How to create a strong brand? Start with a strong product! A presentation by Mortierbrigade on Innovation Day 06

1. PRODUCTS & BRANDS
VERHAERTINNOVATIONDAY – OCTOBER 20th, 2006
www.mastersininnovation.com
PRODUCTS & BRANDS
David Pas en Joost van de Loo
info@productbrigade.com
www.productbrigade.com
Commercially confidence – This presentation contains ideas and information which are proprietary of PRODUCTBRIGADE, it is given in confidence. You are authorized to open and view the
electronic copy of this document and to print a single copy. Otherwise, the material may not in whole or in part be copied, stored electronically or communicated to third parties without prior
agreement of PRODUCTBRIGADE.
www.mastersininnovation.com
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2. PRODUCTS & BRANDS
who are we
www.mastersininnovation.com
productbrigade is a hybrid group of people, from
different backgrounds (advertising, design,
architecture, technical development), assembled to
create new inspiring products
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3. PRODUCTS & BRANDS
who are we
www.mastersininnovation.com
productbrigade is an exclusive alliance between
productplus (verhaert group) and mortierbrigade
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4. PRODUCTS & BRANDS
today's agenda
www.mastersininnovation.com
the virtues of soft innovation
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5. PRODUCTS & BRANDS
www.mastersininnovation.com
many brands have a
product centric approach to innovation
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6. PRODUCTS & BRANDS
www.mastersininnovation.com
The quietest Vacuum Cleaner
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7. PRODUCTS & BRANDS
www.mastersininnovation.com
Mercedes introduces its new S500.
And it has eight airbags...
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8. PRODUCTS & BRANDS
www.mastersininnovation.com
7UP, now 100 % Natural
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9. PRODUCTS & BRANDS
a product centric
www.mastersininnovation.com
approach to innovation
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10. PRODUCTS & BRANDS
take for example the Swiffer
www.mastersininnovation.com
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11. PRODUCTS & BRANDS
R&D
www.mastersininnovation.com
– electrostatic charge attracts soil into the
cloth
– deep ridges trap and hold dirt in place
– launch: 1999
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12. PRODUCTS & BRANDS
www.mastersininnovation.com
brand
– promise: “Clean your floors without all the
hassles of the mop, bucket, broom and
dustpan”
– USP: “Making small cleanups easy”
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13. PRODUCTS & BRANDS
www.mastersininnovation.com
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14. PRODUCTS & BRANDS
www.mastersininnovation.com
improve and extend
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15. PRODUCTS & BRANDS
www.mastersininnovation.com
and this works fine for Swiffer
– 75% share of US quick-clean market
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16. PRODUCTS & BRANDS
www.mastersininnovation.com
in spite of all the copycats
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17. PRODUCTS & BRANDS
but....
www.mastersininnovation.com
new products fail more often
– “In consumer products industry, upwards
of 85 percent of new products fail after a
couple of years in the market” - Forrester
Research
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18. PRODUCTS & BRANDS
but....
www.mastersininnovation.com
innovation life cycles are getting shorter
– “Turnaround time on knock-offs is now
measured in a few scant months” -
BrandChannel
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19. PRODUCTS & BRANDS
but....
www.mastersininnovation.com
and advertising is having less impact
– 37% of all advertising is waisted
– 69% of consumers are interested in
products to skip or block marketing and
advertising
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20. PRODUCTS & BRANDS
but....
www.mastersininnovation.com
the world has changed
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21. PRODUCTS & BRANDS
but....
www.mastersininnovation.com
a new media landscape
– too much clutter
– too much noise
– too many channels
– too much spam
– customers want to participate
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22. PRODUCTS & BRANDS
but....
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creators have much better tools
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23. PRODUCTS & BRANDS
but....
technology has advanced
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– more and more patents limit freedom for
innovation
– bar for truly revolutionary innovation is getting
higher
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24. PRODUCTS & BRANDS
but....
