Innovation in Marketing: An unheralded study on ‘7Ps of Marketing’

Tanya Seth Rastogi

1. Abstract

2. Introduction
2.1 Overview
2.2 What is Innovation
2.3 Innovation in context of Marketing
2.4 Innovation in 7Ps of Marketing

3. Literature Review

4. Significance of the study

5. Research Hypothesis

6. Research Methodology
6.1 Data Sources
6.2 Scope of the study
6.3 Criteria for sample selection
6.4 Research Tools

7. References
1) Abstract

Apathy by both industry and academia continues to linger with respect to the
role marketing innovation plays in corporate success, made visible by the
overwhelming concentration of organizational and scholarly research on innovation.
This study introduces innovation in 7Ps of marketing as another vehicle that can lead
to sustained competitive advantage, particularly when synergistically combined with
effective marketing strategies.
In this paper the dynamics of marketing innovation throughout the industry life cycle
are examined, along with the implications of marketing innovation for firm sustained
competitive advantage and performance. It is proposed that the positive synergy
created by these innovations lead to greater competitive advantage and,
subsequently, firm success than either of the innovations alone. Lastly, the study
draws innovation for sustainability into the multidimensional mix as a new key
ingredient for sustained competitive advantage in today’s environment.

Keywords: innovations, marketing innovation, sustainability, competitive advantage,

dynamics of innovation, strategy, synergy, industry life cycle
2. Introduction

2.1 Overview

Marketing is a business term that experts have defined in dozens of different ways.
In fact, even at company level people may perceive the term differently. Basically, it
is a management process through which products and services move from concept to
the customer. It includes identification of a product, determining demand, deciding
on its price, and selecting distribution channels. It also includes developing and
implementing a promotional strategy.
Marketing covers a vast area of business, including:
 how you communicate
 the brand
 the design
 pricing
 market research
 consumer psychology
 measuring effectiveness
At the core of marketing is an understanding of what customers need and value. A
company’s long-term success depends on learning what its customers’ needs are. It
then finds ways to add value through different approaches.

The 7Ps of Marketing model was originally devised by E. Jerome McCarthy and
published in 1960 in his book Basic Marketing. A Managerial Approach.

The 4Ps vs The 7Ps

The 4Ps were designed at a time where businesses were more likely to sell products,
rather than services and the role of customer service in helping brand development
wasn't so well known. Over time, Booms and Pitner added three extended ‘service
mix P’s': Participants, Physical evidence and Processes, and later Participants was
renamed People. Today, it's recommended that the full 7Ps of the marketing mix are
considered when reviewing competitive strategies.
The 7Ps helps companies to review and define key issues that affect the marketing of
its products and services and is often now referred to as the 7Ps framework for the
digital marketing mix.
Companies can also use the 7Ps model to set objectives, conduct a SWOT analysis
and undertake competitive analysis. It's a practical framework to evaluate an
existing business and work through appropriate approaches whilst evaluating the
mix element as shown below and ask yourself the following questions:
 Products/Services: How can you develop your products or services?
 Prices/Fees: How can we change our pricing model?
 Place/Access: What new distribution options are there for customers to
experience our product, e.g. online, in-store, mobile etc.
 Promotion: How can we add to or substitute the combination within paid,
owned and earned media channels?
 Physical Evidence: How we reassure our customers, e.g. impressive buildings,
well-trained staff, great website?
 People: Who are our people and are there skills gaps?
 Partners: Are we seeking new partners and managing existing partners well?.

2.2 What is Innovation:

Innovation is not just represented by introducing or implementing new ideas or

methods. The definition of innovation can be defined as a process that involves
multiple activities to uncover new ways to do things. It should not be confused with
creation since this can be defined as the act of making, inventing, or producing
something. However, new innovations can be realized with creativity. People need to
think outside the box in order to create incremental enhancements.
At this moment, we are positioned in a fast-paced environment where technology is
advancing and globalization is increasing. This means that distances only get shorter,
and as a result, competition is increasing, customer expectations are more
demanding, and disruptions in the economy is more likely to occur. For a business or
an organization to realize competitive advantages, it should be able to adapt and
innovate the to the changing trends and new generations. Innovations apply for
management and organizations on all levels, sizes and in operating in all industries.

