How the invention of Baileys can change the way we all innovate

The story of how Baileys came to dominate the Christmas gondola-ends in-store, our after-dinner drink-trays, and the pop-up hot-chocolate scene is one of simplicity, scarcity and self-belief.

THE WHOLE PROCESS had taken about 45 minutes, from the moment Hugh looked at me to the moment we poured our mixture into a cleaned-out screw-top Schweppes’ tonic bottle and I called Tom Jago, our client at IDV [DIAGEO]

That S*it Will Never Sell (TSWNS) is a peek behind the curtain of the alcohol world's Oz, David Gluckman. After 50 years of doing drinks innovation (and several interesting tangents), David's message to brands and marketers looking to really innovate is remarkably clear and cuts through the bull, s*it. In many ways, David is the ultimate founder, showing the right mental and emotional spirit to find great ideas and transform them into products the people actually love.

3 KEY TAKEAWAYS:

1) DON'T BANK ON A PLAN B.?This is perhaps the boldest strategy to innovating that we can adopt today. Big brands love to come up with and test dozens of ideas. Sometimes they will settle on "one idea", but will test dozens of versions to understand "every angle" possible. It is time-consuming, it is costly, and consumers' reactions are barely distinguishable as they are asked to pick their "favourite" from the 13 (and-a-half) options they've been bombarded with. Start-up founders on the other hand, forced by a lack of resources, put all their focus and efforts into building the best Plan A they can. They probably won't last long enough to try a second edition if they fail with the first. This allows them to focus, to do more with less. Should they fail, it happens early and usually after they've actually launched their product which generates a ton of practical usage and customer-sentiment data--not claimed research data.

David and his partner were Founders in their own way, going into brand new territory based on very little knowledge and a very wide brief. Nevertheless, when they pitched Baileys to the IDV (predecessor to Diageo) team in 1973, all they had was one idea for a whisky-based chocolate-flavoured liqueur--using a competitor's whisky no less for the mock-up. Following some quick R&D tweaks, they designed a nice bottle and label, put it in a pub (not a focus group), and let nature take its course. Thank God for two thirsty policemen who drained that bottle one afternoon after work, or there would be no double-shot Baileys-in-Chocolate-Reindeer-cups todays...

Be like David. Be like a real Founder. Believe in your Plan A and make it work.

2) OBSERVATION IS YOUR MOST POWERFUL WEAPON AND SOURCE OF INSPIRATION. Brands and marketers spend multiple lifetimes looking at data only to not see what's in front of them.

With the Cognac market growing and IDV not having a cognac brand to capitalise on this trend with, the brief was to create a brandy brand with some real buzz. Enter a series of observations which would inspire the ultimate product and claim:

“The best wine in the world comes from Bordeaux. Wine is made from grapes. Brandy [& Cognac] is made from grapes. Therefore Bordeaux grapes would make the best brandy [probably better than Cognac grapes make cognac].”?

A traditional master-brand would have gone on the M&A warpath to buy Hennessey, Martell, Remy Martin or even a small producer--pouring billions to transform it into a match-fit candidate for the established crowd. A Founder, like David, would see what was available in the market, what gaps or opportunities existed, and capitalize on them.

The insights needed to create something new or to improve existing products are already around us. Most of the time, the key functional benefit consumers need is not being met or their needs are evolving and you just need to catch the wave as it happens. Keep your eyes open and your mind clear and solution will come without the need for 5-days of exploratory focus groups.

3) WHEN IT COMES TO THE INNOVATION ITSELF, WORRY ABOUT THE WHAT, NOT THE WHY.

"What kind of better mousetrap do you want? One that kills more mice or one that makes you look good? Functional or emotional benefits? Which is your preference? My choice is functional, a ‘sale in the mouth’ over a ‘sale in the mind’.?

We are in the era of purpose-led brands, higher-order benefits, and products which are meant to literally transport us into a state of nirvana. Simon Sinek's "Why" is supposedly why Apple is the most valued brand on the planet. Those baristas waiting in line to get the next iPhone edition believe Apple transforms them into real artists and creatives.

But in the pursuit of the spiritual (and sometimes even celestial), brands often forget why consumers would consider them in the first place. And that is, because they are promising to deliver a very real, very needed functional benefit that is desperately being sought after.

A heavily-promoted Smirnoff needed to compete with Stolichnaya and Absolut that were more premium in price and, arguably, taste. Naturally, they had to find a way to premiumise themselves, but would consumers accept to pay more for the same, standard, harsh vodka product? David realised that a superior price meant a superior product--no, not one with gold-foil worked into a handcrafted bottle or an aspirational brand ambassador. The liquid itself had to be superior which meant passing the developed palettes of hard-core vodka-neat/on-the-rocks drinkers. In other words, this new Smirnoff vodka would have to taste better. And how do you make standard, harsh vodka taste better? You make it smoother. And so Smirnoff Black was born--an exceptionally smooth sipping vodka with the price-tag to match. Of course, there was a whole "back to Russian roots" marketing story that went with it, very emotional and nostalgic for those consumers born in the 1880s, but the product was actually better.

So focus your innovation on building the WHAT. Consumers will judge you on the WHAT. And if the ad agency is going to come up with a bulls*it storyboard to go with it, then make sure the story does everything it can to bring to life the functional benefit of your product. That's the only way to grow a product (and business),... when you're starting out at least.

It's all about putting things in perspective

There are dozens of stories about products which did and did not sell scattered throughout the pages of TSWNS. Each one is yet another example of how simple it really can be to create a new product or service. You just have to be in-tune with the market and your consumers. You have to give them a reason (of which there are many, don't worry) to understand and choose you.

But perhaps the biggest takeaway here is that the innovation and creative process is not as arbitrary as we think (or fear). There is method to the madness and it can be repeated, time and again, with ease. Just start with the right mindset (no Plan B), be a keen observer of the people and the markets around you, and focus like a laser on the WHAT of your proposition--make it the best. The rest will take care of itself.

#InsightsCaffeine?#ElGrecoInsights?#Marketing?#Branding?#StartUps?#GetAbstract?#Blinkist #SagaSquared