Description
Innovation is the application of new solutions that meet new requirements, inarticulate needs, or existing market needs. This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments and society.
Business has only two functions.
Marketing and innovation
Peter. F. Drucker
New product
? ?
?
The profound impact on society, life… To belie the resistance to change it takes a a very brave or very foolish company Appreciation comes in hindsight.
“The document company”
This is not about copiers…
Xerox
? ? ? ?
Country of Origin: USA Brainchild of : Chester Carlson Invented category Past…
?
?
Between 1939 – 1944, rejected by 20 companies like GE, Kodak, IBM 1959 first plain paper copier. Named “ most successful product ever marketed in America” by fortune
xerox
?
Innovation
?
?
Xerox Palo Alto Research Centre(PARC) Xerox document University, Virginia Brand Name PR to turn first mover advantage to success
?
Marketing
? ?
? ?
It?s a $ 20 billion empire Eco friendly design and manufacturing saved Xerox $2 billion between 1991 - 2001
“Deep down you want a hoover”
Hoover
Country of Origin: USA ? Brainchild of : Murray Spangler ? Invented its category ? Visible improvement ? Past …
?
?
William hoover patented it in 1908. shifted from harnesses for horses and carts to suction sweepers to vacuum cleaners
Hoover
?
Innovation
Category ? wind tunnel system
?
?
Marketing
? Try
before you buy.
?
USA „s no.1 Vacuum cleaner
“Don’t leave home without it” “Do more cards”
American Express
Country of Origin: USA ? Invented category through foresight
?
? Past
?
1850 – Express Freight Company , active in American civil war; 1880 – physical cargo to finance fund transfer;
American Express
?
?
Innovation ? 1891 – “travellers? cheques pioneered ? 1958 Am ex card – consumer liberation Marketing ? Exclusivity through charge card credit rating ? Ultimate status symbol “ membership has its Privileges”; Richard Branson , brand ambassador ? Exclusivity and status to inclusivity and convenience
Stupendous ability to evolve World’s no. 1 travel agency, financial supermarket
? ?
“Ho shuru har din aise…”
Nescafe
Country of Origin: Switzerland ? Brainchild of : Max Morgenthaler ? Invent the category ? Past
?
?
7 years of intensive research on the behest of brazilian government.in the 30?s
Nescafe
?
Innovation
?
1952 pure soluble coffee, „65 freeze dried coffee, „67 granules, „94 full aroma
Popular and prestige continuum
? ? ?
Marketing
?
3,000 cups of nescafe being consumed every second Staple drink of the US armed force during WW II.
“Intelligence at work”
Sony
Country of Origin: Japan ? Brainchild of : Akio Morita & Masaru Ibika ? Past…
?
?
Radio repair firm 1946, first brand 1950. First
pdt rice cooker!
?
Continuous and radical innovation
Sony
?
Innovation
?
?
second name “pioneering spirit” Transistor radio, transistor TV, 1st colour video recorder, walk man, sony playstation, now connectivity between computing & home entertainment. Synergy between hardware and content – CBS records, columbia pictures, Sony music, sony pictures etc People buzz and support Slogan “products for people” Distrust for mkt research
?
Marketing
? ? ?
? ?
Walkman launched as soundabout in US, Stowaway in UK, Freestyle in Australia. Sony playstation 2 dominates the game console mkt with 70% global sales
There from the start…
ADIDAS
Country of Origin: Germany ? Brainchild of : Adolph Dassler ? Past…
?
?
? ?
1920. first show at olympics – 1928, Jesse Owens, Armin Hary, 1936 Equipment manager of the world Continuous innovation
Adidas
?
Innovation
?
?
Pdt innovation Material innovation
studs, spikes nylon shoes
?
Marketing Ideas
? ? ? ? ?
3 stripes, david beckham, Tim Duncan Sports brand to fashion brand Shoes to sports wear Sports performance line (70%), sports heritage line ( 25%), Sports Style line (5%). Spotting future trends thru ABCD camps, Basketball skill workshop
?
PR,, sponsorship, endorsements, testing of new pdts
?
? ?
Second largest in the sportings good industry 13% of group sales spent on marketing 60 new foot wear designs each year
Play safe
Durex
? ? ?
Country of Origin: UK Founded in 1915 as London Rubber Company Past
?
Producing condoms since 1929
?
First to provide lubricated condoms and also non latex condoms
?
Perceptual improvement
Durex
?
Innovation
? ?
?
Constant product improvement DUrability, REliability, EXcellence Knowledge and awareness platform for debate and discussion Brand name Sexual health ambassador Association with safety, sexual health, and responsibility Social responsibility to the heart of the business Distribution – supermarkets, bars, pharma chains.
