ym3 brand innovation vo_thi&trunghieu
TRANSCRIPT
HIEU PHAN VO THI
ASSIGNMENT 11.1BRAND INNOVATION
AGENDAWhat is brand innovation?Type of innovationPrinciples of brand innovationBrand innovation process
1 WHAT IS BRAND INNOVATION?
WHAT
Brand innovation is fulfilling brand’spromise through new products &services and infusing these new products& services with meaningful valueswhich are relevant to consumers
PRODUCTPOTENTIAL
CUSTOMERPOTENTIALX
A TRAP ISTO BE CONFUSED BETWEEN
CREATIVE THINKING INNOVATIVE THINKING
is to create something creative
is to escalade creativity into efficiency that
meets business needs
WHYThe market has reached its climax, breakthrough innovation is needed to stand out from competitors
Consumers’ need is no longer relevant to company’s products or services
Increase efficiency in serving consumersthose are valid reasons
but they share two dangerous traits:Re-active, not pro-active
Re-active innovation means you arerunning to keep up with changes.
External, not internalExternal innovation means the worldoutside will define where you go.
2 8 TYPES OF INNOVATION
1. PROFITMODEL
INNOVATION
Innovate the way to earnmoney: bundled, flexiblepricing, advertising revenue,membership, subscriptionmodels
Gillete sells premium razors as a loss, butmakes money out of selling bladesrepeatedly
2. STRUCTURE INNOVATION
Innovate how to organize & alignyour organization, talent & assetto create more values.
Premium supermarket chain uses radicaldecentralization that enables each store tooperate autonomously to better meet storeconsumer needs.
3. PROCESS INNOVATION
Innovate with a signature andsuperior method for creating value(production, flexible manufacturing,process standardization)
Famously used process innovation todeliver a “from sketchpad to shop floorin three weeks”
4. PRODUCT PERFORMANCE INNOVATION
Innovate products that work better todeliver superior values to consumers
DYNAMIC SUPPORT: 3-layer versionNew innovation of Nike to stabilize runners andhelp them to stay away from possible injuries.
2 8 TYPES OF INNOVATION
5. PRODUCT SYSTEM
INNOVATION
Creating complementaryproducts and services thatconnect or bundle together tocreate more value
Toyota in the US through its sub-brand Scion, offers highly customisable carswith a suite of add-ons and accessories fromToyota and partners
8. BRANDING INNOVATION
Innovating how you present yourofferings and business in adistinctive, memorable, and likeableway.
Virgin, which describes itself as an“international investment group” brandsproducts and services distinctively by injected amuch-needed dose of fun.
6. SERVICE INFORMATIO
N
Innovating by adding value inhow you support customers find,buy, pay, enjoy and dispose ofyour product
Zappos made service innovation a hero andconsistently delivered a ‘WOW’ service thatprompted Amazon to buy the startup with serviceknow-how for $1.1 billion.
7. CHANNEL INNOVATION
Innovating how you deliver yourofferings to customers and users.(B2B, B2C or P2P channels, orharness pop-up stores, e-commercestores, partner stores,…)
Amazon’s channel innovationincludes Whispernet, a private wirelessnetwork that is free for customers todeliver e-books, music and films.
3 PRINCIPLES OF BRAND INNOVATION
Empathy
1
Empathize with youraudience to gain deepunderstanding of people whoyour brand seeks to serve.
Collaboration
2
Setting up interdisciplinary teams,with different people, helpsgenerate a greater breadth ofideas and can allow you to buildon those ideas in unexpected ways.
Courage
3
Dare to try and dare to fail.Learning from failures is alwaysbetter than learning from victories.
Intuition
4
If it is “just feel right” idea, it maywell be. Ideas that go againstnumbers or test may bebreakthrough ideas (seriousconsideration)
Tenacity
5
Continuing to forge ahead in the face ofadversity is critical to developing new ideas.Even when ideas don’t pan out for a givenproblem, they should be catalogued andreferred to when new challenges arise.
Play
6
Play. Imagining, free-form thinking,role-playing are aspects of creativethinking. While playing, people arehaving fun. While the outcome ofbrand innovation has seriousramifications for a business, this isabout the process, not the outcome.
4 BRAND INNOVATION PROCESS
IDEAS Fact finding & Creative
FEASIBILITYResource planning
CAPABILITY
LAUNCH PREPARATIONDisaster check
POST LAUNCH EVALUATION
Desk researchMarket researchConsumer habits research
Team set-upRisk assessmentProduct concept
Formulation testSensory TestStorage test
Consumer researchPackaging developmentProduct, cost/profitability
Plant EquipmentPlant trials
For detecting business opportunities: New product, new variants/SKU (flavor, formula, packsize) & find a way to enter the market
For justifications of investment
Actual investment
Successful launch
Fine tunning
Start mass productionSupply chainProduct application
Consumer feedbackTrade monitoring
Benchmarking
DEFINITION & OBJECTIVES DETAILS STEPS
4 BRAND INNOVATION PROCESS EXAMPLE
IDEAS Fact finding & Creative
FEASIBILITYResource planning
CAPABILITY
LAUNCHPREPARATIONDisaster check
POST LAUNCH EVALUATION
In 1970, Coca want to beat Pepsi. Coca run consumer blinded test theflavor between itself & Pepsi. Most of participants chose Pepsi’s formulabecause of its sweetness. At that time, Diet Coke which was closer toPepsi in terms of flavor and it take the position just right behind Coke &Pepsi
Coke came up with a new formula which wastested and delivered overwhelming results. Thenew formula surpassed the original & Pepsi interms of taste.
Plants have been set up to bring New Coke to mass production
Coke put its new innovation onshelves to compete with Pepsiwith the strategy of switchingcompetitors users.
Large portion of US Population boycott theNew Coke because it was not Coke anymorein terms of taste. The company decided to stopthis new innovation immediately.
HIEU PHAN VO THI
THANK YOU