Innovation Development & Market Launch

Transcription

1 Innovation Development & Market Launch Seminar for Honors Academy VŠE Praha, 1. dubna

2 WELCOME! Introduction GLAD YOU ARE HERE!!! 2

3 Introduction Lecturer Ales Kodat Manager Strategy, Cheese & Grocery Category Kraft Foods Europe Gmbh Zürich Area, Switzerland Food & Beverages Industry Experienced & successful marketing / commercial professional 15 years at top FMCG companies (Kraft Foods, Danone Group, Wrigley s) 5 years international assignments Businesses leadership for local and European product categories Rich experience in strategy development and implementation Delivering results through managing directly reporting and cross-functional teams Excellent communication skills, fast learning, flexibility Motivating leader 3

4 Introduction Seminar Content 1. Innovation? Why? 2. Brand objectives vs. innovation strategy 3. Innovation development process & case study 4. Few hints about innovations 5. Key terms & definitions 4

5 Introduction Seminar Ground Rules Participate Contribute Ask Questions Be On Time No Cell Phones No Beepers (No Laptops) One Speaker at a Time, please! 5

6 Introduction Seminar Content 1. Innovation? Why? 2. Brand objectives vs. innovation strategy 3. Innovation development process & case study 4. Few hints about innovations 5. Key terms & definitions 6

7 Innovation? Why? Why do companies and/or brands innovate? most often 1. GROW key business indicators revenue, profit, no. of visitors, no. of outlets replace not performing products or services address new consumer needs most often 2. DEFEND against competitors (branded, non-branded ) commodity increases (sugar, cocoa beans, oil ) governmental interventions (increased taxes, decreased subsidies ) 3. REORIENTATE business focus move to new market segment (e.g. from glass production to food, BSN Danone Group) 7

8 Innovation? Why? How do the companies and/or brands innovate? most often Development Acquisition (internal, external) breakthrough innovation company (competitor) new product range patent (technology) re-launch, quality improvement license geographical roll-out most often productivity Source: breakdown based on Marketing Management, Philip Kotler,

9 Innovation? Why? Ok but who s gonna buy it? Consumer segmentation! Strategic Value Consumer model used by Kraft Foods Strategic Value Consumer is the behaviorally homogenous group of people we believe we can motivate to make the fastest & most efficient progress towards achieving the growth required by the business objective Based on quantitative research data (e.g. HH penetration, consumption per capita, frequency of purchase, share of requirement) and qualitative research data 9

10 Innovation? Why? Launch execution is critical for product s success When The golden rule is: Where Be there, where your SVC is! retail shops, coffee shop, internet, post office, home delivery, hospital, fitness BE THE FIRST ONE! Make your product visible! Make your offer attractive! Have enough of the product! Tell consumers about it! 10

11 Introduction Seminar Content 1. Innovation? Why? 2. Brand objectives vs. innovation strategy 3. Innovation development process & case study 4. Few hints about innovations 5. Key terms & definitions 11

12 Brand objectives vs. innovation strategy Clear brand objectives + sound strategy FIRST! Innovation only after! Kraft Marketing Strategy Framework 12

13 Introduction Seminar Content 1. Innovation? Why? 2. Brand objectives vs. innovation strategy 3. Innovation development process & case study 4. Few hints about innovations 5. Key terms & definitions 13

14 Innovation development process A new product development process has 4 standardized phases Idea Development Project Development Project Execution Evaluation Key advantages of one process in one company: Focus on fewer, bigger, better ideas Flawless delivery Measurement of the process effectiveness Identification of best practices, sharing of learning, continuous improvement Speed to success 14

15 Innovation development process 7 25 moths required to get a new product to the market Idea Development Project Development Identification of Product and innovation focus area packaging Consumer opportunity exploration Ideas & concepts generation Consumer testing Innovation Project Request development Communication strategy and media plan Confirmatory testing Develop market launch plan Launch Request 1 6 months Project Execution Evaluation Materials order 3 months Capex approval 6 months Manufacturing 12 months & Logistics plan (various KPIs) Sales Communication Final forecast First production First shipments 3 7 months 3 12 months 15