?
Marketing
? ? ? ? ?
? ?
Market leader in 40 countries No. 1 brand in the world, accounting for 26% of the 4 Billion market.
“Engineered like no other car in the world…”
Mercedes Benz
Country of Origin: Germany ? Brainchild of : Karl Benz, Gottlieb Daimler ? Past…
?
?
1885 G. Daimler- first land vehicle with internal combustion engine, 1886 karl benz first car . 70 miles apart , took 40 years to get together.
?
Continuous innovation
Mercedes Benz
?
Innovation
?
Electro hydraulic system, fuel injection, sensotronic brake control system, Electronic stability program Explicit focus engineering, intrinsic focus prestige Now extending to penetrate the market- A, C class
?
Marketing
? ?
?
Mercedes Logo – vision to provide small engines to travel on land, sea and air
So which new products succeed?
? ? ? ? ? ?
Those that offer clear cut relative advantage
?
Xerox Mercedes benz Hoover Adidas American express, nescafe Sony, Durex
Compatible with existing Consumption patterns
?
Trialability
?
Easy to see advantage – observability
?
Simplicity of Usage
?
Novelty with a perceptual rationale
?
Most of the times they fail…
? ? ? ? ? ?
Inadequate planning Tanishq Insufficient superiority or uniqueness cool cats -polar Poor execution pepsi ruffles Technical problems color safe, cibaca lime Poor timing yoghurt, iced tea distribution betamax technology
What is a new product?
? ? ? ? ? ?
New to the world New product lines Addition to existing product line New improved version Repositioning Cost reduction
xerox LG Pears surf, lux livon- renue Simputer
Consumers Perspective on newness
?
Discontinuous innovation
?
New function never performed ever before
?
Hoover, jaipur foot
?
Dynamically continuous Innovation
?
Similar consumption pattern
?
Travellers cheques, Reva, scotch brite
?
Continuous innovation
?
Product modification
?
Merc, toyota, Mr. clean
Organisational support to NPD
? ?
Goal definition Budgeting
?
Idea screening, concept development, product development, test marketing, commercialisation
?
Organisational structure
?
? ? ?
Product managers New product managers New product teams Cross functional new venture / project temas
Why new products?
? ? ?
Changing consumer demands mobiles allied insurance covers New avenues for profits Combating environmental threats hoover
NPD Process
?
Idea generation
? ?
Interaction with employees, customers, designers, secondary sources etc walkman - morita and ibuka Creative techniques
?
Attribute listing and exchange, mind mapping and association, combining objects etc
NPD Process
?
Idea screening
? ?
Should be reasonable, compatible with organizational goals , appropriate for org. tgt mkt P and G model;
?
?
?
Is there a real customer need for this product? Does the org. have the techno ability to make the pdt? Is the potential large enough to promise profitability?
?
Drop error or a go error
NPD Process
?
Concept and strategy development
? ?
drug delivery systm
Concept development thru pdt positioning Thru competitive positioning
frito lays and pepsi
?
Concept testing- need, liking, willingness to buy
? ?
?
?
Detailed concept Rapid prototyping Virtual reality Conjoint analysis mkt share, STP, 4Ps, Cost vs profits. profit goals for 1-3-10 years, Breakeven analysis Seasonality, price elasticity, Demand estimation – substitution . End use methods
?
Marketing Strategy
?
?
Business Analysis
? ? ?
NPD Process
? Product
? ? ? ?
development
Customer attributes to Engineering attributes VOLVO Real prototype development Alpha testing melatonin, gilette, cars, durex, Beta testing clinical trials, Dow liquid tire chain spray
NPD Process
? Test
?
?
marketing
Sales wave research
Consumption patterns Promotional effectiveness, trial rates Shelf space success, local advertising and consumer beh.
?
Simulated test mktg
?
?
Controlled test mktg
?
NPD Process
?
Commercialisation ? When?
?
First, parallel, after the competition
? ?
? Transelectra?s Good night, allathrin based repellent Brand name Mother and child National TV promotion Dealer network Penetration thru cordless version Skim thru liquidator 50% mkt share of 100 cr. Mosquito repellant market
Where? How ? For whom ?
Product Introduction
Sales Costs Profits Customers
Low Very high production and marketing costs Negative Innovators, few
Competitors
Mktg Objectives Product
Negligible importance
Creating acceptance- fostreing pdt awarenss, trial purchase Basic design with inherent compt. Advantage
Place
Price promotion
Selective distribution, being slowly built up
High to recover some expenses Informative, high buzz
Advertising
Sales promotion
To build awareness among customers and dealers
Heavy to entice trial.