Key steps towards business innovation

Find areas and ways to innovate in your business through research and planning:
 Conduct an analysis of the trends in the market environment, your customers’
wants and needs and your competitors.
 Consult with customers and employees for ideas on improving processes,
products and services both internally and externally. Find out more about
connecting with customers for ideas.
 Seek advice. Use available resources such as business advisors, grants and
assistance to drive innovation in your business. This may include seeking
Intellectual Property (IP) protection to commercialize your ideas. Learn more
about local collaboration and international collaboration with researchers.
 Be open to new ideas and adaptive to change.
 Develop a strategic, responsive plan, which promotes innovation as a key
business process across the entire business. Learn about creating an
innovative business culture and developing a strategy for innovation.
 Train and empower your employees to think innovatively from the top down.
Remember, innovation is the key to competitive advantage for your business.
2.3 Innovation in context of Marketing
Innovation is a top priority for almost every organization. But to achieve success
through innovation, companies must put as much energy and investment into
marketing new offerings as they do in generating them.
Innovation makes it easier to grow, regardless of the size of the business. You might
have a small startup, but if you innovate, you can grow your business. The same is
true for a fortune 500 company. It might be a huge corporation, but it can take even
more of the market share if it manages to innovate. It's easy for innovative companies
to grow.
Suppose your company fits inside of a specific niche or industry, and it's far from
alone. Let's say, for example, you manufacture light bulbs. Tons of companies also
manufacture light bulbs, and you need to stand out in some way. You can do that
through innovation.
The right innovation will allow you to offer something unique to your customers. For
instance, what if you managed to create a light bulb that automatically turned off
when people left the room? That's a crazy example, but that's how some of the best
innovations work. Top innovators take popular products and make them even better.
That makes brands stand out in the market and makes it easy for companies to
increase revenue.

Customer needs are constantly changing. One day, your customers might need
exactly what you have to offer, and the next day, they might need something else.
Innovators predict changes in the market and provide solutions before people even
realize they need them. You cannot meet your customers' needs on a long-term basis
unless you are willing to innovate. If you remain stagnant, your business will
eventually flounder. You have to come up with new ideas that excite your customers
and meet their needs if you want to have staying power.
Businesses that move fast continue to gain more customers and profits as slow
movers get left behind.
So here are some trends and innovations to pay attention to:

1. Artificial Intelligence Will Get a Little Too Good at Profiling Buyers

2. Chatbots
3. Omnichannel Marketing
4. Accelerated Mobile Pages (AMP) and PWA.
5. Email and Marketing Automation
6. Video
7. Voice Search
8. Augmented Reality or Virtual Reality
9. Native Advertising
10. User-Generated Content
2.4 Innovation in 7Ps of Marketing

Innovation in PRODUCT

The development and market introduction of a new, redesigned or substantially

improved good or service. Examples of product innovation by a business might
include a new product's invention; technical specification and quality improvements
made to a product; or the inclusion of new components, materials or desirable
functions into an existing product.

1. Smartphones: These are nearly ubiquitous now, and it's not hard to see why. First,
there's the hardware: the powerful processors, bright, high-resolution screens,
capacitive touch control, excellent cameras, and built-in GPS and accelerometers
found in smartphones make them the ultimate personal computers. More
importantly, however, is the fact that the smartphone has become our digital hub,
consolidating our communication, entertainment, and utilitarian functions into a
single device. Future generations may very well revise history into two eras: Before
Smartphones and After Smartphones.

Key product: Introduced in 2007, Apple's iPhone (apple.com) is arguably the most
world-changing product of the last 30 years, according to designer Dave Evans,
known for creating the innovated look of the groundbreaking Lytro camera. "The first
iPhone was a mishmash of ideas, and it was nowhere near as refined as what Apple's
producing now," he says. "But it pushed the boundaries in so many ways—with new
technology and new ideas—that it launched this whole new category."

3 Book Readers
It was purely a matter of time before electronic devices started reducing the
thousands of pounds of ink and paper that pass through our lives. The introduction
of E Ink technology into product manufacturers' quivers in the mid-2000's helped
solve the issue of screen fatigue from extended hours of reading on a backlit screen,
and the access to vast digital libraries—as with iTunes—promised a lifetime of
reading pleasure.

Key product: Amazon's original Kindle, which launched in 2007, demonstrated E-Ink
technology, but it had a large, awkward keyboard and only 250MB of internal
memory—enough for about 200 non-illustrated titles. Of course, it wasn't long before
all those problems went away, and the Kindle, along with the Amazon Marketplace,
followed a perfect parallel path to the iPod and iTunes. "What Amazon really did with
the Kindle was revolutionize the market of reading materials," Evans says. "It wasn't
about the product so much as it was about having all of your digital things in one
place." The best E Ink device now available is the Kindle Paperwhite
($119,amazon.com), a fully evolved product with no screen glare even in bright
sunlight, effortless connectivity, and storage for up to 1,100 books in its 2GB of
internal memory.

