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The Breakthrough Innovations Mantra

Breakthrough innovations

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The Breakthrough Innovations Mantra

Innovations of the Decade

Hotstar notches up 200 million views in IPL 8-Case Study

The 8th edition of the Indian Premier League(IPL) ended in triumph not just for Champions

Mumbai Indians but also the mobile streaming app hotstar with over 200 million views

compared to 61 million views in the last season(A threefold

jump)The app also drew 340 million views for all the 49 matches of

the recently concluded ICC Cricket World Cup as the 50-

over tournament’s 2015 edition became the largest sporting event on digital media

Hotstar has won the digital rights for IPL for a three-

year period ending in 2017.The advertiser base for IPL-8 grew nearly 200% to 62 brands compared with 21

brands that advertised on Starsports.com in IPL-7.

Brands advertising this year included Hindustan Unilever

Ltd, Housing.com, Arvind Brands, Samsung, Bharti

Airtel, Vodafone, Levi’s & Karbonn

Media buyers estimate Hotstar made Rs.50 Crore in advertising revenue in IPL-8(a 25% increase

over the last season)Hotstar not only beamed in all 60 IPL Games but also created sports shows for the tournament including a made-for-digital pre-

show called 20-Minute 20 Second T20 & in addition it

extended its weekly show ‘Juicy Half Volley’ launched for the ICC Cricket World Cup 2015

This is the App’s second major boost

from cricket this year after it drew 340

million views during the cricket “World Cup”

Innovation Checklist

BudgetDevote a well-

protected & well deployed budget to experiment & R&D Time

Spend more-time in the earlier part of the

innovation funnel with a formal

process for shortlisting

USPIdentify ‘winning

characteristics that can be grafted onto

your innovation pipeline

Fast entryGet to market with

the entire range faster, resist that

temptation to discount early

CollaborationInvolve retailers & other partners in the

ideation process

Every business has to concentrate on above 5 Formulae's for breakthrough Innovations

Key characteristics of breakthrough Innovations

1.Multiple reasons to believeSuperior innovation must possess more

& deliver more. This happens when companies offer consumers multiple

benefits & proof points instead of focusing only on a singular

benefit/functional aspect

2.Popularizing the premium offeringBreakthrough innovations is often created by making some premium features available at a more approachable price instead of reserving more aspirational features for a select section

of customers

3.Being within ‘Palms Reach’Use Technology like online ordering/Apps

4.Accelerated & frequent interaction during the buying cycle

Reducing consumer anxiety from the moment of purchase up to the time of delivery. Frequent updates to

reassure customers of the delivery of their purchase through the use of technology

Ex: Flipkart messages giving live status of the items purchased5.Adding more to an existing occasion

While many try too hard to create entirely new occasions, breakthrough innovations

are more adapt at taking existing occasions & elevating them by addressing consumers

anxieties & amplifying positives

6.Ease of access & operationWinning innovations communicate &

exemplify a new found ease in operation & use making the most of them relative

to their competitors

7.Culturally adaptedSuccessful innovations

adapt their formulations/communicat

ion to address local needs/tastes/preferences

8.Whether as a service/product,

wining innovations demonstrate &

encourage tactile interaction depicting it in their messages making it integral to

the product use

A study by Nielsen reveals only 23 brands out of 16,914 launches from the yaer 2012 qualified as breakthrough Innovations

These 23 launches are culled from more than 80 FMCG categories including food, personal care, houlsehold

care,over-the-counter products & soft drinks

16,891 brands got slapped with a scarlet

Innovation

According to survey by Nielsen, Indian

innovators are dealing with 4 key elements

Why 99% of FMCG Innovations Fail?

A narrow category view-The launch of Fair & Handsome(a fairness cream for men) is often cited as a breakthrough product

launch that shrewdly grabbed pre-existing opportunity everyone seemed to have missed

-Given a large population & a growing awareness about personal hygiene, ‘sanitary napkins ought to catch the imagination of the masses’. The industry

need to find a more economical product so adoption can happen at a large scale. These companies are probably happy with the growth they have but the

base at which they are growing vis-à-vis, the Indian population proves they have still got only the

middle class/urban set & not masses

If Surf carried on thinking other detergents are the competition, it would innovate less. When Surf started thinking of water & its quantum of use for washing as its competition, it

moved ahead. Hence “Do Bucket Paani Bachaana Hai Campaign” was formulated

The best 23 breakthrough Innovation Brands from 2012

Why do low-involvement categories call for high levels of innovation

Being a low involvement category ought not to be equated with being low on innovation since many brands in Nielsen ‘s Breakthrough Innovation Report

2015 has shown. These low involvement products include categories like toothbrush, candies, mosquito repellents & condoms among others

Skore Condoms

Durex(a product of Reckitt Benkiser)had unveiled a campaign “DoTheRex” featuring bollywood actor ‘Ranveer Singh’ as the Brand Ambassador or Sunny Leone’s skill at smearing herself with

gooey chocolate(for Manforce)-The innovation template typically was aimed at flavors & textures but Chennai based Skore (from TTK-PDL) managed to stand apart & gain market share

with its orientation towards user experience.•USP-Skore claims to be the first to launch color & flavor together, others have done so separately.•M-Commerce-Skore unveiled India’s first M-Commerce platform for condom shopping•Disposal Pouch-To address the issue of getting rid of a used condom, the brand introduced a disposal pouch with the pack

