Branding has been an essential element in the creation of a company’s sustainable competitive advantage in a diverse market globally.
Strong brands in an organization are expected to maintain equity through successful management of customers’ responses in relation to the activities which are designed with an aim of marketing the organization products and services.
For this reason most organization dwell so much on ways through which they can retain the value of their brands. As a result innovation is seen as the main strategy if done in accordance to the current market trends.
Product innovation has been adopted by organization to meets their consumer needs and to ensure they retain their competitiveness in the market. Product innovation is viewed as the ability of a product brand to deliver new and attractive products with new features whose sole purpose is to increase the efficiency and the effectiveness of the brand to ensure that the organization improves their image.
The innovation of the products starts from the ability of an organization to develop new products which is an added advantage over its competitors. It has been established that an organization that have an aim of promoting their products globally tend to be more innovative.
Product innovation depicts an organization’s ability to develop new brands and assist manufacturers in the branding efforts. Consumers in a way develop perceptions which are positive towards products brands that put emphasis on innovations and which develops new products designs.
Firms which are introducing new products in the markets with new innovation designs would help them to deliver significant information about the brand to customers. The information is important as it will help them in delivering brand awareness and creating brand associations to the customers.
Innovation Motivated by Opportunity
Organizations improve their brands through innovation as it’s an opportunity to expand their territories and improve their performance.
Innovation is a tool that makes competition irrelevant when organizations participate in a competitive market with similar products.
On the other hand when an organization competes through development of new products, it redefines its status.
Another opportunity is that competition for prices is assumed to be the enemy of differentiation in the world markets. It has been viewed that great companies get better before becoming cheap which is achieved by placing higher revenues of the company’s activities before lowering the cost.
With increased pressure on revenue margin companies are forced to move from old ways of doing things to new concepts which are productive.
Innovation Motivated by Fear
Innovation is regarded as fear by organizations that see competition as a threat. Despite it being a fear it acts as a motivator which is necessary for the growth of the organization.
The biggest mistake successful companies can make is being complacent. Most of the troubles for once a successful company begin with high levels of success.
They tend to focus on short term goals for them to achieve instant success. Another factor is that economies of scale cannot act as a guard to the market forces. It has been depicted by history that a monopoly ends when technological and structural adjustments set in.
In the modern world innovation is viewed as an essential element to increase an organizations performance. Innovation has been applied by companies to come up with new brands of products or to improve previous brands to create an added advantage and ensure the products satisfy the customers’ needs.
For innovation to be productive communication is important between the organization management and the subordinate staff to ensure they produce products which are in accordance to the brand promise.
Innovation is a brand power and without it organization may not be able to compete in the current market conditions.
The views expressed in this article don’t necessarily represent KBC’s opinion