Lecture Notes: Innovation and Branding for UMKM

Introduction

• Focus on modern innovation where everyone is innovating continuously.
• Importance of making products unique in a competitive market.

Key Points on Innovation and Branding

The Need for Understanding Value

• Starting Point: Establish a clear value for your product before developing it.
  • Example: If the value is to provide a filling meal, find ingredients like cassava or sweet potato.
• Value creation simplifies product development and differentiation.
• Blindly copying existing products often leads to overwhelming competition and price wars.
  • Example: Many businesses copy market leaders like McD or Burger King, leading to similar products and price wars.

Differentiation Through Innovation

• Initial imitation is common, but innovation is key to stand out.
  • Example: A burger business started by imitating McD but innovated with grilled burgers instead of fried ones.
  • Another example: A business person innovated by creating an actual grilled burger, making it unique and creating a niche market.

Evolution of Brands and Inherent Value

• In creating a brand, differentiating on a value level can avoid direct competition and create a unique market position.
  • Example: Kopiko: Marketed as a coffee replacement in candy form.
  • Rolex: Markets status rather than just a timepiece.
  • Harley Davidson: Sells freedom and the rebellious lifestyle rather than just motorcycles.
  • Apple: Markets simplicity and style, encouraging the perception of unique thinkers and innovators using their products.

Building a Brand

• Differentiate by innovating while still mirroring existing successful products initially if needed (imitation to innovation model).
• Understand that branding involves value creation and often creating new perceptions rather than just physical product changes.

Overcoming Market Saturation

• Address how to make products stand out even when many are innovating similarly.
• Important to focus on value and perception rather than only physical innovations.

Marketing Strategies

• Launching products in today’s market requires strategic marketing beyond traditional methods.
• Creating intrigue and engagement through paradoxical advertising.
  • Example: Advertising where an AC makes your home warmer, referring to emotional warmth.

Practical Branding Cases

• Examples of brand disruptions that redefined categories and competed by creating new values and perceptions.
  • Energen: Marketed as a nutritious drinkable food rather than just a drink or food separately.
  • Techniques to disrupt existing markets by creating products competitors can’t easily replicate.

Q&A Highlights

• Addressing common concerns of UMKM about starting and competing in business cycles affected by economic changes like recessions.
• Emphasizing creating substitutive yet unique offerings during crisis periods.

Conclusion

• Encouragement for businesses to focus on brand values, market needs, and innovative approaches to create lasting and impactful products.
• Upcoming workshops and events for deeper learning and application of these principles.