Growth
Sales Costs Profits Customers Competitors Mktg Objectives
Rapid growth Lower than intro stage, closer to averaging out Reach peak level as a result of high price and demand Early adopters Growing Mkt penetration and expansion to maximise share
Product
Place
Pdt improvements , service, warranties, expand pdt line
Intensive, fewer trade discounts as dealers eager to stock up
Price
promotion
High to take advantage of high demand; turn penetrative
Persuasive to build loyalty and pdt differentiation
Advertising
Sales promotion
Enhance awareness and interest
Reduce to take advantage of heavy demand
Maturity
Sales Costs Profits Customers Competitors
Slow growth, peak values Low cost per customer High but rising competition begins to eat in Mid majority Many rivals
Mktg Objectives
Product Place Price promotion Advertising Sales promotion
Defense of mkt share, Brand position, maximise profit
Induce Product differentiation, fuller pdt lines, pdt -brand extns Intensive to retain shelf space, heavy trade allowances Competitive pricing, what the mkt may bear Extensive to retain key existng cust. And induce br. switch Stress brand Difference, benefits Enhanced to encourage brand switching
Decline
Sales Costs Profits Customers Competitors Mktg Objectives Product Place Price promotion Advertising Sales promotion
Declining Low Declining volumes lead tom dithering profits Laggards Few, shakeout of weak members Reduce expenses, sqeeze all possible benefits and prepare to withdraw sustain best sellers; phase out the rest of pdt lines Selesctive , phase out unprofitable ones Cut, liquidate inventory Minimal or none Minimal, local or none Minimal to clear stocks
Consumer adoption Process
Innovators
? ?
Early adopters Early Majority
? ? ? ? ?
Late majority Laggards
? ?
Hold outs
? ?
Venturesome Dare, different, younger Better educated ~fin. stable
Self confident, income Well read, aware High usage rate Opinion leaders influencers
?
?
?
Solid, mid. Class consumers Deliberate & cautious Avg. socio status
?
Less edu, fin. Stable Older , conservative Reluctant to change
?
?
Lowest in socioeco. Status Highly resistant to go against convention
doc_504253766.pptx
Innovation is the application of new solutions that meet new requirements, inarticulate needs, or existing market needs. This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments and society.
Business has only two functions.
Marketing and innovation
Peter. F. Drucker
New product
? ?
?
The profound impact on society, life… To belie the resistance to change it takes a a very brave or very foolish company Appreciation comes in hindsight.
“The document company”
This is not about copiers…
Xerox
? ? ? ?
Country of Origin: USA Brainchild of : Chester Carlson Invented category Past…
?
?
Between 1939 – 1944, rejected by 20 companies like GE, Kodak, IBM 1959 first plain paper copier. Named “ most successful product ever marketed in America” by fortune
xerox
?
Innovation
?
?
Xerox Palo Alto Research Centre(PARC) Xerox document University, Virginia Brand Name PR to turn first mover advantage to success
?
Marketing
? ?
? ?
It?s a $ 20 billion empire Eco friendly design and manufacturing saved Xerox $2 billion between 1991 - 2001
“Deep down you want a hoover”
Hoover
Country of Origin: USA ? Brainchild of : Murray Spangler ? Invented its category ? Visible improvement ? Past …
?
?
William hoover patented it in 1908. shifted from harnesses for horses and carts to suction sweepers to vacuum cleaners
Hoover
?
Innovation
Category ? wind tunnel system
?
?
Marketing
? Try
before you buy.
?
USA „s no.1 Vacuum cleaner
“Don’t leave home without it” “Do more cards”
American Express
Country of Origin: USA ? Invented category through foresight
?
? Past
?
1850 – Express Freight Company , active in American civil war; 1880 – physical cargo to finance fund transfer;
American Express
?
?
Innovation ? 1891 – “travellers? cheques pioneered ? 1958 Am ex card – consumer liberation Marketing ? Exclusivity through charge card credit rating ? Ultimate status symbol “ membership has its Privileges”; Richard Branson , brand ambassador ? Exclusivity and status to inclusivity and convenience
Stupendous ability to evolve World’s no. 1 travel agency, financial supermarket
? ?
“Ho shuru har din aise…”
Nescafe
Country of Origin: Switzerland ? Brainchild of : Max Morgenthaler ? Invent the category ? Past
?
?
7 years of intensive research on the behest of brazilian government.in the 30?s
Nescafe
?
