Hallmark, AOL, Kraft Talk Creating Consumer Value
Many people believe that innovation is the key to reinvigorating the U.S. economy. But what is the key to true innovation? For consumer goods companies, the answer is believed to lie in wholly understanding today’s consumer, who is very different from the one that most companies used to know.
In late September, executives from Kraft, Hallmark, AOL and many more companies met to deepen their understanding of creating consumer value through innovation at Consumer Good Technology’s (CGT) sixth annual Growth and Innovation Forum. Here are just some of the many takeaways gained from the event’s insightful presentations and panels discussions:
· Keynote Presenter Praveen Gupta shared his Breakthrough Innovation framework that is designed to accelerate innovation with a higher success rate and return on investment. “Any idea of product only becomes innovative if people are willing to pay for it and use it,” said Gupta, who is the author and founding editor, International Journal of Innovation Science. “Let’s not forget, in today’s economy, your innovation must also provide an enjoyable experience.”
· Hallmark’s Innovation Leader David Beal explained how the iconic brand is expanding beyond ink on paper and making bold choices in its innovation operations. “We are bringing a sustainable, repeatable process to innovation,” he said. “The importance of living in the consumer’s shoes is important for future forecasting what their needs will be. Repeat the past, but looks toward the future.” Beal shared examples — one of which moved the audience to tears — of how a deeper connection with its consumers has enabled fresh insights that are directly influencing solution development. “We weigh consumer need, want and engagement more heavily than making money,” Beal said.
· Innovationedge President Cheryl Perkins and a panel of executives from Kraft Foods and AOL shared some successful and not so successful experiences of leveraging social media tools to reach consumers. “Whether you’re in products or publishing, we are all moving from playing a spectator sport toward a participatory sport,” said panelist Jennifer Willey, industry practice head, CPG/Health, AOL. “We’re going to create something together, and it’s not going to be perfect the first time.” Rick Brindle, CVP eSales & Industry Affairs, Kraft Foods, added, “At Kraft, we went in [to social media] because our customers were already there talking about our brands. With social media, we realized that we were able to bend those conversations in our direction a little bit.”
· During a fun-filled, yet eye-opening Herrmann Brain Dominance Instrument (HBDI) workshop — led by Monique A. Honaman, CEO and founder, ISHR Group — each attendee was able to identify their preferred thinking and communication styles. This has tremendous implications for the kinds of work we enjoy, how we handle conflict, how we communicate, how we strategize, etc. For more information on HBDI, click here.
· In the second day keynote presentation, titled “M&A: The New R&D or ‘David’ vs. ‘Goliath’”, a panel of experts focused on the challenges surrounding growth and innovation. Their discussion, led by Douglas M. Rammel, chief strategy officer, SEETtek LLC, focused on the upswing in M&A activity and the hurdles companies must jump to meet consumer needs with innovative products before the competition. “Great ideas don’t always get to the consumer,” said panelist John F. McNulty, president, CEO and founder, Skycrest. “Consolidation of major retailers is so dramatic that there has been a power shift. You can have the greatest consumer product in the world, but if you don’t meet Wal-Mart’s needs, [it won’t get on the shelf].” Adding to the problem, Rammel explained that supply chain and production model changes have made it easier for consumers to start their own companies. “If you don’t meet the consumer’s need, they now have the technology to go out and do it themselves,” he closed.
· CGT also revealed the 2011 Innovation Awards winners during a highly-attended ceremony. Find out more about the six companies that were honored for innovative products and processes here.
For more coverage from the 2011 Growth and Innovation Forum, complete with videos interviews with some of the speakers mentioned above, read the upcoming November digital issue of CGT.