Think Differently: The Intersection of Innovation and Brand Strategy
Innovation is diabolical. On one hand, you want to create something new that will crush the market, on the other you have to manage consumer expectations and market signals.
This conundrum is what many businesses face when trying to innovate effectively.
Innovation is diabolical because it has to be meaningful yet it has to be impactful — and this is the conundrum so many businesses are stuck in.
However, brands that fail to innovate risk playing catch up to faster-moving and more nimble competitors
Innovation is diabolical because sometimes you want to go after that crazy idea, but you realize that crazy doesn’t always work if you don’t have the consumer demand for it.
If you can figure out how to resolve a consumer tension in a more meaningful way with your innovation, you’re already halfway there.
For instance, companies like Kodak serve as cautionary tales; their reluctance to embrace innovation led to their eventual decline in the face of nimble disruptors like digital photography brands such as Canon.
The reason why brands need to innovate
It can be perplexing that when brand owners and managers think of innovation, they also have to think of efficiency, effectiveness, customer satisfaction, and overall sales performance while staying ahead of evolving market trends and technological advancements.
Innovation is an upward spiral of success when brands do three things
- Bring innovation into the heart of the business
- Make sure innovation as an ethos is conveyed to consumers
- Be customer-centric with every innovation, thinking deeply about their needs
The lesson for every innovator
Brand innovations have to turn commodities into aspirational products, infusing them with meaning, intent, and added value, thereby transforming both the offerings and the overall enterprise. Without this all being in synch, innovation is pointless.
Brands that are laid back in their approach will fail faster than those who tried. Not giving your customers more than what they asked for, is one way to screw up CLTV and retention. If there’s no innovation happening, there’s no reason to stay.
Here’s a short case study from The Tata Group, one of India’s largest and oldest conglomerates, which has a rich history of innovation.
As I was reading about the foundations and early days of Tata, it was clear that Jamsetji Tata’s vision for the Tata Group was not just to create wealth but to contribute to the nation’s industrial development.
This is one such group that has heavily invested in innovation + R&D — it’s no surprise that Tata Motors filed a record 158 patents and 79 designs in FY2023. They also host an annual innovation event, Tata InnoVista, in 2023 where an individual named Padmapa was honored with the title of Serial Innovator and products such as “Automated Lacquering System For Watch Hands” were also recognized.
One of their most talked about innovations — the Tata Nano, which was released in 2008 and was labeled as the world's cheapest car, aimed at those who couldn’t afford one before. This was a huge step for such a large conglomerate to take.
However, later on, it was discontinued due to market acceptance. But it serves as a reminder of meaningful innovation that was attempted by such a large chain
Tata is a company that reminds us we have to remain resonant and relevant in an ever-evolving marketplace.
The Necessity of Brand Strategy in Innovation
The goal of every brand strategy is to provide clarity of thought and provide direction. When innovating, this serves as a compass ensuring that all innovative efforts align with the overall business objectives.
From my last 4 years of being a brand consultant, here are some things I’ve noticed amongst innovative brands that put thoughts and contextual information together seamlessly
- Insights lead to discoveries. These then lead you down the path of innovation. A lot of smaller companies go with their gut feel, without validating and confirming — is there enough sales volume to cause a difference?
Get into insights from a brand and business lens always
2. Brand innovation needs to align with the brand why: Innovation can take founders in so many different directions, but when you have your why crisp and clear — you wont sway, and you won’t compromise.
Get clear on your brand purpose and vision
3. Innovation solves meaningful problems with holistic solutions: Customer-centric innovation is the way to go with this. Customer-centric problem solving and innovation makes for an easier purchases decision, more brand trust and higher affinity with the brand overall.
Get clear on who you’re selling to and what a day in their life looks like
4. Products and emotions go hand in hand when innovating: For impact to happen, you have to be listening to your consumers with an ear on the ground. Doing this also means you cannot forget the aspirational and lifestyle aspects of your audience for the sake of innovation.
Get clear on your brand emotions, personality and emotional-authority
Where brand and innovation meet: Shared purpose
In conclusion, innovation cannot thrive without a well-defined brand strategy guiding it with a shared purpose as a destination. The intersection of these elements is where true business growth occurs.
According to a report from McKinsey, 84% of executives say innovation is critical to their growth strategy, yet only 6% are satisfied with their innovation performance. [1]
This disparity highlights the need for brands to establish a clear framework that aligns innovative efforts with consumer expectations.
A shared purpose is an approach to bring in consumers — aligning your vision, values, and expectations in a way that improves your perception and therefore loyalty in the long run.
The alignment of brand, innovation, and shared purpose inspires innovation to happen across the board, driving engagement.
In conclusion: Innovation, brand strategy, and the marriage
Innovation cannot thrive without a brand strategy in place. By creating a brand strategy you’re aligning innovative efforts with a clear brand purpose.
You then can actively engage consumers in the process, creating business value with meaningful products that resonate deeply with your target audience.
The synergy between innovation and brand strategy not only drives engagement but also fosters long-term loyalty — ensuring that brands remain relevant in an ever-evolving marketplace.
