My Starbucks Idea: Open Innovation vs Marketing
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My Starbucks Idea: Open Innovation vs Marketing

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My Starbucks Idea: Open Innovation vs Marketing Presentation Transcript

  • 1. © Imperial College Business School Tutorial: Starbucks Strategic Marketing – SUMMER SCHOOL 2013 1 Crowdsourcing, Marketing & Open Innovation
  • 2. © Imperial College Business School Today’s Session 2 What we are going to cover… • Three things from Tuesday’s lecture on e-retail, seo and open innovation? • Recap from the Starbuck’s Case Study: – Digital marketing operations in the US – Digital marketing operations in China – My Starbucks Idea • Truly understanding Open Innovation
  • 3. © Imperial College Business School Tuesday’s Lecture 3 Key Digital Marketing Concepts Three things from Tuesday’s lecture on e-retail, seo and open innovation? 1. List six ways digital has impacted traditional retailing. 2. Name some digital touchpoints? At what stage are they important? 3. Difference between multi-channel vs omnichannel marketing?
  • 4. Starbucks Digital Marketing 4 Omnichannel Marketing Experience in the US? SOCIAL LOCAL WEB / MOBILE
  • 5. Starbucks Digital Marketing 5 Omnichannel Marketing Experience in China? SOCIAL LOCAL WEB / MOBILE
  • 6. © Imperial College Business School What is Open Innovation? 6 ‘My Starbucks Idea’ Open Innovation Campaign
  • 7. © Imperial College Business School Starbucks Case 7 Source of new product innovations?
  • 8. © Imperial College Business School What is Open Innovation? 8 Getting under the skin of a very ‘hot’ concept Definition: - Open innovation is the use of purposive inflows and outflows of knowledge to accelerate product innovation and expand the market - Open platforms or spaces where customers employees and other stakeholders can provide input and ideas. Marketing Benefits: - User engagement and promotion / direct marketing - Customer insight, real product development, personalisation
  • 9. © Imperial College Business School What is Open Innovation? 9 How do companies use (or understand) it?
  • 10. © Imperial College Business School Marketing or Innovation? 10 What does the firm actually want? Marketing: - Increase brand/product awareness and identification - Increase interaction with brand/product Innovation: access and transfer external knowledge - About problems: what are their needs? - About solutions: can they solve problems you have?
  • 11. Example: BP Oil Spill 11 VIDEO: How did they use Open Innovation? - Call for ideas to solve the Gulf of Mexico disaster. - More than 120,000 ideas received; many acknowledged to be innovative - Not a single one implemented
  • 12. Example: Toyota 12 VIDEO: How did they use Open Innovation?
  • 13. © Imperial College Business School Where to get good ideas? 13 The importance of lead users Lead users: - Have needs that foreshadow demand in the marketplace - Expect to obtain high benefit from a solution - Innovate to solve problems at private expense Examples of consumer product innovations…
  • 14. © Imperial College Business School Where to get good ideas? 14 The importance of lead users Lead users: - Have needs that foreshadow demand in the marketplace - Expect to obtain high benefit from a solution - Innovate to solve problems at private expense Examples of consumer product innovations…
  • 15. Lead users in unusual places 15 The story behind Play-Doh?
  • 16. ‘Innomediaries’ 16 Source of new ideas and solutions to problems Colgate-Palmolive: Getting fluoride into toothpaste tubes
  • 17. © Imperial College Business School Example: Nestlé 17 Toolkits at Nestle Foodservices Line of business: Customised food for restaurant chains i.e. Mexican dressing for Taco Bell Problem: Ingredients and process are different in industrial production requiring many iterations Solution: Nestle offers toolkit with ingredients used in industrial production – error free! Result: Reduction of development time (prototype to large scale production) from 26 to 3 weeks!
  • 18. © Imperial College Business School Example: Threadless 18 Community-based business model VIDEO Threadless is a t-shirt company with unique designs for its clothing, yet it spends nothing on copyright, design or marketing Q. How do they do it? What are the benefits?