., price, execution, mismatch to the
original need, etc.). After this evaluation the feature was either rejected for
further development or was considered for revision to be re-tested in
future advanced features research.
CONCLUSION
While the study is directed at development of new products and features in
future automobiles, this ideation methodology has application to every
industry seeking to develop new products for their customers. It doesnt matter
whether you are responsible for providing market research support for the
development of new automobiles, entertainment systems, washing machines,
cameras, etc., the new product development process must start with the

collection of unmet customer needs. These become the foundation for

developing innovative ideas for building the engineering, design and product
solutions to address these unmet needs.
This paper stresses ...
1. The importance of consumer centered ideation for identifying key
customer insight at the earliest stage of the product development process.
2. The importance of balancing technology push with market pull.
3. How to apply a unique, low-cost qualitative ideation methodology for the
collection of the customers unmet needs and wants.
4. How product planners, designers and engineers can employ customer
based ideation research to drive their new product development process
Clients recognize that this innovative qualitative market research approach can
provide them with an edge over their competition in developing winning
products that effectively meet customer needs. Clients were unanimous in
indicating that the methodological approach used to identify and extract
underlying unmet customer needs is both unique and insightful. In particular
they have applauded the benefits of...
1. The a priori filtering out of non-productive, non-creative respondents to
enrich the sample of respondents who can make a contribution to not only
identifying their unmet needs but also to articulating them in both verbal
and written form.
2. The first meeting with respondents where the primary focus was to
demonstrate how to think outside the box through interactive creativity
exercises. This was an important factor in raising the respondents
sensitivity to thinking about their vehicles with an enhanced sense of
awareness as they went into the next two weeks of needs collection. It
helped to demonstrate how to look at something they take for granted
every day (i.e., their vehicle) with a new heightened perspective.
3. The use of homework and provision of data collection tools for the two
week immersion period. This was key to the process of respondents
uncovering latent, as well as their more overt unmet needs in vehicles and
transportation. Had a more traditional approach of inviting people to a
singular focus group meeting or to one-on-one sessions been used, the rich
needs that emerged during this discovery period might not have been
revealed.
4. The follow-up brainstorming sessions and the process used to identify,
articulate and reach consensus on the unmet needs that were verbalized in
these groups. This dynamic process allowed for corollary needs to be
identified, which enriched the information provided to clients.

Clients recognize that the type of information from this study is not available
in other new product or feature studies that they have at their disposal. Most of
these other studies focus on presenting respondents with solutions (product
executions) and then assessing consumer interest, likes/dislikes and purchase
consideration. While this is useful information for clients, that data does not
reveal the raw unmet needs that these solutions may or may not meet.
Lastly, clients were unanimous in praising the cost/benefit of this study. As
noted earlier, a syndicated qualitative market research study is rare. A
syndicated market research study for new product development is almost
unheard of. This study overcame these unprecedented barriers of using a
syndicated approach, and found client acceptance because it was seen by
clients to deliver high value information at an affordable price.
In sum, the information obtained through this customer based ideation
approach fills a unique need at the earliest phase of the any companys new
product development process. Clients see the benefit of beginning with raw
unmet needs information prior to spending time and money on the
development of new features based solely on technology or management
opinion. This vastly increases the likelihood for success of introducing a
winning product to the marketplace.
REFERENCES
Abrams, Bill. (2000). Observational Research Handbook: Understanding How
Consumers Live with Your Product. Chicago: American Marketing Association (AMA).
Berens, Linda V. (1999). Dynamics of Personality Type: Understanding and Applying
Jungs Cognitive Processes. Huntington Beach, CA.: Telos Publications.
Berens, Linda V. and Dario Nardi. (1999). The Sixteen Personality Types: Descriptions
for Self-Discovery. Huntington Beach, CA.: Telos Publications.
Berg, Bruce L. (1995). Qualitative Research Methods for the Social Sciences. Boston:
Allyn and Bacon, Inc.
Cooper, Robert G. (1993). Winning at New Products. New York: Addison-Wesley.
Goebert, Bonnie and Herma Rosenthal (2001). Beyond Listening: Learning the Secret
Language of Focus Groups. New York: John Wiley and Sons.
Greenbaum, Thomas L. (1999). Moderating Focus Groups: A Practical Guide for
Group Facilitation. Thousand Oaks, CA.: Sage Publications Inc.
Keirsey, David and Marilyn Bates. (1984). Please Understand Me: Character and
Temperament Types. Del Mar, CA.: Prometheus Nemesis Book Company.
Keirsey, David. (1998). Please Understand Me II: Temperament, Character and
Intelligence. Del Mar, CA.: Prometheus Nemesis Book Company.

