Why Your Attitude Towards Innovation Can Make Or Break Successful Growth
In this guest post, Nikki Davey (picture below) from Kantar discusses why your attitude towards innovation can make or break successful growth.
I read this B&T article discussing the 2019 Ricoh Workplace Innovation Index study with both interest and alarm. The study reveals three-quarters of Australian firms admit innovation is not a core value to their business. That is a frightening output for this country. In today’s disruptive and saturated market, those 75 per cent of Aussie businesses must change their attitudes towards innovation now in order to survive – and thrive.
A word of note on the word ‘innovation’ up-front, however. Most marketers think of innovation as the launch of a new product or service (or enhancement to an existing one) – yet, in our age of rapid change, launching new or enhancing current offers is getting riskier.
Innovation should apply to any aspect of the brand from go-to-market to its purpose. To drive growth and brand equity, brands must innovate to deliver new and meaningful experiences that add value to people’s lives.
Innovation creates a sustainable opportunity for growth
The best innovators show the best growth. The 50 best innovators delivered an average overall business growth of 7.9 per cent according to analysis of the biggest 500 FMCG brands in the UK between 2012-2016. Yet business declined by 5.3 per cent for the 100 worst innovators.
Brand value growth is also extraordinary for those with innovation at the forefront of their agenda. A plus-273 per cent brand value growth for high innovators and just plus-36 per cent for low innovators was the story of BrandZTM monitoring of 94 brands over 12 years (2006-2018).
BrandZTM also finds strong brands can also potentially stretch beyond category – those high innovation engagers grew plus-220 per cent because they have something compelling to offer. A strong brand in one category does not guarantee success in another – for example, the HTC First (aka the Facebook phone), Google Glass or Amazon’s Fire Phone.
So, what is key to innovation excellence?
Ultimately, innovation must create meaningful differentiation with your consumers
The best recipe for growth is to start with a difference that has the potential to be meaningful and salient.
- Be salient
This is the main growth lever. If your brand comes readily to mind in the moment, then it is more likely to be bought. The Ehrenberg-Bass Institute has long championed salience as the only important growth driver, however, our analysis finds that unless a brand is either low-priced or is perceived as meaningfully different it will grow more slowly even when salience increases.
- Be meaningful
This is the foundation of any brand. Unless a brand meets people’s needs and is liked it, is unlikely to be bought. You need to find ways to meet people’s needs – stated or unstated – in the moment, better than the current offerings. Knowing how and why people use your brand’s products and services intimately in real life is therefore crucial to success.
Are you clear on the needs of your consumers and how well they are met in each specific moment? For example, by making buying products as easy as possible, Starbucks continues to strengthen through innovation. It debuted a QR-code app in 2011 for loyalty promotions, yet today Starbucks customers can get more than a free drink – it’s a full ‘order and pay’ experience. 30 per cent of US transactions were paid through the app by the end of Q.3, 2017 while their mobile app users spend approximately three times more than the average Starbucks customer.
- Be different
This is your brand’s competitive edge. It is the quality that helps people decide to buy a brand and justify its brand’s price premium. Innovation – in all its forms – has an important role to play in creating brand differentiation, whether functional or emotional. Brands need to be perceived as different and look different if they are to achieve their full potential.
Combining meaning and difference does not guarantee purchase but buyers will be more likely to choose the brands they consider to be meaningfully different. For example, Unilever’s OMO (also known as Persil) is creating a special tag for new clothing that’s 100 per cent water-soluble and can be removed and added to your laundry – and kits good for three washes. It is being trialed in Lebanon in collaboration with the country’s largest chain of sporting merchandise stores and part of OMO’s global ‘Dirt is Good’ campaign.
Remember, it’s about delivering on all three elements. Disruptors are seen to be hugely different from the established brands in their category, often growing with little above-the-line advertising, but once growth slows and the competition reacts disruptive brands all resort to advertising to boost sales. The challenge if brands are to be successful is to make a difference meaningful and salient to more people.
Latest News
The Mars Agency Announces Latest Findings Of Retail Media Report Card
The Mars Agency has developed a scorecard that assesses the capabilities of leading platforms across key criteria required to optimally plan, execute, and measure effective retail media programs. The scorecard aims To help brands efficiently evaluate their spending options across retail media networks in Australia (and New Zealand). With spending on retail media advertising in […]
‘It’s The Lesser Of Two Evils’ – NRL Eyes US Betting Market As Aussie Regulators Circle
US betting firms will be delighted by the circa 50,000 Americans who could soon watch the NRL on their favourite app.
A-League In Deep Discussions With New Partner To Keep Games On TV After Production Company Enters Administration
The A-League's insatiable appetite for scoring own goals continues.
TV Ratings (27/03/2024): Jungle Members At War Over Concealed Lipstick
A heated argument between two jungle members did the numbers for Ten last night, with I’m A Celeb obtaining a total national reach of 1,282,000. Fans were delighted as Candice Warner and influencer Skye Wheatley got into it over a stick of lipstick, leading Warner to dub the Instagram star “selfish.” Wheatley, best known for […]
Is The Australian Music Industry In Trouble? Inquiry Launched Following Splendour Cancellation
Earlier this week, an inquiry was launched into the challenges and opportunities currently facing the Australian live music industry in the wake of multiple festival cancellations. On 25 March 2024, the Minister for the Arts, the Hon. Tony Burke MP, asked the Committee on Communications and the Arts to inquire into and report on the […]
Liana Dubois, Leandro Perez, Aimee Buchanan & More Gather For Inaugural Compadres Leadership Event
Didn't get the invite? Perhaps you're not as important as you thought.
