Cambridge, Mass. – According to Forrester Research, seismic consumer trends related to price, loyalty, brand awareness, and emerging markets are threatening the revenue and margin growth of consumer products companies.
But, consumer product firms do not have the optimal processes or technologies to convert consumer insights into profits. To remain relevant Forrester believes, these companies must master a new approach — called consumer-focused innovation — in which consumers play an active role in process redesign, product development strategies, and new channel development. Brands that learn to identify consumers’ latent needs and partner with retailers for “entwined” outcomes will avoid the commodity death spiral.
Microsoft’s Massive appeal
Stamford, Conn. — According to Gartner Research, Massive, which was recently acquired by Microsoft Corp., has demonstrated textbook entrepreneurship by innovating the concept of network-based in-game ad placement and growing it into a substantial business in less than four years.
Although the channel is still tiny by media standards, it has high growth potential and has been a hit with advertisers seeking to engage the hard-to-reach “gamer” target audience.
For Microsoft, the service would support two strategic pillars: growing its game business, and creating a unique, balanced portfolio of highly targeted media offerings for advertisers.
In the game business, the positioning of Massive vis-a-vis Xbox Live would be a challenge — especially in light of recent prominent deals announced between Massive and Sony Online Entertainment, given the competition between Sony’s Playstation business unit and Microsoft in console gaming.