What's in a Name? A Lot When It Comes to Innovation

What's in a Name? A Lot When It Comes to Innovation

the Innovation Breakthrough -2

What did it take for the company to bring this innovation to life?

1. What were the drivers that led to the innovation? What were the forces / catalysts that triggered the development of the innovative idea?

-        Only 10% of 6.5 million tons salt annually consumed in India were branded and refined.

-        Only 25% salt in India was iodized

-        Despite the availability of iodized salt, consumers are not educated regard the necessity of the organism for iodine

-        Rejection for pay a premium price for iodized salt

-        Loss of iodine in storage (up to 70% of loss), transportation and Indian cooking (even those who consumed iodized salt didn’t receive the recommended daily allowance of iodine): air moisture, high temperatures, poor quality of raw salt, low environmental pH, time before compsumption. PH levels of Indian species

-        Iodine deficiency desorder

-        75% of Indias population is rural

2. What were the barriers that has been faced? What were the main barriers that held back the organization and the stakeholders when developing the innovative solution? (price for the market segment, managerial support/commitment for development, technical issues, etc.)

-        Price for market segment was high due high costs of distribution

-        Creation of penetration channel to rural areas

-        Though conditions for distribution to rural areas

-        Skepticism of parents that child’s mental development depends on consuming right salt

3. What were the enablers that made the innovation happen? Who were the key people, what have been the factors that enabled the innovative idea to prevail, and how did they help? Who changed the status quo?

-        HLL endorsement Government trustful agencies to promote the consumption of iodine salt

-        Shakti: Education from women of the same community. Word-of-mouth

-        Creation of micro-business in the communities

4. What is the result and impact? What impact the innovation has had or will have on the customers, market, competitors, and environment? What kind of new behavior does it trigger?

-        Health conscious

-        Entry of the traditional leaders into the iodized salt market

-        Project Shakti empower women to stand among the men of the village

-        Distribution of the other HLL products

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5.  What’s next for this innovation or the company? Based on the innovation, what is the company going to do next? (What the company wants explicitly and/or our assumptions of what could be next on this path.)

-        Expand its product distribution

-        Involving the major customer base to increase sales in volume

-        Reduce transportation cost

-        Improve supply chain

-        Entered the common man’s household with a wide variety of products

the Innovation Breakthrough -1

                            concept of the offering

-        A new branded salt which due to an innovative process of production doesn’t lose its concentration of iodine.

-        Encapsulating the iodine in aluminum and magnesium hybrid, the iodine is retained even in Indian cooking conditions.

 insight that led to developing the innovation

-        How to create a salt that guarantee and keep the level of iodine concentration required for the body to prevent IDD (iodine deficiency disorders).

-        How to reach and educate the poor people regard the importance of iodine consumption.

 emerging and converging trends exist to make this innovation sustain over time

-        Health ONGs and donations were not enough to reduce the rate of IDD in India. 

-        Was necessary the auto sustainability of the communities.

-        Creation of micro economy

-        Required a self-sustained effort by an consumer organization

-        Lack of education

 basic human needs does it satisfy?

-        Need of health.

-        Need for an additional income

-        Upgrade of the household.

business model used to make money

BoP principle.  Despite the low margins of the product, it generates high profitability due high volume of units sold.

 combined capabilities that differentiated the offering and makes it compelling for the customers? Focus on aspects of production, offering, delivery, customer experience and partners

Production: Production capacity for salt was above demand in India.  HLL developed partners and transferred its technology  and upgrading quality. Strong R&D.

Offering:  rural penetration model Shakti. Personal approach.  Based on education on benefits of Annapurna consumption.  Huge training efforts from HLL due illiteracy of women. 

Marketing: different levels of literacy and TV access. Vans traveled through villages giving educative shows in the villages and presence in festivals to educate and create brand awareness.  Word-of-mouth. Marketing directed to women appealed through the health of the children.  Message  positioned the product as a healthy product, to prevent bodily dysfunctions related with lack of iodine in the organism. (thyroid, goiter, growth of the neck, abnormal mental development and inadequate growth in children).  Because goiter is not visual attractive, HLL decided to focus its campaigns on mental disorder.  HLL offered Annapurna scholarships to children who submit interesting questions and answers (highlighting mental development)

Delivery:  Different distribution than others HLL products.  Distribution relied primary on rail. They had fewer middleman involved and ended with wholesalers rather than retailers. 

Customer experience:

Partners:

-        Shakti women

-        Producers

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