Innovation
?
1952 pure soluble coffee, „65 freeze dried coffee, „67 granules, „94 full aroma
Popular and prestige continuum
? ? ?
Marketing
?
3,000 cups of nescafe being consumed every second Staple drink of the US armed force during WW II.
“Intelligence at work”
Sony
Country of Origin: Japan ? Brainchild of : Akio Morita & Masaru Ibika ? Past…
?
?
Radio repair firm 1946, first brand 1950. First
pdt rice cooker!
?
Continuous and radical innovation
Sony
?
Innovation
?
?
second name “pioneering spirit” Transistor radio, transistor TV, 1st colour video recorder, walk man, sony playstation, now connectivity between computing & home entertainment. Synergy between hardware and content – CBS records, columbia pictures, Sony music, sony pictures etc People buzz and support Slogan “products for people” Distrust for mkt research
?
Marketing
? ? ?
? ?
Walkman launched as soundabout in US, Stowaway in UK, Freestyle in Australia. Sony playstation 2 dominates the game console mkt with 70% global sales
There from the start…
ADIDAS
Country of Origin: Germany ? Brainchild of : Adolph Dassler ? Past…
?
?
? ?
1920. first show at olympics – 1928, Jesse Owens, Armin Hary, 1936 Equipment manager of the world Continuous innovation
Adidas
?
Innovation
?
?
Pdt innovation Material innovation
studs, spikes nylon shoes
?
Marketing Ideas
? ? ? ? ?
3 stripes, david beckham, Tim Duncan Sports brand to fashion brand Shoes to sports wear Sports performance line (70%), sports heritage line ( 25%), Sports Style line (5%). Spotting future trends thru ABCD camps, Basketball skill workshop
?
PR,, sponsorship, endorsements, testing of new pdts
?
? ?
Second largest in the sportings good industry 13% of group sales spent on marketing 60 new foot wear designs each year
Play safe
Durex
? ? ?
Country of Origin: UK Founded in 1915 as London Rubber Company Past
?
Producing condoms since 1929
?
First to provide lubricated condoms and also non latex condoms
?
Perceptual improvement
Durex
?
Innovation
? ?
?
Constant product improvement DUrability, REliability, EXcellence Knowledge and awareness platform for debate and discussion Brand name Sexual health ambassador Association with safety, sexual health, and responsibility Social responsibility to the heart of the business Distribution – supermarkets, bars, pharma chains.
?
Marketing
? ? ? ? ?
? ?
Market leader in 40 countries No. 1 brand in the world, accounting for 26% of the 4 Billion market.
“Engineered like no other car in the world…”
Mercedes Benz
Country of Origin: Germany ? Brainchild of : Karl Benz, Gottlieb Daimler ? Past…
?
?
1885 G. Daimler- first land vehicle with internal combustion engine, 1886 karl benz first car . 70 miles apart , took 40 years to get together.
?
Continuous innovation
Mercedes Benz
?
Innovation
?
Electro hydraulic system, fuel injection, sensotronic brake control system, Electronic stability program Explicit focus engineering, intrinsic focus prestige Now extending to penetrate the market- A, C class
?
Marketing
? ?
?
Mercedes Logo – vision to provide small engines to travel on land, sea and air
So which new products succeed?
? ? ? ? ? ?
Those that offer clear cut relative advantage
?
Xerox Mercedes benz Hoover Adidas American express, nescafe Sony, Durex
Compatible with existing Consumption patterns
?
Trialability
?
Easy to see advantage – observability
?
Simplicity of Usage
?
Novelty with a perceptual rationale
?
Most of the times they fail…
? ? ? ? ? ?
Inadequate planning Tanishq Insufficient superiority or uniqueness cool cats -polar Poor execution pepsi ruffles Technical problems color safe, cibaca lime Poor timing yoghurt, iced tea distribution betamax technology
What is a new product?
? ? ? ? ? ?
New to the world New product lines Addition to existing product line New improved version Repositioning Cost reduction
xerox LG Pears surf, lux livon- renue Simputer
Consumers Perspective on newness
?
Discontinuous innovation
?
New function never performed ever before
?
Hoover, jaipur foot
?
Dynamically continuous Innovation
?
Similar consumption pattern
?
Travellers cheques, Reva, scotch brite
?
Continuous innovation
?
Product modification
?
Merc, toyota, Mr. clean
Organisational support to NPD
? ?
Goal definition Budgeting
?
Idea screening, concept development, product development, test marketing, commercialisation
?
Organisational structure
?
? ? ?
Product managers New product managers New product teams Cross functional new venture / project temas
Why new products?
