History of Customer-Centric Innovation
CCI for many companies is an adaption of their current innovation strategy to increase the involvement of the consumer. This adaptability allows CCI to be used in many different industries. One organization that uses CCI is Proctor and Gamble (P&G) (Crosby & Johnson, 2006). P&G has avenues for the consumer to utilize which allows the consumer the opportunity to create and contribute to the organizations innovation strategy. This strategy has worked for P&G as they were named in the top 10 of innovative organizations in 2014 (Procter & Gamble, 2014). This has proven that CCI can be a very influential and successful innovation process. If the consumer is involved, even if only by giving ideas, the innovation team can determine the ways to utilize the ideas for the current market.
CCI has many levels of involvement of the consumer. The organization can determine the consumers role within their innovation process to be consumer-tested, consumer-focused, or consumer-centric (Conroy, Ash, & Kutyla, 2009). No matter the role within CCI, the main concept is to put the consumer at the core of the innovation process (Conroy, Ash, & Kutyla, 2009). This allows an organization to collect information on the consumer’s behaviors and preferences allowing the organization to analyze that data and have a better understanding of the wants and needs of the consumers (Conroy, Ash, & Kutyla, 2009). This creates an innovative process which allows the consumer to feel like they are part of the process. This process has created a drive for the consumers to be the designers, customizers, and advertisers of the new product of service (Conroy, Ash, & Kutyla, 2009). This is the true demand-drivers of the industry, as the...
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... understanding of the consumer would be considered the fuzzy front-end, as this is the information that would need to be accomplished before a project could be considered.
For corporations such as P&G customer-centric innovation is simply using ideas that come directly from their consumers. P&G has built their organization due to some of these consumer ideas. They have a webpage that is dedicated to the collection of ideas from their consumers (Procter & Gamble, 2014). This webpage allows consumers like you and I to submit our ideas for future products, future updates, and completely new ideas. P&G also posts success stories from consumer innovation ideas. This is another tactic to the CCI process, it allows the consumer to see that their ideas are being examined and they are able to actually have a chance to take part in helping to develop a new product or service.
The Target Corporation prides itself on their department store roots with a constant obligation to great prices and stylish originality. The main focus of every Target store is the customer, whom the corporation refers to as a "guest", making them feel more personal. Each guest can expect to walk into a clean, organized, and easy to navigate store with "high quality, stylishly designed items plus all the essentials for his or her life".1 The company also has a significant focus on design. The company employs a "design for all" strategy that says great design is for everyone to enjoy, everyday. The product designers know how to create products you will "love to live with and low prices you can't live without".1 The commitment to design has become a key technique of attracting and keeping their shoppers coming back.
First, customer centricity is important to channel customer centricity into their company strategy. It will get the whole workforce on track. Next, the collection should keep their customer data up-to-date. They would benefit from building a stable foundation by bringing all of their current customer contacts. The brand should also save all documents including minutes-of-meetings, emails, offers, contracts, and every payment transaction. Then, the company should establish healthy customer relationships based on their customer profile. It is always important to follow-up on customers and to make sure they stay satisfied with the merchandise. Finally, it is all about the customer. Their response is very important. It is viable to surprise and impress their customers, as well as plan and implement multi-phase marketing campaigns(CAS
Second, we want to create innovative and sustainable products. We live to innovate -- it’s who we are. When our corporate responsibility initiatives begin leading us to new product development, it brings a new energy to our efforts. Whole divisions in our company open up to the prospects. Eyebrows are raised. There are results already: We’re finding ways to eliminate the toxic chemicals commonly used in making products and materials and teams are creating business models for generating revenue from ground-up old shoes; designers are developing products made of recycled polyester or organic cotton.
As the innovation in the company constantly grows and the market is always expecting to have something new, it is becoming hard for the company to come up with new ideas. The company definitely needs new ideas and fresh minds. However, the constant innovation on the products of the company is cutting their ability to gain more profit out of the new products as it would bring the product from the “Star” level to a cash cow immediately. Therefore a company needs to low down presenting their innovat...
There has always been a need to innovate. (Drucker, 1986) Coca-Cola understood this perfectly hence they always came up with ways to innovate. The intent for Coca-Cola has always been ‘within an arms length’ to the Coca-Cola consumers around the globe. (Hamel & Prahalad, 2010)
Pepsi's hope is to usher in a new era, and to give them a clear-cut advantage over their rival, Coca-Cola. By following closely the six steps of the new-product development process, the company could expect such benefits as: improved teamwork, less re-working, earlier detection of likely failure, and higher success rates. Rix, Peter, 2001, Marketing, A Practical Approach. Stage One: Generating New Product Ideas. The first step for Pepsi Cola to undertake is to generate ideas for the new product.
Today, advances in technology and design are providing many opportunities for new and existing businesses to re-invent themselves and their marketing strategies.
-Customers: The company felt the importance of being customer-centric and innovate by adapting to customer
In this world, creating a new product, as good as it may be, is not enough. The success of any product, in this day and age, depends grandly on the way it is presented to the market. Marketing is responsible in assuring a successful launch of a product, new or reinvented, and to assure its sustainability in this competitive world. For those reasons, billions of dollars are spent each year on tools and strategies to improve marketing research and predict the success of a product: many marketing firms form focus groups, do trials and conduct many tests just to end up with a fairly high percentage of failures.
Since neither of the products created the measurable sales and market share increase Pepsi needed, PepsiCo International (PCI) executives conceived of a plan to create a new tagline and re-brand all existing Pepsi products, signage, advertising materials and in-store display units. The executives envisioned a simultaneous, global campaign that would create stronger brand equity and resonance in the consumer consciousness.
...hat a consumers is submissive to self-serving interests and promotional efforts. The last view of consumers is a cognitive view. Cognitive view of consumers portrays consumers as a thinking problem solver. They focus on the processes by which consumers seem and evaluate information about the brands. For SmartThing, the consumers have a cognitive view of looking at the information that is presented to them. Consumer decision for SmartThings have a cognitive view due to the over all need and attention that this product provides. SmartThings’ message changes ever so slightly by talking about how everyday objects can be used to make lives better. The consumers in this segments want to make both their house and lives better. It’s clear that SmartThings has the right promotion tactics and message to serve everyone’s needs and wants to influences consumer decision making.
As we discussed the decision-making process for consumers is anything but straight forward. There are many factors that can affect this process as a person works through the purchase decision. The number of potential influences on consumer behavior is limitless. However, marketers are well served to understand the KEY influences. By doing so they may be in a position to tailor their marketing efforts to take advantage of these influences in a way that will satisfy the consumer and the marketer (remember this is a key part of the definition of marketing).
CoP builds sustainable capacity to innovate through collaboration with the knowledge base in those companies which do not already have the ability to engage in successful open innovation.
Consumer innovativeness is often viewed as a personality trait reflecting willingness to change. Innovative consumers are an important market segment for marketers. Revenue from new products adopted by innovative consumers plays a pivotal role for many firms. Successful launching and marketing new products aimed at innovative consumers, therefore, is critical for these firms. A good understanding of decision-making styles of innovative consumers is imperative for these marketing activities.
At Coca-Cola, customers are at the heart of everything they do. Customer preference is a core value of their business. This means building true partnerships that create sustainable value and profitable growth for their business and their customers across all key channels. By finding new ways to win together in the marketplace, they aim to be the preferred supplier to all of their customers. To achieve this, they have adopted a comprehensive set of initiatives designed to build collaborative customer relationships and ensure excellent execution.