so companies are struggling
www.mastersininnovation.com
– stakeholders resist innovation
– R&D doesn't pay off
– big ad spending doesn't pay off
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25. PRODUCTS & BRANDS
but they still need remarkable products
www.mastersininnovation.com
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26. PRODUCTS & BRANDS
products that can transform the market
products that change the way we consume
www.mastersininnovation.com
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27. PRODUCTS & BRANDS
a solution
www.mastersininnovation.com
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28. PRODUCTS & BRANDS
a solution
soft innovation
www.mastersininnovation.com
•couple your product with a feature that the
consumer might be attracted to
•design products that change the way we
experience consumption
•focus on emotional values : design matters,
styling matters, extra's matter
•coherence between products and brand values
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29. PRODUCTS & BRANDS
www.mastersininnovation.com
soft innovation is
experience centric
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30. PRODUCTS & BRANDS
soft innovation
soft innovation can be about small gadgets
www.mastersininnovation.com
chopsticks for kids
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31. PRODUCTS & BRANDS
soft innovation
soft innovation can be about small gadgets
www.mastersininnovation.com
Ben & Jerry's pint lock
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32. PRODUCTS & BRANDS
soft innovation
soft innovation can be about limited editions
www.mastersininnovation.com
to create authenticity
VW Beetle styling art
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33. PRODUCTS & BRANDS
soft innovation
soft innovation can be about consumer
www.mastersininnovation.com
interaction to empower the experience
personalised bank card
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34. PRODUCTS & BRANDS
soft innovation
soft innovation can be about consumer
www.mastersininnovation.com
interaction
Nokia silence booth
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35. PRODUCTS & BRANDS
soft innovation
soft innovation can be about new product
www.mastersininnovation.com
categories to increase the experience
Nike watches
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36. PRODUCTS & BRANDS
soft innovation
soft innovation can be about partnerships
www.mastersininnovation.com
Tiense suiker & Douwe Egberts
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37. PRODUCTS & BRANDS
soft innovation
soft innovation can be about partnerships
www.mastersininnovation.com
Nike & Ipod nano
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38. PRODUCTS & BRANDS
soft innovation
soft innovation can be about a new experience
www.mastersininnovation.com
Preva Xsport portable espresso maker
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39. PRODUCTS & BRANDS
soft innovation
soft innovation can be applied on machines,
www.mastersininnovation.com
terminals,...
ATM's, vending machines, information terminals can create an experience and
communicate your brand
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40. PRODUCTS & BRANDS
soft innovation
soft innovation can be applied on machines,
www.mastersininnovation.com
terminals,...
ATM's, vending machines, information terminals can create an experience and
communicate your brand
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41. PRODUCTS & BRANDS
why
why should my company also invest in soft
www.mastersininnovation.com
innovation
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42. PRODUCTS & BRANDS
why
1. soft innovation can build bridges between
www.mastersininnovation.com
marketing and R&D
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43. PRODUCTS & BRANDS
why
R&D thinks...
www.mastersininnovation.com
communication is
• not about their products
• only about emotions
• expensive
• overpromising
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44. PRODUCTS & BRANDS
why
but...
www.mastersininnovation.com
communication can be about innovation
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45. PRODUCTS & BRANDS
why
communication versus R&D investment ratio
www.mastersininnovation.com
from 3:1 ratio to 1,3:1
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46. PRODUCTS & BRANDS
why
marketing thinks...
www.mastersininnovation.com
R&D is
• not consumer oriented
• too slow
• very expensive
• not sexy
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47. PRODUCTS & BRANDS
why
but...
www.mastersininnovation.com
Seth Godin :“innovation is cheaper than
advertising that interrupts you for things you
don’t want”
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48. PRODUCTS & BRANDS
why
2. soft innovation communicates the brand
www.mastersininnovation.com
values
soft innovation is a valid route to expand your
portfolio with products that communicate your
brand values
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49. PRODUCTS & BRANDS
why
3. soft innovation has more effect
www.mastersininnovation.com
differentiation strictly based on functional
product features often leads to poor customer
perception
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50. PRODUCTS & BRANDS
why
4. soft innovation is effective
www.mastersininnovation.com
but when you get it fast and with limited
resources to the market, other can also...
breakthrough platform derivate
time-to-market 5-7 years 1-3 years 6-18 months
technical risk high medium low
market risk high medium low
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51. PRODUCTS & BRANDS
why
so....productportfolio needs to be a good mix of
www.mastersininnovation.com
innovation levels (hard- en soft innovation)
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52. PRODUCTS & BRANDS
why
and....it only works if its a unique expression of
www.mastersininnovation.com
your brand values
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53. PRODUCTS & BRANDS
why
5. drive soft innovation yourself
www.mastersininnovation.com
you don't have to be a scientist or a wacky
creative
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54. PRODUCTS & BRANDS
productbrigade
www.mastersininnovation.com
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55. PRODUCTS & BRANDS
productbrigade
product innovation
www.mastersininnovation.com
improving the user experience of existing product
product creation
generating ideas for totally new product
solutions
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56. PRODUCTS & BRANDS
www.mastersininnovation.com
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57. PRODUCTS & BRANDS
productbrigade
product brief
www.mastersininnovation.com
• product architecture and functional description
• visuals, dummy
• cost/benefit projection
• feasibility check and risk analysis
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58. PRODUCTS & BRANDS
example
www.mastersininnovation.com
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59. PRODUCTS & BRANDS
conclusion
www.mastersininnovation.com
the virtues of soft Innovation
– brand-supporting
– good cost-benefit ratio
– high perceived differentiation
– fast to market
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60. PRODUCTS & BRANDS
www.mastersininnovation.com
Verhaert New Products & Services nv
Hogenakkerhoekstraat 21
9150 Kruibeke
Belgium
Tel +32 (0)3 250 19 00
Fax +32 (0)3 254 10 08
www.verhaert.com
info@verhaert.com
www.mastersininnovation.com
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