4 Water/Dirt-Resistant Fabric

No matter how durable clothing can be, it'll still become wet and dirty when exposed
to the elements. Well, until now. Water-resistant and dirt-repellant fabric,
particularly denim, is here. Now that's smart engineering. "This recent innovation
has the potential to have a huge impact on the industry, solving a problem most
people would rather not have to deal with, mainly that clothing can soil and needs to
be washed," Kirkwood says. The dirt repellent aspect is especially useful given that
not washing your jeans actually helps keep them from fading and fraying.

Key product: The Levi's Commuter 511 Slim Fit Pants ($88, us.levi.com) use the
company's NanoSphere protective finish to guard your denim against grit and spray
kicked up on your bicycle commute. Bonus: reflective tape on the interior cuffs so you
can turn them up and boost your visibility.

5 Dual-Clutch Transmissions

One of the most brilliant innovations in automotive technology over the last decades
has been the dual-clutch transmission, which first appeared in a road car in the 2003
Volkswagen Golf R32. Unlike a normal stick-shift with a single clutch, the DCT has
two clutches assigned to either odd or even gears, allowing for no interruption in
power to the wheels between. The electronic clutch is controlled via computer (so
there’s no clutch pedal), and the driver shifts via steering-wheel-mounted paddles.
The systems usually offer fully automatic modes, but they’re far less fun.

Key Product: When it comes to DCT, no model does better shows off the technology
than Bugatti’s Veyron ($1.9 million, bugatti.com). This 254 mph supercar can go from
0-to-60 in under 2.5 seconds. With 1,000 horsepower being applied to all four wheels,
you know you need a robust transmission for the job.

Innovations in Pricing

Basket-based pricing
We give top marks to basket-based pricing for the innovative method in which products
are priced to entice customers into buying more. An excellent example of how this
mechanism is deployed is the way Jet.com does it. These eCommerce shoppers are
incentivized for buying recommended products. An intelligent real-time pricing
algorithm runs in background of the store. Coined as ‘smart cart’, the algorithm
matches their customers’ delivery location for selected merchandise with the closest
trusted supplier that stocks them. The closer the distance between supplier and
delivery location, the cheaper the product. This is a smart way of pricing products,
since discounts can be applied while still maintaining profitability.

Loss leader pricing

The loss leader approach is a fantastic way to get your customers to regularly shop
on your online store. Generally practiced by retailers like Amazon and Walmart, the
idea behind this pricing strategy is to keep certain items significantly lower than
what is available on competing sites. Super low prices offered by these retailers not
only drives traffic towards their store, but they also achieve three benefits:
Window shoppers convert into paying customers
Building loyalty
Customers are likely to buy higher priced items
The motive behind this strategy is to keep the average cart spend high.

Quick-delivery pricing
One retailer who is using this strategy effectively is Amazon. The marketplace leader
makes full use of its state of the art logistics network to not only serve its customers
in record time, but also to use it as a profit making pricing strategy. Customers are
given quick delivery options such as same day, next day or 2 day shipping, in return
for an additional premium. So while Amazon can keep its prices lower than most of
its competitors, it uses the quick delivery pricing model to drive profitability.

Real-time price optimization

Using real-time retail insights to determine the price at which your products are sold
is the ideal way of ensuring profitability. Being lower than the competition at all
times however, is not an advisable strategy. Instead, you can use out-of-stock
situations identified in real-time by a retail analytics product like Incompetitor to
pump up prices. Out-of-stock situations are opportune moments for raising prices as
customers looking for these out-of-stock products on competing sites will surely
navigate to you.

