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Who’s driving Innovation?
Packaging Innovation - 7th October 2011
The City Kitchen
Honey - Kerry - Tesco Partnership
Sale £0 - £19 million in the first year
Up to a very few years ago, that was a very simple
question to answer. Brand owners had the expertise,
the emotional connection with their customers,
the focus, the history and, of course, the resources.
Retailers had control of their space, were quick
to react and to copy and were highly aggressive.
As a result, much proprietary brand innovation became
cautious and defensive. Then the retailers, led in this
instance by M&S, created the fresh meal category.
For historical reasons of vested interest and logistics issues,
no major brand had staked out this space. It was an area
where innovation and segmentation offered near endless
possibilities and the retailers partnered up with enterprising
manufacturers. As things progressed, the retailers found
opportunities to create greater margin by marketing focused
ranges, at first functional – e.g. low cal – then with a
more hearts and minds, emotional focus – e.g. City Kitchen.
In other words, innovative brands. We are now at the
point where their brands, such as Finest, Chosen by You,
Taste the Difference are among the biggest and most
recognised in the country and segmented ranges such
as Waitrose Seriously… and Menu or Tesco’s Ken Hom
carve out strong niches.
At the other end of the spectrum, proprietary brand owners
have realised that a defensive strategy only leads to gradual
decline. Lead times have been radically reduced and short
term innovations introduced to test and reignite the market.
But in the gallop towards innovation, it is easy to lose
sight of the essential ingredients of success. The simple
but critical checklist is:
Target Consumer – Identification
and clear definition of those who will ultimately be using
Consumer Insight - The new piece of understanding that
establishes the need or desire for the benefit
Product or Service Descriptor - Information needed
to fully understand the benefit delivered
Reason to Believe - The support for how / why the idea can
deliver the benefit
Product Benefit - The tangible difference the idea makes
in a consumer’s life
Emotional Benefit - The difference the idea makes to how a consumer feels.
We all know the list and there’s more besides. But, judging by
the percentage of failures among new products, it is clear that
there is simply not enough real original thinking going on.
Honey - Commercial Brand Partners:
Commercial Planning, NPD Innovation, Branding, Design, Digital and Marketing.
6 DBA Design Effectiveness Awards in 3 years, makes Honey the UKs most successful new agency ever!
+44 (0)20 7354 4150 honey.co.uk
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