Niraj Dawar from the Harvard Business Review suggests an important point that innovation of new features must match with the company’s brand. Whenever a large organization like Volkswagen A.G. invents new products, it must allocate its innovations to the appropriate brand. For example, models with better fuel efficiency should be introduced by its Volkswagen and Skoda brands, while Volvo should carry cars with better safety systems because it has a better market credibility.
Dawar states that trustworthy brands accomplish three key aspects to properly match its innovation with its brand. Firstly, they lessen the customers’ risk of testing new products. Secondly, they accurately position the innovation to establish a clear purpose. Finally, brands give the new product credibility. For example, MP3 players did not become successful in the technological market until Apple introduced the iPod. A firm like Huawei could develop a similar product as Apple, but will not get as much attention because it is not trusted as a brand that is known for its innovation.
Research and development is not the only factor in creating a successful innovation; the brand reputation is equally as crucial. This portrays how a good brand image is very powerful and significant in introducing an innovation.
Works Cited
Harvard Business Review – http://blogs.hbr.org/2013/11/make-sure-new-features-match-your-brand/