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Social Media’s
Impact on New
Product Development
What is “GeeYee”




              Gee        Yee


            Aggregated   Ideas




                                 2
Today’s Discussion

• Illustrate how directional insights obtained from social media can facilitate
  and even precipitate new product innovation when opinions are quantified in
  aggregate at a more granular, issue-based level.

    – Case Study on Leading Smart Phones

    – Case Study on Pharma

• Listening Analytics Methodology

• Additional Takeaways

• Q&A




                                                                                  3
Smart Phone Case Study
Apple iPhone vs RIM Blackberry Storm vs Palm Pre vs Google HTC G1
Smart Phone Case Study Background

• Analysis done by a marketing research firm

    – At time of study, neither of these companies were clients of the firm

• Social Media Study Time Frame: 1/2/08 – 8/22/09

• 8,106 Sites Discovered

• 309,854 Opinions on the Subjects and Issues




                                                                              5
Social Media Analysis Marketplace Buzz
• Mentions of Palm Pre show a steady gain in the six weeks surrounding its launch, while iPhone
  mentions are sharply up following the Pre’s launch date.

                    Prelaunch                                          Postlaunch
 6000



 5000
                                        June 6, 2009
                                          Palm Pre
 4000                                   Launch Date


 3000



 2000



 1000



   0




                               iPhone      Palm Pre    Blackberry   HTC G1
                                                                                                  6
What’s Actually Being Said About the Smart Phones?
• In the most popular category, Applications, iPhone dominates buzz volume.
     – Postings frequently mention the availability and low cost of individual iPhone applications
  “I can get an iPhone and there are thousands of apps I can get for 99 cents, or I can get a WinMo phone and spend $25
  for a similar app”– Message Board Posting

  “Seriously, I have bought several more apps for my iPhone than I ever have for WM because they are almost all less
  than $5.00, and it's like stopping to buy a cup of coffee, I don't even think about the cost.”– Message Board Posting


• Palm Pre performs well among other iPhone competitors in Applications, but is comparatively
  weak in Multimedia mentions.
 100000      92503
  90000
  80000
  70000
  60000
  50000
  40000
  30000
                                                                      18485
  20000                                                                                            13399
                   7159 4141              5906
  10000                        2333              800 1160 445               2489 1417 498               1705 1520 725
      0
                  Applications                 Multimedia                 Display Screen              Web Browsing

                                        iPhone      Palm Pre     Blackberry      HTC G1

                                                                                                                          7
Comparing Sentiment at a Feature or Issue Level =>
   Product Development & Positioning Insights
     • Although Apple has a strong lead in volume for Applications buzz, Palm Pre does about as well
       on ratio of Positive/Neutral to Negative comments.
     • Palm Pre has its highest positive/neutrals in the Web Browsing category, and highest negatives
       in Display Screen.

                                         iPhone       Palm Pre    Blackberry    HTC G1
                                   83%    84%                                                    84%
               90%
                     79% 78% 78%                80% 83%                              81%                     81%
               80%                                          76%                            76%
                                                                      70% 71% 72%                      69%
               70%
               60%
% Positive /   50%
    Neutral    40%
               30%
               20%
               10%
                0%
                       Applications          Multimedia                  Display Screen     Web Browsing

                0%
               10%
% Negative     20%
                                   17%    16%               17%                      19%         16%         19%
               30%   21% 22% 22%                20%
                                                      24%                                  24%
               40%                                                    30% 29% 29%                      31%



                                                                                                                   8
Finding Out Why




                  9
Visualizing the Relationships =>
Product Development & Positioning Insights
• Consumers associate Palm Pre with Multimedia, iPhone with Applications, Blackberry Storm
  with Display Screen, and Web Browsing with G1.




                                                                                             10
Pharma Case Study
Pharma Case Study Background

• Analysis done by a management consulting firm

    – Directional insight led to customer recommendation for product
      development

• Social Media Study Time Frame: 11/3/05 – 5/27/08

• 514 Sites Discovered

• 123,624 Opinions on the Subjects & Issues




                                                                       12
Visualizing the Side Effect Relationships Helps Direct
Product Development & Marketing Communications
• Negative opinions under issues “discovered” reveal that users are unhappy with the way the
  drugs have to be administered.
• Such an insight leads to a product development recommendation that can impact not just one
  brand but an entire product category.




                                                                                               13
Listening Analytics Methodology
Listening Analytics Methodology
– Using advanced technologies like NLP (Natural Language Processing) and machine
  learning, GeeYee's solution is able to quantify social media content through
  generating tag data (similar to that of "coding" techniques) on three dimensions at
  the sentence level: subject, topic, and sentiment (along with other inherent
  attributes of social media content such as URL, author information, post time, etc.).

– When people communicate in social media, particularly in forums , blogs, and social
  utility sites, they mention multiple subjects and issues and often do not explicitly
  refer to the subject or product feature/issue. For example:

    • Implicit Subject. “This phone has a great battery life.” The subject is not
      explicitly mentioned but our solution will pick it up nevertheless.

    • Implicit Product Feature/Issue. “This camera is too large.” Here the feature
      “Size” is not mentioned but our solution will detect it as such.

     • Context-dependent. “This battery life is ‘long’” is a positive sentiment whereas
       “This movie line is ‘long’” is a negative sentiment.


                                                                                          15
Additional Takeaways
Additional Takeaways
• Social media is one data point amongst others for optimal new
  product development decision making. Remember, social media is
  directional and traditional marketing research is representative.
• Directional insights into product development decision making are
  more clear when entire product categories are visualized.
• Relevant social media data is essential (i.e. don’t want edible fruits
  showing up in the Apple & Blackberry smart phone study).




