The old model of innovation is dead…and a new model has emerged.
Therefore I have re-drawn my frequently used graphic and replaced it with the new innovation bell curve.
The Value Brands are rapidly improving their quality to the point where they are displacing mid-market brands. And, with the tough economic times, mid-market buyers are seeking greater value and shifting to the left, exacerbating this impact. Premium Brands remain differentiated (albeit sometimes niched) and always appeal to high-end, more sophisticated consumers. As the recession lingers on, these premium brands now offer lower cost versions of their products, further squishing the mid-market.
If you have not done so, please read all of my articles on the Innovation Bell Curve.