Vivaldi Innovation and Growth

Innovation Perspective & Capabilities

JULY 2015

Vivaldi Partners Group

CHALLENGES IN INNOVATION

Today, innovation breakthroughs are more than just individual products or services, they change the way people live and the way businesses operate

Vivaldi Partners Group 2

CHALLENGES IN INNOVATION

Innovations continue to fail (or be short lived) because…

…they don’t account for what’s going on in peoples’ lives or broader societal trends

…they take place around individual products or services, instead of entire platforms and ecosystems that drive breakthroughs

…the traditional innovation process is too slow and highly siloed across functions

…the culture of an organization is often inconsistent and doesn’t reward creativity, collaboration and responsible risk taking


4

OUR PERSPECTIVE

We approach innovation differently by putting the consumer’s perspective first and identifying opportunities based on peoples’ behaviors…


5

…and we apply this consumer-led mindset across four key innovation subject areas

OUR SERVICES


Outline a growth strategy that will

establish the innovation ecosystem

and plan for how to develop the requisite

products and services within it

Develop the portfolio of innovations that will drive new growth for

the company over time

Build an innovation process that establishes

the steps that the company should take to

systematically innovate around

customers again and again.

Embed the mindset, structure, processes, and systems that the company needs to be able to consistently drive new growth through innovation

CONSUMER-FOCUS COMPANY-FOCUS

THE FOUR KEY SUBJECT AREAS OUR SERVICES SPAN

6

Our beliefs uniquely position us to deliver breakthrough growth grounded at the intersection of consumer needs and company operations

OUR DIFFERENCE


Product Innovation

Business Innovation

BusinessCase

Driven

Insight Driven

App

roac

h fo

cus

Key output / deliverable

Trend ForecastersIdentifying the cultural shifts impacting consumers and industries e.g., The Futures Company

Design and Experiential-Led

Agencies Using cultural insights to

develop relevant products and services

e.g., IDEO, Frog

Management Consultancies Business model forecasting to drive growth e.g., McKinsey, BCG

Vivaldi PartnersConverting

consumer-centric insights into actionable innovation

7

These beliefs guide all of our work

OUR APPROACH


DEMAND ASSESSMENT

GROWTH PLATFORM CREATION

CONCEPT IDEATION & QUANTIFICATION

Market, Category, &

CompanyAnalysis

Foresight, Trends &

Cultural Context

HypothesisDevelopment

Co-Creation Studios for

ConceptDevelopment

Pilot Execution and Measurement

Business CaseDevelopment

Innovation Roadmap

Planning & Activation

Strategy

Customer BehaviorMapping

OpportunitySizing &

Prioritization

Insight basedPlatform

Development

Concept Testing,Expansion

& Finalization

GO-TO-MARKET & ACTIVATION

SAMPLE INNOVATION APPROACH

8

We bring a network of advisors, methodologies and proprietary tools

INNOVATION APPROACH


Industry Experts and Academic Thought

Leaders

Industry and Cultural Trends

Online Communities

Online Episode Tracking

Global Co-Creation Platform

Interactive Idea Mapping

OUR PROCESS

How we do it…


10

Ground innovation ideas in a deep understanding of consumers’ lives

BELIEF 1


WE DON’T STUDY A MOMENT IN TIME, BUT STAY CONNECTED TO UNPACKAGE BEHAVIOR THROUGH EPISODIC RECONSTRUCTION

REAL-TIME TRACKING

ANALYTICALLY DRIVEN

QUANTITATIVE TESTING

CONTINOUS ITERATION

ONLINE COMMUNITIES CONSUMER

XDAILY LIFE

Demand-First Innovation Platforms

Context Goals Decisions AlternativesProcesses

Needs Wants Pain Points

Jobs to Be Done

Frustrations

Our Collaboration Technology helps companies to form a constant dialogue with consumers. This unique perspective helps to

iterate on existing insights and develop new insights that lead to new innovations

11

Map innovation opportunities against supply & demand

BELIEF 2


QUANTIFIED SIZE OF PRIZE

1. SUPPLY: Category analysis to show HOW consumers use a specific product or service

Inputs:•Company strengths (e.g., partners, assets, resources)•Industry / competitive analysis

3. OPPORTUNITIES: The intersection(s) of supply and demand that identify WHAT benefits and attributes satisfy consumer needs

WE IDENTIFY WHAT BENEFITS & ATTRIBUTES SATISFY CONSUMER NEEDS & WE RIGOROUSLY QUANTIFY THE OPPORTUNITIES TO PURSUE

2. DEMAND: Needs and behaviors; the driving force behind WHY consumers want and desire your product or service

Inputs:•Episodic reconstruction•Anthropological and societal trends

$

$

$

$

12

Develop innovation pipelines that expand beyond “products”

