Brand innovation is the process of harnessing creative ideas to meet business needs. It includes six main types: 1) Product innovation - developing new or improved products. 2) Pricing innovation - innovating pricing strategies. 3) Channel innovation - innovating distribution channels. 4) Communication innovation - innovating ways of connecting people. 5) Process innovation - implementing new production or delivery methods. 6) Packaging innovation - innovating materials or processes used for packaging. The innovation process involves generating ideas, assessing feasibility, building capability, launching, and evaluating outcomes.

2. What is brand innovation?
Brand innovation is the process of harnessing creative ideas to meet
business needs.

3. Brand innovation mix
1.
2.
3.
4.
5.
6.
Product innovation
Pricing innovation
Channel innovation
Communication innovation
Process innovation
Packaging innovation

4. 1. Product innovation
The development and market introduction of a new, redesigned or substantially improved good
or service. Examples of product innovation by a business might include a
new product's invention; technical specification and quality improvements made to a product; or the
inclusion of new components, materials or desirable functions into an existing product.
Sunsilk was the first one in FMCG to define
“limited product” when launching Watermelon
Sunsilk which was on sale for a summer.

5. 2. Pricing innovation
Pricing innovation regards instances in which companies innovate their
pricing strategies, tactics, or organization or where companies use an
understanding of consumer psychology to change customer
perceptions of value and price.
Traditional pricing strategy: cost-based. Fixed pricing for aircraft engines; spare
parts sold with substantial mark-up (+300% over costs)
New pricing metric: ―Power by the hour‖: valued-based pricing for utilization
rights of aircraft engines; usage-based, variable, pricing inclusive of maintenance
and performance guarantee
-> high customer satisfaction; interest alignment; increased profitability

6. 3. Channel Innovation
Channel innovation is the innovation in means employed to distribute
goods or services from producers to consumers.
Amazon has leveraged the Internet for distribution. By encouraging
customers to review and recommend books, they have created a
culture of peer advocacy and credible word-of-mouth.

7. 4. Communication innovation
Communication innovation is innovation in a means of connecting
people or places.
Clear
Functional message: anti-dandruff -> Emotional message:
sexual attraction of healthy and beautiful hair

8. 5. Process innovation
Process innovation means the implementation of a new or significantly improved production
or delivery method (including significant changes in techniques, equipment and/or software).
Amazon Sunday delivery
They have continued to get closer to their customers by building huge
warehouses nearer metropolitan areas. However, the last mile of
delivery between Amazon and customer has relied on other logistics
providers. And they have always refused to deliver on Sunday, because
that’s how it has always been. Until Amazon made a deal with the US
Post Office for deliveries on Sunday in certain cities, with other cities
planned for the coming months. What isn’t widely known is that the
USPS actually offers this service to any shipper, but Amazon is the first
to bring it out on a large scale.

9. 6. Packaging innovation
Packaging innovation is the innovation in materials or processes
employed to contain, bundle, protect, and/or transport an article.
New Ideas That Make History Since 1869, we’ve made a name for ourselves by delivering pure foods and
superior quality in new ways that both surprised and delighted the consumer.
When founder Henry John Heinz introduced his fresh horseradish in a unique clear glass bottle, the concept of
full disclosure through packaging was unheard-of. Equally fresh was the notion that product packaging could
greatly enhance the appeal of the food inside. Today, Heinz continues to elevate the science of product
packaging to an art form.
Easier for You. Easier on the Earth. Turning packaging expectations upside down—as we did literally with our
Top-Down™ ketchup bottle—is a Heinz tradition. But dreaming up new ideas to make it easier to enjoy our
products is just the beginning.
The rest of the story involves our commitment to responsible, sustainable packaging.
The recent introduction of a lighter, easy-open can for products like Heinz® soup is packaging innovation that
benefits both the consumer and the environment. The cans’ lighter weight also reduces the overall weight to
transport them, saving fuel and improving efficiency.

10. Innovation process
Ideas
Feasibility
Roll-out
Contender
Capability
Launch
Preparation
What
Can we do
should we
it?
do?
Make sure
we can do
it!
Let’s
do it!
Post-Launch
Evaluation
L
A
U
N
C
H
Was it a
success?
Roll-out
Launch
Contract
Charter
On shelf in first
market(s)
Recommend
others to do
the same

11. Example – iPad
Feasibility
Ideas
Product
innovation
iPad
Easy to useeven baby
can use it
Endless
content
Sexy looks
Capability
IDEAS
TESTING
RESEARCH
MAKING
TRIAL/
PROTOTYPE
(Qualitative
&
Quantitative
Research)
Real
experience of
new product
-> Finalize
the complete
iPad
Launch
Post-launch
evaluation
Sales - share
15 mil iPads
sold in 2010
- More than
every Tablet
PC ever sold
- 9,5 bil $
- 90% market
share
Roll-out
contender