Innovation Was King in 2007: Survey Pinpoints Marketers' Top Strategies in 2007 -- and Top Five Resolutions for 2008
Next Level SMG, a brand strategy firm based in Pleasantville, NY, fielded its first Brand Strategy Trends Survey of marketers. Marketers' 2007 and 2008 strategies, priorities and resolutions were uncovered.
Pleasantville, NY (PRWEB) December 10, 2007 -- Marketers relied on innovation and repositioning to stay competitive and strengthen their brands in 2007. A majority (70 percent) launched new innovations or line extensions while 44 percent also repositioned their brand in 2007. However, their biggest single regret of 2007 was not investing more effort to understand what makes their customers tick.
Marketers' 2007 and 2008 strategies, priorities, and resolutions were uncovered in the first annual survey of marketing trends fielded by Next Level Strategic Marketing Group, a Pleasantville, NY-based brand strategy firm.
"Unlike most surveys, this one was concerned with marketers' regrets as well as their accomplishments and goals," says Peter Rogovin, Managing Director, Next Level SMG. "We were looking for their candid assessments of where they succeeded and where they could have done better in 2007."
Here are highlights from the survey:
Making it Shiny and New in 2007
Innovation was a top priority for marketers in 2007:
| | - 70 percent developed or launched a new innovation or line extension
- 62 percent deployed new marketing initiatives (e.g. new promotion or tactical program)
- 56 percent launched a new advertising campaign
- 55 percent redesigned their packaging
- 44 percent repositioned their brand
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"The need for creativity and change was driven by marketplace realities," says Heidi Krauss, Director of Next Level SMG, and creator of the firm's survey. "Marketing executives who repositioned their brands or launched new ad campaigns told us that they did so for a number of reasons -- to revitalize a brand's image that was becoming outdated or losing relevance with consumers, to differentiate the brand more clearly from others in the company's portfolio or to support an on-going strategy to stay competitive."
Woulda-Coulda-Shoulda: Top Do-Overs of 2007
Asked if they could go back and change one thing about their 2007 marketing strategy:
| | - 28 percent of the respondents said they would have invested more effort in learning what motivates and influences their customers
- More than one-fifth (21 percent) said they wished they had been less dependent on "tried and true" marketing tactics and found more creative ways to reach their audience
- 17 percent would have focused more effort on the core base business instead of innovation
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"What might be called 'marketer's remorse' isn't uncommon," says Krauss. "The problem is that, as marketers juggle an ever-increasing number of projects and priorities, they often find it hard to justify spending the time and money on consumer research. The market is ever-changing with new products and new competition, and marketers need to be proactive in understanding their consumers' changing needs and attitudes -- and the time to do this is before the brand runs into trouble."
Not surprisingly, marketers intend to maintain a strong emphasis on innovation in 2008, although fewer plan to focus on repositioning, product enhancements and packaging redesign.
| | - 64 percent plan to develop or launch new innovation or line extensions
- 63 percent plan to launch new marketing initiatives (i.e. promotions, public relations campaigns, loyalty programs)
- 53 percent plan to launch a new advertising campaign
- 38 percent are looking to enhance or redesign their product
- 30 percent anticipate the need for repositioning
- 28 percent will want to do a packaging redesign
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Top Five New Year's Branding Resolutions: Resolving to Probe More Deeply and Take More Risks in 2008
1. 28 percent resolve to spend more time and money understanding their consumers and how to better meet their needs
2. 18 percent aim to take more risks with their business, recognizing that a dramatic change in strategy can reap significant rewards
3. 16 percent say they'll find more creative ways to reach their audience
4a. (tied for 4th) 12 percent plan to be more externally focused, looking to direct competition and complementary categories for growth opportunities
4b. 12 percent will be investing more time and money to better understand how to create relevant innovations
Senior management may be surprised to learn how few resolve to leverage more good ideas from global affiliates or be more conservative in their business approach to hit business targets (both 2 percent).
"It's a healthy process for marketers to identify what strategies are working and should be maintained, and what needs to change to make an impact," Krauss says. "In their comments, the marketers clearly recognized that a shift in strategy could yield significant rewards."
Too many brands -- or too few?
While the survey points to a major crop of new products and line extensions in 2008, many companies acknowledged a need to do some serious pruning.
| | - Only half (52 percent) of the respondents think that they have the right number of brands to adequately cover the market
- 17 percent think they have too few brands
- Nearly a third (31 percent) think they have too many brands
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"Everyone agrees that new ideas are necessary to maintain relevance, competitive edge, and ultimately, significant growth," says Krauss. "But at the same time, companies must prevent their brand portfolios from becoming 'cluttered' -- and, as a result, confusing to consumers and trade partners."
"Growth is good, but active portfolio optimization and 'spring cleaning' are necessary to ensure marketing and operational efficiencies," says Rogovin. "Sometimes less is more."
Background and Methodology of Report
Next Level SMG (www.nextlevelsmg.com) fielded their Brand Strategy Trends Survey in October 2007 in an effort to understand how marketers prioritized and evaluated their strategic initiatives for 2007 and 2008. The survey was sent to over 800 senior marketing executives via email. Participating were 82 marketing executives from a broad array of industries, including food, beverage, personal care, hospitality, electronics and home and building products. Survey respondents hail from companies including Kraft, Pepsi, Dannon, Colgate, Cadbury Schweppes, Playtex, Clorox, Nokia and Starwood.
A copy of the full survey report is available from Next Level SMG (tel: 914.769.8600).
Next Level SMG (www.nextlevelsmg.com) is a brand strategy firm, based in Pleasantville, NY, that builds strong brands and compelling marketing strategies that drive profitable growth. Services include brand positioning, portfolio strategy, brand-based growth strategies and innovation. Clients include Johnson & Johnson Consumer Companies, Inc., Whirlpool Corp., Bell Canada and Pathmark Stores.
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