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Why Most Marketing Plans Fail & 9 Ways to Succeed with Yours

This Monday is Memorial Day in the US, when Americans everywhere think back to those in the US Armed Forces who gave their lives in the line of duty. I too am thinking back, but to all the marketing plans and ideas that have been sacrificed!

The reasons why some plans are accepted and others aren’t are many. Non-alignment with corporate plans is one of the most usual, but lack of clarity, consistency, preparation or budget are also common. And even when accepted, they aren’t always executed as planned. So I thought that it would be useful to take a look back at our own marketing plans that we set earlier this year and review what is and isn’t working. We still have time to make changes and meet our 2014 targets, so which of the following is your current issue?

Declining market share

Firstly, you should be ashamed that you’ve let your br and slide so much that you are actually losing share! Br and equity measures would have given you a clear warning that something was going wrong, months if not years ago! Did you ignore the numbers or were your efforts too small to have the necessary impact? Either way, it’s time to start working out what’s going wrong. Review the 5P’s of marketing for starters and prioritise actions based on what you find.

Stable market share

So your br and’s growth is slowing? This happens in the normal life-cycle of a br and, so no panic, but you do need to take action to renew growth. But don’t think that small tweaks will be enough. Competition is ruthless these days and you will need to create some buzz around your br and. Surprise and delight is the name of the game to win (back) consumers. Start from your strengths and then ramp one or two of them up a couple of levels.

Declining image

As mentioned above, your br and image will start to weaken before market share is affected (>>and%20image%20will%20start%20to%20weaken%20before%20market%20share%20is%20affected%20%20[tweetlink]” target=”_blank” rel=”nofollow”>Tweet this<<), so in theory you still have time to prevent significant share loss. But you must act now! It is more effective to review your image ratings by experience group, to see what you need to do to recover lapsed users or convert more trialists. In my experience the answers should be clear from a regularly run and thoughtfully analysed br and image study using a well-developed attribute list.

Losing consumer trust

This is a serious issue. (as if the others aren’t!) Trust in companies and br ands is what enables consumers to forgive mistakes or accept higher prices. (>>and%20br ands%20is%20what%20enables%20consumers%20to%20forgive%20mistakes%20or%20accept%20higher%20prices%20%20[tweetlink]” target=”_blank” rel=”nofollow”>Tweet this<<) And it tips the balance in your favour in product comparability when performances are similar. Trust is a complex principle built out of a number of influencing factors, such as integrity, reliance, confidence, quality and worthiness. Which of these has resulted in your consumers’ loss of trust? Once identified, you will need to review how you can influence it. It will take time – sometimes a lot of time – to change perceptions.

Inconsistent communications

Since most companies have one product manager or group in charge of each br and, this shouldn’t happen and yet it still does. Multiple suppliers with differing interpretations of the br and promise, and annual revamps of simply the previous year’s work, makes for communications that gradually slip from the original positioning and message. Instead of just looking at the latest or planned communications, it is vital to also review the previous five years’ work. It then becomes obvious how messaging has shifted. (>>Tweet this<<)

Inconsistent product performance

As with communications, most product testing compares current to the proposed new product and sometimes also versus the competition. Unfortunately small changes made can be undetectable to consumers even in direct comparison, or are within statistical errors and so are ignored. But over time, consumers are likely to come to realise that the product to which they have been loyal for many, many years, is no longer what it used to be. Therefore it is useful (essential) to compare product ratings to those from previous years, as well as to the current product.

No emotional attachment

This is a dangerous situation to be in, since if consumers have no emotional attachment to your br and, they can switch without too much thought. In fact your br and is no longer a br and, it’s a commodity! It needs to st and for something in the hearts and minds of consumers, so that they will choose you rather than a competitor. Especially in categories where performance differences are minimal, emotional attachment is what keeps consumers loyal. (>>Tweet this<<)Review how your consumers feel about your br and and what you can do to build more emotional attachment. The stimulation of the senses is a great way to do this. (read more here).

