ASSIGNMENT 8.1

Brand Innovation Đinh Giang - Thanh An – Hông Phong

WHAT IS BRAND INNOVATION

Brand innovation is the process of harnessing creative ideas to meet business need.It

refers to not only products but also services, experiences and

processes that requires specific tools, rules, and discipline

PURPOSE OF BRAND INNOVATION

• Expanding brands beyond current category

• Launching brands in new

territories

• Reading new consumer

groups

• Innovating the core with rapid roll-out

THE DIFFERENCE BETWEEN

CREATIVE

Creativity

is the

thinking

process by

which we generate

ideas.

BRAND INNOVATION

is the process of

harnessing

creative ideas to

meet business

needs

WHY DO WE NEED INNOVATION?

We need INNOVATION to enhance our competitive advantages to achieve

business objectives, of which the ultimate one is profit.

INNOVATION PRINCIPLES

• Fit the Brand Strategy • Help address the

Innovation Direction

• Fit within the pre-defined brand boundaries

INNOVATION TYPES

REFRESH – Keep existing

benefits but refresh the offer

• This is the strategy in the short

term, mainly to react quickly to

the needs of consumers and markets, w ith a low risk and

benefit for the low brand

COMPETE – Add new benefits to

existing offers

• This strategy requires a major

investment products, there is a

higher risk but benefits may fall back is also greater than

BREAK-THROUGH – New-offer/

New benefits

• This is a strategy that requires

big investment for both the

brand and the product, there is a high risk but benefits may fall

back is huge.

Ex 1: Poca cut

dow n the size of

the package w hile

remaining the same amount of

snacks to help

protecting environment.

Ex 2: Pepsi

redesigns the tin,

making it taller,

slimmer and more

eye-catching to youngsters.

Ex 3 launched

laundry brand

WASHING-

POWDER OMO

large size 10 kg sturdy plastic

container.

Ex 1: Vinamilk adds a new

micro-nutrient ADM

Magnesium to bott led milk

to help enhancing the

process of converting nutrients to energy.

Ex 2: OMO launched

laudry brand

WASHING-POWDER

OMO scent comfort.

Ex 1: Coca-Cola

introduces Coca-Cola

Zero which is low-calorie

and Coca-Cola Light

which is sugar-f ree to

satisfy the need of those

who want to keep the

good shape of their body

Ex 2 Yomost

introduces

Yomost Jellyz,

with jellies added

to the drink and the new plastic

bottle design

Ex 3: OMO

lacunched laudry

brand WASHING-

WATER OMO

Matic scent

Comfort

WHAT IS A FAILED BRAND INNOVATION?

• Loss of focus on brand root strength

• Lack of consistency with current brand

• Irrelevant/ Not focus on consumers

Example

Hair dye sunsilk color Launched in Vietnam market where the

market hair dye is too small.

The colors are mostly bright colors of the Thai people that the

Vietnamese do not favored

Besides, people hair Vietnam have not been bleached hair

ever so when dyeing doesn't work

Example show: Irrelevant /Not focus on consumers

Vinamilk is considered the big brands in milk category in Vietnam

2005 Vinamilk launched brand cafe Moment which

is not his strong point For beverage items, to go from the On-Trade

channel, so that consumers experience

before going into the Off-Trade channels (supermarkets, grocery

stores), But "Vinamilk moment" not

doing so. lead to failure. Loss of focus on brand root strength

Smokeless tobacco products Eclipse (RJ Reynolds Company - US) was founded

based on the idea: Create a kind of tobacco is not harmful

to the smoker's health, the people around them and protect the environment.

In 1996, the product launched has failed despite spending

more than 150 million USD for marketing Who launched the Eclipse did

not find a crucial insight: "Enjoy the white smoke is

enjoyment, excitement, without it, smoker like losing style, lost its very own exciting smokers."

1. EXPAND BRANDS BEYOND CURRENT

CATEGORY

2. LAUNCHING BRANDS IN NEW

TERRITORIES

1. Context Young Vietnamese people lack of soft skills. They spend time on Social network too much, for unbeneficial things (chatting, reading new feeds, etc…)

2. Objective In 2015, TGM, which originally is a soft-skills school, wants to build a social

network for studying soft skills for Vietnamese people => want to expand brand into new category (e-learning) which spreads the whole country, instead of old category (solf-skills course) which target to people just in HCMC & Hanoi

3. Strategy _ Trigger the need of building person branding through knowledge and skills

_ Translate many resourceful articles from the world into Vietnamese so that they can learn online _ Every article will adds more marks in one’s personal brand

4. Target consumer _ Young Vietnamese people aged 15 – 30

_ Highly aware the importance of gaining knowledge about skills, attitudes for self-development. _ Insight: want to build their own strong personal brands as self-developing

people. 5. 4Ps

_ Product: UBrand – an e-learning social network for building personal brand with many great articles translated from other languages. _ Price: cheap, affordable (from 2.000 VND per one article)

_ Place: a social network on Internet _ Promotion: use email-marketing and promote considerable discounts.

