STEP THREE: IDEAS in .NET framework

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STEP THREE: IDEAS
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1 Insight into consumers is a good catalyst for idea generation, starting with core range extension and then looking at stretch further out 2 Innovation shortcuts such as competitors, suppliers or other companies can also be used to generate ideas 3 The process of idea generation is messy and iterative, not tidy and linear, and requires personal passion and tenacity
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Checklist 4: Ideas
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Yes Do you have a clear idea of market maps and where your brand has areas of underlap Have you started with core range extension ideas before trying bigger stretch Have you gone beyond the consumer altogether and used your own company, the competition and other companies as innovation shortcuts Does your idea-generation plan build in time for several iterations and ways to survive innokill No
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Handover
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We have seen how insights from consumers, competitors and the company itself can serve as catalysts for generating stretch ideas We will now look at how to evaluate these ideas and select those with the best potential for building the business and brand Focusing on doing fewer things but doing them better is critical to avoid the risks of fragmentation
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Step Four: Focus
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2 VISION
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Having generated extension ideas, teams need to employ a process to focus on those with the best potential to build the business and the desired brand vision Clarity is also needed on the company s competences, to ensure that the product promise can be fully delivered Without such a disciplined approach, companies risk launching too many small extensions that add limited value for consumers and so build little extra business These extensions also fragment the human and nancial resources of a business, leading to value destruction rather than creation
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BRAND STRETCH
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Meet the seven dwarves
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Marketing people love extensions They provide an opportunity to use all the best bits of the branding toy box, such as concept development, pack design and advertising However, in many cases extension efforts are wasted on small ideas that add no value for either the consumer or the company The result is often a classic case of the Pareto principle: 80 per cent of sales are accounted for by 20 per cent of the extensions Put another way, for every beautiful big idea there are seven dwarves Human and nancial resources are fragmented over too many products or services, leading to a poor return on brand investment Launching too many small extensions is one explanation for the woeful state of the UK s National Lottery, rebranded in 2002 as Lotto with a $100 million marketing campaign This investment and the all-important prize funds were fragmented across an increasingly complex range of extensions such as Lotto Extra, Thunderball and Instants Despite the heavy marketing support the business actually dropped by more than 5 per cent As one user commented:
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The problem with The National Lottery is that there are too many brand extensions It s all too complicated I think that consumers feel this divides both their attention and the winnings into smaller jackpots People want one draw and one large jackpot Everything else complicates the matter and puts people off playing (1)
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As with all of marketing, the key to success is focusing on doing fewer things and doing them better Therefore, a rigorous and disciplined process is needed to review potential extension ideas and assess their potential The rst and most important criterion is ability to build the business In addition, the potential of the extension to help in building the brand vision should be considered
Heroes or zeroes
Combining these two dimensions of business and brand vision building gives an overall assessment of each extension (after all, no business book would be complete without at least one 2 2 matrix) For business building, the scale should be in terms of value of sales; pro tability should also be noted The mid-point can be chosen to represent the minimum size of project worth developing and launching For the brand dimension we are looking not merely for t with today s image but rather active contribution to building the vision Four main types of extension fall out of this analysis: hero, cash builder, niche product and drain (Figure 51)