products and brands values mortierbrigade

20.10.2006

PRODUCTS & BRANDS

Slide 1

ww

w.m

aste

rsin

inno

vatio

n.co

m

PRODUCTS & BRANDS

David Pas en Joost van de Loo

info@productbrigade.com

www.productbrigade.com

VERHAERTINNOVATIONDAY – OCTOBER 20th, 2006

www.mastersininnovation.com

Commercially confidence – This presentation contains ideas and information which are proprietary of PRODUCTBRIGADE, it is given in confidence. You are authorized to open and view the electronic copy of this document and to print a single copy. Otherwise, the material may not in whole or in part be copied, stored electronically or communicated to third parties without prioragreement of PRODUCTBRIGADE.

20.10.2006

PRODUCTS & BRANDS

Slide 2

ww

w.m

aste

rsin

inno

vatio

n.co

m

who are weproductbrigade is a hybrid group of people, from different backgrounds (advertising, design, architecture, technical development), assembled to create new inspiring products

20.10.2006

PRODUCTS & BRANDS

Slide 3

ww

w.m

aste

rsin

inno

vatio

n.co

m

who are weproductbrigade is an exclusive alliance betweenproductplus (verhaert group) and mortierbrigade

20.10.2006

PRODUCTS & BRANDS

Slide 4

ww

w.m

aste

rsin

inno

vatio

n.co

m

today's agendathe virtues of soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 5

ww

w.m

aste

rsin

inno

vatio

n.co

m

many brands have a product centric approach to innovation

20.10.2006

PRODUCTS & BRANDS

Slide 6

ww

w.m

aste

rsin

inno

vatio

n.co

m

The quietest Vacuum Cleaner

20.10.2006

PRODUCTS & BRANDS

Slide 7

ww

w.m

aste

rsin

inno

vatio

n.co

m

Mercedes introduces its new S500. And it has eight airbags...

20.10.2006

PRODUCTS & BRANDS

Slide 8

ww

w.m

aste

rsin

inno

vatio

n.co

m

7UP, now 100 % Natural

20.10.2006

PRODUCTS & BRANDS

Slide 9

ww

w.m

aste

rsin

inno

vatio

n.co

m a product centric

approach to innovation

20.10.2006

PRODUCTS & BRANDS

Slide 10

ww

w.m

aste

rsin

inno

vatio

n.co

m

take for example the Swiffer

20.10.2006

PRODUCTS & BRANDS

Slide 11

ww

w.m

aste

rsin

inno

vatio

n.co

m

R&D– electrostatic charge attracts soil into the

cloth– deep ridges trap and hold dirt in place– launch: 1999

20.10.2006

PRODUCTS & BRANDS

Slide 12

ww

w.m

aste

rsin

inno

vatio

n.co

m

brand– promise: “Clean your floors without all the

hassles of the mop, bucket, broom and dustpan”

– USP: “Making small cleanups easy”

20.10.2006

PRODUCTS & BRANDS

Slide 13

ww

w.m

aste

rsin

inno

vatio

n.co

m

20.10.2006

PRODUCTS & BRANDS

Slide 14

ww

w.m

aste

rsin

inno

vatio

n.co

m

improve and extend

20.10.2006

PRODUCTS & BRANDS

Slide 15

ww

w.m

aste

rsin

inno

vatio

n.co

m

and this works fine for Swiffer– 75% share of US quick-clean market

20.10.2006

PRODUCTS & BRANDS

Slide 16

ww

w.m

aste

rsin

inno

vatio

n.co

m

in spite of all the copycats

20.10.2006

PRODUCTS & BRANDS

Slide 17

ww

w.m

aste

rsin

inno

vatio

n.co

m

new products fail more often

– “In consumer products industry, upwards of 85 percent of new products fail after a couple of years in the market” - Forrester Research

but....