? ? ?
Changing consumer demands mobiles allied insurance covers New avenues for profits Combating environmental threats hoover
NPD Process
?
Idea generation
? ?
Interaction with employees, customers, designers, secondary sources etc walkman - morita and ibuka Creative techniques
?
Attribute listing and exchange, mind mapping and association, combining objects etc
NPD Process
?
Idea screening
? ?
Should be reasonable, compatible with organizational goals , appropriate for org. tgt mkt P and G model;
?
?
?
Is there a real customer need for this product? Does the org. have the techno ability to make the pdt? Is the potential large enough to promise profitability?
?
Drop error or a go error
NPD Process
?
Concept and strategy development
? ?
drug delivery systm
Concept development thru pdt positioning Thru competitive positioning
frito lays and pepsi
?
Concept testing- need, liking, willingness to buy
? ?
?
?
Detailed concept Rapid prototyping Virtual reality Conjoint analysis mkt share, STP, 4Ps, Cost vs profits. profit goals for 1-3-10 years, Breakeven analysis Seasonality, price elasticity, Demand estimation – substitution . End use methods
?
Marketing Strategy
?
?
Business Analysis
? ? ?
NPD Process
? Product
? ? ? ?
development
Customer attributes to Engineering attributes VOLVO Real prototype development Alpha testing melatonin, gilette, cars, durex, Beta testing clinical trials, Dow liquid tire chain spray
NPD Process
? Test
?
?
marketing
Sales wave research
Consumption patterns Promotional effectiveness, trial rates Shelf space success, local advertising and consumer beh.
?
Simulated test mktg
?
?
Controlled test mktg
?
NPD Process
?
Commercialisation ? When?
?
First, parallel, after the competition
? ?
? Transelectra?s Good night, allathrin based repellent Brand name Mother and child National TV promotion Dealer network Penetration thru cordless version Skim thru liquidator 50% mkt share of 100 cr. Mosquito repellant market
Where? How ? For whom ?
Product Introduction
Sales Costs Profits Customers
Low Very high production and marketing costs Negative Innovators, few
Competitors
Mktg Objectives Product
Negligible importance
Creating acceptance- fostreing pdt awarenss, trial purchase Basic design with inherent compt. Advantage
Place
Price promotion
Selective distribution, being slowly built up
High to recover some expenses Informative, high buzz
Advertising
Sales promotion
To build awareness among customers and dealers
Heavy to entice trial.
Growth
Sales Costs Profits Customers Competitors Mktg Objectives
Rapid growth Lower than intro stage, closer to averaging out Reach peak level as a result of high price and demand Early adopters Growing Mkt penetration and expansion to maximise share
Product
Place
Pdt improvements , service, warranties, expand pdt line
Intensive, fewer trade discounts as dealers eager to stock up
Price
promotion
High to take advantage of high demand; turn penetrative
Persuasive to build loyalty and pdt differentiation
Advertising
Sales promotion
Enhance awareness and interest
Reduce to take advantage of heavy demand
Maturity
Sales Costs Profits Customers Competitors
Slow growth, peak values Low cost per customer High but rising competition begins to eat in Mid majority Many rivals
Mktg Objectives
Product Place Price promotion Advertising Sales promotion
Defense of mkt share, Brand position, maximise profit
Induce Product differentiation, fuller pdt lines, pdt -brand extns Intensive to retain shelf space, heavy trade allowances Competitive pricing, what the mkt may bear Extensive to retain key existng cust. And induce br. switch Stress brand Difference, benefits Enhanced to encourage brand switching
Decline
Sales Costs Profits Customers Competitors Mktg Objectives Product Place Price promotion Advertising Sales promotion
Declining Low Declining volumes lead tom dithering profits Laggards Few, shakeout of weak members Reduce expenses, sqeeze all possible benefits and prepare to withdraw sustain best sellers; phase out the rest of pdt lines Selesctive , phase out unprofitable ones Cut, liquidate inventory Minimal or none Minimal, local or none Minimal to clear stocks
Consumer adoption Process
Innovators
? ?
Early adopters Early Majority
? ? ? ? ?
Late majority Laggards
? ?
Hold outs
? ?
Venturesome Dare, different, younger Better educated ~fin. stable
Self confident, income Well read, aware High usage rate Opinion leaders influencers
?
?
?
Solid, mid. Class consumers Deliberate & cautious Avg. socio status
?
Less edu, fin. Stable Older , conservative Reluctant to change
?
?
Lowest in socioeco. Status Highly resistant to go against convention
doc_504253766.pptx