1. Context _ In 2013, Oppo from China wanted to launch their products in Vietnam _ At that time, smartphone market in Vietnam was developing by lots of big

brands and communication was mainly about technology 2. Objective

Oppo wanted to launch their brand in Vietnam in a different way of communication. 3. Strategy

_ Oppo conducted many research about whole market to find out that “music” was the key that no brands had tackled.

_ With modern technology about music, Oppo decided to focus on stories about music entertainment. 4. Target consumer

_ Young, energetic Vietnamese people _ Love music, often catch up new music trends

_ Not very rich but always dream about modern life 5. 4Ps _ Product: Oppo smartphone

_ Price: mainstream, affordable for youth _ Place: fast penetration in all urban and rural areas with 2000 stores in 2015

_ Promotion: raised awareness by strongly sponsored for famous music show in Vietnam (The Voice, The Remix), co-operated with singers to produce MVs, opened and promoted “Hoc vien The Voice”, first brand in Vietnam co-operated

with singer (Son Tung MTP) to apply Youtube Live Streaming.

Product innovation Communication innovation

3. READING NEW CONSUMER GROUPS - X-MEN FOR BOSS

CONTEXT

• X – men is now the market leader with 60% market share. However, the only current product is for all

consumers who are men from 18 - 45.

TARGET CONSUMER

PROFILING Still men, 18 - 45 But with higher class consumer

Who have living attitudes toward style of successful men

INSIGHT “I want a premium male grooming

products to break out the norm”

OBJECTIVE

• Promote new product lines for new segments

• Raise up the sales

STRATEGY

• Capture the want rather than needs

3. READING NEW CONSUMER GROUPS - X-MEN FOR BOSS

4PS

• Product

Various categories from hair to skin: shampoo, shower

gel, deodorant (roll-on & body spray), hair styling gel,

facial foam.

With new premium packaging

• Price: Higher price

• Promotion

Give extra perfume buying a shampoo product….

COMMUNICATION

• X-men for boss fanpage

• TVC and Promotions TVC:

https://www.youtube.com/watch?v=cNuAc-p36LY

• X-men for boss Apps “Phong cách xứng tầm”

• Big competition: “Ý tưởng trăm triệu”

4. INNOVATING THE CORE WITH RAPID ROLL-OUT - ARIEL 3 STEPS IN 1

CONTEXT

Ariel laundry product of P&G, positioning in stain removal. The main competitor is OMO brand which is the market leader. Because

OMO has popular awareness of the best stain removal laundry for a long time, launching of Ariel products is a big challenge

TARGET CONSUMER

PROFILING

• Women in family, 25 - 45

• AB+

OBJECTIVE

• Launching new product enhancing stain

removal function of Ariel which can

compete OMO’s

• Recruit new consumers

STRATEGY

• Seeking an unmeet need of target consumer for a better cleaning experience

• Create such a super-powerful cleaning product that it would deliver the efficacy and the

convenience.

INSIGHT

I need an ultimate laundry

product which can reduce my

suffering when washing clothes

by hands.

4. INNOVATING THE CORE WITH RAPID ROLL-OUT - ARIEL 3 STEPS IN 1

4PS • Product

New product packaging enhance innovative factor 3

steps in 1

• Promotion

Sales up, Vouchers…

COMMUNICATION • Ariel TVC with Influencer:

https://www.youtube.com/watch?v=pCXAL9gVJjY

• Geniuses record: Hành trình "Sức mạnh một bước

giặt”

• Appilcation: “Thử thách vết bẩn cùng bột giặt Ariel”

Launch gate Contract

gate Charter

gate

Idea

mining

platforms

Idea

generation

Feasibility

Capability

Launch

preparation Post--launch Evaluation

ROLL-OUT CONTENDER

Purposes

• For detecting

business

opportunities. new

product, new variants/sku –

(f lavor, formula,

packsize.)

Work to do • Desk research.

Market research.

Consumer Habit.

Trends.