20.10.2006

PRODUCTS & BRANDS

Slide 18

ww

w.m

aste

rsin

inno

vatio

n.co

m

innovation life cycles are getting shorter

– “Turnaround time on knock-offs is now measured in a few scant months” -BrandChannel

but....

20.10.2006

PRODUCTS & BRANDS

Slide 19

ww

w.m

aste

rsin

inno

vatio

n.co

m

and advertising is having less impact

– 37% of all advertising is waisted– 69% of consumers are interested in

products to skip or block marketing and advertising

but....

20.10.2006

PRODUCTS & BRANDS

Slide 20

ww

w.m

aste

rsin

inno

vatio

n.co

m

the world has changed

but....

20.10.2006

PRODUCTS & BRANDS

Slide 21

ww

w.m

aste

rsin

inno

vatio

n.co

m

a new media landscape– too much clutter– too much noise– too many channels– too much spam– customers want to participate

but....

20.10.2006

PRODUCTS & BRANDS

Slide 22

ww

w.m

aste

rsin

inno

vatio

n.co

m

creators have much better tools

but....

20.10.2006

PRODUCTS & BRANDS

Slide 23

ww

w.m

aste

rsin

inno

vatio

n.co

m

technology has advanced– more and more patents limit freedom for

innovation– bar for truly revolutionary innovation is getting

higher

but....

20.10.2006

PRODUCTS & BRANDS

Slide 24

ww

w.m

aste

rsin

inno

vatio

n.co

m so companies are struggling

– stakeholders resist innovation– R&D doesn't pay off– big ad spending doesn't pay off

but....

20.10.2006

PRODUCTS & BRANDS

Slide 25

ww

w.m

aste

rsin

inno

vatio

n.co

m

but they still need remarkable products

20.10.2006

PRODUCTS & BRANDS

Slide 26

ww

w.m

aste

rsin

inno

vatio

n.co

m

products that can transform the marketproducts that change the way we consume

20.10.2006

PRODUCTS & BRANDS

Slide 27

ww

w.m

aste

rsin

inno

vatio

n.co

m

a solution

20.10.2006

PRODUCTS & BRANDS

Slide 28

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation

•couple your product with a feature that the consumer might be attracted to•design products that change the way we experience consumption•focus on emotional values : design matters, styling matters, extra's matter•coherence between products and brand values

a solution

20.10.2006

PRODUCTS & BRANDS

Slide 29

ww

w.m

aste

rsin

inno

vatio

n.co

m

soft innovation isexperience centric

20.10.2006

PRODUCTS & BRANDS

Slide 30

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be about small gadgets

chopsticks for kids

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 31

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be about small gadgets

Ben & Jerry's pint lock

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 32

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be about limited editions

to create authenticity

VW Beetle styling art

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 33

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be about consumer

interaction to empower the experiencepersonalised bank card

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 34

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be about consumer

interactionNokia silence booth

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 35

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be about new product

categories to increase the experienceNike watches

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 36

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be about partnerships

Tiense suiker & Douwe Egberts

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 37

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be about partnerships

Nike & Ipod nano

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 38

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be about a new experience

Preva Xsport portable espresso maker

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 39

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be applied on machines,

terminals,...ATM's, vending machines, information terminals can create an experience and communicate your brand

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 40

ww

w.m

aste

rsin

inno

vatio

n.co

m soft innovation can be applied on machines,

terminals,...ATM's, vending machines, information terminals can create an experience and communicate your brand

soft innovation

20.10.2006

PRODUCTS & BRANDS

Slide 41

ww

w.m

aste

rsin

inno

vatio

n.co

m why should my company also invest in soft

innovation

why

20.10.2006

PRODUCTS & BRANDS

Slide 42

ww

w.m

aste

rsin

inno

vatio

n.co

m 1. soft innovation can build bridges between

marketing and R&D

why

20.10.2006

PRODUCTS & BRANDS

Slide 43

ww

w.m

aste

rsin

inno

vatio

n.co

m R&D thinks...

communication is• not about their products• only about emotions• expensive• overpromising

why

20.10.2006

PRODUCTS & BRANDS

Slide 44

ww

w.m

aste

rsin

inno

vatio

n.co

m but...

communication can be about innovation

why

20.10.2006

PRODUCTS & BRANDS

Slide 45

ww

w.m

aste

rsin

inno

vatio

n.co

m communication versus R&D investment ratio

from 3:1 ratio to 1,3:1

why

20.10.2006

PRODUCTS & BRANDS

Slide 46

ww

w.m

aste

rsin

inno

vatio

n.co

m marketing thinks...

