young marketers elite 2013 - assignment 6.1 - thien an - thao nghi

Download Young Marketers Elite 2013 - Assignment 6.1 - Thien An - Thao Nghi

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  • 1. What is brand innovation? Brand innovation is the process of harnessing creative ideas to meet business needs.

2. Brand innovation mix 1. 2. 3. 4. 5. 6.Product innovation Pricing innovation Channel innovation Communication innovation Process innovation Packaging innovation 3. 1. Product innovation 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.Sunsilk was the first one in FMCG to define limited product when launching Watermelon Sunsilk which was on sale for a summer. 4. 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 5. 3. Channel Innovation Channel innovation is the innovation in means employed to distribute goods or services from producers to consumers. 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. 6. 4. Communication innovation Communication innovation is innovation in a means of connecting people or places.Clear Functional message: anti-dandruff -> Emotional message: sexual attraction of healthy and beautiful hair 7. 5. Process innovation Process innovation means the implementation of a new or significantly improved production or delivery method (including significant changes in techniques, equipment and/or software).Amazon Sunday delivery They 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 thats 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 isnt 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. 8. 6. Packaging innovation Packaging 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, weve 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 downas we did literally with our Top-Down ketchup bottleis 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. 9. Innovation process Ideas FeasibilityRoll-out Contender Capability Launch PreparationWhat Can we do should we it? do?Make sure we can do it!Lets do it!Post-Launch EvaluationL A U N C HWas it a success?Roll-outLaunch Contract CharterOn shelf in first market(s)Recommend others to do the same 10. Example iPad FeasibilityIdeas Product innovation iPad Easy to useeven baby can use it Endless content Sexy looksCapabilityIDEAS TESTING RESEARCHMAKING TRIAL/ PROTOTYPE(Qualitative & Quantitative Research)Real experience of new product -> Finalize the complete iPadLaunch Post-launch evaluation Sales - share 15 mil iPads sold in 2010 - More than every Tablet PC ever sold - 9,5 bil $ - 90% market shareRoll-out contender