Innovation in physical distribution

The State of Indian FMCG Network

Indian Consumer Goods/FMCG distribution has always been a dynamic and complex
affair due to multiple tiers in the structure with Carrying and Forwarding Agents,
Dealer/Distributors, Wholesalers and the end Retailers spread across the entire
country with different states/geographies having unique characteristics. The top
FMCG brands hence have always been using Reach and Coverage as the two prime
levers to increase share. The recent developments like GST along with the rapid
proliferation of cost effective telephony (4G, Jio) have created opportunities for
brands to streamline their distribution network and increase reach in an efficient
manner to win in the market place. Companies are trying to reach the Kirana Shop
Retailers directly to the extent possible to influence sales instead of relying on
wholesale distributors and other tiers in the network.
The Shift Towards Direct & Digital Distribution
Multiple experiments and pilots are being conducted in the Indian and South East
Asian Market place by FMCG companies and similar Consumer brands to interact
with the retailers more optimally and increase uplift. The common assumption in
most of these pilots is that most Indian Kirana Shop owners are time-starved and do
not have more than a few minutes to talk to the sales representative of an FMCG
Major, being more concerned about serving customers and sending them out of their
shop happily.
The first set of pilots that have been attempted are getting the Bigger Retailers
(Large Kirana Shops who do more than 8 Lacs INR turnover a month) to order
directly using a mobile App from the Distributor. This enables the Consumer Brands
to directly track sales, they can understand off take , convey promotions and also
using a bit of analytics and Machine Learning, uncover additional insights such as
‘Retailers at Risk’ , SKUs that are not doing well in the short term, top 5 items that
a sales person should try selling to the shop and so on. Already one of the world’s
largest retailer is successfully enabling 25 % of its India sales by this B2B app based
ordering model.
However the challenge in scaling up of this model is the point mentioned earlier – the
average kirana shop owner being time starved will not want to use different mobile
apps for multiple brands as he would be stocking at an average of 50-100 different
brands in his shop. There are two ways this challenge could be handled and both are
being attempted by Innovators in the market place. The first is by small companies
that serve as a consolidator of all the brands and then deliver to the retailers. They
take care of the ordering and logistics as well. This sounds fine in theory but scaling
up has significant challenges and one does not see this covering more than a few
hundred retailers in a handful of metros in a few years’ time.
The other model, attempted by a few software solution providers, starts off with
insights driven, AI and ML based ordering platforms. These are used by an FMCG
brand’s distributor sales force who assist with ordering of a few top brands for the
retailers and slowly scaling up to the entire or a reasonable chunk of the ecosystem.
This model seems to have more chances of succeeding.
There have also been attempts by companies to provide intelligent Point of Sale (POS)
machines at the kirana shop end to get instant visibility of tertiary sales, thereby
giving a superior ability to forecast, assess promotion attempt and stock levels. But
these have usually been dropped either on account of costs or the practical difficulties
in forming a consortium of non-competing manufacturers as well as practical
difficulties in establishing an eco-system to support such an initiative.
FMCG Brands need the analytical power to actively orchestrate and drive the sales
execution in the field instead of doing a lot of Post Facto analytics.
The Impact of AI & Machine Learning on FMCG Distribution
In summary, while all these experiments are on, one inference is possibly agreed by
all. The ordering mechanism or the technology aspect is sort of taken as a given, it is
possible, the challenge is in making the mechanism worthwhile to the retailer and
sticky. FMCG companies are realizing that this is better achieved by having a retail
data analytics platform built on AI and Machine Learning that can provide instant
actionable insights to the sales leadership as well as the feet on the ground to
effectively push sales across channels. These can be in the form of personalization –
identifying the right category / SKU/Promotion to be pushed in the right
channel/retailer, Complex Trend Analytics – using Machine Learning to isolate and
identify granular trends from complex sales signals and generate alerts and actions
instantly when the salesperson is at the retail shop and tracking SKU, product
performance and projections at a granular level. FMCG companies need the
analytical power to actively orchestrate and drive the sales execution in the field
instead of doing a lot of Post Facto analytics. There is no silver bullet amongst all the
options described to achieve this but the one who stays agile, nimble and constantly
learns and unlearns will be the one that wins the highly promising Indian Consumer
Industries Marketplace.

