Examples of innovation in marketing, product & service.

1. WINNING THROUGH INNOVATION

2. • “Innovation is not another name for
creativity.”
• “Innovation is not another name for
Invention.”
• “Innovation is not an accident.”
• “Innovation is not continuous improvement.”
In today’s context, innovation is about the
creation of new economic value with
breakthrough ideas that will be widely adopted
And very simply, Innovation is where people
switch to use a new product or switch to a new
practice
Innovate to survive!
“Logic will get you from A to B; Imagination will get you everywhere” Albert Einstein

4. 4Source : Nielsen 360 degree on consumer
But…it’s not easy

5. 5
Source : Nielsen 360 degree on consumer
Is India set up for innovation?

6. Their Innovation Stories…

7. Cadbury’s ‘sweet’ story
‘Reframing the opportunity’
 Cadbury was always the market leader in India in the chocolates
space (commanding close to 70% share). Being the undisputed
leader, Cadbury was faced with the challenge of growing the
category.
 The Indian sweets (mithai) market is almost 15-20K cr(1) in size and is
unorganized – a lucrative opportunity to associate chocolates with
traditional occasions.
 Cadbury’s challenge was 2 fold:
 Drive more occasions of consumption & expand the category
 Move away from a ‘kids only’ confectionary and target all age
groups.
(1) Source: Financial Express

8. Evolution of Cadbury’s communication
A seamless transition from consumer-focus to occasion-focus
Source: Cadbury India
website

9. 1994 - 2001 – “Real
Taste of Life”
The TG was no Longer
limited to kids. It was
about every age group of
life.
2001 – “Khanewalon ko
khane ka bahana chahiye”
Widen chocolate consumption
among the masses - ‘cadbury
for everybody’
2006– Pappu Pass Ho Gaya
Celebrating happiness in
both small and big things in
life
2006 – Miss Palampur
Extended the celebratory
proposition to rural parts of
India
2008 – Kuch Meetha Ho
Jaye
A radical shift in CDM’s
positioning as a substitute
for traditional sweets.
2011– Khaane ke baad kuch
meetha ho jaye
Driving more occasions by
targeting the habit of having
desserts after meals
2013 – Shubh Aarambh
Targeting more occasions of
traditional sweets
consumption before starting
any auspicious work
Since 2006, Cadbury has been persistently targeting traditional sweets
occasions

10. Sweet Results
Cadbury in India almost doubled the business in three years. Sales growth was 22% -
the compounded growth rate over the past three years from 2005 to 2008. In the
years from 2005 to 2009, it also doubled its turnover.
Source: www.icmrindia.org
Winning through identifying new territories
Cadbury was successful in identifying an occasion & building a connect with the brand in order to
take on the lucrative traditional sweets segment.

11. Nespresso
Business model innovation
 Nestle believed that coffee-lovers around the globe
should be able to enjoy a hot cup of espresso
anytime, anywhere
 Nestle then spent 12 years on product development
– focusing on design, simplicity , identifying the right
manufacturing partner before launching the first
Nespresso machine in 1986.
 Nespresso created a ‘closed’ system where special
Nespresso capsules are only available through an
online portal called the ‘Nespresso Club’ (launched
in 1998)
 Annual sales are now reported to be around $2
billion (Johnnie Walker approximately $1,5 billion)
with sales growth continuing at around 30% per
annum.

12. Nespresso Boutiques
Extending proposition to unique consumer experiences
 In 2000, Nespresso set up its first Nespresso
boutique in Paris , France.
 Responding to three basic principles of service,
time management, and personalization, the
boutique concept has become a real service
platform.
 The interior of boutiques is organized into various
experiential zones.
 The boutique concept promotes the right balance
between the art of coffee experiences and retail.
 At present, there are close to 300 Nespresso
boutiques across the globe.
Winning through excellence in product integration
Nespresso’s business model focused on what it calls the perfect trilogy of ‘capsule, machine and
club’.

13. Technology connects;
Creativity stirs;
Passion inspires
“
“

14. Apple’s I-pod
Design & Service Innovation
 In the late 90’s, there was a shift in the delivery of music
in favor of digital MP3s.
 In 1998, South Korea’s SIS introduced the first digital MP3
player which sold 50K units in the first year. By 2011,
there were ~50 MP3 brands – nowhere close to enjoying
the level of success like Sony Walkman
 Apple identified and solved major problems with existing
MP3 players - size, storage capacity, user interface &
absence of a virtual store.
 The I-pod was launched in 2001, 3 years after the first
MP3 player hit the market
 Apple succeeded in identifying the winning formula -
attractive interface & design supported with the I-tunes
music store.
Source: The Atlantic

