Innovation is no longer an exception

 

Today, consumers are aware and more demanding than earlier; they want more features, freshness and variety from brands. FMCG players are innovating continuously to hold their position in the market, to differentiate themselves amongst other brands. Most of the players are initiating consumer insight programmes to understand what consumers really want. Leveraging product portfolio, launching new categories and variants are some of the recent trends in the market.

 

Understand consumer psychology

Accelerated lifestyles and increasing awareness are making it harder to please consumers, thereby shortening product life-cycles drastically. Understanding the pulse of consumer is very critical and requires qualitative research done. Asheesh Sharma, Marketing Head, AgroTech Pvt Ltd says, “Developing a new product requires extensive research and development. The companies need: 

  • An extensive consumer survey to understand their needs
  • This followed by product and concept development and testing
  • Analysis of the business model
  • Beta testing and marketing testing of product to understand consumer acceptance; it helps in minimising risk in case of product failure
  • Technical implementation
  • Commercialisation – launching a product into market, product promotions, creating brand awareness, etc.”

 

Innovate to differentiate

Innovative products help differentiate the brand from others and enhance brand equity. Consumers today are more educated and aware of products and their benefits. They, therefore, make an informed choice before buying a product. Consumers also expect new features in the products to be lined up, which is leading to shrinkage in the life cycle of a product. In a nutshell, consumers are becoming more mature, categories are evolving much faster and as a result companies have to innovate in order to differentiate their product. “Iinnovation helps in creating the excitement around the brand, stay ahead of the curve and create premium imagery for the brand,” says Padma Bhat, Marketing Manager (Innovation), The Himalaya Drug Company.

 

It is a fact that an innovative product needs an innovative marketing strategy to be successful in the market. It is indeed a unique innovative marketing strategy that has created winning brands in the marketplace. Speaking over the marketing strategy for Spinz Cool Duet talcum powder, Sagar Boke, Category Head, Skincare and Fragrances, CavinKare Pvt Ltd, says, “In case of Spinz Cool Duet talcum powder, we have a different strategy since it is completely a new product idea. Here the ideas were to bridge the gap between regular as well as cool talc categories and offering consumer a customised product with the benefit of cooling as well long lasting fragrance. We are using ATL, BTL and in-store promotion to create awareness among consumers.”

 

While launching an innovation in the market place, either the product USP has to be truly differentiating (a first of its kind) or the delivery mechanism has to be new. In this case, caution must be taken as it is very easy to be enamoured with a unique packaging design which looks truly outstanding, but if it’s not practical, it will be a total failure. Also, product innovations should not be way ahead of its time. An innovation doesn’t necessarily mean higher costs. It is very important to balance ‘newness’ with practicality, feasibility and affordability. Ultimately, the sale of the product determines its success or failure.

 

Innovation intensity

Most innovation is developed through internal research and development team of the companies. Product innovation takes a long time, therefore, firms need to be always focused towards producing innovation and encourage innovative intensity activities that help in creating future business. Innovation intensity helps firms to improve the expected performance and helps in delivering new products to consumer.

The feasibility study of a new product takes into account:

  • Investment vs. final results of the product (sales)
  • product efficacy vs. safety
  • claims made on the product vs. regulatory bodies and the consumer forum.
  • During the evolution and development of a product at Himalaya, says Bhat, “We conduct the following tests to ensure the product is completely safe:
  • Consumer studies on sensorial
  • Clinical studies to measure product efficacy
  • Stability and accelerated stability
  • Packaging test – drop tests, leakage tests, fitment tests, shipper bursting tests to check puncture resistance, stacking tests, transit trials, etc.

 

Is too much innovation harmful?

FMCG players are high on innovation nowadays, but – is too much of innovation harmful? “Not if the core values of the product are retained and the product is backed with a well thought through brand strategy”, says Bhat. “We never discontinue any of our well performing SKU or range but the idea of launching a new product is to get shares from competitions, get new trial and also offer an innovative product to consumers who like to experiment a new product,” shares Boke. But, at the end, the success of an innovative product depends on the media spends and consumer acceptance; higher is the consumer acceptance or consumer awareness about the brand, higher will be the chances of success of the product in the market.

 

 

DOUBLE FRAGRANCE TALCUM

CavinKare Pvt Ltd recently launched a new innovation in talcum powder category. Under the brand umbrella of Spinz, the company introduced Spinz Cool Duet – a double fragrance talcum powder.

When first applied on the body, the talcum gives flowery minty fragrance, and later when body sweats, its unique microcapsules releases second refreshing fruity fragrance. 

 

COOKING SPRAY OIL

Keeping the product innovation in the mind, AgroTech recently launched a new product, low calorie oil – Slimlite Cooking Spray, under its brand umbrella, Sundrop.

The spray pack contains only two calorie per spray and helps in control usage of oil in food. Launching the product into the market, Sachin Gopal, President and CEO, AgroTech Foods Ltd said, “At AgroTech, we always believe in innovation based on consumers’ need for a healthy lifestyle. Sundrop Slimlite is a result of extensive consumer research and development.” 

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