Why good ideas fail
You should spend about 20 minutes on Questions 1–13.
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 TF 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 TF's 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, the stores were remodelled at a cost of US $40 million and the new brand was launched. Each store was made more comfortable and featured a coffee shop to help increase traffic. Tibal had predicted that if they could get customers into the stores then the products would sell themselves. However, by 2009 it was clear that the idea was a failure and the stores consistently remained empty. Customers complained that the new stores felt like a senior center and reminded them that they were growing old.
Feedback from expert
Expert 1: Donna Sturgess, global head of innovation, GlaxoSmithKline
The TF Team's customer research efforts are a classic case of missing the subconscious associations at work in consumers' minds. Tibal and his executives looked only at surface attitudes. Since those attitudes make up a relatively small part of the total consumer response, the executives are clueless about the reason for the poor sales. It's critical for companies to understand that every customer relates to a brand emotionally, and it's those emotions that trigger — or block — purchases.
That's why we've focused on using emotional strategies behind branding for a number of products. 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 needed to address the emotional aspects of being overweight. First we came up with a name that sounds like a helpful partner. We also aimed to make the container both beautiful and functional — something that didn't just hold pills but could later be used to store diet guides and recipes.
Even simple techniques such as one-on-one interviews, or ethnographical observation that involves going into people's houses to examine their behaviour, can provide valuable data.
Expert 2: Alex Lee
Customers are often attracted to the ideal rather than the reality. We applied this principle when we wanted to find out how far we could apply our design philosophy of making 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 perceived to be users and nonusers of our products. Consistently, they selected active, healthy-looking people as users. This taught us that consumers did not want products marketed as helping tools for weakness or age. Our philosophy of universal design, which involves creating products that are comfortably useable by the largest possible range of people, is never explicitly stated as part of our marketing position.
We've found that market research does not need to be very sophisticated. For instance, we have conducted simple surveys in the lobby of our building offering free products in exchange for people's opinions. Some may call this unscientific but we have uncovered great insights this way. Sometimes the most important signals come from an executive's own instincts. In Tibal Fisher's case, this could have told him what his surveys and focus groups didn't: 60-plus-year-olds won't support a business that expects them to act their age.