Marcos Dutra, MBA - Editor     

 

Milene Laube é executiva de uma grande empresa de bens de consumo européia, pós graduada em Thunderbird (EUA), com passagens em multinacionais como Colgate e Best Foods.

milene@global.t-bird.edu

                                                                                                             
Innovation is a key factor in promoting growth and new opportunities for revenue generation. However, not all kinds of changes are effective. Because innovation has a high cost, in terms of R&D, advertising and adaptation in the several areas of the company, it is important that changes be tested for their effectiveness and probability of sucess. This is a list of tips by someone who has travelled this road before to help guiding you through this process:

1.       Levels of innovation:

             New product in the market

             Existing market, new product for the company

             Line Extension

             Product Renovation

             New SKU/size under existing product line

2.       Role of innovations as key drivers for growth:

ü       Trial promoter: Good pipeline volumes that bring positive short-term results. Even if it is a limited, special edition or a seasonal product; it contributes a lot for the “fiscal year” results;

ü       Image Builder: Modern and active brands are high in awareness, preferred brands and usually among the 2 key players in the market;

ü       Differentiation lever: As long as there is a technological or copyright barrier behind the innovation, it is an opportunity to avoid “commoditization” in the medium term and therefore provide sustainable profitability

3.       Innovation driven company: Need for an “innovation culture”

ü       All departments must be involved in the innovation process and must have best practices applied;

ü       Managers profile: Project Oriented Managers;

ü       FOCUS;

ü       Strong MKT/Strong R&D;

ü       Promote creativity as means to ensure a constant flow of ideas (brainstorming);

ü       Open minds: a brand vision should not be restricted to a product execution, but expanded to all consumer needs with a clear and unique positioning.

4.       Always test, but make sure it is with the right methodology, the right target and there is a clear action standard previously defined

ü       This also may seem obvious but not always followed either...

5.       In order to build awareness, you need to have relevant communication to the right target & Well done executions. This is key to the success of a new product

ü       This may seem obvious but not always followed...

6.       Getting the involvement / agreement of the trade and KOL (key opinion leaders) previously to the launch to the general public contributes to the success of the initiative

ü       Special trade events, congresses/seminars to KOL as well, high impact direct mail, etc

7.       New products (new to the market or new to the company) are the ones with progressively growing volumes. Line extensions tend to have a short-term-boost, stabilizing in a lower volume level and usually have a life span of no more than 3 years;

8.       Line Extensions with downsizing are key contributors to profitability;

9.       Think globally but act locally (international key successes should be “exported”, but tested and if necessary, adapted for local taste, economy and cultural specific aspects): be flexible on bundle books;

10.   At last but not the least: If the consumer likes it, there are industrial and commercial capabilities to launch it and the P&L is feasible, then launch it.