This document provides an overview of marketing innovation from the perspective of Nicolai Elmqvist, CEO of the creative digital agency Konstellation. Some key points: - Konstellation's core products are marketing innovation and brand activation. Marketing innovation involves creating new products, services, or experiences using media and technology in novel ways. - Marketing innovation supports a company's core business and is meant as an additive way to achieve strong results and business goals, not as a new line of business. It can grow into something bigger if successful. - Examples of successful marketing innovations are provided, like Danske Bank's MobilePay payment service and a campaign by Fridge Raiders chips targeting gamers. -

1. NEW OPPORTUNITIES VIA
MARKETING INNOVATION

2. DEAR READER
!
HI, MY NAME IS NICOLAI, AND I’M CEO & PARTNER IN THE CREATIVE DIGITAL AGENCY
KONSTELLATION. OUR AGENCY HAS A PASSION FOR PROJECTS THAT CREATE EXCITING USER
EXPERIENCES AND VALUE. OUR CORE PRODUCTS ARE MARKETING INNOVATION AND BRAND
ACTIVATION.
WE’VE BEEN INVOLVED WITH MARKETING INNOVATION FOR THE PAST 4 YEARS. IN 2013, WE
WERE VERY HONORED TO WIN SEVERAL INTERNATIONAL AWARDS FOR THE WORK WE DID FOR
MEDICINS SANS FRONTIERS - DOCTORS WITHOUT BORDERS.
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DURING THE AGENCY’S LIFETIME, 3 OTHER COMPANIES HAVE BEEN BORN OUT OF THE
KONSTELLATION FAMILY. ONE OF THEM, “BITBUCKET”, WAS SOLD IN 2010 TO THE AUSTRALIAN
COMPANY ATLASSIAN.
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I LOOK FORWARD TO SHARING OUR THOUGHTS ON MARKETING INNOVATION IN THE
FOLLOWING SLIDES. I HOPE TO INSPIRE YOU AND GIVE YOU A FEW NEW IDEAS AND
PERSPECTIVES TO TAKE HOME WITH YOU.
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BEST REGARDS,
NICOLAI ELMQVIST
CEO & PARTNER
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+29 44 41 08
ne@konstellation.dk
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dk.linkedin.com/in/elmqvist/
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3. WHAT IS
MARKETING INNOVATION?
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4. Wanna play?
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5. MARKETING INNOVATION MEANS WE CREATE PRODUCTS,
SERVICES OR EXPERIENCES THAT USE MEDIA AND
TECHNOLOGY IN SURPRISING NEW WAYS.
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6. MARKETING INNOVATION IS AN ALTERNATIVE TO
NORMAL MARKETING. IT FUNCTIONS AS AN ADD-ON
FOR ACHIEVING STRONG RESULTS. MARKETING
INNOVATION SHOULD BE USED AS A BOOST THAT
WILL ENABLE A BUSINESS TO REACH ITS GOALS.
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7. MARKETING INNOVATION SUPPORTS YOUR CORE
BUSINESS AND BUILDS UPON THE THINGS YOU ALREADY
DO WELL.
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IT IS NOT A NEW LINE OF BUSINESS. IT’S MORE OF A
MARKETING INITIATIVE THAT CAN GROW INTO
SOMETHING BIGGER - IF IT’S DONE RIGHT.
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8. CORE BUSINESS
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9. WHAT VALUE DOES
MARKETING INNOVATION
CREATE FOR YOUR
CUSTOMERS?
Experience
Sweet spot
New and exciting experiences
Services that make our daily lives easier
New clever products / tools
Product
Service
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10. WHAT VALUE DOES
MARKETING INNOVATION
CREATE FOR YOUR BRAND?
