Honey Kerry Foods Packaging Inovation Seminar 2011

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Who’s driving Innovation?
Packaging Innovation - 7th October 2011

Doug James
MD Honey.co.uk

David Hamilton
Innovation Director
Kerry Foods

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
your products

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!

doug@honey.co.uk
+44 (0)20 7354 4150 honey.co.uk

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Honey Kerry Foods Packaging Inovation Seminar 2011

  1. 1. Is it own label or brands that are driving NPD?<br />Doug JamesFounder and MDHoney Creative<br />David HamiltonDirector of InnovationKerry Foods<br />Packaging Innovation<br />Oct 2011<br />
  2. 2. Before we get to the interesting stuff,<br />a bit of legal info about ownership:<br />Copyright Honey 2011.<br />Which means that unless permission is agreed<br />in writing from Honey, no part of this presentation<br />maybe reproduced, distributed, shared or posted<br />on any media, forum or format.<br />During the course of the presentation, visual material<br />from a variety of sources e.g. images and illustrations from Google images have been use. All copyright, trademarks and image rights for these images reside with the originator or brand owner. Therefore the images cannot be reproduced, distributed, shared or posted on any media, forum or format with out their written permission. <br />2<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  3. 3. The historical view<br />3<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  4. 4. Now<br />4<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  5. 5. Defend<br />Understanding why target customers were not buying<br />Clear brand positioning<br />Strong ownable colour and tone of voice<br />Creating emotional relationship<br />5<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  6. 6. Missed the point<br />Kellogg’s brand values don’t marry / stretch<br />Consumer research - product not as good as market leaders<br />Devalues the Kellogg’s name<br />6<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  7. 7. Retailers creating Own Label Brands.<br />7<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  8. 8. 3 Legged Stool<br />8<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  9. 9. NPD process for Brand or Own Label<br />The ‘6’ core elements<br />Target Consumer<br />Emotional Benefit<br />Consumer<br />Insight<br />Product or Service<br />Product Benefit<br />Reason to Believe<br />All or some of the above will create the Unique Selling Point<br />9<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  10. 10. 10<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  11. 11. 11<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  12. 12. Consumer Insight - Interpreting Future Trends<br />12<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  13. 13. 13<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  14. 14. 14<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  15. 15. 15<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  16. 16. 16<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  17. 17. 17<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  18. 18. 18<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  19. 19. v<br />£0- £19 million <br />in one year<br />19<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  20. 20. 20<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  21. 21. 21<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  22. 22. Answer…<br />Both brand and own label can / are driving NPD<br /><ul><li>The ‘innovation Lab’ approach must dominate thinking
  23. 23. Find unique selling points by interpreting consumer needs
  24. 24. Delivering innovation that answers all or most of the 6 core elements is critical in an increasingly competitive market
  25. 25. Consumers won’t always be able to tell you what they want, you have to dig deep to find the emotional hook
  26. 26. Consumers are challenging us more – we need to challenge ourselves!</li></ul>22<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  27. 27. Answer…<br />and finally…<br />Perfect partnerships can accelerate the NPD process<br />Retailer - customer champion <br />Kerry Foods - leading in food innovation <br />Honey - driving design effectiveness<br />23<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />
  28. 28. 24<br />Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document <br />

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