15. The Winning Formula
Synchronizing a service model with I-pod & I-tunes helped Apple succeed where others failed
I-tunes
Apple launched the I-tunes store in 2003 and
reached the ‘billionth’ download landmark within
a year and a half of launch.
Source: The Atlantic
I-pod
 Due to absence of an online distribution
platform, sales of portable CD players
continued to be 2x of MP3 players.
 Apple sought support from record companies
to place their music on the I-tunes store – an
attempt to combat illegal downloads
 By 2008, music consumption shifted from
physical discs to digital distribution
 Apple captured 48% share by 2008 – with its
nearest competitor – Sansa having 8% share
 Currently, Apple enjoys 73.5% market share.
Source: NPD Sales data
Since 1998, 400m units of MP3 players have been sold of which Apple contributes to a
third. Apple reached 50m units in 4.5 years, while Sony Walkman took 10 years to
achieve similar sales.

16. I-pod Design Innovation
Winning through excellence in vertical integration
Apple was able to successfully synchronize its product offering of the I-pod with an excellent online
music distribution service to create a compelling business model

17. The most innovative designers
consciously reject the standard option
box and cultivate an appetite for
‘thinking wrong’
“
“

18. Fair & Lovely
Creating demand by addressing a subconscious need
 All women desire to look beautiful. In India, beauty
is generally associated with fairness – which was
the insight that paved way for Unilever to launch
Fair & Lovely.
 When FAL was launched, the Indian skin-cream
market was dominated by cold-creams from Ponds
& Lakme.
 In months, FAL built significant market share,
driving the skin cream category in the country.
 Seeing the enormous success of HUL, other players
like Godrej, Emami & Fairever entered the market
and intensified competition

19. Fair & Lovely
Consistency in communication
Communication on FAL has remained consistent with its brand core of with situational variance in TVCs
Winning through identifying untapped spaces
Unilever identified a high-potential opportunity within the skincare segment based on the insight
around fairness & beauty that is embedded in the Indian culture to create a compelling offering
through Fair & Lovely

20. True Innovation is coming up with a
product that consumers didn’t even
know they need.
“
“

21. Johnnie Walker
Premiumisation redefining Iconicity
 Keeping in line with it’s proposition of ‘Progress’ JW has always believed in taking a step forward.
Experiments have always emboldened the brand.
 The Luxury market in the BRIC was exploding with consumers premiumising across various product
categories. Aspirers’ were consuming 60% of luxury, influenced by ‘High-end consumer segment
 By then the brand had launched ‘Blue Label’ one of its most premium whiskies . The challenge was
whether ‘Blue Label’ is the ceiling or can we aim to become a ‘Luxury Icon’ with the likes of LV, Cartier
etc.
 JW redefined & stretched the boundaries of luxury through a multi-pronged customer centric model
called Social diffusion – based on the strategic pillars of
1) Transformational Product Architecture
2) Physical Spaces
3) Iconic Content & Engaging Content
4) Brilliant Influencer Program

22. $20 $30 $60 $85 $250 $100 $500 $1000 $3000
Transformed ‘Johnnie Walker Trademark’

24. 15%
16%
17%
18%
19%
20%
21%
22%
23%
F08 F10 F11 F12 F13
16%
22%
 APAC luxury business has doubled in 5 years
 Driving 40% of Diageo APAC growth
SDLX Contribution to Net Sales
Joining global power brands Google, Netflix and Twitter, Johnnie Walker has come
in at number 31 in the New York-based publication Fast Company’s countdown of
the world’s 50 most innovative brands in 2014.

25. For some…
Innovation is ingrained in
their DNA!

26. “Innovation will always be 3Ms heart and soul and our approach will remain
‘technological differentiation applied across multiple businesses.”
George Buckley, CEO, 2011
A few examples of how 3M has touched lives across the globe through innovation

28. By utilizing, Tegaderm™, a thin, transparent
film used in hospitals to secure IV catheters,
3M was able to develop the Nexcare™
Waterproof Bandage. A bandage that not only
seals out water, dirt and germs, but also allows
the wound to breathe because the materials
are designed to allow oxygen and water
vapour to pass through them, preventing the
skin from getting macerated.

29. Hear Here
The Japanese Space Agency, JAXA, used the 3M™ Littmann ®Scope-to-Scope
Tele-Auscultation System in telemedicine experiments with an astronaut on the
International Space Station. In ground control, a doctor listened to the
astronaut’s heart beat, and it sounded exactly the same as if they had met in
person.

