In this opinion piece Sharlene Zeederberg tells us why need to do innovative thinking, and not just produce innovative products.
We’ve all heard the saying “innovate or die”. It is no doubt true that in a constantly changing world, the ability to adapt to changing needs, competitor activities and market situations is absolutely key to both the short and long term survival of a business. In fact, according to Unrelenting Innovation, companies need to be ruthless about innovating, even to the point of cannibalising their own products, if they want to stay ahead of the pack.
The importance of innovation is perhaps most apparent in technology related fields, where the rate of change is unprecedented and global. Apple and Google are good examples of the power and value of innovative cultures. Blackberry, Palm and Kodak may well be examples of what happens when you fail to adapt quickly.
But, how important is this ruthless style of innovation to FMCG companies, where needs and behaviours from a consumption point of view are not changing anywhere near as fast?
Don’t get me wrong, innovation is essential and an innovative, ideas culture absolutely ideal. But is product innovation always the best way to achieve your short term marketing goals? Every year hundreds of new products are launched onto the market, at great cost and time. Very few of these can be considered successful enough to justify the expense. Especially when you consider the opportunity cost of resource taken away from making existing, successful products even more so.
In fact, taking an innovative approach to marketing an already successful product may well have a more positive impact on profit than launching a new extension, range or brand. Coca-Cola Classic will remain an enduring example of innovating for innovation’s sake. The “share a Coke” campaign is an example of clever (and successful) marketing innovation to drive sales of an existing product.