1. Taylorism: In the late 1800s, the great Frederick Taylor takes the first scientific
approach to manufacturing. In the early 1880s, he invents the concepts of using
time studies on the factory floor, and based on that work, the notion of "standard
times" for getting specific tasks done. Later develops the concept of incentive
systems and piece-rate pay plans. Taylor's ideas were simply seminal - and
often controversial - and dramatically influenced the practice of manufacturing
over the next few decades and even to this very day. 3M's Transportation Load
Control Center: In 1982, 3M, like every other company, had to leave
transportation decisions to each plant and distribution center. Roy Mayeske, at
that time the Executive Director of 3M Transportation, had the idea to
centralize transportation planning to look for network synergies. 3M took
mainframe software being used by Schneider National - one of its major carriers
- and modified it to be workable from a shipper perspective. Ship sites called in
planned shipments; carriers and routings were phoned back. The LCC is now
of course a standard practice today.
2. Distribution Requirements Planning (DRP): In the late 1970s, Andre
Martin ran operations for Abbott Labs Canada, and found himself caught
between manufacturing and distribution managers, who could never seem to
get inventory questions right and always blamed each other. Realizing that
what was needed was a sort of Manufacturing Resources Planning for inventory
distribution, Martin led a successful effort to build the first computerized DRP
 system, which in turn led to a book that created the software category of DRP,
as several technology firms built products based on these ideas. Was in many
way the start of today's supply chain planning software industry.
3. The FedEx Tracking System: After re-inventing the category of express parcel
shipments, FedEx went a step further in the mid-1980s with its development of
a new computerized tracking system that provided near real-time information
about package delivery. Outfitting drivers with small handheld computers for
scanning pick-ups and deliveries, a shipment's status was available end to end.
The Fedex system really drove the idea that "information was as important as
the package itself," and was foundation of our current supply chain visibility
systems and concepts.
4. The Universal Product Code: Though the idea to use some form of printed and
even wireless automatic product identification had been around for decades,
lack of standards had precluded individual ideas from gaining any sort of
critical mass. In 1970, a company called Logicon wrote a standard for something
close to what became known as the Universal Product Code (UPC) to identify
via a bar code a specific SKU, an effort that was finalized a few years later
by George Laurer. The first implementation of the UPC was in 1974 at a
Marsh's supermarket in Troy, OH north of Dayton. The invention triggered the
auto ID movement, forever changing supply chain practice and information
flow.
5. The Ford Assembly Line: Henry Ford actually got the idea for the assembly line
approach from the flow systems of meat packing operations in the Midwest, but
it was Ford's adoption of the production approach with a continuously moving
line for Model T's in 1913 that revolutionized not only automobile assembly but
took the practice of manufacturing to new levels in other sectors as well. Total
time of assembly for a single car using the production line fell from 12.5 labor
hours to 93 labor minutes, ultimately making cars affordable for the masses,
changing not only supply chain but society.
6. Economic Order Quantity (EOQ): Economic Order Quantity is a mathematical
approach for determining the financially optimal amount of product to order
from suppliers based on inventory holding costs and ordering costs. The original
concept is generally credited to Ford Whitman Harris, a Westinghouse
engineer, from an article in 1913, but it was a much later article in the Harvard
Business Review in 1934 by RH Wilson that made EOQ mainstream. The
formulas are still taught today, and the basis for much supply chain decision-
making even in this era.
7. The Ocean Shipping Container: It is hard to imagine today, but until the mid-
1950s, there was no standard way to ship products on ocean carriers, and most
were shipped on whatever container or platform the producing company
deemed best. The result was terribly inefficient handling on both sides of the
equation, poor space utilization on the cargo ships, and high logistics costs.
Enter Malcom McLean, legendary logistics entrepreneur and visionary who
invented the standard steel shipping container first implemented in 1956 at the
 port of New Jersey. Someone would have thought of it eventually, but McLean's
invention started the explosion in global trade.
8. P&G's Continuous Replenishment: Until 1987 or so, order patterns in the
consumer goods supply chain were almost totally dependent on whatever the
manufacturer sale person and retail buyer decided between them. That's until
Procter & Gamble bought a mainframe application from IBM for "continuous
replenishment" (which had been deployed a handful of times in other markets),
re-wrote it for consumer goods to retail, and as a result dramatically changed
that entire value chain by driving orders based on DC withdrawals and sales
data.
9. P&G first implemented the approach with Schnuck's Markets in St. Louis, with
dramatic results in both lowering inventories while increasing in-stock at retail.
KMart was next, taking pipeline diaper inventories from two months to two
weeks - but KMart never completely embraced the possibilities. A legendary
1988 meeting between P&G's CEO and Sam Walton led to a CR program there
and changed supply chain history, helping propel Wal-Mart to retail dominance
and providing the foundation for Efficient Consumer Response (ECR), Category
Management, Continuous Planning, Forecasting and Replenishment (CPFR),
and more.
10. The Toyota Production System: When James Womack and several co-authors
wrote "The Machine that Changed the World" in 1990, it was of course not a
Toyota car that had such an impact, but rather the Toyota Production System
(TPS) that was the foundation of the company's dramatic success across the
globe. Pioneered by Toyota's Taiichi Ohno and a few colleagues, TPS not only is
the foundation for today's Lean manufacturing and supply chain practices, but
the concepts have penetrated versus every area business. TPS truly did change
the world.

Coca Cola

Innovations in Promotion

Abstract:
This case study deals with the distinctive distribution strategies of Coca-Cola India
(CCI) for the rural and urban market segments in India; and the company’s efforts
towards effective execution of these strategies. CCI built a distribution network in
combination with its bottling partners and contract manufacturers. In urban areas,
it distributes products directly from bottling plants to retailers. However, owing to
lack of proper infrastructure and difficult access to the remote villages, it modified its
distribution chains and adopted the three-tier ‘hub and spoke’ distribution model, to
penetrate into the rural areas and increase its sales. Besides its distribution network,
CCI adopted ‘Right Execution Daily’ (RED) strategy for effective execution of its
distribution mainly in urban areas, which boosted the sales of the company. RED
ensures the proper display, availability and activation of company’s products in the
retail stores. With the success of RED in urban markets, the company plans to
implement it in rural areas. However, given the potential of the Indian rural markets
and the challenges it poses, the question that arises is, how far can RED be effectively
implemented and what are the challenges the company might face in reaching out to
the rural consumers?