Leads / new customers
Competitive advantages
Bottom line
Dynamic and edgy
A new service, product or
line of business
Customer loyalty
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11. 3 EXAMPLES
ATTRACT NEW CUSTOMERS
DANSKE BANK’S MOBILEPAY IS A GOOD EXAMPLE OF A SERVICE THAT HAS MADE IT EASIER FOR PEOPLE TO
TRANSFER MONEY TO EACH OTHER - EVEN PEOPLE WHO ARE NOT CUSTOMERS OF DANSKE BANK. MOBILEPAY
IS A STRONG SOLUTION THAT MAKES DAILY LIFE JUST A LITTLE BIT EASIER. IT HAS BEEN A WAY FOR DANSKE
BANK TO PROVE THAT IT SETS NEW STANDARDS FOR DIGITAL SERVICE PRODUCTS.
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SOCIAL VALUE FOR DONATIONS
LIKES FOR DONATIONS IS A SOCIAL DONATION PLATFORM THAT MAKES IT POSSIBLE FOR USERS TO DONATE
MONEY FOR A GOOD CAUSE BY ACTIVATING FACEBOOK FRIENDS. THIS CREATES SOCIAL VALUE FOR THE USER
AS WELL AS INCREASED AWARENESS AND DONATIONS TO THE CHARITY - IN THIS CASE, DOCTORS WITHOUT
BORDERS.
SEE CASE VIDEO HERE: http://vimeo.com/61092852
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WIN OVER A TARGET AUDIENCE
FRIDGE RAIDERS (A BRAND OF SNACK CHIPS) CREATED A CAMPAIGN TARGETED TOWARDS ONE SPECIFIC
SEGMENT: GAMERS. THEY ACTIVATED THIS TARGET GROUP TO CO-CREATE A GAMING HELMET THAT MADE IT
POSSIBLE TO SNACK AND GAME AT THE SAME TIME. THIS WAS A HUGE SUCCESS AND AFTERWARDS, THE
USERS WANTED THE HELMET PUT INTO PRODUCTION.
SEE CASE VIDEO HERE: http://vimeo.com/67875725
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12. Marketing Innovation
VS.
Product Development
THERE WILL ALWAYS BE GREY AREAS, BUT AS A POINT OF
DEPARTURE, MARKETING INNOVATION ACTS TO SUPPORT THE
CORE BUSINESS. FROM THERE, IT MIGHT DEVELOP INTO A NEW
LINE OF BUSINESS IF EVERYTHING GOES WELL. IF THAT
HAPPENS, MARKETING INNOVATION WILL THEN TRANSFORM
INTO PRODUCT DEVELOPMENT.
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13. Marketing Innovation
- Supports the core business
Product Development
- A new line of business
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14. NIKE+
FROM MARKETING INNOVATION TO PRODUCT DEVELOPMENT
NIKE+ IS A GOOD EXAMPLE OF A MARKETING EXERCISE THAT HAS DEVELOPED INTO SEVERAL NEW PRODUCT
LAUNCHES.
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IT ALL STARTED WITH A FREE COMMUNITY WHICH SLOWLY ADDED NEW EXTRA PRODUCTS AND NEW
DIMENSIONS TO THE EXPERIENCE OF SPORTS. IN THE BEGINNING, THE FOCUS WAS ON RUNNING. BUT WITH
THE LAUNCH OF THE NIKE FUEL BAND LAST YEAR, NIKE HAS NOW REACHED OUT TO MORE OR LESS EVERY
TYPE OF SPORT. NIKE+ STARTED AS A MARKETING EXERCISE AND HAS EVOLVED INTO AN ACTUAL BUSINESS
LINE OF DIGITAL PRODUCTS THAT SUPPORT NIKE’S CORE BUSINESS.
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MY OWN EXPERIENCE WITH NIKE FUEL BAND IS THAT IT IS REALLY MOTIVATING - EVEN ON DAYS WHERE YOU
DON’T REACH YOUR GOAL. FOR EXAMPLE, MY DAILY GOAL OF REACHING 3000 POINTS DEMANDS A MINIMUM OF
30 MINUTE RUN AND A GOOD LONG WALK IF THE REMAINING TIME IS SPENT IN A OFFICE CHAIR OR ON THE
COUCH.