R&D is• not consumer oriented• too slow• very expensive• not sexy

why

20.10.2006

PRODUCTS & BRANDS

Slide 47

ww

w.m

aste

rsin

inno

vatio

n.co

m but...

Seth Godin :“innovation is cheaper than advertising that interrupts you for things you don’t want”

why

20.10.2006

PRODUCTS & BRANDS

Slide 48

ww

w.m

aste

rsin

inno

vatio

n.co

m 2. soft innovation communicates the brand

valuessoft innovation is a valid route to expand your portfolio with products that communicate your brand values

why

20.10.2006

PRODUCTS & BRANDS

Slide 49

ww

w.m

aste

rsin

inno

vatio

n.co

m 3. soft innovation has more effect

differentiation strictly based on functional product features often leads to poor customer perception

why

20.10.2006

PRODUCTS & BRANDS

Slide 50

ww

w.m

aste

rsin

inno

vatio

n.co

m 4. soft innovation is effective

but when you get it fast and with limited resources to the market, other can also...

why

lowmediumhighmarket risk

lowmediumhightechnical risk

6-18 months1-3 years5-7 yearstime-to-market

derivateplatformbreakthrough

20.10.2006

PRODUCTS & BRANDS

Slide 51

ww

w.m

aste

rsin

inno

vatio

n.co

m so....productportfolio needs to be a good mix of

innovation levels (hard- en soft innovation)

why

20.10.2006

PRODUCTS & BRANDS

Slide 52

ww

w.m

aste

rsin

inno

vatio

n.co

m and....it only works if its a unique expression of

your brand values

why

20.10.2006

PRODUCTS & BRANDS

Slide 53

ww

w.m

aste

rsin

inno

vatio

n.co

m 5. drive soft innovation yourself

you don't have to be a scientist or a wacky creative

why

20.10.2006

PRODUCTS & BRANDS

Slide 54

ww

w.m

aste

rsin

inno

vatio

n.co

m

productbrigade

20.10.2006

PRODUCTS & BRANDS

Slide 55

ww

w.m

aste

rsin

inno

vatio

n.co

m product innovation

improving the user experience of existing product

product creationgenerating ideas for totally new product

solutions

productbrigade

20.10.2006

PRODUCTS & BRANDS

Slide 56

ww

w.m

aste

rsin

inno

vatio

n.co

m

20.10.2006

PRODUCTS & BRANDS

Slide 57

ww

w.m

aste

rsin

inno

vatio

n.co

m product brief

• product architecture and functional description• visuals, dummy• cost/benefit projection• feasibility check and risk analysis

productbrigade

20.10.2006

PRODUCTS & BRANDS

Slide 58

ww

w.m

aste

rsin

inno

vatio

n.co

m

example

20.10.2006

PRODUCTS & BRANDS

Slide 59

ww

w.m

aste

rsin

inno

vatio

n.co

m

conclusionthe virtues of soft Innovation– brand-supporting– good cost-benefit ratio– high perceived differentiation– fast to market

20.10.2006

PRODUCTS & BRANDS

Slide 60

ww

w.m

aste

rsin

inno

vatio

n.co

m

Verhaert New Products & Services nvHogenakkerhoekstraat 219150 KruibekeBelgiumTel +32 (0)3 250 19 00 Fax +32 (0)3 254 10 08www.verhaert.cominfo@verhaert.com

www.mastersininnovation.com