Krueger, Richard A. (2000). Focus Groups: A Practical Guide for Applied Research.
Thousand Oaks, CA.: Sage Publications Inc.
Mariampolski, Hy. (1991). Beyond Conventional Focus Groups: Emerging Options for
Qualitative Research. Quirks Marketing Research Review. (December, 1991).
McGee, Tom. (2001). Dont Forget to do Your Homework: Homework Assignments
Can Add Richness to Qualitative Research. Quirks Marketing Research Review.
(December, 2001).
Morgan, David L. (1993). Successful Focus Groups: Advancing the State of the Art.
Thousand Oaks, CA.: Sage Publications Inc.
Pennington, Donald C. (2002). The Social Psychology of Behavior in Small Groups.
London: The Psychology Press.
Reinertsen, Donald G. and Preston G. Smith. (1991). Developing Products in Half the
Time. New York. Van Nostrand Reinhold.
Thomson, Lenore. (1998). Personality Type: An Owners ManualA Practical Guide to
Understanding Yourself and Others Through Typology. Boston: Shambhala.
Wellner, Alison Stein, (2003). The New Science of Focus Groups American
Demographics. (March 1, 2003).
THE AUTHORS
Jim Thomas is Senior Vice President of Product Development, The RDA Group Inc.,
United States.
Mark Silverberg is Cross Vehicle Consumer Insights Manager, Ford Motor Company,
United States.

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ESOMAR Worldwide Qualitative Research Conference

Cannes (France), November 2004 1

This paper demonstrates how companies charged with new product

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BACKGROUND OF THE ISSUES

This growing proliferation of new models combined with a relatively stable

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models that differentiate themselves within their own brand of vehicles, as

Source: J.D. Power and Associates, 2004 Initial Quality Study

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Source: desrosiers Automotive Consultants (February 2004); Autodata Corporation

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Customer Needs Product Product Product Product

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MARKET RESEARCH ISSUE: CONFRONTING

We have developed a very effective research approach which uses a

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Step 1 - Confronting the issue of conventional respondents

Step 2 - Orientation meeting

Identification of needs, not solutions

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Mind expansion and creative thinking

Using tools for documentation

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Step 3 - Immersion in the homework period

Step 4 - Data Collection in follow-up brainstorming sessions

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Consensus on needs statements

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EXAMPLES OF FINDINGS GATHERED FROM THE STUDY

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0% 5% 10% 15% 20% 25%

Each of these primary needs categories represents summations of the

1. Vehicle alerts of obstacles in the

1. Vehicle provides means to

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A CLIENT PERSPECTIVE ON ACCEPTANCE OF

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it comes to the funding allocation of market research budgets. As a stand alone

A CLIENT PERSPECTIVE ON WHAT IS NEEDED FOR

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participants understood that this study was a serious undertaking and

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FIT OF AUTO-IDEATION IN FORDS

General demographic trends

Lifestyles & Attitudes General attitudinal trends

What is needed in future

Fords first requirement is to have good sources of information on broad

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CLIENT APPLICATION OF THE

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Determine Areas of Technology Available

Features & Technology

NO Need Met? YES

Revise/Retest Reject Feature Execute Feature

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collection of unmet customer needs. These become the foundation for

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Copyright by ESOMAR 7KH:RUOG Association of Research Professionals

Copyright by ESOMAR 7KH:RUOG Association of Research Professionals