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SEE CASE VIDEO ABOUT NIKE FUEL BAND: http://www.youtube.com/watch?v=dG0vLFFtZDs
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15. MARKETING INNOVATION
IS FOR EVERYBODY!
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16. RED TOMATO
IF YOU’RE WILLING TO TAKE THE PLUNGE INTO MARKETING INNOVATION, EVEN SMALL BUDGETS
CAN TAKE YOU A LONG WAY. LET ME TELL YOU ABOUT ONE OF MY FAVORITE CASE EXAMPLES FROM
LAST YEAR.
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A SMALL PIZZA JOINT IN DUBAI SHOWED HOW TO CREATE GREAT VALUE FOR BOTH USERS AND THE
BRAND WITH A VERY SIMPLE SOLUTION: A V.I.P. REFRIGERATOR MAGNET.
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THIS IS A SPECIAL MAGNET. ALL THAT YOU THE CUSTOMER HAD TO DO IS PRESS THE MAGNET - ONE
SIMPLE PRESS - AND A HOT, TASTY PIZZA WAS DELIVERED STRAIGHT TO YOUR DOOR.
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THE BUDGET FOR THIS MARKETING INNOVATION WAS 9000 US DOLLARS. SALES INCREASED 500%
AND THE MEDIA BUZZ WAS WORTH 8 MILLION DOLLARS. THIS LITTLE GIMMICK SHOWS SOME OF
THE GREAT OPPORTUNITIES AVAILABLE FOR COMPANIES THAT DARE TO THINK DIFFERENTLY.
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SEE CASE VIDEO HERE: http://www.youtube.com/watch?v=-Y51eqhlnRY
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17. HOW TO AVOID
CRASHING ON THE WAY
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18. PROCESS
THERE ISN’T JUST ONE CLEAR WAY TO WORK WITH MARKETING INNOVATION. THE DIAGRAM BELOW
IS AN EXAMPLE OF A PROCESS WHICH WILL PROVIDE YOU WITH FAST CONCRETE SOLUTIONS AND
MINIMIZE THE RISK OF HAVING AN END PRODUCT THAT WAS NOT EXACTLY WHAT YOU HOPED FOR.
Purpose
Innovations
process
Prototyping
Pre-launch
Production
Launch
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19. HOW SHOULD
WE INVEST?
BEHIND EVERY SUCCESSFUL MARKETING INNOVATION THERE’S AN INVESTMENT. THIS MEANS YOU
SHOULD RESERVE A CERTAIN AMOUNT FOR EXPERIMENTS. COCA COLA HAS A 70 / 20 / 10 PRINCIPLE
IN WHICH 70 % GOES TO BREAD & BUTTER TARGETING OF THE PUBLIC AT LARGE, 20 % GOES TO
TOMORROW’S BREAD & BUTTER, AND THE FINAL 10 % IS USED FOR EXPERIMENTS. WITHIN THE 10
% THERE WILL BE BOTH SUCCESSES AND FAILURES, BUT COCA COLA LEARNS FROM BOTH.
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COCA COLA CONTENT 2020 PART 1 & 2: http://www.youtube.com/watch?v=G1P3r2EsAos
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20. WHAT WILL YOU GAIN?
DECIDE WHAT MARKETING INNOVATION SHOULD DO FOR YOUR COMPANY. FRAME THE IDEA, BUT
KEEP YOUR OPTIONS OPEN. NEW IDEAS MIGHT ARISE DURING THE PROCESS THAT COULD GIVE AN
EVEN GREATER RETURN ON YOUR INVESTMENT.
Leads / new customers
Bottom line
Competitive advantage
Dynamic and egde
Customer loyalty
A new product, service or
line of business
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21. IS THE ORGANIZATION READY?
