P&G, Kraft, Starbucks Talk Driving Innovation

Innovation-focused executives from P&G, Kraft, Starbucks and many more companies met at Consumer Good Technology’s seventh annual Growth & Innovation Forum, to deepen their understanding of driving true innovation. On September 19-21, 2012, at the W Hotel in Miami Beach, Fla., these executives discussed the importance of creating new brands and services, building brand loyalty, and gaining strategic insight into and actionable information on topics that help drive innovation throughout their businesses. Here is a recap of some of the event’s many highlights:

 

--With the changing retail landscape, unlocking consumer insights are the holy grail of the consumer goods (CG) industry. Companies spend an enormous amount of time and money trying to understand what consumers want and need, particularly in difficult economic times, and then matching those desires to new products and services. In an engaging opening keynote presentation, “supermarket guru” Phil Lempert discussed key changes impacting the CG space, as well as innovative new trends that are exciting consumers. “It’s all about consumers who are smarter than ever before who want you to pay attention to them.” Lempert discussed ten trends to watch, including: food prices, baby boomers, farm to fork, ethnic food, and extreme home cooking.

 

--While Procter & Gamble (P&G) is a company built on partnerships, it has also historically taken great pride in “if we need it, we can invent it ourselves.” For generations, with limited exceptions, the closed-door approach ruled the day. Then, a few years back, P&G realized that the Kremlin Wall they’d built to protect their innovation, was also stopping the healthy and stimulating exchange of ideas with partners on the outside. Now, with the company returning to its roots, P&G opened its doors to partnerships of all shapes, sizes and types. Jeff Weedman, VP, Global Business Development for P&G, offered a sneak peek inside P&G’s growing Partnership Portfolio, and shared some innovative collaborations that have been transformational, as well as some examples that didn’t work. “It’s not necessarily about the deal, this is about connecting and building relationships to build your business and your partner’s business,” he said.

 

--InnovationEdge President, Cheryl Perkins, moderated a panel about new business models to spur growth and revenue. “You need to think differently about how your business models are creating and delivering value; these panelists have been brought together because their product contains some aspect of service, which has been a differentiator for their success.” Bennett Brenton, chief innovation officer for Snap-On Incorporated, Brad Fournier, executive director, Strategic Initiatives/research manager for ALMA (Alberta Livestock & Meat Agency), and Mary Maurer, chief innovation officer for Holy Family Memorial Medical Center joined Perkins for this lively panel discussion. The executives talked about gaining a better understanding of the role business models are playing in building a solid open innovation foundation; introducing insight to better-define R&D projects and overall business objectives, and managing partnerships and alliances to deliver results for a collaborative win-win proposition.

 

--Attendees gained some insights from an SMB company named HAPPYFAMILY who revealed how to survive in today’s highly competitive market. Founder and CEO of HAPPYFAMILY, Shazi Visram, shared how the company offers innovative products and excels at leveraging marketing programs that truly deliver a clear message with her line of organic food aimed at keeping families happy and healthy. “I wanted to create a company that would change the way children are fed in our country and change the world; we may not be changing the world, but we are changing the minds of the children who will change the world.”

 

--Technology is constantly evolving and changing the way consumers interact with brands. It can be a challenge to stay ahead of technology and find the best ways to connect with consumers. In this session, Digital Innovator Global IS Innovations for Kraft Foods Inc., Tom O'Keefe, took the audience behind the scenes of Kraft Foods' Digital Innovations group, to share more about how they work with partners to turn "what if?" into "what is" and tell the story of how the Diji-Taste Digital Sampling Experience was brought to life from concept to reality. He offered some advice to attendees saying, “It’s OK to be dirty and a little scrappy; you will fail quickly, but you will learn a lot in the process.”

 

--On Day Two, attendees heard from keynote speaker, Steve Chandler, vice president, R&D, Product & Process Technology for Starbucks. It seems that so many new products are merely line extensions or slight variations of existing concepts, particularly over the last few years. With the consumer’s dollar being stretched more than ever, it is critical that new products provide valuable benefit. To deliver this value, breakthrough innovation is required to upset the applecart and deliver truly revolutionary new products. During this session Chandler revealed his secrets for releasing the genius of innovation. “The principles seem obvious, but passion, commitment, focus, and collaboration are what I believe we, as leaders, can facilitate, and what our teams and organization needs for us to deliver true breakthrough innovations.”

 

--SVP of Global Research & Development, Dr. Ahmet Baydar, discussed how International Flavors & Fragrances (IFF) designs innovation or technology platforms by understanding the consumer needs of today and tomorrow. “We identify consumer need categories, then align them with business management and map technology solutions both internally and externally.” He also explained how IFF focuses on understanding those needs in emerging markets and trends, and how, after establishing the consumer need, IFF researchers work with their customers to achieve potential innovation solutions.

 

--Green Mountain Coffee Roasters (GMCR), owner of the Keurig single-serve coffee machines and numerous top-specialty coffee brands, is changing the way North America prepares its beverages both at home and in the workplace. Kevin Hartley, vice president of Corporate Strategy for GMCR, described how the company achieved disruptive innovation on a grand scale. In the closing session, Hartley, who leads long-term innovation for the company, shared how it responds to consumer needs to drive its innovation and growth. “We are transitioning from the nation’s most successful single-serve coffee company to the world’s premiere single-serve beverage company,” he said. “All great ideas are born starving—and require care and feeding to grow them.”

 

Don't miss CGT's next live CG industry event: The Consumer Goods Business & Technology Leadership Conference. Click here to learn more and register.