What is brand innovation?

Brand innovation is the process of harnessing creative ideas to meet business needs.

Brand innovation mix

1. Product innovation2. Pricing innovation3. Channel innovation4. Communication innovation5. Process innovation6. Packaging innovation

1. Product innovation

Sunsilk was the first one in FMCG to define “limited product” when launching Watermelon Sunsilk which was on sale for a summer.

The development and market introduction of a new, redesigned or substantially improved good or service. Examples of product innovation by a business might include a new product's invention; technical specification and quality improvements made to a product; or the inclusion of new components, materials or desirable functions into an existing product.

2. Pricing innovation

Pricing innovation regards instances in which companies innovate their pricing strategies, tactics, or organization or where companies use an understanding of consumer psychology to change customer perceptions of value and price.

Traditional pricing strategy: cost-based. Fixed pricing for aircraft engines; spare parts sold with substantial mark-up (+300% over costs)New pricing metric: “Power by the hour”: valued-based pricing for utilization rights of aircraft engines; usage-based, variable, pricing inclusive of maintenance and performance guarantee-> high customer satisfaction; interest alignment; increased profitability

3. Channel Innovation

Amazon has leveraged the Internet for distribution. By encouraging customers to review and recommend books, they have created a culture of peer advocacy and credible word-of-mouth.

Channel innovation is the innovation in means employed to distribute goods or services from producers to consumers.

4. Communication innovation

ClearFunctional message: anti-dandruff -> Emotional message: sexual attraction of healthy and beautiful hair

Communication innovation is innovation in a means of connecting people or places.

5. Process innovation

Amazon Sunday deliveryThey have continued to get closer to their customers by building huge warehouses nearer metropolitan areas. However, the last mile of delivery between Amazon and customer has relied on other logistics providers. And they have always refused to deliver on Sunday, because that’s how it has always been. Until Amazon made a deal with the US Post Office for deliveries on Sunday in certain cities, with other cities planned for the coming months. What isn’t widely known is that the USPS actually offers this service to any shipper, but Amazon is the first to bring it out on a large scale.

Process innovation means the implementation of a new or significantly improved production or delivery method (including significant changes in techniques, equipment and/or software).

6. Packaging innovationPackaging innovation is the innovation in materials or processes employed to contain, bundle, protect, and/or transport an article.

New Ideas That Make History Since 1869, we’ve made a name for ourselves by delivering pure foods and superior quality in new ways that both surprised and delighted the consumer.When founder Henry John Heinz introduced his fresh horseradish in a unique clear glass bottle, the concept of full disclosure through packaging was unheard-of. Equally fresh was the notion that product packaging could greatly enhance the appeal of the food inside. Today, Heinz continues to elevate the science of product packaging to an art form.Easier for You. Easier on the Earth. Turning packaging expectations upside down—as we did literally with our Top-Down™ ketchup bottle—is a Heinz tradition. But dreaming up new ideas to make it easier to enjoy our products is just the beginning.The rest of the story involves our commitment to responsible, sustainable packaging.The recent introduction of a lighter, easy-open can for products like Heinz® soup is packaging innovation that benefits both the consumer and the environment. The cans’ lighter weight also reduces the overall weight to transport them, saving fuel and improving efficiency.

Innovation process

LAUNCH

Contract

Launch Roll-out

Feasibility

CapabilityLaunch

PreparationPost-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

Example – iPadRoll-out

contender

Post-launch evaluation

Sales - share15 mil iPads sold in 2010- More than every Tablet PC ever sold

- 9,5 bil $- 90% market

share

Launch

MAKING TRIAL/

PROTOTYPEReal

experience of new product

-> Finalize the complete

iPad

Capability

IDEAS TESTING

RESEARCH(Qualitative

& Quantitative

Research)

FeasibilityProduct

innovationiPad

Easy to use- even baby can use it

Endless content

Sexy looks

Ideas