ONCE YOU HAVE SETTLED ON A BUDGET, YOU HAVE TO ENSURE THAT YOUR ORGANIZATION
SUPPORTS YOU. IT’S IMPORTANT THAT YOU HAVE ALL THE NECESSARY RESOURCES TO TAKE YOU
TOWARDS YOUR GOAL. MAYBE I.T. AND SALES HAVE A LOT OF USEFUL DATA OR MAYBE R&D IS
ALREADY DOING SIMILAR PROJECTS OR DEVELOPING OTHER VALUABLE RESOURCES THAT MIGHT
BE AT YOUR DISPOSAL. IT’S ALSO VERY IMPORTANT THAT TOP MANAGEMENT UNDERSTANDS THE
NEW DIRECTION YOUR COMPANY IS TAKING WITH MARKETING INNOVATION. IF EVERYTHING GOES
WELL IT MIGHT RESULT IN A NEW LINE OF BUSINESS.
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FOR LARGE GLOBAL COMPANIES, RESOURCES MIGHT ALSO BE FOUND IN LOCAL MARKETS. BUT
KEEP IN MIND THAT NEW TECHNOLOGY QUICKLY BECOMES YESTERDAY’S NEWS. IF YOUR SEARCH
FOR FUNDS DEMANDS A WORLD TOUR, YOU RISK THAT YOUR IDEA WILL BECOME OUTDATED OR
THAT OTHERS WILL BEAT YOU TO IT BEFORE YOU HAVE A CHANCE TO LAUNCH.
Management
Sales
IT
Lokale market
Marketing
R&D
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22. EXPLORE!
THINK WHITELABEL
IF YOU HAVE A BACKGROUND IN MARKETING AND HAVE BEEN DOING ADS AND TV COMMERCIALS FOR MANY YEARS, THE
FOLLOWING MIGHT FEEL VERY TRANSGRESSIVE: WHEN WORKING WITH MARKETING INNOVATION, THE BEST THING IS OFTEN
TO FORGET ALL ABOUT THE BRAND’S DNA, IMAGE AND OTHER MARKETING-RELATED TERMS. THESE BUSINESS PRACTICES
OFTEN FILTER OUT INSTEAD OF PROMOTE GREAT NEW IDEAS. MY ADVICE IS TO THINK IN WHITE LABEL SOLUTIONS.
MARKETING INNOVATION IS RARELY RELATED TO ONE SPECIFIC BRAND. ITS ABOUT THE VALUE IT BRINGS TO THE CONSUMER.
THE GOOD NEWS IS THAT AFTERWARDS YOU CAN EASILY ADD A STORYTELLING LAYER ON TOP.
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HAVE AN OPEN MIND TOWARDS TECHNOLOGIES. EXAMINE WHAT CONSUMER NEEDS YOU CAN HELP SOLVE, COMPARED TO
YOUR GOALS. AND ALWAYS KEEP THE PROCESS OPEN FOR NEW DIRECTIONS.
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23. LABS
FORCE FOR INNOVATION
INNOVATION CAN EMERGE IN MANY WAYS AND WILL VARY DEPENDING ON THE COMPANY. AT KONSTELLATION, WE
HAVE A FORUM CALLED LABS - IT’S OUR AGENCY’S OWN R&D DEPARTMENT. 10 % OF OUR TIME IS SPENT IN THE
LABS EITHER WITH OR WITHOUT THE CUSTOMER. WE BELIEVE IT’S ESSENTIAL FOR AGENCIES TO HAVE THIS TYPE OF
FORUM IN ORDER TO MAINTAIN THE KNOW-HOW WE NEED TO SERVE CLIENTS. IT MAKES DISCOVERING NEW
POSSIBILITIES AND NEW USES OF MEDIA OR TECHNOLOGY EASIER.
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OUT OF LABS COME INNOVATIVE IDEAS WHICH SOMETIMES END AS PROJECTS AND OTHER TIMES ARE SEEN AS
VALUABLE LEARNING. ONE EXAMPLE OF AN IDEA THAT ORIGINATED FROM LABS IS A GLOBAL REAL-TIME PENALTY
KICK COMPETITION. A PERSON IN LONDON COULD SCORE A GOAL AGAINST A GOALKEEPER STANDING IN TOKYO IN
REAL TIME BY THE USE OF TECHNOLOGY.
