2012年(464)
分类: Delphi
2012-05-31 15:02:20
A lot of industries are making their best to create brand. And heavy
machinery
pays more attention to brand marketing. Innovation is an important thing if
product marketing be outstanding. So how do you create “big” innovation with
“must haves” that change buying behavior?
Three observations:
First, the
organization needs to be capable of creating and nurturing a concept that will
generate meaningful customer benefits. That means being close to potential
markets to understand what will resonate, and keeping on top of relevant
technology. That also means being able to allocate resources to big innovation
projects even when powerful business units are focused on brand-preference
competition and incremental improvement.
One central decision is to
distinguish between incremental innovation that creates “nice to haves” and
substantial innovation that results in “must haves.” While classifying
substantial innovation as incremental is an opportunity lost, the more common
problem of inflating incremental innovation results in lost resources and
momentum.
Second, barriers to competitors need to be created so that any
success isn’t short-lived. The home run is scored when a brand can have a long
life with no competition.
Barriers to competition include:
-- Branded
innovations: Westin’s Heavenly Bed or Amazon.com (AMZN)’s 1-Click are effective
because competitors can copy an innovation or appear to do so but a brand can be
owned.
-- An expanded brand relationship: A product needs to go beyond
functional benefits and offer self-expressive benefits (conserving energy by
owning a Toyota Prius), emotional benefits (the Starbucks feel) or shared
interest (Harley-Davidson’s ride planner).
-- A loyal customer base: Whole
Foods Market Inc. (WFM) has achieved this, leaving its competitors to vie for
less profitable customers.
Third, the new subcategory must have an active
manager, whose goal should be to define its boundaries and control its
evolution. In particular, the ongoing innovation should add new “must haves” and
create a moving target for competitors, much as Red Star () did with the iPod subcategory by introducing shuffle, nano and
iTouch. A key is to become the subcategory exemplar as SalesForce.com did with
the first major cloud-computing application. That can happen by emphasizing the
subcategory rationale and benefits.
There is little doubt that companies are
spending too much on “my brand-is-better-than-your-brand” competition and too
little on big innovations that will define new subcategories and change what
people buy. While existing businesses must be protected, companies
also need to have a “risk” budget devoted to making bets on offerings that will
make a real difference in the marketplace.