To gain real competitive advantage, the focus of innovation must be on
developing new-to-the world or new-to-the-market products that provide
consumers with totally new perceived benefits. Too frequently the results of
innovation are two types of products:
(1) ``Me-too'' products (improved versions of existing products).
(2) ``Trend-of-the-moment'' products like ``natural'', ``low-fat'',
``single-serving'' sizes, portable packaging, new colors, and ``in''
flavors.
The unfortunate outcome of these types of new products is usually low
financial returns and a relatively short life.
Truly innovative and radically new products are the ones that competitors
lose sleep over, and with good reason ± they have staying power and
profit-making stamina. General Mills Inc's Go-Gurt, the first ever portable
yogurt in a tube is a good example of a product that made innovative strides
in an established market. Launched in 1999, Go-Gurt was a huge hit with
kids and in just two years, captured 7 per cent of the $2 billion yogurt
market.