Innovation: brand it or lose it

Branding can help an organisation own an innovation, create and dominate a new subcategory and enhance the perceived effectiveness of the organisation.

Innovation: brand it or lose it

David AakerProphet Brand Strategy

Innovation is increasingly at the centre of the strategy and the DNA of most firms, from HP's 'Invent' to Toshiba's 'Leading Innovation' to Toyota's 'Moving Forward' to Cargill's 'Nourishing Ideas'. The logic is that innovation will lead to growth and profitability. Growth will come from innovation-driven new products and businesses, and profit will follow from innovation-inspired margin increases and cost decreases. Further, as most markets drift towards commodity status, with offerings becoming similar, innovation is seen as the way to create differentiation, thereby shielding firms from price erosion.


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