honey kerry foods packaging inovation seminar 2011
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Who’s driving Innovation?Packaging Innovation - 7th October 2011Doug JamesMD Honey.co.ukDavid HamiltonInnovation DirectorKerry FoodsThe City KitchenHoney - Kerry - Tesco PartnershipSale £0 - £19 million in the first yearUp to a very few years ago, that was a very simplequestion to answer. Brand owners had the expertise,the emotional connection with their customers,the focus, the history and, of course, the resources.Retailers had control of their space, were quickto react and to copy and were highly aggressive.As a result, much proprietary brand innovation becamecautious and defensive. Then the retailers, led in thisinstance by M&S, created the fresh meal category.For historical reasons of vested interest and logistics issues,no major brand had staked out this space. It was an areawhere innovation and segmentation offered near endlesspossibilities and the retailers partnered up with enterprisingmanufacturers. As things progressed, the retailers foundopportunities to create greater margin by marketing focusedranges, at first functional – e.g. low cal – then with amore hearts and minds, emotional focus – e.g. City Kitchen.In other words, innovative brands. We are now at thepoint where their brands, such as Finest, Chosen by You,Taste the Difference are among the biggest and mostrecognised in the country and segmented ranges suchas Waitrose Seriously… and Menu or Tesco’s Ken Hom carve out strong niches.At the other end of the spectrum, proprietary brand ownershave realised that a defensive strategy only leads to gradualdecline. Lead times have been radically reduced and shortterm innovations introduced to test and reignite the market.But in the gallop towards innovation, it is easy to losesight of the essential ingredients of success. The simplebut critical checklist is:Target Consumer – Identificationand clear definition of those who will ultimately be usingyour products Consumer Insight - The new piece of understanding that establishes the need or desire for the benefit Product or Service Descriptor - Information neededto fully understand the benefit delivered Reason to Believe - The support for how / why the idea can deliver the benefitProduct Benefit - The tangible difference the idea makesin a consumer’s life Emotional Benefit - The difference the idea makes to how a consumer feels.We all know the list and there’s more besides. But, judging bythe percentage of failures among new products, it is clear thatthere is simply not enough real original thinking going on.Honey - Commercial Brand Partners:Commercial Planning, NPD Innovation, Branding, Design, Digital and Marketing.6 DBA Design Effectiveness Awards in 3 years, makes Honey the UKs most successful new agency [email protected]+44 (0)20 7354 4150 honey.co.ukTRANSCRIPT
Is it own label or brands that are driving NPD?
Packaging Innovation
Oct 2011
Doug James
Founder and MD
Honey Creative
David Hamilton
Director of Innovation
Kerry Foods
Before we get to the interesting stuff,
a bit of legal info about ownership:
Copyright Honey 2011.
Which means that unless permission is agreed
in writing from Honey, no part of this presentation
maybe reproduced, distributed, shared or posted
on any media, forum or format.
During the course of the presentation, visual material
from a variety of sources e.g. images and illustrations from Google images have been
use. All copyright, trademarks and image rights for these images reside with the
originator or brand owner. Therefore the images cannot be reproduced, distributed,
shared or posted on any media, forum or format with out their written permission.
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The historical view
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Now
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Defend
Understanding why target customers were
not buying
Clear brand positioning
Strong ownable colour
and tone of voice
Creating emotional relationship
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Missed the point
Kellogg’s brand
values don’t
marry / stretch
Consumer research
- product not as
good as market
leaders
Devalues the
Kellogg’s name
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Retailers creating Own Label Brands.
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3 Legged Stool
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Consumer
Insight
Target Consumer
Product
or Service
Emotional Benefit
Product
Benefit
Reason
to Believe
NPD process for Brand or Own Label
The ‘6’ core elements
All or some
of the above
will create the
Unique Selling Point
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Consumer Insight -
Interpreting Future
Trends
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v
£0- £19 million
in one year
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Both brand and own label can / are driving NPDAnswer…
•The ‘innovation Lab’ approach must dominate thinking
•Find unique selling points by interpreting consumer needs
•Delivering innovation that answers all or most of the 6 core elements
is critical in an increasingly competitive market
•Consumers won’t always be able to tell you what they want,
you have to dig deep to find the emotional hook
•Consumers are challenging us more
– we need to challenge ourselves!22 Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document
and finally…
Perfect partnerships can accelerate
the NPD process
Retailer - customer champion
Kerry Foods - leading in food innovation
Honey - driving design effectiveness
Answer…
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