- Brand innovation refers to new products, services, experiences, and processes that leverage and extend a brand's value in order to exploit changes and create new opportunities. - There are three levels of brand innovation: refresh, compete, and breakthrough. Brand innovation is important for stretching the brand, developing its unique selling proposition, discovering new opportunities and trends, and enhancing consumer loyalty. - Successful brand innovations leverage the brand's strengths, create coherence, develop an innovation culture, and focus on profitability, while failed innovations lose focus on the brand, lack consistency, become irrelevant, or are out of touch with consumers.

1. Assignment 10.1 – BRAND INNOVATION
Tú Oanh – Hồng Ngọc – Kim Hà

2. BRAND INNOVATION DEFINITION
What is brand innovation?
Brand Innovation is the specific tool to leverage brand value from ideas, to exploit change as an opportunity for a
different business. It refers to not only products but also services, experiences and processes.
What is brand innovation level?
Refresh
Same
benefits,
refresh the
offer
Compete
New benefits in
existing offe
Breakthrough
New offer, new
benefits
Example
It is about new ways of doing and seeing things as much as it is about the breakthrough idea.

3. BRAND INNOVATION DEFINITION
Why is brand innovation important?
Stretch the brand in
the category
Develop
brand’s USP
Discover opportunities,
competition and trends shift
Enhance consumer’s loyalty
and reach new users
Well-defined business growth and gain more profit
Creativity and Innovation
The thinking process of
popping up ideas
The process of exploiting
creative ideas to meet
business needs
Creativity Innovation

4. KEY PRINCIPLES OF BRAND INNOVATION
What is a successful brand innovation? What is a failed brand innovation?
• Leverage the brand’s most emotional and prominent equities
• Create coherence in brand’s activities or new extension
• Develop a culture of ongoing innovation
• Get profit
• Loss of focus on brand root strength
• Lack of consistency with brand vision
• Irrelevant/ Not focus on consumers
• Out of date with the social background
Example:
Being an established breakfast leader, Kellogg’s business
includes cereal, snacks, frozen foods and emerging food.
To expand in emerging markets, Kellogg’s launched its
Kellogg’s To Go breakfast shakes, which are a logical brand
extension for their on-the-go culture.
Example:
Kodak successfully invented the first digital camera, being a tech
giant in disruptive technology. However, they didn’t take
advantage of this strength, Kodak’s primary strategy was to sell
high margin film. In the digital centuries, the company
developed inexpensive cameras as a means to an end: their
purpose was to facilitate lucrative film sales because they feared
that digital camera would impact negatively their film business.

5. KEY PRINCIPLES OF BRAND INNOVATION
Key principles of brand innovation
IN THE BRAND SIDE
 Relevant to brand essence and brand strategy
 Balance between brand’s comfort zone and breakthrough ideas
 Could be measurable ⇒ focus on ROI
IN THE CONSUMER SIDE
 Address potential consumer’s unmet needs
 Connect consumers and brand
 DOs:
- Understand clearly brand architecture and identify growth areas
 Anticipate or catch the trends based on cultural context
- Create process to filter brand ideas
- Tell consumers stories
 DON’Ts
- Too safe or too far idea
- Try to drive consumer to what they don’t really need
DOs and DON’Ts

6. BRAND INNOVATION PROCESS
• Opportunities
• Objectives
• Measure of
success system
• Ideas
• Product
concept
ImplementationContext Idea generation Idea selection
• Formulation work
• Sensory panel
test
• Storage test
• Consumer
research test
• Packaging
development
• Product
cost/profitability
Feasibility
Post-launch
Capability
• Plant
equipment
• Plant
commissioning
• Plant trials
LAUNCH Evaluation Development
Charter
gate
Contract
gate
Launch
gate

7. BRAND INNOVATION PROCESS
Brand innovation process Example
Ideas and
concept
Feasibility
Capability
Context
In 2006, only 6 millions of mobile products were sold in America, compared to 1 billion products worldwide. 2 millions of them
were used in Windows system and the rest were RIM (Blackberry) and Palm (Treo). However, mobile service suppliers in
America were so cautious to Microsoft that its plan for smartphone failed
A smartphone with radical improvement of user experience and design which set a new
dominant design for smartphone. Apple are very focused when it comes to goal setting as they
primarily focus on design, software and ease of use
IPHONE
The few products have also made it possible for Apple to have only one R&D department for almost all of its product
categories. One R&D department ensures that the user experience is the same across all product categories and thereby
increases user trust. Apple’s narrow product focus in every product category has paid off since they have more efficient R&D
figures when comparing them to Nokia’s R&D figures. Apple spent 2.5 % of phone sales on phone R&D in 2010 while Nokia
spent 10.2 %.
Apple have been able to negotiate lower prices from the suppliers, get more money from the carriers and demand secrecy on
top of that.
Apple have a large base of external apps developers and apps are important since they keep customers loyal to the
smartphone vendors.
Apple have been forced by the courts to license in and license out which was mentioned in the technological portfolio

8. BRAND INNOVATION PROCESS
Brand innovation process Example
Post – launch
evaluation
Development
Launch Launch the 1st IPhone and the next generation per year
They only introduce one smartphone per year and make a smartphone that they want to use themselves.
Introducing one universal smartphone per year is one of their main advantages, but also a brave action, as it
gives the R&D department much more time to improve their iPhones. s.
Innovation on development base: