Effect of Brand Innovation on Consumers' Perception

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Executive Summary

This paper has emphasized on the broad concept of brand innovation. However, the concept of brand innovation has been discussed along with the identification of the drivers of companies opting for brand innovation. Furthermore, in this paper, the customer's perception has also been taken under consideration in relation to the brand innovation. In order to develop clear understanding of the term, the practical examples of the companies have been provided in the paper that have facilitated in identifying the ways in which the companies tend to innovate their brands and what are the results of brand innovation.

Executive Summaryii

Introduction1

Discussion1

Branding3

Concept of Brand Innovation3

Drivers of Brand Innovation-Why Brands go for Innovation?6

Customer's Perception and Branding7

The Cultural Perception7

The Perception of the Community8

The Individual Perception8

Brand Innovation: Development of Brand Strategy8

Brand Innovation Examples9

Brand Innovation Example #1: Johnson's Baby10

Brand Innovation Example #2: Old Spice11

Brand Innovation Example #3: McDonalds12

Relation between Brand and its Value12

Conclusion13

References14

Effect of Brand Innovation on Consumers' Perception

Introduction

This paper basically focuses on the broader concept of brand innovation and its role in the performance of a particular brand. In narrowing this concept the effect of brand innovation the perception of customers is taken under consideration. However, the different examples are also discussed of well known brands in which they have become successful through bringing innovation in their brands respectively.

Discussion

In a global market it is essential that innovation a priority tool for companies to become more competitive and that competition is sustainable and can have differential positions that are required to focus on innovation and the brand (Riezebos &Kist, 2003, pp. 14-17). Thus innovation along with technology and competitiveness puts great pressure on the organizations decision making to come up bringing innovations in brands with the time and changing in preferences. Innovation and brand are two key factors in the growth and survival of businesses (and professionals) in the market. Innovation in products and services is supported by a strong brand has a better chance of success as compare to the brand which is weak or unimportant (Edwards, 2010, p.18). And in turn, a strong brand offering successful innovations continuously increases its strength. It is important, therefore, that when organizations put great emphasis on the continuous innovations of their brands. In products that already have strong brand focuses on evaluating their performance based of the innovations that want to develop the "brand value." There is a need to keep in consideration the fact that often there are innovations that "devalue" a brand, and this is a very undesirable situation. It is important because when we people tend to worry regarding innovate increasing the value of a brand, brand or product / service being developed (Sen, 2003, pp. 76-88). A strong brand helps in selling and increases the level of sales and brings value to the innovation, if it is successfully implemented.

According to Lovett, creativity and innovation of brands are two words that are heard and used by the digital society, so all the big companies are ...