1) Coca-Cola Sharing Can

Coca-Cola has really hit it out of the park recently with their campaigns. They have
done an incredible job at connecting with their audience through understanding their
motivations and the nostalgic feelings behind craving a can of Coke. Another
impressive aspect of recent campaigns is the attention that Coke puts into making
each message global. Coke has smartly positioned themselves as a brand that
connects millions of people across the world.
Recently, Coke has upped their game with how they get people to not only emotionally
engage with their brand, but also with each other. They created a vending machine
that enabled people in India and Pakistan to communicate. And in Europe Coke is
offering customers a chance to customize their own Coke bottles with their names.
The most recent iteration is the idea of having a can of Coke that twists apart into
two smaller cans so you can share! I immediately resonated with this. I love Coca-
Cola, but I often can’t finish a full can, so having two small cans that I can share with
a loved one is genius. Currently, the cans are only available in limited quantities
during a trial through their “Happiness Truck”. So that is a bummer, but I have high
hopes the concept will make it to the mainstream.

2) Social Media Artificial Intelligence (AI)

There are numerous applications of AI in marketing but perhaps the one with the
largest scope is social media. AI is capable of doing everything from categorizing
Tweets, to gathering consumer insights, and even to analyzing social media patterns
to help you to capitalize on trending topics at the right time.
Social media makes it easier than ever for brands to access their customers’ personas
and buying behaviors. Social media AI can easily and efficiently aggregate this
consumer data so that marketers can make more targeted and strategic decisions.
With the extra time that marketers don’t have to spend crunching numbers and
analyzing data, they can focus more heavily on creative and strategy.
3.IKEA’s products are renowned for the level of detail that is put into their design –
enabling their furniture to be easily assembled, often without tools – and equally it’s
in the detail of IKEA’s marketing where the company is most innovative. The brand
has put customer-experience at the heart of their marketing strategy, not just at
individual needs and touchpoints, but across the whole buying cycle.
In 2013, for example, they launched the Catalogue app, which not only gave users
access to the company’s inventory, but via augmented reality, actually allowed them
to view how items would look in their home spaces.
Parents of young families can benefit from babysitting for 60 minutes completely free
of charge. Customers can also enjoy the in-store restaurants and bistros, for a taste
of Swedish cuisine, and with breakfast available for as little as $1, and family-friendly
offers such as buy-one-get-one-free frozen yogurt, it’s little wonder that IKEA’s family
memberships increased from 4.3 million to 6.9 million in 2014/2015.
4.L’Oréal
L’Oréal understands that providing for digital-era consumers pre-purchase, is just as
important as allowing them to sample products at makeup stands and counters. For
this reason they designed an app.
L’Oréal’s Makeup Genius app allowed users to use their phones to do a digital
makeover. The brand recruited the same team behind the makeup of “The Curious
Case of Benjamin Button” to provide the realistic visual effects needed. Consumers
responded positively; the app was downloaded 7 million times.

