1. HIEU PHAN VO THI
ASSIGNMENT 11.1
BRAND INNOVATION

2. AGENDA
What is brand innovation?
Type of innovation
Principles of brand innovation
Brand innovation process

3. 1 WHAT IS BRAND INNOVATION?
WHAT
Brand innovation is fulfilling brand’s
promise through new products &
services and infusing these new products
& services with meaningful values
which are relevant to consumers
PRODUCT
POTENTIAL
CUSTOMER
POTENTIALX
A TRAP IS
TO BE CONFUSED BETWEEN
CREATIVE THINKING
INNOVATIVE
THINKING
is to create something
creative
is to escalade creativity
into efficiency that
meets business needs
WHY
The market has reached its climax, breakthrough innovation is needed to stand out from competitors
Consumers’ need is no longer relevant to company’s products or services
Increase efficiency in serving consumers
those are valid reasons
but they share two dangerous traits:
Re-active, not pro-active
Re-active innovation means you are
running to keep up with changes.
External, not internal
External innovation means the world
outside will define where you go.

4. 2 8 TYPES OF INNOVATION
1. PROFIT
MODEL
INNOVATION
Innovate the way to earn
money: bundled, flexible
pricing, advertising revenue,
membership, subscription
models
Gillete sells premium razors as a loss, but
makes money out of selling blades
repeatedly
2. STRUCTURE
INNOVATION
Innovate how to organize & align
your organization, talent & asset
to create more values.
Premium supermarket chain uses radical
decentralization that enables each store to
operate autonomously to better meet store
consumer needs.
3. PROCESS
INNOVATION
Innovate with a signature and
superior method for creating value
(production, flexible manufacturing,
process standardization)
Famously used process innovation to
deliver a “from sketchpad to shop floor
in three weeks”
4. PRODUCT
PERFORMANCE
INNOVATION
Innovate products that work better to
deliver superior values to consumers
DYNAMIC SUPPORT: 3-layer version
New innovation of Nike to stabilize runners and
help them to stay away from possible injuries.

5. 2 8 TYPES OF INNOVATION
5. PRODUCT
SYSTEM
INNOVATION
Creating complementary
products and services that
connect or bundle together to
create more value
Toyota in the US through its sub-
brand Scion, offers highly customisable cars
with a suite of add-ons and accessories from
Toyota and partners
8. BRANDING
INNOVATION
Innovating how you present your
offerings and business in a
distinctive, memorable, and likeable
way.
Virgin, which describes itself as an
“international investment group” brands
products and services distinctively by injected a
much-needed dose of fun.
6. SERVICE
INFORMATIO
N
Innovating by adding value in
how you support customers find,
buy, pay, enjoy and dispose of
your product
Zappos made service innovation a hero and
consistently delivered a ‘WOW’ service that
prompted Amazon to buy the startup with service
know-how for $1.1 billion.
7. CHANNEL
INNOVATION
Innovating how you deliver your
offerings to customers and users.
(B2B, B2C or P2P channels, or
harness pop-up stores, e-commerce
stores, partner stores,…)
Amazon’s channel innovation
includes Whispernet, a private wireless
network that is free for customers to
deliver e-books, music and films.

6. 3 PRINCIPLES OF BRAND INNOVATION
Empathy
1
Empathize with your
audience to gain deep
understanding of people who
your brand seeks to serve.
Collaboration
2
Setting up interdisciplinary teams,
with different people, helps
generate a greater breadth of
ideas and can allow you to build
on those ideas in unexpected ways.
Courage
3
Dare to try and dare to fail.
Learning from failures is always
better than learning from victories.
Intuition
4
If it is “just feel right” idea, it may
well be. Ideas that go against
numbers or test may be
breakthrough ideas (serious
consideration)
Tenacity
5
Continuing to forge ahead in the face of
adversity is critical to developing new ideas.
Even when ideas don’t pan out for a given
problem, they should be catalogued and
referred to when new challenges arise.
Play
6
Play. Imagining, free-form thinking,
role-playing are aspects of creative
thinking. While playing, people are
having fun. While the outcome of
brand innovation has serious
ramifications for a business, this is
about the process, not the outcome.

7. 4 BRAND INNOVATION PROCESS
IDEAS
Fact finding & Creative
FEASIBILITY
Resource planning
CAPABILITY
LAUNCH PREPARATION
Disaster check
POST LAUNCH
EVALUATION
Desk research
Market research
Consumer habits research
Team set-up
Risk assessment
Product concept
Formulation test
Sensory Test
Storage test
Consumer research
Packaging development
Product, cost/profitability
Plant Equipment
Plant trials
For detecting business opportunities: New
product, new variants/SKU (flavor, formula,
packsize) & find a way to enter the market
For justifications of investment
Actual investment
Successful launch
Fine tunning
Start mass production
Supply chain
Product application
Consumer feedback
Trade monitoring
Benchmarking
DEFINITION & OBJECTIVES DETAILS STEPS

8. 4 BRAND INNOVATION PROCESS EXAMPLE
IDEAS
Fact finding & Creative
FEASIBILITY
Resource planning
CAPABILITY
LAUNCH
PREPARATION
Disaster check
POST LAUNCH
EVALUATION
In 1970, Coca want to beat Pepsi. Coca run consumer blinded test the
flavor between itself & Pepsi. Most of participants chose Pepsi’s formula
because of its sweetness. At that time, Diet Coke which was closer to
Pepsi in terms of flavor and it take the position just right behind Coke &
Pepsi
Coke came up with a new formula which was
tested and delivered overwhelming results. The
new formula surpassed the original & Pepsi in
terms of taste.
Plants have been set up to bring New
Coke to mass production
Coke put its new innovation on
shelves to compete with Pepsi
with the strategy of switching
competitors users.
Large portion of US Population boycott the
New Coke because it was not Coke anymore
in terms of taste. The company decided to stop
this new innovation immediately.

9. HIEU PHAN VO THI
THANK YOU