Cathay Captures The Unforgettable Thrill Of Cathay/HSBC Hong Kong Rugby Sevens, Via Publicis
Nobody does rugby like Hong Kong, apparently. Certainly nobody does it as badly as Australia.
Cocogun Nabs Christine Watts, Kirsty Reynolds & Shev Tan Bolstering Management & Creative Teams
Cocogun bolsters its team with new hires. Committed to purchasing a bigger sofa, too.
The Media Store’s Jacquie Alley & Sam Cousins Take The Plunge With Pro-Bono Work For Cure Cancer
B&T chats with The Media Store bosses about their great pro-bono work and sponsored swim.
Hawke’s Brewing Co. Taps Rocket Comms For PR Agency Following Competitive Pitch
We're expecting Rocket Comms productivity to crash in spectacular fashion following this win.
Spotlight On Sponsors: Patties Serves Up A Taste Of Home For Olympians & South Sydney Rabbitohs Recommit To Gambling Reform
While the Rabbitohs commits to gambling reform, B&T reckons the team should commit to a decent auto sponsor.
Google: “Inevitable” That Bad Actors Will Abuse Ads Platform As Advertiser Account Suspensions Double
Google maintains it's simply impossible for it to entirely stop bad people placing & paying for ads using its service.
Quantcast Expands APAC Sales Team With Appointment Of News Corp Account Manager
No pressure at all when you are appointed as a client success manager.
Publicis Sapient Tests Microsoft-Powered Gen AI Search Tool With Homes & Villas By Marriott Bonvoy
Given Gen AI's record for mangling stuff, B&T cannot see the problem with letting it decide your next holiday digs.
Volkswagen & DDB Group’s “Roo Badge” To Reduce Kangaroo Related Road Collisions
Watch out for RooBadge as Cannes Lions' most debated campaign this year.
Twilio Launches Unified Profiles & Agent Copilot Features To Boost Productivity & Engagement
Agent Copilot sounds like James Bond's less interesting cousin.
Reebok & Honda Among New Clients For onetwo agency
OneTwo finally lives up to its name with this double billing.
Ogilvy Report: Throw Out The Social Strategy Rule Book, The Rules Of The Past No Longer Apply
B&T was puzzled that all 'influencers' aren't, effectively, 'virtual', but here we are.
WhiteGREY & AKQA Merge In Australia, Lee Simpson Departs
Fortunately, the combined agencies aren't opting for a trite portmanteau for the new name.
Splendour In The Grass 2024 Music Festival Cancelled!
Music fans all over the country reportedly relieved they can pack away their rain coats and gumboots for another year.
TV Ratings (26/03/2024): “Fairy Bread, F***ing Disgusting”: Gordon Ramsay Slams Aussie Food In Food Stars Launch
Ramsay not one for mincing his words, even when it comes to minced meat pies.
Paramount+ International Boss Doubles Down On Aussie Content, Says Ad-Tier will Grow Audiences And Revenue
Good news as Paramount will not be binning I’m A Celebrity for re-runs of Frasier.
Brent Smart: Telstra Pushing For 50-50 Brand-Performance Split But Warns Numbers ‘Won’t Look Great’ Initially
The old brand vs performance debate continues. But here, Brent is firmly sitting on the fence.
Crowded House, Tones And I & Dom Dolla Win Big At The Shure Rolling Stone Music Awards
B&T staffer reports back with humdinger of a hangover & feeling seriously uncool after mixing with music types.
Opinion: Dyslexia “A Hidden Gem” For Brands & Agencies
Dyslexics offer underappreciated benefits in the corporate field, according to this op-ed.
David Jones Taps Criteo To Power Online Retail Media Arm
Want to see ads for things you probably can't afford? David Jones has got you covered with new retail media play.
oOh!media Sets Up Team To Target Business Audiences Across Airports & Offices
oOh! wants brands to harass you every minute of your next business trip.
QMS Launches Australian First DOOH & TV Partnership With Samba TV
Samba TV, of course, is not a channel dedicated to dancing. Much to our dismany.
Slew Of New Hires At Amplify
Four new faces join the Amplify offices. Team say desk scarcity becoming "acute".
Adobe Announces Content Authenticity Initiative Expansions To Counter Deep Fakes
Try as they might to enlighten them, we suspect Trump supporters will continue to watch and believe Fox News.
The PR Group Appoints TechCrunch Senior Reporter Catherine Shu As Director Of Content & Media
Catherine Shu makes the bold leap from journalism to PR. Says inevitable pay bump was "unrelated".
HERO Nabs Ebony Santin From AMPR
Rumours Santin cleared out the stationery cupboard before departing are as yet unconfirmed.
Karena Noble Checks Out Of EVT Hotels & Resorts To Launch Comms Consultancy
Noble still managed to squeezed in a continental breakfast before departing.
Canva Acquires Design Platform Affinity To Bring Professional Design Tools To Every Organisation
Canva & Adobe face off continues. We're not picking sides but keenly aware that Canva's office is next door to ours.
“Lean On Our Team To Help You Find An Audience”: Why Understanding Audience Engagement Is Essential In Journalism
Engaging the audience is critical to journos, apparently. We'd thought self-loathing & alcoholism were key.
Adobe Summit: Major Gen AI Developments, Data Concessions & Partnerships
What happens in Vegas stays there. Unless it's the Adobe Summit and then you get to read about in B&T.