Confusing br and hierarchy

Your line extensions are like family members. There should be a well-defined parent br and and each variant should have clear resemblances to it. As mentioned above concerning product and communications consistency, line extensions can drift away from the look and feel of the parent br and, especially in dynamic categories where innovation and renovation are vital. When was the last time you looked at your whole product range – together? Differences in fonts, colours, sub-br and descriptions and design become quickly obvious. Make the changes needed to get the family back in line.

Lack of (the right) social media presence

I couldn’t end this list without including social media and the internet as this is where most consumer product br ands “live” today. (>>and%20the%20internet%20is%20where%20most%20consumer%20product%20br ands%20%E2%80%9Clive%E2%80%9D%20today%20%20[tweetlink]” target=”_blank” rel=”nofollow”>Tweet this<<)It is not enough to launch a website and Facebook page for every br and and promotion. Living is the operative word here, so it’s much better to have one site that is regularly updated than tens that are visited by twenty people a month ( and yes I’ve found that in many major CPGs in the past). Also make sure that your tone online fits your tone offline and portrays the same personality. Social media is not new media, it’s just another channel, so it must fit into your overall communication’s strategy.

Hopefully this list has given you some food for thought and ideas on which to take action this week. If you are facing a different challenge I’d love to hear about it and possibly offer you some solutions. Just drop me a line here.      

C³Centricity used an image from Kozzi in this post.

NEVER Succeed at Innovation: 10 Mistakes even Great Companies make

There have been many attempts to dethrone the blond supermodel doll Barbie over her fifty plus years of existence, mostly without much success. The latest endeavour (named Lammilly, after her creator) is different in that Nickolay Lamm is going after co-funding and has already achieved over $350,000 in just a few days according to the website.

This interesting addition to the “Anti-Barbies” story prompted a number of questions in my head:

  • Is it wise to go after a declining segment?
  • What was wrong with Barbie’s customer satisfaction?
  • Who is the target for this new doll? Child, adult, collector?
  • Why now, after so many previous unsuccessful attempts at dethroning Barbie?

Those questions and various discussions on FaceBook then got me thinking more generally about innovation and how companies have adapted their processes (or not) to today’s connected world. So here are my thoughts on how NOT to innovate:

1. Change the colour, perfume or taste of your current product and then charge more.

Pepsi innovation of Crystal PepsiThis is what Pepsi did when launching Pepsi Crystal: it lasted less than a year. Interestingly this is also what Apple just did with its iPhone 5C, except it charged less. Again it is already being discounted at Walmart because of disappointing sales, which might just be a good thing for Apple in the long run. Sales of the 5S remain buoyant and any damage to the corporate image caused by the cheaper 5C should hopefully be significantly reduced.

2. Organise an innovation team and provide them with a separate office, ideally far away from the current business.

If this is how you are set up internally, get the team back into talking distance with the rest of the business. Rather than stimulating creativity as it has been claimed to do, by being separated from everyday business concerns, it actually alienates everyone else to innovation and decreases overall creativity.

3. Make sure R&D heads up innovation so your new products can make use of your technical know-how and skills.

R&D needs to connect with customers for improved innovationWhilst this may result in technically improved products, they are all too often not in line with consumer current needs or future desires. Your research people need to connect with your potential customers regularly so they can be tuned into customers’ wants and current frustrations. Wouldn’t you rather have your R&D developing new products that practically sold themselves? As Peter Drucker said “… know and underst and the customer so well the product or service fits him and sells itself” (>>Tweet this<<). If R&D are in constant contact with your customers, they will always have them in mind when planning their product development.

 

4. Don’t let people from outside the organisation work on innovation; prefer well-established thinkers from within the organisation, preferably with more than ten to twenty years in the company.

This often happens as the result of a naïve manager lacking the required confidence to accept criticism, to challenge the status quo and to get out of their comfort zone. No person, let alone an organisation, can be an expert in every area. Why not take full advantage of external expertise to catalyse innovation? It’s certainly faster than learning   and training the required new skills internally. Just think about how many major Fortune 500 companies have joint ventures: they know something about reaping the benefits of collaboration for a win-win to grow their businesses.