30. 3M encourages a culture of innovative thinking
A core belief of 3M is that creativity needs freedom. That’s why, since about 1948, 3M has
encouraged employees to spend 15% of their working time on their own personal projects
Time + Funds = Genesis Grants
Twice a year, six to eight of the most interesting ideas floating around 3M can receive Genesis
Grants: about USD 30,000 to USD 75,000 of seed money for 12 months of research i.e. USD
750,000 given out to explore ideas that don’t have the official financial backing of a business
unit!

31. Accolades won by 3M
2012 - 3M was named among Thomson Reuters “2012 Top 100 Global Innovators
2012 - 3M earned a top spot on Booz & Company’s list of most innovative companies
for the third consecutive year, ranking No. 3 behind Apple and Google
2013 - 3M ranked No. 5 on Booz & Company’s Global Innovation 1000 study’s survey
ranking of the 10 most innovative companies.
2013 - 3M was named a Thomson Reuters 2013 “Top 100 Global Innovator.”
2014 - 3M ranked No. 14 overall in the Bluefin Elastic Innovation Index of 50 global
companies that that have strong reputations in the news media for being innovative
Source: 3M Website

32. Innovation is an on-going cycle; one
without a beginning and without end.“ “

33. Amazon
 Amazon started off as an online bookstore in 1995, but soon diversified into electronics, software,
games, apparel and other categories.
 Since launch, Amazon’s advantage was touted as the ‘Earth’s biggest warehouse.’ The company
capitalized on scale and massive selection
 And as online retail matured, it became harder to dominate the space based on product selection
alone. Other Internet retailers were able to offer similarly wide assortments
 In order to compete effectively against other e-commerce portals, Amazon shifted focus to a business
model built around excellent service delivery and efficient logistics

34. Amazon’s Service Advantage
Amazon Prime Air
Amazon is also testing unmanned drones to deliver goods to
customers, The drones, called Octocopters, could deliver packages
weighing up to 2.3kg to customers within 30 minutes.
Sunday Delivery – Tie up with U.S Postal Service
Amazon tied up with the U.S Postal Service to deliver packages on
Sunday in key U.S markets of New York & Los Angeles. This service
will extend to more cities in 2014.
Winning through excellence in service delivery
To differentiate, Amazon.com shifted focus from ‘one-stop-shop’ to ‘fast delivery’ through constant
investment in optimizing logistics.
Amazon Prime
A comprehensive program (for $79 pa) which guarantees product
delivery in 2 days, free access to Amazon Instant video, and ability
to borrow from Kindle’s e-book library.

35. Innovation is all about harnessing a
chain reaction of new ideas.“
“

36. Nike
‘Co-creating & driving unique experiences’
• Platform supporting the world’s largest online community
of runners
• Launched a new product line with Apple  for running to
music & for sharing running stats within community
• Brought to life through a unique event experience – Nike
Human Race
• First worldwide event in 2008 delivered a 68%
increase in community
• Sold over 1.3 million Nike+ iPod Sport Kits, and 500,000
Nike+ SportBands.
• Nike+ is credited with Nike's share gains in U.S. running
shoes from 48% in 2006 to 61% in 2008
In 2006, Nike launched Nike + : a global running community facilitated on line and brought to life
through a unique event experience – Nike Human Race
Winning through internal collaboration
Success of Nike+ was not a result of only R&D innovation. It was a collaborative solution developed and
sharpened by marketing experts, shoe designers, software engineers, usability specialists, and people in
various other disciplines – all working towards one ambition!

37. Innovation is co-creation. It is a
collaborative process involving all those
who strongly believe in an idea.
“
“

38. Unilever’s ‘Diversity’ Program
 Unilever has always strived to achieve “gender balance” in the workplace. To that end, the company
sets clear targets for its CEO and his direct reports around the equal representation of men and women
in management roles.
 When Leena Nair (Executive Director, HR) joined Hindustan Unilever in 1992, less than 5% of the
employees were women. However, thanks to Unilever’s diversity initiatives, today 1 in every 5
managers are women with close to 18% in leadership roles.
 Unilever identified that most women after becoming mothers decided to take an indefinite break from
their careers. In order to address this, the company undertook several initiatives.
Alchemy a mentoring program for high-potential women
employees
Career by Choice  aims to bring women, who have dropped
off the career path, back to work.
Job Sharing  which allows certain jobs to be 'shared' by two
employees, both working half the time.

39. Working Mother, a magazine focused on parenting and women's issues, today named Unilever as
one of the 2012 Working Mother 100 Best Companies for its commitment to progressive workplace
programs, including child care, flexibility, advancement and paid family leave.
Winning through excellence in human-resource management
Unilever’s belief in ‘an organization is as good as the talent that subsists’ was instrumental in bringing
about strong employee retention initiatives within the company.

40. Thank You!