1) The document discusses brand innovation, defining it as incremental changes to products, processes, or services that successfully exploit new ideas.
2) It provides examples of different types of brand innovation mixes including product, communication, packaging, channel, pricing, and process innovation.
3) McDonald's brand innovation process is used as a case study, where they launched the "Vitamac" burger to address parents' concerns about kids' nutrition while maintaining enjoyment. Ideas were evaluated for feasibility and capabilities before market launch.
2. WHAT IS BRAND INNOVATION?
DEFINITION
incremental changes to products, processes or services, and like most business functions, is a
management process that requires specific tools, rules, and descipline.
PURPOSE
1. Filtering out weaker projects which may not offer
high potential for success at an early stage.
2. Maximising the chance of success for potential
innovations.
3. Managing all activity and investment.
4. Ensuring the business has a balance of projects
delivering growth in all areas.
5. Ensuring we’re covering the right areas at the right
time.
THE DIFFERENCE BETWEEN
CREATIVITY
INNOVATION
The thinking process by
which we generate ideas
The process of harnessing creative
ideas to meet business needs
(Source: Unilever Marketing Foundation handbook – Innovation Process Management)
BRAND INNOVATION
BRAND INNOVATION Is the successful exploitation of new ideas, it refers to both radical and
3. BRAND INNOVATION MIX
Example
PRODUCT
INNOVATION
PRODUCT INNOVATION
COMMUNICATION
PRICING
INNOVATION
INNOVATION
Customers desire the screen with compact design, lightweight, take up
less space, good picture quality, consume less energy than traditional
CRT monitors
In 1970, the first LCD TV was innovated by SAMSUNG
BRAND
INNOVATION
MIX
COMMUNICATION INNOVATION
PACKAGING
CHANNEL
INNOVATION
INNOVATION
PROCESS
INNOVATION
Paragraph FIRST TVC in the world are found in the U.S. on 07/01/1941
with 10s time to advertise for Bulova watches
4. BRAND INNOVATION MIX (cont)
Example
Example
PACKAGING INNOVATION
CHANNEL INNOVATION
In Vietnam, TIKI is the
bookstore that customers can
buy books directly on internet.
Consumers told P&G they did not like small, cracked, broken piecies
of chips that settled in the bottom of the bags.
Pringles changed their packaging to meet customers’ need.
PROCESS INNOVATION
PRICING INNOVATION
1st
Dell customized each PC to customers’ specification
WALMART offer competitively reduced price
5. BRAND INNOVATION PROCESS
Ideas
Feasibility
Capability
What
should we
do?
Can we do
it?
Roll-out
Contender
Market
Ready/
Market
deployment
Make sure
we can do it!
Let’s
do it!
Post-Launch
Evaluation
L
A
U
N
C
H
Was it a
success?
Recommend
others to do the
same
Roll-out
Launch
On shelf in first market(s)
Contract
Charter
GATE
WHAT IS IT?
Ideas
At this phase, projects handled by Innovation Centres and Brand Development will
pass through – and get license from National Business Unit.
This is the gate between Feasibility Phase and Capability Phase, its purpose being to decide on
investing capital and marketing mix costs.
This is the gate between Idea Phase and Feasibility Phase where decision is made whether to invest in a
project team.
At this phase, most projects are created and remain following review at the Gate Meeting if re-work is
required or if company resource is not available to pursue it.
6. BRAND INNOVATION PROCESS – EXAMPLE
MCDONALD’S BRAND INNOVATION
INSIGHT: As parents, we want our children to enjoy their food, but are often concerned about
the nutritional value of processed food and the long team effect it has.
Ideas
Feasibility
What should we
do?
Market
Ready/
Market
deploym
ent
Capability
Can we do it?
1. McDonald’s
Vitamac
2. McDonald’s
Mom‘s
choice
1. McDonald’s
Vitamac
2. McDonald’s
Mom‘s
choice
3. Healthy
menu for
kids without
cholesterol
& fat
Make sure we
can do it!
1. McDonald’s
Vitamac
Let’s
do it!
PostLaunch
Evaluation
L
A
U
N
C
H
Was it a
success?
Recommend others
to do the same
Roll-out
Launch
Contract
Roll-out
Conten
der
On shelf in first
market(s)
Charter
GATE
Ideas
* The detailed explanation is in the next slide
7. BRAND INNOVATION PROCESS – EXAMPLE
A delicious burger that
contains the amount of Vit
A & C a child needs to
maintain their health.
Keep child’s happy and
parents’ peace of mind
Ideas
Parents can choose
customized burger’s
nutritional ingredient
that they think it’s
good for their own
childs.
A delicious buger
doesn’t contains
cholesterol and fat,
healthy for kids.
1. McDonald’s Vitamac
Feasibility
2. McDonald’s Mom‘s choice
3. Healthy menu for kids without
cholesterol & fat
1. McDonald’s Vitamac
2. McDonald’s Mom‘s choice
3. Healthy menu for kids
without cholesterol & fat
Kick out this idea because of flavour changing
Change the taste Not feasible
Capability
1. McDonald’s Vitamac
2. McDonald’s Mom‘s choice
3. Healthy menu for kids
without cholesterol & fat
Kick out this idea because of significantly
increasing the cost (Mar Mix & over the
investment budget) Not capable
Market Ready/ Market deployment
At this phase, projects handled by Innovation Centres and Brand Development will pass
through – and get license from National Business Unit.
LAUNCH MCDONALD’S VITAMAC