5. Only move an innovation concept forward when it is finalised and everyone in the company agrees with its potential.

Apple still excels at innovation

If you wait for complete agreement on a new concept, you will never launch any new product. Rather than looking for total buy-in from everyone, accept the proof of a well-documented justification; if it looks and feels right you can learn from in-market measurement once launched to make adjustments. This is the approach often used by many successful hi-tech companies including Apple. Become a beta tester but make sure you fail fast and learn fast (>>Tweet this<<).

 

6. Follow a well-tested established process for concept development. Take time to ensure everything is working perfectly before launching.

St andard innovation funnelRigid processes and creativity rarely go together (>>Tweet this<<). Rather than working step-by-step through a st andardised process every time, accept that your approach can and should be adapted to the concept as well as market needs.

Some argue that the more ideas you have the better the winning concept. I personally think that massive numbers of ideas merely dilute both thinking and action. I recommend working through a few potential “promising concepts” with some target customers, to refine and develop the winner. I have found this approach to lead more consistently to a winning concept that customers would buy, as well as far more quickly than any st andard funnel process of proliferation and elimination.

7.  Never use social media or test amongst consumers who are outside the control of the organisation, so competition doesn’t learn about what you are developing.

As with no. 4 above, this situation often arises from less experienced managers afraid of being found lacking in creativity. In reality, competition often knows far more about an organisation’s innovations than the majority of its employees do. Therefore test and learn, then test and learn some more, whilst of course making reasonable efforts to reduce any confidentiality risks involved.

8.  Never share ideas with anyone outside the innovation team to avoid leaks.

As mentioned in no. 2 above, everyone can be creative and have great, innovative ideas. It therefore makes no sense at all to limit accepted creativity to one team alone. Whilst it is important to have an innovation lead team, all employees should feel encouraged to bring their ideas to the attention of the business. After all, we are all consumers.

9. Only innovate products and services similar to those in which you are already an expert.

This is not innovation, this is renovation. As with no. 1 above, it is unlikely to provide significant growth for a business, but it can satisfy consumer dem ands for novelty until such time as your disruptive innovation is ready. Never accept renovations as a replacement for true innovation. (>>Tweet this<<)

10. Don’t think too far ahead; after all, the world is moving so fast that we don’t know what the future will look like.

Preparing future scenarios can speed innovation

Whilst it’s true that the world is moving forever faster, this actually makes forward thinking vital not impossible. My recommendation is to develop future scenarios to challenge the organisation to think through a number of “what if” scenarios so that the business is prepared for multiple opportunities and risks.

 

These are my ten mistakes that even the best companies make sometimes in innovation. Are you guilty of any of them? Hopefully these ideas will provide you with food for thought as well as possible solutions.

C³Centricity used images from Dreamstime, PepsiCo and Apple in this post.

6 Tips to Thinking Outside the Innovation Box

Does your business have an innovation process? No? Then perhaps you should count yourself lucky! Most businesses that do have one, sometimes get stuck in it, stopping them from thinking Bigger and Bolder, and therefore also stopping them from dreaming. If this is the case with your own organisation, then this post should offer some inspiration for change.

When companies are starting up, they often begin with just one or a few products or services to offer. However, as they grow, they get ideas about other products or services they could add, sometimes at the suggestion of their current customers. As business continues to grow, they might set up an innovation process or put someone in charge of searching for new ideas and unfortunately this tends to be when they start to lose contact with their customers and what they really desire.

Today we all underst and the importance of customer centricity, the power of putting the customer at the heart of the business and yet we still manage to forget them somehow when looking to innovate. For this reason, I thought it would be useful to share my six tips to help you to think outside the innovation box in your organisation, whether you are a big multinational, or just a small local firm.

#1. Start with your customers in mind

This makes so much sense and yet we all seem to forget it at times. Big companies have R&D departments so their innovations tend to be technology and skill driven. Smaller ones have maybe more limited resources, so ideation falls on the desk of the owner, marketing head or the person responsible for operations. All businesses have customers, so why not start with them? What do they dream about improving, what are their biggest issues with your category? Finding solutions to their frustrations will almost certainly guarantee the success of your next new product or service.

