DIvIDEnD - Stephen M. Ross School of Business - University of ...

Walk into the Ann Arbor office of GfK Strategic Innovation, and you might
think you’ve stepped into the grocery wing of the Smithsonian. Dominating
the bright, open space is shelf after shelf of groceries, beverages, cosmetics,
cleaning supplies, and health products — a cathedral of consumerism. Stroll
down one aisle to find the latest whiz-bang mascara from Japan; check another and you’ll see an
original green bottle of Clairol Herbal Essences shampoo in all its 1970s, flower-haired glory. This
is where GfK’s clients come to shop for inspiration.
since founding arbor strategy group in 1998 and merging
with global consultancy gfk in 2008, Phil Roos, BBA ’81, and
his team have looked forward and back to help some of the bestknown
food and consumer product companies think outside the
box. it has evolved from a strategic growth firm to a one-stop
shop where companies can tap deep industry expertise in product
development — from creative consulting, sampling, and research
to marketing, strategy, and analysis.
WHAT’S in SToRE the plethora of products on display — collectively
known as newProductworks — is the most visible sign that
gfk isn’t a cookie-cutter consulting firm. Behind the scenes are
the market trends Roos and his team have tracked at gfk and
during their pre-consultant careers as product line managers.
where some might see a revolutionary product that seemingly
came out of the blue, gfk pinpoints a logical progression.
gfk’s predictive tools, such as the proprietary innovation tree,
help clients forecast a fiercely competitive future. the firm maps
the cycles and evolution of products in hundreds of categories
and identifies the largely untested, emerging ideas that haven’t
hit the mass market yet. today this strategic edge is more critical
than ever as a slumping economy strains both corporate budgets
and consumer spending.
“contrary to popular wisdom, we believe that truly breakthrough,
disruptive innovation is largely predictable,” says Roos,
who used to manage such brands as gatorade for Quaker oats co.
“there are clear patterns in how categories evolve, how consumer
needs evolve, and how innovation gets adopted by people who are
very consistent category to category. if you understand those
patterns, it can give an educated window into what’s going to
work in the future.”
But this type of deep dive is something many companies may
not be able to execute on their own. and while they focus on their
own piece of the market, a game-changing leap might emerge in a
completely different category, says Martha Gordon, MBA ’98,
one of gfk’s consultants.
“there are idea shops, consumer insight specialists, and highlevel
strategists,” says gordon, formerly of campbell soup co.
“we offer pieces of each and can give the client the 30,000-foot
view strategy. we present a very holistic picture.”
the trick is to hit the market with just the right amount of
newness at just the right time, Roos says. move too soon or
go too radical, and the public won’t accept the product. (think
laserDisc movies in the 1980s.) the home run comes when a
firm follows a growing consumer need and presents a new
delivery mechanism that isn’t totally foreign. (think P&g’s
teeth whitening strips.)
“there has to be a real balance, and that’s where our tools come
in handy,” Roos says. “you have to have some news, offer some
benefit, but it has to be something people are comfortable with.”
MARKET SHiFT much like the products it helps differentiate,
gfk strategic innovation has transformed over time to meet
market demand. arbor strategy started as a small, boutique
firm focused on growth strategy. in 2001 the firm carved its
own distinct niche when it bought the new Product showcase
and learning center from marketing veteran and author
Robert McMath.
mcmath had collected an extensive assortment of consumer
products that served as a creative hub for marketing experts.
companies sent their teams on pilgrimages to his site and often
credited the experience to a subsequent success. as mcmath
prepared to retire, he sought a way to keep the collection alive.
enter Roos, a mcmath client who understood the value displayed
on those shelves. he knew the collection was just the thing arbor
strategy — and its clients — needed to innovate. today, gfk’s
newProductworks counts more than 110,000 items, from tuna in a
pouch to wine in a pouch. Products include musical toothbrushes,
sunblock that comes with its own mirror, and a vintage can of
farrah fawcett hairspray. it is the only collection like it in the world.
Carol Sherry, MBA ’84, is curator of newProductworks and
has buyers all over the world tracking innovation in formulation,
spring 2010 DIvIDEnD 43