The Power of Innovation

The term innovation refers to doing something new, which means thinking out of the box and coming up with something entirely new. The power and reach of innovation cannot be underestimated. Innovation can guarantee you not only huge revenues through sales but also create a new identity as the leader in the market for the product. The best possible example would be the Apple IPod. The IPod has created a huge fan base and has been one of the most innovative products of this decade. When major companies such as Sony and Philips were concentrating on developing CD players to replace the existing Walkman, it was the Apple’s iPod which came out of nowhere to take the market by storm. The product was a technological leap. Not only was it lighter and smaller when compared to a CD player or a Walkman, it was digital. This meant one could store thousands of songs, when people where restricted to 700 MB per disc. By this new product, Apple made runaway profits since the competitors were not even aware what hit them.

In the fourth quarter of 2004, apple made a net profit of $44 million and the revenue was @2.35 billion which was a 37% increased compared to the previous year quarter. Even today Apple has 71% market share and remains on top. The product/brand has become so famous that, people often make the mistake of synonymously associating the brand/product to any mp3 or digital player. Hence an innovation can take you to great heights and at times leave you there standing tall on that pedestal.

E-Commerce

Imagine you are using Google to search for some details related to your work. One of the links suggests an excerpt of a book which you find very interesting. But to read the entire book, of course you will have to buy it. The website also offers you the pleasure of buying the book online with the click of a button. You order and the book is at your doorstep in 4 days. How easy does this look? This is called the E-Commerce. The crux is you were not even with the idea of buying any book on that day. Nor did someone influence you into purchasing the book. All that happened was, the website understood your needs and timeliness. All you wanted was information and with ease. Who would not prefer this kind of imperial treatment? From a simple example of book to huge examples of costly gadgets, this business is booming in the Internet. This has triggered a whole new sale of goods in the second-hand market to any corner of the world. The use and throw of goods has drastically come down because someone in the other end of the world might be happy with what you want to throw. The most surprising thing is the element of Trust involved in a transaction. This makes me feel “Humanity still exists.”

Pizza Hut’s Biography

The name itself makes our mouth watery and our mind actually starts imagining a huge Pizza in front ready to be eaten. The Pizzaurant has been successful in carving a niche in hearts of people for the past 61 years. It is an American based restaurant with its headquarters in Texas and franchises spread throughout the world. It was founded by Dan and Frank Carney. Its main competitor in the initial stages was Shakey’s Pizza. This competition provided the direction to Pizza Hut to choose between restaurant and entertainment businesses. After 15 years of its inception, Pizza Hut went public in the New York Stock Exchange and was later acquired by Pepsico. In 1997, Pizza Hut, KFC and Taco formed a syndicate called the Tricon. The oldest operating Pizza Hut is in a small town in Kansas.

Pizza Hut brings in innovations in the art of Pizza making. Although there were successes and failures, it is still the most sought after brand when it comes to Pizzas. The controversies that were brought up were the increased number of accidents in the delivery segment and the unhealthy ingredients in some of their meals. But as long it is never going to allow you to resist a Pizza in front of you, would you care about the controversies?

How close is your seller?

Suppose a company has a wonderful range of Shoes and it has undergone a very attractive advertising campaign. All targeted segments of people are so excited for the launch so that they can buy and show their pride of purchase. Seems like the company is on a rock and roll. Isn't it? But the company did not realize that there is still a level where major blunders could happen. And what was that? The Distribution Network. The sales of the product were limited to the major showrooms where the number of people arrives is less. What did the company achieve by being famous? Having a great brand and implementing an excellent promotion? Less sales than expected. So it is very important to make the product available easily to every section of people targeted. Especially in case of products where the usage is universal, it is necessary that all kinds of stores should sell them. The company had neglected a larger chunk of prospective consumers. Fortunately, even if people come to big showrooms and buy the Shoes, do they have to come again all the way if they have problem with the size? A product should be customer oriented and nothing else matters.

Advertising – What makes it tick

What does a 15-sec Ad do to your mind when you see it for the first time? It holds you back for the second and the subsequent times? Then that means the mission has been accomplished by both the brand and the Advertising Company. The Ad may contain celebrities, handsome and beautiful looking models, humor, emotion, colors, family or none of the above mentioned parameters which may impress you. But yet find a place in your heart and make you reflect.

The lifetime of an Advertisement is not the 15-sec but it is the duration of the impact that has been made on us. This reminds me of one of the Popcorn Ads which says – “XYZ Popcorn does not make interesting ads because the audience would not get time to prepare Popcorns during commercials”. This one text without any Visual aid was the most spoken about advertisement. And most importantly this must have been a very economical commercial.

On the contrary, the Raymonds ad is very visually appealing. It actually makes the viewer feel the touch of the suit. The ad was promoted with Golden Retriever pups on an Executive. It symbolized the lighter moments of a business man as well as the quality of the Brand.

To sum it up, successful ads are the one which connect to the people the way it has to be connected.

How Different is your Product

What makes a product unique? The appearance? Usage? Mass Appeal? The approach?.
Well, the answer can be anything. People choose different products for different reasons.

1) Emphasis on Product: The features of any product are very important to the minds of customers. People may choose Sony Ericsson over any other mobile for its visual appeal and quality of video and audio. But they may also choose Nokia for its ease of use, simplicity and relatively affordable price.

2) Emphasis on Distribution: Suppose a Nike shoe is available only in Nike outlets and Adidas is available in Adidas showrooms as well as Shopping Malls, which one might sell well? It depends. Casual shoppers tend to buy more when displayed anywhere they go. But if people are so particular about a brand they go to the outlets. This way people view different products even though the value they get is the same.

3) Emphasis on Promotion: A wonderful example would be an Axe Deospray Advertisement. The way the each new fragrance is promoted urges a viewer to try out the difference in the product. Moreover, the brand gets more importance than the product itself.
A product differentiation strategy cannot be all in one package. A combination must be used to bring out the best of emphases.