What’s your favorite innovation from recent years? A ground-breaking product? A game-changing app? A revolutionary technology? Was it finding your favorite brand in a new, unexpected space? A brand bridging the gap between in-home and dining out?
Innovation is as much about innovating people’s experiences as it about radical new product innovation. And all innovation can drive sustainable brand growth. Whether big or small, a brand’s success hinges on its ability to engage with people in fresh, meaningful ways. And brands which stretch into new spaces have double the chance of growth compared to those that don’t.
It’s easy to talk about innovation, but making it happen is a different story. New ideas come with inherent risks. Innovation that doesn’t align with consumer needs or preferences can flop in the market. New products can cannibalize a brand’s existing sales or can muddle its identity.
In fact, survival rates for new products aren’t great – one in three are dead or dying two years after launch. Plus, research and development doesn’t come cheap.
But the potential for brands when they get it right is compelling. And while the idea is important, it’s the strategic planning and the execution which are even more critical.
At Kantar, we’ve analyzed hundreds of brands to identify the common factors among those delivering excellence through innovation and determine the winners of our 2024 Outstanding Innovation Awards. Each of these brands has worked hard to meaningfully differentiate itself among consumers and showed a clear connection between successful innovation and improved business performance.
So, what can we learn from them? Here’s the five lessons for brands wanting to emulate their success:
Lesson one: stay curious
Marketers can’t stay attuned to evolving markets and emerging consumer needs without a deep curiosity about the world around them. But curiosity can do more than spark new ideas – it helps us understand the ebb and flow of trends and behaviors. That’s crucial for long-term innovation, which goes beyond reacting to trends – it’s about shaping them.
Take Baileys, the iconic liqueur brand. After decades of success, it faced declining popularity. So, it took time to reflect and sought inspiration from diverse places like the worlds of coffee and cake, and their team cites curiosity as a catalyst that transformed new ideas into a turnaround. By staying curious, Baileys was able to adapt and innovate, laying the groundwork for renewed success.
Lesson two: question the business you think you’re in
The most innovative brands are often those bold enough to challenge their core identity and reassess the value they provide. When brands reconsider what makes them meaningful and different, they often discover opportunities they hadn’t initially recognized.
One example is confectionery brand Fini. Fini’s team realized that its appeal went far beyond sweets – they had the potential to bring their vibrant colors, textures, and flavors to entirely new categories. This led to inventive collaborations, resulting in products like lip balms and footwear. Unexpected? Maybe – but these moves were grounded in a deep understanding of Fini’s brand strengths, allowing them to extend their influence into new and exciting directions.
To unlock such realizations, brands need to adopt both an ‘inside-out’ and ‘outside-in’ approach. The former involves a close examination of the current market landscape – understanding challenges, consumer needs, and how these are being addressed. The latter requires a broader view of the macro forces and cultural trends shaping the future. The most effective strategies arise when insights from both perspectives are combined, revealing where the true opportunities lie.
Lesson three: be bold
Successful innovation requires brands to be thoughtful in developing new ideas, then bold enough to implement them. Samsung’s strength in foldable phones, for example, relies both on its pioneering research and in its confidence to make this unconventional concept accessible to consumers. Similarly, the vast strides which Indian telecommunications operator Jio has made into India’s internet provision have been based both on technological advances and strikingly affordable pricing that taps into unmet demand.
But boldness doesn’t mean recklessness. Solid research and strategic thinking are necessary to build momentum behind new ideas. But even with a well-planned path into new territory, brands need to find the courage to take the first step. Here, organizational culture plays a crucial role: marketers who want to drive change must bring colleagues and stakeholders along on the journey, ensuring the entire team is ready to support the bold moves ahead.
Lesson four: be true to your brand
Successful innovation respects and enhances a brand, rather than compromising it – regardless of how bold it is. That’s why authenticity makes all the difference between innovations that succeed and those that fail.
When the Covid-19 pandemic created major challenges for the aviation industry in 2020, it prompted Virgin Australia to reimagine its offer. It focused on a core purpose: providing domestic and short-haul international flights at great value. By building a coherent portfolio around this purpose, the company not only returned to profit, but also boosted perceptions among consumers. The results were felt beyond Australia, because this clarity and authenticity enabled the brand to create marketing campaigns that resonated with people worldwide.
Lesson five: don’t give up: learn, test and learn
Innovation rarely follows a straight path, so persistence and flexibility are key to success. By progressing ideas grounded in insights, data, and facts, brands can build the confidence and momentum needed to explore new approaches. When things don’t go as planned, the ability to learn and iterate becomes crucial.
For example, when developing Nitrosurge, Guinness’ team recognized a clear opportunity to expand from bars and pubs into homes. But it was keenly aware of a history of less than successful projects in that space. Thankfully, this didn’t stop Guinness from trying. Instead, they focused on refining the product and gaining a deep understanding of the practicalities involved in selling technology – an area far outside their usual business. This persistence paid off, turning a challenging opportunity into a successful innovation.
Innovation is the lifeblood of sustainable brand growth, but it requires a balance of curiosity, courage, and a deep connection to your brand’s core identity. By questioning assumptions, being bold yet thoughtful and persistently learning from each attempt, brands can navigate the complexities of innovation and emerge stronger.
Now, let's celebrate the brands that have excelled in these areas. Here are the winners of our 2024 Outstanding Innovation Awards:
Consistently Innovative Brands:
Winners have demonstrated innovative activity over a sustained period, successfully forging paths into new space (based on Kantar BrandZ data from the last five years).
- Nutella
- Jio
- Samsung
Rising Innovative Brands:
Winners have shown the capacity to evolve in line with rapidly changing trends or generating new ones of their own in the last two years.
- Chase Payment Solutions
- Virgin Australia
- Beck’s
Pioneer Brands:
Recognizing brands which break new ground in their spheres, developing unique approaches to enter new space.
- Fini
Brand Blueprint Award for Innovation:
These awards were given at the Cannes Lions Festival of Creativity in June 2024. They recognize brands that have consistently demonstrated innovative behaviors while moving into new space.
- Baileys
- Guinness
For more info and to download the free guide: www.kantar.com/outstanding-innovation
