1. Product innovation
The development and market introduction of a new, redesigned or substantially improved good
or service. Examples of product innovation by a business might include a
new product's invention; technical specification and quality improvements made to a product; or the
inclusion of new components, materials or desirable functions into an existing product.
Sunsilk was the first one in FMCG to define
“limited product” when launching Watermelon
Sunsilk which was on sale for a summer.
2. Pricing innovation
Pricing innovation regards instances in which companies innovate their
pricing strategies, tactics, or organization or where companies use an
understanding of consumer psychology to change customer
perceptions of value and price.
Traditional pricing strategy: cost-based. Fixed pricing for aircraft engines; spare
parts sold with substantial mark-up (+300% over costs)
New pricing metric: ―Power by the hour‖: valued-based pricing for utilization
rights of aircraft engines; usage-based, variable, pricing inclusive of maintenance
and performance guarantee
-> high customer satisfaction; interest alignment; increased profitability
3. Channel Innovation
Channel innovation is the innovation in means employed to distribute
goods or services from producers to consumers.
Amazon has leveraged the Internet for distribution. By encouraging
customers to review and recommend books, they have created a
culture of peer advocacy and credible word-of-mouth.
4. Communication innovation
Communication innovation is innovation in a means of connecting
people or places.
Functional message: anti-dandruff -> Emotional message:
sexual attraction of healthy and beautiful hair
5. Process innovation
Process innovation means the implementation of a new or significantly improved production
or delivery method (including significant changes in techniques, equipment and/or software).
Amazon Sunday delivery
They have continued to get closer to their customers by building huge
warehouses nearer metropolitan areas. However, the last mile of
delivery between Amazon and customer has relied on other logistics
providers. And they have always refused to deliver on Sunday, because
that’s how it has always been. Until Amazon made a deal with the US
Post Office for deliveries on Sunday in certain cities, with other cities
planned for the coming months. What isn’t widely known is that the
USPS actually offers this service to any shipper, but Amazon is the first
to bring it out on a large scale.
6. Packaging innovation
Packaging innovation is the innovation in materials or processes
employed to contain, bundle, protect, and/or transport an article.
New Ideas That Make History Since 1869, we’ve made a name for ourselves by delivering pure foods and
superior quality in new ways that both surprised and delighted the consumer.
When founder Henry John Heinz introduced his fresh horseradish in a unique clear glass bottle, the concept of
full disclosure through packaging was unheard-of. Equally fresh was the notion that product packaging could
greatly enhance the appeal of the food inside. Today, Heinz continues to elevate the science of product
packaging to an art form.
Easier for You. Easier on the Earth. Turning packaging expectations upside down—as we did literally with our
Top-Down™ ketchup bottle—is a Heinz tradition. But dreaming up new ideas to make it easier to enjoy our
products is just the beginning.
The rest of the story involves our commitment to responsible, sustainable packaging.
The recent introduction of a lighter, easy-open can for products like Heinz® soup is packaging innovation that
benefits both the consumer and the environment. The cans’ lighter weight also reduces the overall weight to
transport them, saving fuel and improving efficiency.
Can we do
we can do
Was it a
On shelf in first
others to do
Example – iPad
Easy to useeven baby
can use it
Sales - share
15 mil iPads
sold in 2010
- More than
PC ever sold
- 9,5 bil $
- 90% market