Innovation in People

How to motivate your employees

'Moving from being a micromanaging small business owner to an empowering team
leader is a journey, and it was very hard ... I'm pretty sure that's why a lot of small
businesses don't grow past a certain point.'
Tristan White, The Physio Co.
Top tips
Create a 10-12 year long term vision with a 3 year achievable goal
Make your core purpose and values real
Recruit staff whose values align with those of the business
The business
When Tristan White started The Physio Co External link (opens in same window)in
2004, he was working solo. In its first year the company completed 1500
consultations.
At the end of 2013, the company had 60 employees, was ranked by BRW as the 5th
best place to work in Australia and well on the way to achieving its 10-year goal of
providing 'two million unique and memorable consultations to Australian Oldies by
31st December 2018'.
The Physio Co has grown consistently - 35% year on year - since it began over ten
years ago.
The trigger to define goals
'By about 2008, the company was employing around 20 people, but I had no strategy.'
Tristan says that in 2008 he felt 'stuck' in his business. 'I'd built this complex web
where I was the decision maker on everything. I really didn't enjoy what I was doing
and I wanted to change that.'
In 2009, Tristan started working with business coach Cameron Herold to create a
picture of what the business would look like in 2012. 'Once we had the vision, we
worked backwards so that we knew what had to happen each month between 2009
and 2012 and we could strategically grow the business.'
Goals for 10 years and 3 years
Business guru Jim Collins coined the term 'big hairy audacious goal' (or BHAG), and
this was an idea that appealed to Tristan, after he'd read Collins' book Good to Great.
'I think a business needs a long-term vision that extends 10-12 years out; a goal that
is bigger than ourselves and creates purpose. In my experience, most people want to
be part of a business that actually does something significant in the world.'
A shorter goal works alongside the long-term vision. 'A three-year goal is much more
actionable. The 10-year goal really is for the business owner. For many team members
or new staff, three years is already a long time. It is easier to align people to a three
year vision than asking them to look 10 years into the future.'
When searching for a tool that would enable him to put his plans into action, Tristan
adopted the concept of the "Painted Picture External link (opens in same window)".
'It really describes in great detail - not only the goals that we're working towards, but
what the business will look like at a certain point in time.'
The Painted Picture may be detailed, but it consists of simple statements.
'The job of a business owner is to make the complex as simple as possible.'
Learning to let go
Staff are involved in creating and bringing the company vision to life. Tristan admits
that the transition to allowing others to make decisions caused him some stress at
the beginning.
'Moving from being a micromanaging small business owner to an empowering team
leader is a journey, and it was very hard... I'm pretty sure that's why a lot of small
businesses don't grow past a certain point.'
Purpose and values embedded in the culture
The core purpose and the core values of the Physio Co are part of the company's day-
to-day operations. 'The core values explain the behaviour that is needed to bring the
vision to life.'
He says that repetition of the core values helps them remain present and the wording
of the core purpose and core values has a tremendous impact. 'Keeping them simple
is how you keep them alive.'
The Physio Co actively uses their core values in the following key areas:
Recruitment
'We're not looking to recruit people who are all the same, but we're looking for people
with similar values.'
Performance reviews, rewards and recognition
'The highest performing members of our team are rewarded because of the way they
live the core values.'
Daily meetings
'A 12-minute meeting in our support office every day ensures there is clear
communication among team members and helps us focus on bringing the vision to
life.'
The challenge of change
The continual growth of the company has led to some challenges, particularly around
structure and leadership.
'About 12 months ago, we outgrew our organizational structure. We had become far
too complex for the management team we had in place. I didn't see it coming; I think
I was asleep at the wheel.'
Triggers to watch for:
A drop in staff retention
'A few of our physios started to look for their future elsewhere.'
Customer feedback
'We were short-staffed as a result of staff leaving, so we didn't have enough physios
to deliver on all our programs. If you say you're going to do something and then you
don't, that doesn't go down very well.'
Tristan worked to rebuild relationships with the physio team and ensure the
management team was structured more sustainably - to avoid a repeat of that
difficult period.
The result
By creating a long-term goal and achievable short-term goals, Tristan White has gone
from being a solo operator to having 60 employees and an award from BRW for being
the 'Best Place to Work - Under 100 employees' in Australia in 2014.

2.Linkedin [in]cubator
Once a quarter any employee at the company can come up with an idea, put together
a team, and pitch an idea to an executive team. If the project is approved the team
then gets to spend up to 3 months turning that idea into an actual product or service.
These ideas can be anything from internal tools to HR programs to technology
improvements. The goal here again is to give employees a chance to get their ideas
and their voices heard and to make it easy for anyone to be able to turn an idea into
a reality.
3. LITERATURE REVIEW

Prior to launching the pilot research, a thorough review of scientific databases and
scientific literature was carried out. The research was devoted to two areas:
marketing innovations and the impact of innovation in enterprises. Marketing
innovation must be part of a marketing concept and strategy that is significantly
different from the original marketing methods. Marketing innovation is based on the
understanding that adhering to existing marketing rules alone is not enough to
ensure success and competitiveness in crowded markets. (Kotler, 2005) Marketing
innovation is based on lateral thinking, of which the principle is playfulness,
boundlessness, and provocativeness. The areas of marketing innovation have a
progressive development, including personal marketing, ambient marketing,
environmental marketing, guerilla marketing, ambush marketing, buzz marketing,
viral marketing, product placement, mobile marketing, even marketing, word of
mouth marketing, neuromarketing, geomarketing, behavioural marketing and more.
Many authors agree on the division of innovative marketing into six core areas:
1. Innovation based on key technologies - using key technologies brings new and
different products.
2. Innovation based on the unique transport of common controls
3. Innovation that meets the unmet needs of customers
4. Innovations created from pure imagination - often this type of innovative
marketing continues in creative activities
5. Innovation based on scientific research and 6. Innovation based on functional
excellence.
In the final summary, the authors agree (Muangkhot & Ussahawanitchakit, 2015;
Moreira et al., 2012; Kleindl et al.1996; Cummins et al., 2000; Özen & Bingöl, 2007)
and define marketing innovation as doing something fundamentally new with ideas,
products, services, or technologies based on market-based ideas that stem from a
variety of customer desires.
4. Significance of the study

Organizations who proactively see and act upon the opportunities for change through
innovation in a highly volatile business environment will not only survive but will
also successfully flourish in the toughest of the economic conditions.
Such companies will use innovation as a technological and a strategic tool to
develop agile innovation culture and effective business processes.

