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Trade Routes: Value Innovation
By: Michael Wynne
Posted: September 5, 2008, from the August 2006 issue of GCI Magazine.
page 2 of 4
Creativity is more than just putting two things together and getting something better. It’s about asking “What if?” constantly and not accepting conventional thinking.
Today’s world markets are flooded with infinite versions of beauty products and services. How do consumers choose among them?
You could say advertising and brand names help consumers to choose. Unfortunately, today’s consumers are skeptical about advertising messages, and although brand names are important, they no longer are enough to sway consumers.
Price and performance alone won’t seduce consumers anymore. Today’s consumers expect suppliers to offer new solutions to existing and future needs. Today’s consumers expect greater value at lower cost.
Greater value at lower cost requires value innovation, which happens when use, price and cost are aligned, and offered in ways that create the customer’s perception of substantial and differentiated benefit. In addition to being the key to growth and profit in every market, value innovation often creates a completely new market segment along the way.