Innovation Drives GROWTH

As a keynote speaker on marketing and business growth, two quarterly results caught my attention yesterday – consumer goods giant P&G which announced a 33% profit gain and fast food chain Wendy's which announced a similar percentage change in profits, EXCEPT this was a negative number.

The results from these companies intrigue me because not so long ago, the respective positions were reversed. When P&G CEO, A.G. Lafley took the helm in June 2000, the company was - to put it mildly, struggling with poor growth prospects and a number of missed earnings reports. At the same time, Wendy’s was making strong inroads into the market share of a then sleepy McDonald’s.

So what caused the reversal of fortune for both companies? There is no simple answer, but undoubtedly much of the answer lies in Innovation. Wendy’s growth in the early part of this decade was very much fueled by the introduction of one new product in particular – Salad Sensations. Introduced in February 2002, these salads were the first reasonable quality salad available from a major fast food chain. The “innovation” helped change consumer perceptions of fast food, a perception change that was further accelerated when McDonald’s followed suit thirteen months later. Wendy’s unfortunately lived on their laurels and while claiming to be the innovators in the sector, introduced very few additional relevant products. The net result – Wendy’s has lost its independence, founder Dave Thomas is probably turning in his grave and Triarc – franchisor of the Arby’s chain, has picked up a great brand quite cheaply.

On the other hand, P&G truly understood the power of innovation. Today the company is perceived as being one of the most innovative CPG companies on the market. It has been so successful in the North American laundry care business that it has forced arch-rival Unilever to exit the market. Fiscal ’08 sales at $83.5 billion are double what they were six years ago. One example of successful innovation is the Fusion shaving system which attained billion dollar status in just two years – the fastest billion dollar brand in the company’s history. In the associated conference call announcing the year end results, Lafley stated “Innovation is what will differentiate the winners and the losers in our industry and in the current environment. Innovation drives consumer value and builds brand equity and trust over time.”

How right he is. Even as a humorous keynote speaker, I do my best to be innovative, introducing new keynotes / concepts on a regular basis. Not all motivational, inspirational speakers agree with this philosophy presenting the same material over and over again. I have recently finalized a new keynote, based on my experience as a keynote speaker who has had prostate cancer. Titled “It’s Only a Flesh Wound” (bowing the head to the wonderful Monty Python scene), I have had great reaction to a keynote speech which looks in a humorous but I hope insightful way at how you can overcome prostate and other cancers.

An article ranging from Wendy’s salads to prostate cancer is quite a jump, but the underlying message is constant. Innovation – get it right and you will grow. Rest on your laurels and you will be left behind.

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Conor Cunneen is an Irishman, a Chicago based humorous keynote speaker, or if the search engines are paying attention, a funny inspirational motivational business speaker on topics as diverse as foodservice, cancer, communication skills and humor.
You can contact this funny motivational business speaker at 630 718 1643