With companies taking such bold steps, it will enable them to achieve certain key
business outcomes such as:
 Maximizing their Return on Investment to shareholders
 Effectively achieving business growth goals
 Increasing the productivity and thereby increasing the profitability
 Effectively responding to industry disrupters and increasing market share
 Quickly responding to the external challenges by developing human as well as
technological resources to do things differently
It is also a powerful tool that enables people to affect the business breakthroughs and
also deliver a profound process, a solid system, and culture.
As a result, there would be increased business engagement, competitiveness, and
rapid business growth to enable the business to flourish in this current age of
disruption.

Through this papers the business especially the ones which are growing in todays
world will get benefitted by:

Effectively responding to unforeseen events

It is critical to foresee and solve challenges and respond to unprecedented events and
external crises in different ways and transform them into creative and innovative
solutions that people love and cherish.

Competing with lean & agile startup methodologies

Every business goes through a rough patch at some point or the other. However, what
is really important is making some really effective strategic moves that help in
discovering new and unexplored markets.

Lately, many new businesses are slowly shifting towards using certain strategies that
incorporate lean as well as agile methodologies as a way of innovating businesses for
creating increased value for customers that they value.
Catching up with advances in technology

The advancement of digitization, which is enabled by the IoT has synced the
connection and sharing of information between multiple digital devices.

It is because of this connectivity and aggregation of data that more revenue streams
are getting created, both for new as well as established firms that leverage existing
asset in exciting and profitable ways.

It is also changing the basis of competition as companies will now be able to compete
as part of the ecosystems. The increasing availability, as well as accessibility to free
and low cost online education, is encouraging and enabling almost everyone with a
desire for learning. There is a hunger for knowledge to become subject matter experts
in their fields.

Innovative entrepreneurs are expanding their business with the internet of things,
fully connected mobile devices, cloud computing and via the social media. Especially
by developing software applications that are aimed to improve the quality of people’s
lives across the globe.

Adapting to evolving workplace dynamics and trends

At present, millennials are swapping jobs at increasing rates as they seek more
meaningful work and equality. Recruitment processes are also shifting as a lot of
recruiters are mostly relying on online-based social processes where reputation is
becoming extremely important to professionals and organizations.

Freelancing and contracting are also becoming a way of life, a number of people are
working from home and taking responsibility for generating own income and wealth.

They are also operating more from coworking and collaborative work environments,
which means to say that they are networking as well as teaming up to share and gain
knowledge and experience

Responding to increasing customer expectations and choices

Major changes are required on how companies perceive their customer’s needs and
expectations as they are also empowered by the increasing speed and the wide range
of choices available in the strongly connected and digitized world.
Their focus is on getting the value that demonstrates that companies understand as
well as empathize with them and even support their lifestyle choices. Increasing
consumer expectations, as well as choices, are majorly impacting companies to
become more customer-centric via innovative change.

By using human-centered design to improve the user experience, companies can

effectively create and invent products and services that people value and cherish.
7. References

 Vikas Gupta & Meenu Chopra (2017) “Gauging the impact of Knowledge
Management practices on organizational performance- A balanced scorecard
perspective”
 Otakar Ungerman, Jaroslava Dedkova, Katerina Gurinova (2018) “The impact
of marketing innovation on the competitiveness of enterprises in the context of
industry 4.0”
 Colin Ting Si Xue (2014) School of Computing and Technology “ A literature
review on Knowledge Management in Organizations”
 Partha Bhattacharya (2004) “Knowledge Management and its utilization: An
overview”
 Andrew H. Gold, Arvind Malhotra And Albert H. Segards (2001) “Knowledge
Management : An organizational Capabilities Perspective.
 Sutapa, Mulyana Wasitowati (2017) “The role of Market Orientation,
Creativity, and Innovation in Creating Competitive Advantages and Creative
Industry Performance.
 Samuel Afriyie, Jianguo Du and Abdul-Aziz Ibn Musah (2019) “Innovation and
Marketing performance of SME in a emerging economy: the moderating effect
of transformational leadership”
 Harald Strotmann, Jurgen Volkert and Melinda Schimdt (2019) “Multination
Companies: Can they foster well being in the eyes of the poor ? Results from
an empirical case study.
 Vikas Gupta, Namita Jain (2019) “The impact of knowledge management
system on student performance: A case study of the University of Delhi”