ASSIGNMENT 5.1 BRAND INNOVATION

NGUYEN BA LOC & NGUYEN NGOC TRAM

WHAT IS BRAND INNOVATION?

DEFINITIONBRAND INNOVATION Is the successful exploitation of new ideas, it refers to both

radical and incremental changes to products, processes or services, and like most business

functions, is a management process that requires specific tools, rules, and descipline.

PURPOSE1. Filtering out weaker projects which may not offer high potential for success at an early stage.2. Maximising the chance of success for potential innovations.3. Managing all activity and investment.4. Ensuring the business has a balance of projects delivering growth in all areas.5. Ensuring we’re covering the right areas at the right time.

THE DIFFERENCE

BETWEENCREATIVITY

The thinking process by which we generate ideas

INNOVATION

The process of harnessing creative ideas to meet business

needs

(Source: Unilever Marketing Foundation handbook – Innovation Process Management)

B R

A N

D I N

N O

V A

T I O

N

BRAND INNOVATION MIX

BRANDINNOVATIO

NMIX

Example

PRODUCT INNOVATION

COMMUNICATION INNOVATION

Customers desire the screen with compact design, lightweight, take up less space, good picture quality, consume less energy than traditional CRT monitors In 1970, the first LCD TV was innovated by SAMSUNG

Paragraph FIRST TVC in the world are found in the U.S. on 07/01/1941 with 10s time to advertise for Bulova watches

BRAND INNOVATION MIX (cont)

Example

PACKAGING INNOVATION

PRICING INNOVATION

Example

CHANNEL INNOVATION

PROCESS INNOVATION

Consumers told P&G they did not like small, cracked, broken piecies of chips that settled in the bottom of the bags. Pringles changed their packaging to meet customers’ need.

Dell customized each PC to customers’ specification

WALMART offer competitively reduced price

In Vietnam, TIKI is the 1st bookstore that customers can buy books directly on internet.

BRAND INNOVATION PROCESS

LAUNCH

Contract

Launch Roll-out

Feasibility

Capability

Market Ready/ Market

deploymentPost-Launch Evaluation

Roll-out Contender

Ideas

Make sure we can do it!

Let’sdo it!

Was it a success?

Recommend others to do the

same

Can we do it?

What should we

do?

On shelf in first market(s)

Charter

IdeasGATE

WHAT IS IT?

At this phase, most projects are created and remain following review at the Gate Meeting if re-work is required or if company resource is not available to pursue it.

This is the gate between Idea Phase and Feasibility Phase where decision is made whether to invest in a project team.

This is the gate between Feasibility Phase and Capability Phase, its purpose being to decide on investing capital and marketing mix costs.

At this phase, projects handled by Innovation Centres and Brand Development will pass through – and get license from National Business Unit.

BRAND INNOVATION PROCESS – EXAMPLE

LAUNCH

Contract

Launch Roll-out

Feasibility

Capability

Market Ready/ Market

deployment

Post-Launch

Evaluation

Roll-out Contend

er

Ideas

Make sure we can do it!

Let’sdo it!

Was it a success?

Recommend others to do the same

Can we do it?

What should we do?

1. McDonald’s Vitamac

2. McDonald’s Mom‘s choice

3. Healthy menu for

kids without cholesterol

& fat On shelf in first market(s)

Charter

IdeasGATE

MCDONALD’S BRAND INNOVATIONINSIGHT: As parents, we want our children to enjoy their food, but are often concerned about the nutritional value of processed food and the long team effect it has.

1. McDonald’s Vitamac

2. McDonald’s Mom‘s choice

1. McDonald’s Vitamac

* The detailed explanation is in the next slide

Ideas

Feasibility

Capability

3. Healthy menu for kids without cholesterol & fat

3. Healthy menu for kids without cholesterol & fat

1. McDonald’s Vitamac3. Healthy menu for kids without

cholesterol & fat2. McDonald’s Mom‘s choice

1. McDonald’s Vitamac

1. McDonald’s Vitamac 2. McDonald’s Mom‘s choice

A delicious burger that contains the amount of Vit

A & C a child needs to maintain their health. Keep child’s happy and parents’

peace of mind

A delicious buger doesn’t contains

cholesterol and fat, healthy for kids.

Parents can choose customized burger’s

nutritional ingredient that they think it’s good for their own

childs.

Kick out this idea because of flavour changingChange the taste Not feasible

Kick out this idea because of significantly increasing the cost (Mar Mix & over the investment budget) Not capable

BRAND INNOVATION PROCESS – EXAMPLE

2. McDonald’s Mom‘s choice

Market Ready/ Market deployment At this phase, projects handled by Innovation Centres and Brand Development will pass through – and get license from National Business Unit.

LAUNCH MCDONALD’S VITAMAC