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That was two years ago, they still call me and try to lure me with dinners and gifts if i agree to go to one of their "presentations they lie saying that they are not trying to sell anything to me, that they only want.
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The impact that Tide pods are having on the laundry detergent category is proof that innovation is working. The inefficiencies from which competitors profited in the past have now been fixed Tide pods and the associated value is being captured by. This is brand marketing at its best. The Blake project Can Help : The Brand Positioning Workshop, branding Strategy Insider is a service. The Blake project : A strategic brand consultancy specializing in Brand Research, Brand Strategy, brand Licensing and Brand Education. Free publications And Resources For Marketers.
I also attended a presentation at the cancun mayan Palace. Under pressure, i accepted to "upgrade" my timeshare, and allowed them to take 300 dlls. From my american credit card just to "reserve" the space, with the promise from them that if my son-in-law (which is co-owner of the timeshare and was not with me) did not agree to "upgrade i would have 30 days to cancel and they would. son-in-law did not agreed, and it took me 6 months of calls, looking for the sales agent that couldn't be found, department to department, and countless complaint letters to the different departments, at the end, they told me that they had a problem with the. I think i spent more in calls than what they took from my credit card.
(Indeed, this is an idea that transcends all business start-ups or fixes. For example, its the business model of private equity firms they buy companies, fix inefficiencies to unlock value, and then get paid by keeping that value upon sale of those companies.). In this case, the inefficiency is in usage. The fix is pre-measurement. The value is realized through consumer demand.
Tide pods are not the first time p g has rolled out an innovation to help consumers avoid wasteful usage and save money. Perforation was added to bounce and bounty sheets, for example, to make it easier for consumers to use these products in proper proportions. Many women were telling p g that they were cutting bounce sheets in half to get more out of a box, so the company responded. Tide pods cost more per load than liquids, so consumers are not getting this benefit for free. P gs business model balances the competing dynamics of usage volume and purchase price. Whats changed for competitors is the profitability of their business models, which is exactly what brand marketing innovation is all about.
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When innovations are truly extraordinary, building a brand often means dismantling a category. The aggregate category impact is not the proper focus for innovation, nor is it the correct measure of success. Disruptive innovation always re-channels demand from old products to new. Giving a boost to competitors or sustaining the rot in a category are irrelevant considerations. The point of innovation is not to benefit competitors at the expense of consumers but to benefit consumers at the expense of competitors. From a brand marketing standpoint, the key is that inefficiencies lock up value. Fixing inefficiencies unlocks this value. Thats how innovation rewards innovators.
Tide pods are better understood as the ipad of laundry favorite detergent. Just as the ipad is a new form of computer that has grown by creating a new computer category (or sub-category) at the expense of laptops, so too are tide pods the new form of laundry detergent that has grown by creating a new detergent. Competitors have been caught flat-footed, so their cantankerous refrain is no surprise. But this chorus of complaint should not distract us from the essence of innovation. Market inefficiencies are the heart and soul of innovation. Innovation succeeds by fixing inefficiencies. Consumers get the benefit, which, in turn, benefits innovators. To build a brand, marketers find innovations worth pursuing by focusing on inefficiencies of cost, time, convenience, space, energy, attention, availability, reusability and responsibility.
category is down. In fact, p g has done more than just knocked competitors back on their heels; it has redefined the category. Measured in the traditional way as defined by old product forms, the category is declining. But measured in the new way as defined by the form of Tide pods, the category is growing like gangbusters. Aggregate totals depend on how the aggregate is defined, and Tide pods have changed the definition of the category. Admittedly, as noted in the, wall Street journal story, past innovations in laundry detergent forms going from powders to liquids to concentrates did not result in category declines. But previous shifts in form are not dependable benchmarks. Only now is pre-measurement front and center, so an impact on category volume is almost to be expected.
Could it really be that doing right by consumers was causing such consternation among laundry detergent manufacturers? Apparently so, but only because there seems to be a misunderstanding about innovation. The complaint is that Procter gamble (P G) changed consumer usage behavior for the worse with its innovative tide pods product. Each Pod is a so-called unit dose capsule, or a premeasured amount of detergent per load. By eliminating the need to pour, consumers dont have the opportunity to pour too much or over-use detergent. The result is a lower volume of consumption and a decline in category dollar sales. In other words, to put a sharper edge on this, the complaint voiced by competitors suggests that at least some part of the laundry detergent business model in years past has been based on consumers misusing the product, thus spending too much money. So instead of looking for innovative ways to help consumers save money, some manufacturers were sitting back, cashing in on consumer mistakes, and hoping to continue selling detergent indefinitely as a hush-hush game of gotcha. The point of disruptive innovation is not to lift all boats but to reward the innovator who puts tired old business models out to pasture.
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How do planners discover new venues and venues discover new planners? Read About rfp showcase, a few of Our Happy Users, bcd travel. Hyatt, marriott, wyndham, visit Orlando, the coca-cola company, the boeing Company. Sprint Nextel Corporation, need to contact us or want a demo? Visit our help page. A recent, wall pdf Street journal headline stopped me in my tracks: Is Innovation Killing the soap Business? When I put this story down, i was even more confounded.