16 Case study CASE STUDY 16

17 Case study It is year 2004 and you are the new Brand manager of 3Bit Background: 3 Bit is an important chocolate bar brand for Kraft Foods Sold across all CE countries (CZ, SK, PL, HU, Baltics), produced in SK Launched in mid 1990 s as 1 product, later on XXL version launched Brand regularly animated through media support (TV, cinema), consumer promotions (+25% free, samplings, Send&Win) and various promotions in trade (price cuts, special displays, leaflets) Brand situation in : Years of the brand s growth are over (revenue, profit and market share flat or declining); the market of chocolate bars has been growing Key competitors (Mars, Nestle, Ferrero) became very active and attack your market position through new & more affordable pricing, many new innovations, significantly increased marketing spending (TV, promotions) High brand awareness; key brand image items: for young people, biscuit-creamchocolate, 3 pleasures in 1 Low loyalty to the brand; product considered too sweet and packaging too dark; next generation of innovation not clearly identified You are clearly in troubles! And you are forced to react very quickly! What do you recommend to do in next 2-4 years? 17

18 Case study 2005: tactical activities + new CE strategy development 2005 Tactical media & promotion campaign (Win a date with celebrity) Consumer promotion (+25% free) Renovation: new recipe & pack design Brand strategy review: Brand Positioning, SVC & Mktg. challenge Innovation Plan (next 3 years) Develop new campaign idea & execution 18

19 Case study 2006: breakthrough 360 campaign + first innovation in years 2006 New 360 Campaign ( Granny ) Innovation: 3Bit Inverso Consumer promotion (+25% free) Brand strategy review: Develop new campaign execution Innovation Plan: identify the new generation concept 19

20 Case study 2007: new 360 campaign + 2 innovations (limited editions) 2007 New 360 Campaign ( Hydrant ) Inno: 3Bit Inverso XXL, Hot Edition (LED) Renovation: new pack design Consumer promotion (+25% free) Brand strategy review: Develop new campaign idea & execution Accelerate new innovation generation 20

21 Case study 2008: new 3Bit generation launch campaign 2008 New 360 Campaign ( Magnetic ) Innovation: 3Bit Intenssimo Promotion: 3Bit Hot Edition (LED) Brand strategy review: Improve P&L Develop new non-tv campaign 21

22 Case study Key 3Bit activities overview Tactical media & promotion campaign (Win a date with celebrity) Consumer promotion (+25% free) Renovation: new recipe & pack design Brand strategy review: New 360 Campaign ( Granny ) Innovation: 3Bit Inverso Consumer promotion (+25% free) Brand strategy review: Brand Positioning, SVC & Mktg. challenge Innovation Plan (next 3 years) Develop new campaign idea & execution 2007 New 360 Campaign ( Hydrant ) Develop new campaign execution Innovation Plan: identify the new generation concept 2008 New 360 Campaign ( Magnetic ) Inno: 3Bit Inverso XXL, Hot Edition (LED) Innovation: 3Bit Intenssimo Renovation: new pack design Promotion: 3Bit Hot Edition (LED) Consumer promotion (+25% free) Brand strategy review: Brand strategy review: Develop new campaign idea & execution Accelerate new innovation generation Improve P&L Develop new non-tv campaign 22

23 Introduction Seminar Content 1. Innovation? Why? 2. Brand objectives vs. innovation strategy 3. Innovation development process & case study 4. Few hints about innovations 5. Key terms & definitions 23

24 Few hints about innovations To bring an innovation to a day light is not a rocket science, but 1. Innovation launch will not solve fundamental problems of a brand (e.g. wrong pricing of the core range, poor image, product quality) 2. Innovation will most probably not change the brand loyalty 3. Innovation must have clear brand fit 4. There is a high chance, that your innovation will fail (7-9 out of 10 innovations are said to be failures globally) 5. Too much innovations can kill your brand 6. Know your consumers inside out get into their brains, think like them, eat with them, sleep with them 7. Know & closely monitor your competitors (they sometimes do good job ) 8. Use your imagination, brain & common sense to predict the future. Remember, the past is well described in all the quantitative & qualitative research data you have 9. Learn from your mistakes and do not give up! 24

25 Introduction Seminar Content 1. Innovation? Why? 2. Brand objectives vs. innovation strategy 3. Innovation development process & case study 4. Few hints about innovations 5. Key terms & definitions 25