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THE IDEA WAS ILLUSTRATED IN A CASE VIDEO AND A PROTOTYPE WAS DEVELOPED TO SHOW HOW A REAL TIME
SOLUTION WOULD WORK. SUBSEQUENTLY, KONSTELLATION PITCHED THE IDEA TO LARGE GLOBAL BRANDS.
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SEE THE VIDEOS HERE:
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CONCEPT: http://vimeo.com/48062146
PROOF OF CONCEPT: http://vimeo.com/48062175
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24. THE CONSUMER
GO OUT AND TALK WITH YOUR TARGET AUDIENCE. UNDERSTAND
THEIR INTERACTIONS AND SEE WHAT MEDIA THEY USE. OFTEN, THIS
IS WHERE YOU’LL FIND THE MOST VALUABLE INSIGHTS - NOT AT THE
OFFICE OR IN MEETINGS.
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ALWAYS REMEMBER THAT IT’S ABOUT MAKING THEIR DAILY LIVES
MORE AWESOME AND FIGURING OUT HOW YOUR IDEAS WILL
ACTIVATE THEM. IF THE CONSUMERS ARE ABLE TO SEE THE VALUE IN
YOUR SOLUTION, THEN YOU’RE ON THE RIGHT TRACK.
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25. BUDDY CUP - FAIL!
THIS IS AN EXAMPLE WHERE ENTHUSIASM FOR TECHNOLOGY TOTALLY
BYPASSED THE REAL VALUE FOR END-USERS. BUDWEISER LAUNCHED AN
INTERACTIVE BEER CUP, THE BUDDY CUP. WHEN YOU TOAST WITH
SOMEONE AT A BAR, BUMPING CUPS, THE BUDDY CUP CONNECTS YOU
AS FACEBOOK FRIENDS. FIRST OF ALL, PEOPLE DON’T ALWAYS WANT TO
DRINK BEER OUT OF CUPS. SECONDLY, PEOPLE AT BARS USUALLY TOAST
WITH PEOPLE THEY’RE ALREADY FRIENDS WITH. THIRDLY, THE
REGISTRATION AND SETUP OF THE INTERACTIVE CUP WAS VERY
COMPLICATED. FINALLY, MOST PEOPLE DON’T WANT TO BECOME
FACEBOOK FRIENDS WITH RANDOM PEOPLE AT A BAR. ADWEEK WAS
ALSO VERY BLUNT IN ITS EVALUATION OF THE CUP.
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SEE CASE VIDEO: http://www.youtube.com/watch?v=PSwmVxHEFkM
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26. KEEP IT
SIMPLE
IT HAS TO BE INTUITIVE AND EASY TO ACCESS. WE CANNOT EXPECT THAT PEOPLE WILL USE A
LOT OF TIME ON SOMETHING THEY DON’T IMMEDIATELY UNDERSTAND. THE COMPLEXITY HAS
TO LIE BETWEEN THE LINES SO WHAT IS OFFERED TO THE CONSUMERS IS EASY TO DECODE
AND GENERATES INSTANT VALUE.
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27. DOES IT
MATCH
YOUR
POSITION?
ONCE YOU HAVE THE IDEA, IT’S IMPORTANT THAT IT CONNECTS WITH YOUR EXISTING
BRAND. THE GOOD NEWS IS THAT IT’S ACTUALLY POSSIBLE AND FAIRLY EASY TO
INTEGRATE A BRANDING-LAYER TO THE INVENTION.
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28. PROTOTYPE
BEFORE YOU CHOOSE TO MOVE FORWARD WITH THE IDEA, IT’S IMPORTANT THAT
THE SOLUTION IS TESTED AND BUILDS ON A PROTOTYPE THAT CLEARLY
ILLUSTRATES HOW YOUR SOLUTION
THE OPPORTUNITY TO REFINE THE IDEA AND ENSURE THAT THE SOLUTION IS
ACTUALLY DOABLE.