                                                                           17
Q&A
Thank You!
     GeeYee
      Tom Malkin
    (312) 860-4393
  tom@geeyee.com




                     19

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GeeYee--Yale School of Customer Insights, impact of social media on product development decision making

  • 1. Social Media’s Impact on New Product Development
  • 2. What is “GeeYee” Gee Yee Aggregated Ideas 2
  • 3. Today’s Discussion • Illustrate how directional insights obtained from social media can facilitate and even precipitate new product innovation when opinions are quantified in aggregate at a more granular, issue-based level. – Case Study on Leading Smart Phones – Case Study on Pharma • Listening Analytics Methodology • Additional Takeaways • Q&A 3
  • 4. Smart Phone Case Study Apple iPhone vs RIM Blackberry Storm vs Palm Pre vs Google HTC G1
  • 5. Smart Phone Case Study Background • Analysis done by a marketing research firm – At time of study, neither of these companies were clients of the firm • Social Media Study Time Frame: 1/2/08 – 8/22/09 • 8,106 Sites Discovered • 309,854 Opinions on the Subjects and Issues 5
  • 6. Social Media Analysis Marketplace Buzz • Mentions of Palm Pre show a steady gain in the six weeks surrounding its launch, while iPhone mentions are sharply up following the Pre’s launch date. Prelaunch Postlaunch 6000 5000 June 6, 2009 Palm Pre 4000 Launch Date 3000 2000 1000 0 iPhone Palm Pre Blackberry HTC G1 6
  • 7. What’s Actually Being Said About the Smart Phones? • In the most popular category, Applications, iPhone dominates buzz volume. – Postings frequently mention the availability and low cost of individual iPhone applications “I can get an iPhone and there are thousands of apps I can get for 99 cents, or I can get a WinMo phone and spend $25 for a similar app”– Message Board Posting “Seriously, I have bought several more apps for my iPhone than I ever have for WM because they are almost all less than $5.00, and it's like stopping to buy a cup of coffee, I don't even think about the cost.”– Message Board Posting • Palm Pre performs well among other iPhone competitors in Applications, but is comparatively weak in Multimedia mentions. 100000 92503 90000 80000 70000 60000 50000 40000 30000 18485 20000 13399 7159 4141 5906 10000 2333 800 1160 445 2489 1417 498 1705 1520 725 0 Applications Multimedia Display Screen Web Browsing iPhone Palm Pre Blackberry HTC G1 7
  • 8. Comparing Sentiment at a Feature or Issue Level => Product Development & Positioning Insights • Although Apple has a strong lead in volume for Applications buzz, Palm Pre does about as well on ratio of Positive/Neutral to Negative comments. • Palm Pre has its highest positive/neutrals in the Web Browsing category, and highest negatives in Display Screen. iPhone Palm Pre Blackberry HTC G1 83% 84% 84% 90% 79% 78% 78% 80% 83% 81% 81% 80% 76% 76% 70% 71% 72% 69% 70% 60% % Positive / 50% Neutral 40% 30% 20% 10% 0% Applications Multimedia Display Screen Web Browsing 0% 10% % Negative 20% 17% 16% 17% 19% 16% 19% 30% 21% 22% 22% 20% 24% 24% 40% 30% 29% 29% 31% 8
  • 10. Visualizing the Relationships => Product Development & Positioning Insights • Consumers associate Palm Pre with Multimedia, iPhone with Applications, Blackberry Storm with Display Screen, and Web Browsing with G1. 10
  • 12. Pharma Case Study Background • Analysis done by a management consulting firm – Directional insight led to customer recommendation for product development • Social Media Study Time Frame: 11/3/05 – 5/27/08 • 514 Sites Discovered • 123,624 Opinions on the Subjects & Issues 12
  • 13. Visualizing the Side Effect Relationships Helps Direct Product Development & Marketing Communications • Negative opinions under issues “discovered” reveal that users are unhappy with the way the drugs have to be administered. • Such an insight leads to a product development recommendation that can impact not just one brand but an entire product category. 13
  • 15. Listening Analytics Methodology – Using advanced technologies like NLP (Natural Language Processing) and machine learning, GeeYee's solution is able to quantify social media content through generating tag data (similar to that of "coding" techniques) on three dimensions at the sentence level: subject, topic, and sentiment (along with other inherent attributes of social media content such as URL, author information, post time, etc.). – When people communicate in social media, particularly in forums , blogs, and social utility sites, they mention multiple subjects and issues and often do not explicitly refer to the subject or product feature/issue. For example: • Implicit Subject. “This phone has a great battery life.” The subject is not explicitly mentioned but our solution will pick it up nevertheless. • Implicit Product Feature/Issue. “This camera is too large.” Here the feature “Size” is not mentioned but our solution will detect it as such. • Context-dependent. “This battery life is ‘long’” is a positive sentiment whereas “This movie line is ‘long’” is a negative sentiment. 15
  • 17. Additional Takeaways • Social media is one data point amongst others for optimal new product development decision making. Remember, social media is directional and traditional marketing research is representative. • Directional insights into product development decision making are more clear when entire product categories are visualized. • Relevant social media data is essential (i.e. don’t want edible fruits showing up in the Apple & Blackberry smart phone study). 17
  • 18. Q&A
  • 19. Thank You! GeeYee Tom Malkin (312) 860-4393 tom@geeyee.com 19