Consumer Goods Growth & Innovation Forum 2006
ore than 100 consumer goods executives, with titles ranging from Chief Innovation Officer to Vice President of R&D to Chief Growth Officer, convened in New York City on September 25-27 for the first annual Consumer Goods Growth & Innovation Forum. Attendees had the opportunity to learn from Kimberly-Clark, Kraft, Hershey, Sara Lee, Kroger and McDonald's executives, among others, who spoke candidly about what innovation means and the strategies they use to drive innovation and build brand loyalty. Here is a recap of event highlights:
- In the opening keynote presentation, Cheryl Perkins, chief innovation officer, Kimberly-Clark, shared details from her company's open innovation strategy and discussed how partnering is no longer a competitive advantage for consumer goods companies, but a necessity. Kimberly-Clark has formed 30 new partnerships in the past few months all to promote open innovation.
- Todd Abraham, VP global research & technology strategy, and Nanako Mura, associate director - Open Innovation of Kraft Foods, explored the prevalence of outsourcing in the new product innovation and launch cycle. Even though Kraft has the second largest innovation portfolio in the food business at 2.2 percent, the company realizes a need to leverage external resources such as suppliers, universities and research labs, consumers and entrepreneurs and venture capital firms to evolve their innovation capacity.
- The Hershey Company SVP & Global Chief Growth Officer Tom Hernquist explained how to deliver on consumer desires based on demand data and unique marketing approaches. The company formed a multi-year partnership with Latin star Thalia Sodi as part of its strategy to tap into the fast-growing Hispanic market. Hershey also launched Cacao Reserve by Hershey's in hopes that the aging population will be drawn to the antioxidant flavanol compounds in dark chocolate.
- Nick Hahn, director of corporate brands for The Kroger Co., explored the dynamic relationship between retailer and manufacturer and how they can both win at the shelf when innovative products are delivered to the consumer. For example, both The Campbell Soup Company and Kroger experienced tremendous success when V8 V.Fusion achieved 98 percent penetration within the first two weeks of its launch in Kroger stores.
- In a discussion around quality and consistency, Catherine Adams, corporate VP, Worldwide Quality, Food Safety & Nutrition for McDonald's Corporation, explained how McDonald's is reinventing its brand. Adams discussed the development of policy and strategy for McDonald's quality worldwide, touching upon its social responsibility, nutrition and food safety and innovation agendas.
- The reorganization of Sara Lee Corporation required significant cultural shifts when it underwent a massive reorganization. Paul Chaudury, VP innovation for Sara Lee, discussed how innovation needs to become part of all employees thought process, rather than just traditional R&D personnel.
- The night's activities included an awards dinner to recognize the groundbreaking companies paving the way for innovation. CGT, in conjunction with our Research and Editorial Advisory Boards, presented the Most Innovative Company award to Procter & Gamble. In addition, Nike Inc. took home the Most Innovative Product award for its new Nike + iPod Sport Kit. Award winners will be profiled in the December issue of CGT.