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29. INNOVATION IS
MARKETING
NOW YOU HAVE CREATED AN INVENTION. THE GOOD NEWS IS
THAT THIS IN ITSELF IS NEWS. DUE TO THE INNOVATION, MANY
JOURNALISTS WILL WANT TO WRITE ABOUT IT. THIS MEANS
INNOVATION IS MARKETING AND CREATES FREE PUBLICITY. IF
WE MANAGE TO BE REALLY CREATIVE, PERHAPS WE CAN EVEN
WIN AWARDS, RESULTING IN EVEN MORE PUBLICITY.
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EVEN IF YOU DON’T HAVE A REAL PRODUCT YET, IT’S STILL
POSSIBLE TO TAKE OWNERSHIP OF THE IDEA BY DOING A PRELAUNCH, WHICH WILL CREATE A LOT OF BUZZ. IT’S A GOLDEN
OPPORTUNITY TO EXAMINE YOUR MARKET AND FIND OUT
WHETHER IT’S POSSIBLE TO CREATE THE DESIRED HYPE.
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ONE OF THE BRANDS DOING THE BEST JOB OF EXPLOITING
THIS OPPORTUNITY IS HEINEKEN. THEY HAVE LAUNCHED 4
MARKETING INNOVATIONS WITHIN THE PAST YEAR ALONE.
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SEE VIDEO: http://www.youtube.com/watch?v=LcLjfN6kxN0
OWN MEDIA
EARNED MEDIA
AWARDS
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30. FAIL FASTER
YOUR CUSTOMER IS THERE TO HELP
IF YOU DECIDE TO CONTINUE THE WORK AND RELEASE AN ACTUAL PRODUCT,
YOU DON’T NECESSARILY HAVE TO LAUNCH IT ALL AT ONCE. THERE SHOULD BE
ROOM FOR BOTH MISTAKES AND THE OPPORTUNITY TO INVITE CONSUMERS
ALONG IN THE PROCESS. THIS WILL ACTIVATE CONSUMERS TO HELP CREATE
THE PRODUCT.
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IF WE MANAGE TO CREATE SOMETHING CONSUMERS CAN’T LIVE WITHOUT, THEY
WILL BE WILLING TO SPEND A LOT OF TIME SUGGESTING IMPROVEMENTS AND
NEW FEATURES FOR THE PRODUCT.
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31. SPOT-ON!
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32. CREATIVE HANGOVER
HOWEVER… AFTER THE OVERWHELMING SUCCESS, THE MENTAL
HANGOVERS STARTS OCCURRING. WHAT NOW? HOW DO YOU
CARRY ON, AND WHAT SHOULD BE THE NEXT STEP?
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OBVIOUSLY, THE ANSWER IS NOT SIMPLE. BUT FORTUNATELY
THERE ARE A LOT OF OPPORTUNITIES THAT CAN KEEP YOU ON
TRACK.
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LOOK PLACES YOU DON’T NORMALLY LOOK. INVITE A BUNCH OF
ENGINEERS TO YOUR MARKETING DEPARTMENT. HANG OUT IN
STARTUP COMMUNITIES AND LISTEN TO THEIR IDEAS. HOST
OPEN INNOVATION SESSIONS. THE OPTIONS ARE ENDLESS. ALL
IT TAKES IS FOR YOU TO KEEP ADDING NEW MUSIC TO THE PARTY.
MEN HVAD NU?
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33. JUST DO IT!
GET OFF YOUR ARSE AND CHANGE THE WORLD
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34. 5 THINGS TO TAKE AWAY:
‣
‣
‣
‣
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SET A BUDGET ASIDE FOR EXPERIMENTING
FIND THE RIGHT PEOPLE
TAKE OWNERSHIP AS QUICKLY AS POSSIBLE
PUBLISH ONCE THE IDEA EMERGES
FAIL FASTER AND INVOLVE YOUR CONSUMERS
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35. THANK YOU!
NICOLAI ELMQVIST
CEO & PARTNER I KONSTELLATION APS
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+29 44 41 08
ne@konstellation.dk
http://www.konstellation.dk
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