26 Key Terms & Definitions Key Marketing Terms & Definitions 1/2 Term Definition Benefit Ladder Defines the range of benefits from rational product attributes to emotional benefits to the consumer. Elements include Emotional Benefit, Consumer Benefit, Product Benefit and Product Attributes. Brand Equity Undeniable brand equity or ownable elements that you can see, hear, taste. These elements or devices may be rooted in history or have strong credentials with the consumer. They help define the brand or brand experience. Brand Essence Describes what the brand means to most often heavy users, emphasizing more emotional and intangible aspects. This is where the brand lives in the hearts and minds of consumers. Brand Foundation (BF) A document, which captures the core elements that define the brand, consisting of the benefit ladder, brand positioning, brand essence and brand equities. Acts as starting point for all marketing strategy development. Brand Positioning Defines what the brand does for the consumer, tending to focus on rational and tangible benefits. Statement contains a clear frame of reference (FOR) for which competing products may be traded out and a point of difference (POD) that captures a distinctive reason for being within the FOR. Defines how a brand best competes in the market relative to other substitutes Brand Strategy The broad approaches used with each Marketing Mix element that help achieve the brand s Marketing Objective Campaign / Communication Campaign Category / Portfolio Strategy Communication Strategy Consumer Promotion Creative Development Strategy (CDS) A coordinated communications effort, usually consisting of advertising, promotion, digital, PR etc. intended to continue thematically over time. Defines what the category or portfolio needs to do in order to achieve the business objectives) Encompasses the development of a communication platform/idea which serves as the basis upon which the brand communicates to consumers through communications tools. Consumer Promotion (CP) is a marketing communications tool designed to positively change or reinforce specific consumer purchase and/or consumption behavior by adding value over and above the basic benefits of the brand. If done well (with value-added vs. price incentives), CP can also build brand equity. Creative Development Strategy (CDS), also called the creative brief, is a stimulus that inspires great work from an agencies creative team and provides a succinct, clear summary of the consumer and key message(s) for the communication. 26

27 Key Terms & Definitions Key Marketing Terms & Definitions 2/2 Term IM IMC Innovation Strategy Media Flow Chart Media Strategy & Planning Packaging Brief Pricing Strategy Definition Integrated Marketing (IM) is a comprehensive process of understanding the needs of the consumer, orientating the company's manufacturing and sales process to meet those needs, applying integrated thinking to all marketing and management decisions and co-ordinating all company based messages (planned & unplanned) Integrated Marketing Communications (IMC) is the practice of unifying the appropriate marketing communications tools to send the consumer a consistent, persuasive message(s) that helps meet the assigned Task(s), and ultimately the communication goal. Describes the Guiding Principles and Objectives, the Innovation Platforms and Focus Areas, the Innovation Roadmap as well as the Roles and Responsibilities which apply to Innovation in that Category. A graphical and visual representation of the media mapped out in time (typically weeks) and by Medium. It includes: scheduling strategies, media mix, key holidays and other important dates, net-net media spend broken out monthly and quarterly, performance level by medium (GRP, Reach, etc), creative formats being used (30, 1/1 page 4c). Usually provided in Excel format sourced by Mediatools. Is an elaborate and systematic plan of action designed to achieve the communication goal. Key elements of a media Strategy are Media Target group ( who - based on the SVC), Media Channel mix ( where ) including budget allocation and performance (Reach, Frequency, GRP) and Scheduling strategy ( when ) - often described as the phasing or timing strategy. The media strategy should also reflect the competitive environment and cover key competitive insights The packaging brief is given to an outside agency to design the packaging. It usually includes information on the brand strategy, product, intended consumer, competition, and objectives of Integrated Marketing Communication ("IMC"). Agency is usualy briefed for Packaging Graphic Design or Packaging Structural Design. Aims to provide superior consumer brand value by optimising the price (the amount the consumer is expected to pay) relative to the brand benefit bundle and competitive frame, to achieve the brand business and marketing objectives. Strategic Plan (SP) Document synthesizing the three-year strategy of the EOC. A plan intended to identify priority actions at both the EOC and category level, which is rigorous, decisive, simple, clear and integrated holistically. SVC Strategic Value Consumer (SVC), or Growth Consumer, is the behaviorally homogenous group of people we believe we can motivate to make the fastest & most efficient progress towards achieving the growth required by the business objective. 27

28 Contact us Your Human Resources contact in Kraft Foods Zuzana Krištofová Manager MOD Kraft Foods CR s.r.o. Karolinská 661/ Praha 8 T: (+420) E: zuzana.kristofova@kraftfoods.com 28

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