In the edible confectionary category, Alpenliebe, the flagship brand of Perfetti Van Melle in india has been offering products which are suitably localized & customized. Three of its

brands Juzt Jelly, Alpenliebe Spicy 1 & Alpenliebe2ChocoEclairs.This category is characterized with ‘low entry barrier & low levels of involvement’ which means that

consumers rapidly switch from one brand to another

Alpenliebe Spicy1I case of Alpenliebe Spicy1 what worked is its localized concoction of a sweet candy filled with locally blended spices. The idea was to use spices that appeal to the Indian paletteAlpenliebe Juzt JellyIn the case of this brand,the hook is a vegetarian jelly product for the Indian market using natural fruit pulp & launched in real fruit shapes with a

distinctive soft bite. Typically “Jelly”- internationally is a big segment but had registered negligible presence in India largely owing to the prevalent usage of non-vegetarian ingredients & product instability in extreme weather conditions & on both parameters ,the brand has innovated successfully & became the largest brand in market share in the candies segment by end 2014-according to Industry Sources

Parachute Advances Body LotionoBeing a relative late entrant in a Rs.800 Crores + category with well-entrenched players like Vaseline, Pond’s, Nivea & Emami did not make Marico break into proverbial cold sweat when it set out to launch parachute Advanced Body LotionoThe brand managed to create a differentiated proposition made relevant for the Indian ConsumeroAdaptability: Prachute Advanced Body Lotion has been designed for Indian skin. It encapsulates the goodness of coconut & has world class sensorialsoPackaging: The differentiated packaging & engaging advertising has been able to drive trials for the brand

Sensodyne(GSK Consumer Healthcare)

Mantra of “Sensitivity in Oral Care”:The toothbrush portfolio is essentially reaping the benefits of the parent brand taking the leadership stance on ‘sensitivity in oral care’ & in the process democratizing the idea of sensitivity in the countrySensodyne is seen as owing the benefit in the consumer’s mind even as it goes about building the franchise on sensitive teeth with not just toothpaste but even toothbrushGSK Positioning of Sensodyne: The idea was to further drive & entrench the brand into everyday habit of teeth b rushing thereby strengthening the presence of the brand amongst existing users as well as reaching out to new onesTeeth-Cleaning experience: The Sensodyne (Toothbrush)product design was enhanced to provide better grip & angle to ensure a better cleaning experience to meet the identified unmet needs of the category-”Cleaning with Care” & “Maximum Protection”. The brand has shown the power of differentiation & innovation in a mature category

In the case of toothbrush, one of the 3 brands that have emerged winners is Sensodyne along with Colgate & Pepsodent. The reasons for Sensodyne’s

success are quite revealing since the brand has never really gone out & spent mega marketing dollars for the toothbrush portfolio

Innovation MantraOpinion by Devdutt Pattanaik (Indian Mythologist)

Startups V/s Corporation In a startup, the risk is taken by an individual or perhaps a bunch of individuals who stake their career & comfort to take a risk & are answerable to no one but themselves

but in a Corporation there is a whole bunch of shareholders who want quarter-by-quarter success & have hawk-eyed auditors & regulators checking if their investment

is safe. Both these two ecosystems are different

We are always told successful stories of startups & innovators. No one really tells us the failure rates. More than hundreds & thousands of ‘Garage Enterprises’ have failed

despite promising starts & great investments

Startups can handle the failure but in corporations, someone needs to be held responsible for the loss of shareholder money. Who will it be? CEO. Will the CEO sacrifice his bonus if the innovation do not manifest or fail to deliver a promise

An innovator usually innovates so that he can benefit from the innovation. He is spellbound by the glamour associated with innovation-the million of dollars, the

invitation to give talks at entrepreneur summits, the standard talk of hard work & risk taking & perseverance which meets with standing ovation but in a corporation who will benefit from the innovation-the individual, the team or will they get just a silver of the

profitwith the larger lions share going to the investor

In Indian Brahmin was expected to stay poor in the persuit of knowledge & the trader was expected to stay rich in the persuit of wealth. But in the

new world order, every brahmin functions like a trader & every trader functions like a brahmin. Innovation is not its own reward, the money

matters. The developer/innovator is constantly afraid if the large corporation will appropriate his idea& he will be left with the scraps. Its a real fear that makes many smart developers want to leave & start their

own start-ups

Corporations can use a share of their wealth to support startups outside their controlled ecosystem. To support inside the corporation requires a

great deal of courage

Ex: Google & Apple Inc is striding forth in this direction by investing in entrepreneurship within the company by encouraging the employees to

start on their own. This also requires courage on the part of the shareholders & the willingness to gamble/even fail. Failures is something

only few Management Boards would approve

Anup George RebelloAsst.Manager

The Catholic Syrian Bank Ltd