#2. Why do you want to innovate?

The answer to this simple question will give you some ideas of the solutions you need to create:

  • Is competition growing? If so, what do they know about your customers that you don’t? What can you do about it, both now as well as in the future to stop it happening again?
  • Is the market segment growing faster than you are, so even though your sales are growing you are losing market share? If so, why; what products and sub-categories are increasing, what benefits are attracting customers more than in the past? Can you follow or lead with a different benefit area?
  • Is your image getting old and in need of updating? Where are your comparative weaknesses and is competition filling all possible positionings in the category map?

#3. Do you need to innovate or renovate?

The difference between the two can make a huge difference in what you develop. If you need to innovate but actually produce a “small” innovation, closer to a renovation, you are less likely to succeed, at least in CPG, according to Steenkamp. Identify which end of the innovation scale you are aiming for and rework your ideas until you reach it.

#4. Can you innovate outside your box?

Most companies innovate in very predictable ways, so that even their current customers are less excited or inspired to try their new offers. This is unfortunately a trait of human behaviour; we all get bored in the end, even with the best product or service that excited us when it was launched. What was once seen as a breakthrough can quickly become taken for granted as customers become used to it. Therefore why not think outside the box, using different levers? For example food companies continuously bring out new flavours, when maybe a new sensation is what’s needed. Nestlé’s chocolate mousse is a great example of this.

#5. Reinventing innovation needs a new culture, not a new process

As mentioned above, new processes are usually not the best answer to more successful innovation. According to a recent Forbes article likeminded people develop likeminded products. To create breakthrough innovation, you need a culture shock, people who think differently. This can be as simple as taking people from different departments to work together, or hiring people from the outside, with very different mind-sets to stimulate new thinking.

#6. Innovate in answer to scenarios not trends

Most customer-facing organisations follow societal trends. The problem with this is that their competition is doing exactly the same thing, which means that they will be in a constant rush to launch faster than their competitors, and at best end up leading a new segment of two or more almost identical products.

A much better way to innovate is to respond to opportunities or challenges identified by developing future scenarios out of the trends. These have the advantage of being unlikely to be duplicated, at least in the beginning, and are further out time-wise so they will allow more time to create a new offering even before your customer knows they have the need. In some cases this might mean you will have to be patient until the customer is ready – it took Nespresso more than 20 years to become the phenomenal success it is today! – but at least you are less likely to be faced with a competitor offering a similar product.

If you follow these six tips, you can be sure your innovation will meet with greater success and your business will be well prepared to capture future opportunities better than the competition. If you are already doing all of these, I congratulate you. Still struggling to grow as fast as you would like? Well then here is my seventh, only for the bravest innovators:

EXTRA #7. What business are you in?

If you are constantly met with innovations from your major competitors just before or after your own launches, then it is time to get out of the fight be changing the territory. What do I mean by that? Ask yourself what business you are really in.

For example a cigarette manufacturer could see itself as a provider of personal pleasure; now that opens up innovation doesn’t it, far beyond just a different cigarette br and? And suppose a food company became a nutrition business offering supplements and meal replacements; a home cleaning corporation widens to become a home carer and beautifier; a pet food company shares its passion for animals be offering insurance and medical treatments. Asking what business you are really in and not the one you thought you were in, can sometimes be just the spark that is needed to truly successful innovation.

So which one of these are you going to use this month to start reinventing your innovation? Take action today, so that you get a positive ROI on your reading of this post.

Would you like to share your own ideas for improving innovation? Please add a comment below; we reply to all comments and might invite you to write a guest post on the topic for us.

If you want to know more about innovation, please check our website here: https://www.c3centricity.com/home/vision/

Do you know someone who is struggling with their own innovation? Please share this post with them.

Does your organisation need more help in reinventing its own innovation? We can run a 1-Day Catalyst session to get you started FAST; contact us here for more information.

C3Centricity.com uses images from Dreamstime.com

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