BELIEF 3


WE UNDERSTAND HOW PEOPLE LIVE TO UNDERSTAND HOW A BROADER ECOSYSTEM CAN DRIVE VALUE

» Partner for BMW owners’ parking spot swap (ParkNow)

» Enable BMW crowd-sourced, live traffic updates in cars

» Create network of charging stations

» Develop roadside assistance program for BMW owners

» Allow non-owners to rent electric cars by the minute for urban mobility needs

» Trade-in electric car for gas-powered for long-distance travel

INNOVATION OFFERINGS

AN EXAMPLE FROM BMW

» WiFi enabled

» Pre-loaded with transportation-related apps (e.g., Google Maps, Waze)

CARS INDIVIDUAL MOBILITY

13

Create a culture of continuous innovation to keep pace with the changing needs of a consumer

BELIEF 4


ESTABLISHING THE RIGHT CULTURE IS KEY TO ENSURING INNOVATION IS A SUSTAINABLE AND REPEATABLE PROCESS

…I FEEL SAFE BEHAVING IN THE NEW WAY

…I GET IT AND WANT TO DO IT

…I HAVE THE SKILLS TO BEHAVE IN THE NEW WAY

…I AM APPROPRIATELY INCENTIVIZED

I WILL CHANGE MY BEHAVIOR IF…

EMBED A TRANSFORMATION SYSTEM TO BUILD A CULTURE OF CREATIVITY, COLLABORATION AND

RESPONSIBLE RISK-TAKING

IDENTIFY PAIN POINTS IN

CONSUMERS’ LIFE

OUTLINE POTENTIAL WAYS TO ADDRESS

THOSE NEEDS

QUANTIFY OPPORTUNITY

AREAS

PROTOTYPE / TEST WITH

PILOT MARKET

IMPLEMENT

ENGAGE WITH

CONSUMERS

DEVELOP A CONSISTENT INNOVATION PROCESS FOR PEOPLE TO FOLLOW

We would like to share a few stories from our past work…

CASE STUDIES


15

We help clients solve a broad range of business and innovation challenges

CASE STUDIES


INNOVATION PROCESS DESIGN

CAPABILITY BUILDING

How can we design a process that allows us to create repeatable breakthrough innovation?

GO-TO-MARKET ACTIVATION

How do we holistically activate our growth platforms to bring innovations to market?

ORGANIZATIONAL ALIGNMENT

How can we align an entire organization around common goals?

CONSUMER-LED GROWTH PLATFORMS

BRAND AND INNOVATION ROADMAP

How do we innovate to win in both the short-term and the long-term?

How can we translate trends into new business concepts to identify new sources of volume in our crowded category?

BUSINESS MODEL EXPLORATION

What are our biggest organizational strengths and how do we use them to drive growth?

How do we redefine our business strategy and achieve organizational buy in?

CODIFYING COMPETITIVE ADVANTAGES

What new capabilities can allow a product-centric organization to become customer-first?

How can we translate trends into new business concepts to identify new sources of volume in the crowded gum category?

WRIGLEY


Identifying, developing and validating new innovation concepts…

WRIGLEY


SITUATION» Wrigley’s had doubled its sales in the previous 4 years leading to a market share of 64%

» The CEO challenged the team to double sales again while staying margin neutral

» The company’s traditional way of growth was mainly product-driven and there was uncertainty around how to identify, assess and develop new disruptive business models

ACTION» We conducted ethnographic research to gain a rich understanding of consumers’ daily life

» Performed brand analysis to identify sources of strength

» Developed innovation areas and conducted ideation workshop with experts to generate new product concepts

» Facilitated business case analysis with cross-functional company team

RESULT» Created pipeline estimated to generate +10% incremental growth year-on-year

» Generated 4 high testing concepts leveraging entirely new business models; 2 went to test market and one is being rolled out

» Strategically moved company beyond previous core business – new user groups, new need states/benefits, new competitive sets

18

…to target new customer occasions that required new business models and new delivery channels

WRIGLEY


OPPORTUNITY ASSESSMENT INNOVATION IDEATION

How to innovate to win share in the crowded energy drink market?

NOS


Rethinking and expanding the Frame of Reference…

NOS


SITUATION» Refining the brand and building a pipeline of innovation for an energy drink to drive future

growth in the US market

ACTION» Recommended updates to the Brand Vision based on key target need states and

category insights

» Developed an innovation architecture based on 4 clear platforms

» Generated a comprehensive list of 100+ innovation ideas with a prioritized near-term pipeline of 21 high-level ideas

» Developed full testable concepts for 5 ideas

» Created a brand and innovation launch roadmap

RESULT» NOS now owns a unique customer-territory which was created by combining consumer-

and company perspective

21

…to develop breakthrough growth platforms taking NOS to the next level of the drink market

NOS


PRODUCT GROWTH PLATFORMS INNOVATION CONCEPTS

How do we holistically activate our growth platforms to bring innovations to the US market?

