WHY CONSUMER GOODS INNOVATION IS STAGNANT IN A WORLD DRIVEN BY TECHNOLOGICAL INNOVATION

Theresa Saldanha, Co-founder of WhyNot! Innovate, explains why consumer goods are under-represented in BRW’s 2012 Most Innovative Companies

 

MARKETING MYOPIA IN 2013

   

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MARKETING MYOPIA IN 2013 WHY CONSUMER GOODS INNOVATION IS STAGNANT, IN A WORLD DRIVEN BY TECHNOLOGICAL INNOVATION

I’m sure a lot of my marketing peers would disagree, but think about it for a minute – when did you last see something truly innovative in consumer goods? Something that actually solved a frustration you’ve always felt…… For example, what if you had something that ensured you never ran out of milk?

Chances are, you can’t remember!

Which is why only one, amongst the top ten, of BRW’s 2012 Most Innovative Companies was from consumer goods (Coca Cola Amatil).

A few commonalities emerged amongst the winners : • The majority solved a common consumer frustration. • They harnessed technology to increase efficiency, reduce

costs, reduce time or gain a competitive edge. • Their innovations occurred at the intersection of 2 ‘realms’ –

for eg. Entertainment & Lifestyle; Healthcare & Lifestyle; Travel & Convenience.

So why are consumer goods so poorly represented?

And, what do technology companies do differently?

Whilst looking at possible causes, the thought struck me that what we are looking at, is a classic case of “Marketing Myopia”, a term coined by Theodore Levitt in 1960, basically asking the question “what business are you really in?”

INNOVATION AT THE INTERSECTION

OF REALMS

As consumer experiences extend into realms beyond a brands domain, opportunities for innovation can be found in the intersection of a myriad realms – where

industries, cultures, departments &

disciplines collide. Dubbed the

Medici Effect (Frans Johannson), these intersections

provide fertile territory for innovation, as they are

based on unique experiences.

   

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How is “Marketing Myopia” still relevant today?

To answer this, let’s looks at innovation practices in the consumer goods sector through 4 ‘lenses’, and compare it with the technology sector:

   

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Hence, what are some processes & tools that can break through this Myopia?

 

Know thy consumer  As consumer experiences continue to extend into areas where traditional realms collide, brands, in order to win, will need to develop a broader, holistic view of their consumer. For eg. Ford’s latest R&D centre is based in Silicon Valley, where developers are urged to think of cars the way they do about the ipad-iphone ecosystem, where software updates will continue to keep vehicles fresh & relevant.    

Cluster to collaborate & innovate  In a twist on open innovation, develop collaborative clusters around a clearly defined consumer target – of manufacturers, technology companies, education institutes, distributors, packaging suppliers – where shared information, trends & insights enable the development of common innovation platforms & potentially joint project collaborations.

Use new tools to drive creativity & innovation like Hackerthons These are time based, fun, competitive challenges to develop demonstrable concept prototypes, for a target audience. For added fresh insight, these non-app based workshops can be run across a collaborative cluster.

INNOVATION

HACKATHONS

WhyNot! Innovate

and

Six Degrees

will be hosting

a cross-industry

Hackathon

in July.

For more information or to participate,

contact:

Rachael Powell or

Kristan De Sousa (03) 8613 3500.

Theresa Saldanha Director

WhyNot! Innovate leverages joint collaboration to solve

industry-wide problems, delivering growth, profitability

and innovation. tsaldanha@whynotinnovate.com.au

Mob. 0409 011 465