Outcome

• Findings of unmet

need or new trend

• Discover Strong

insight/big ide: a right hit at the unmet

need

• Estimation of market

size

• Estimation of competition

Purposes

• determination of

approach to

market entry

Work to do

• Consumer

behavior

Trend

Out come:

• Review or create

pool of new ideas

Porpuses:

• Justif ication of

investment

Work to do

• Formulation test • Consumer Research

• Product/ Price/

Packaging

development

Outcome • High acceptance of

product concept &

performance from

targeted users

Actual invesment:

Work to do:

• Plant

eqipment. • Budget

Outcome

• Smooth

coordination

Purpose: success

launch

Outcome:

• High

acceptance of

communication

concept (TVC,

print ad, f inal

packaging)

• Good budgetting

of launch

campaign

Purpose: fine tuning

Work to do

• Trade/ consumer

feedback monitoring,

• issue standard operating

procedure

• Implement L support

Plan

Outcome:

• Right amount of brand

awareness

• Correct communication.

RECOMMEND

OTHERS TO DO

THE SAME

BRAND INNOVATION PROCESS

Launch gate Contract

gate Charter

gate

Idea

mining

platforms Idea

generation

Feasibility

Capability

Launch

preparation Post--launch Evaluation

ROLL-OUT CONTENDER

What should w e do?

• Yogurt

provides

nutrients

oats

• Yogurt

probiotic

s live

help

absorb

nutrients

Make sure we

can do it?

• Yogurt

probiotics live help

absorb

nutrients

What does w e

research?

Insight: “I w ant my kids

to eat not only delicious food but also is safe and

good for health reality

increasingly food

contamination”

Example: Yogurt Probi – “Hiêu điêu bung muôn”

Target: Women with children aged 1-5 years. Family Care is what they care about most

• Yogurt

provides nutrients

oats

• Yogurt probiotics

live help absorb

nutrients

• Yogurt cure full

bloating

Was it a

success?

Let do it!

Yogurt Proby -

Yogurt

probiotics

live help

absorb

nutrients

RECOMMEND

OTHERS TO DO

THE SAME

Can we do it?

IDEA MINING PLATFORMS & IDEA GENERATION

FEASIBILITY

Resource planning

CAPABILITY

LAUNCH

PREPARATION

Disaster check

POST LAUNCH

EVALUATION

Insight: “I want my family to eat not only delicious food but also is safe and good for health reality increasingly food contamination”

Absorb nutrients. Yogurt

probiotics liv e help the

digestiv e system to absorb

nutrients better. Helps

digestiv e sy stem f ulf illed its

f unction

Oats are considered

v ery nutritious f ood.

y ogurt oats will be

mothers who choose

to prov ide the best

nutrition f or their child

Yogurt cure f ull

bloating help cure

bloating daily when

my f amily eats a lot of

f ood.

makes customers think of this is medicine, affects the

current brand image

Kick out- Yogurt cure

bloating

Yogurt Probi • Yogurt probiotics livehelp the digestive

system to absorb nutrients better. Helps

digestive system fulfilled its function • Drinkable Probiotic Yogurt - convenient

Yogurt oats

Kick out-

Yogurt oats

Because of significantly increasing cost (

marketing mix cost) budget

Yogurt Probi

Yogurt probiotics live

Enhanced w ith 13 billion Probiotics

CHR.HANSEN L.CASEI 431™ thanks

to European fermentation technology

• Positive customer feedback with yogurt Probi • Increasing sales

Yogurt Probi Yogurt

probiotics live

Technology force & rational

benefits

Marketing

force &

emotionl

benefits

Idea

mining

platforms

Idea

generation Feasibilit

y Capabilit

y launch preparation

Post--

launch

Evaluation

ROLL-OUT CONTENDER

Brand Innovation Process vs R&D Process

Many people mistakenly Brand innovation

with R & D process is a process. BUT

• Brand innovation process must include 2

series of activities

• The first is the sequence of operations

Marketing Research (consumer, market,

trends, etc.)

• The second is the sequence of operations

research and development (R & D)

• Brand innovation process must combine 2

chained operation back into one process to

bring the results which contain both

marketing and technology

• R & D Conversely, if not coordinated with the

marketing research is not called brand

innovation Example

When Cornetto ice cream brands like to improve sales. they try to make them sweet, add a lot of different flavors and increase the size package. Not any effective solution. This is the only R & D But When a marketing team found out the purpose of the customer buying milk-cream is to drive their morning less boring.

The biggest benefit is that it's make customers do not feel hungry. The real problem is: customers also don't know what the benefit of milk-cream Finally, Marketing and R & D team devised solutions is make thicker milk-cream. synonymous, customers do not feel hungry more. resulting in increased

sales. This is brand innovation process