BUITONI


Reimagining how to bring innovation concepts to life…

BUITONI


SITUATION» Buitoni (fresh pasta, sauces) had a strong brand and product; however, suffered from low

critical mass, challenging grocery shelf placement, and limited marketing budget

ACTION» Identified potential around Mediterranean diet characteristics and eating style (linger over

meals), aligned with Buitoni equities and today’s consumer

» Unearthed unmet needs within Consumer Demand Landscape to identify and formulate opportunity spaces

RESULT» Created three new platforms, and new products within each to selectively expanded

Buitoni’s offerings

» Created and implemented a highly successful sampling, merchandising and experiential in-store program for 5 major retailers

» Grew Buitoni’s business from $90mm to over $250mm in just over 2 years

24

14

Demand Cluster

Satisfying everyone

Engaging in rituals

Achieving Balance

Connecting with one another

Treating and Indulging

Comforting & reassuring

Being creative

Experiencing new varieties

Customizing to fit Me

Feeding the body

Enhancing performance

Healing through food

I don’t have a desire or

passion for food

I have difficulty in making

the right choices

I am confused

about food

I am afraid my food

might harm me

I have too much

artificiality in my life

I have no time to

care for my family

I have a unique life

I feel guilty about

liking what I like

I feel uninspired

without a direction

I want to be a better

person, but it’s hard

I feel anonymous and

not special

I look for meaning in

things around me

Unmet Consumer

Needs

I want more

nourishing connections

I don’t have enough

nature in my life

Make Daily

Life Better

Emotionally

Fulfilled

Overall

wellbeing

To Express

Yourself

Wholesomeness of Home

Simple Solutions for Healthy Living

Joie de Food

Fresh from the Source

Development Opportunity Spaces

…to develop holistic product and retail experiences to activate innovation and drive growth

BUITONI


DEMAND AND SUPPLY HOLISTIC PRODUCT & RETAIL EXPERIENCE

53

Come to the Table – Phase II : 2007

Display area

Co-merchandising

Sampling Table

Sample packs

Come to the Table signage

In Store: Sampling events Signage in produce Staff training

Beyond Store: Print advertising Radio advertising Virtual community

At Shelf:

A bit about who we are…ABOUT US


Our FirmABOUT US


LARGEST INDEPENDENT BRAND STRATEGY FIRM

15 YEARS OF STRATEGY CONSULTING, BRAND DEVELOPMENT AND BRAND CREATION

OVER 300 CLIENT ENGAGEMENTS IN BRAND STRATEGY, MANAGEMENT & GROWTH STRATEGY

70% OF FORTUNE 500 AS CLIENTS, INCLUDING THE LARGEST CPG COMPANIES IN THE WORLD

Over the years, our clients have asked us to answer a wide range of strategic questions…

ABOUT US


How do you transform sandals into a fashion

statement for men? // How do you climb to new

heights when creating an obstacle race in a

crowded market? // What can you do to encourage

people to drink more beer? // How do you make a

ubiquitous snack appetizing again? // How do you

convince bankers to be more empathetic? // Is

ubiquity when brands and knockoffs collide? // How

do you get multicultural youth to hydrate for their

daily hustle? // Can insurance companies be

approachable? // How do we sell high quality

basics in today's fast fashion world? // How do you

start your day right? // Why are people always

eating in a hurry? // When the bottom line is at

stake, how do you drive customers back through

the doors of an upscale steakhouse? // How do you

put the energy back in energy drinks?

28

…and for some of the world’s most exciting F&B brands

ABOUT US


Vivaldi at a glanceABOUT US


Our Multi-Disciplinary 200+ Staff Our Global Presence

First brand equity measurement model

by David A. Aaker & Erich Joachimsthaler

Creation of new brand strategy model

Introduction of industry-standard brand architecture framework

Publication of award-winning book on brand as innovation-driver

Creation ofSocial Currency model

Wide roll-out of location-based mobile tracking approaches

G l o b a l H e a d O f f i c e

1 3 C r o s b y S t r e e t , T h i r d F l o o rN e w Y o r k , N Y 1 0 0 1 3

T + 1 2 1 2 9 6 5 0 9 0 0F + 1 2 1 2 9 6 5 0 9 9 2

n e w y o r k @ v i v a l d ip a r t n e r s . c o m

G l o b a l H e a d O f f i c e


T + 1 2 1 2 9 6 5 0 9 0 0F + 1 2 1 2 9 6 5 0 9 9 2

n e w y o r k @ v i v a l d ip a r t n e r s . c o m



T + 1 8 4 7 7 6 7 4 2 0 1

l l u c a s @ v i v a l d i p a r t n e r s . c om

LARRY LUCAS

Vivaldi Innovation and Growth

Marketing

Transcript of Vivaldi Innovation and Growth