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Running head: INNOVATION AT INTERNATIONAL FOODS GROUP 1

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Student Name!

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Colorado State University – Global Campus!

Instructor Name!

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INNOVATION AT INTERNATIONAL FOODS GROUP 2!

Innovation at International Foods Group

International Foods Group (IFG) is a leading packaged food manufacturer in the industry

(McKeen & Smith, 2012). Growing rather quickly, IFG must begin developing new marketing

strategies for our food products. In a recent business acquisition of Glow-Foods, Josh Novak, has

been brought on to IFG’s Information Technology (IT) marketing team (McKeen & Smith,

2012). Novak’s Glow-Foods company was small, yet extremely powerful in gaining new

consumers (McKeen & Smith, 2012). Through viral and interactive marketing strategies, Novak

and his team were able to reach the youth consumer population (McKeen & Smith, 2012). At

IFG, marketing strategies have been rather unidirectional and focused on women with children

(McKeen & Smith, 2012). Marketing IFG’s products to the under-thirty demographic will allow

for brand development and awareness across all markets.

Social networking, mashups, and multimedia marketing strategies were an important

factor to Glow-Foods’ success (McKeen & Smith, 2012). In an intentional manner, IFG’s

technology roadmap replicates Glow-Food’s success by highlighting an interactive website,

social media networking, and mashups/multimedia/mobile application strategies, to truly

innovate the organization. Today, consumers demand information, customization, and value

from their products, but most importantly, they demand it through multiple media forms (Wind,

2008). Without innovative marketing strategies, brand awareness will not occur, and consumers

will not be drawn in (Weber, 2011). Therefore, in order for IFG to gain the benefits that led to

Glow-Foods’ success, innovation and experimentation within the company must flourish.

A Symbiotic Relationship

INNOVATION AT INTERNATIONAL FOODS GROUP 3!

IFG’s unidirectional website only makes contact with the tip of the marketing technology

that is available to organizations today. From social media networking to mobile applications,

the business market is adapting and changing to fit consumer’s needs (Bughin, Chui, & Manyika,

2010). These new platforms have created a partnership within the consumer, supplier

environment. Consumers are helping to co-create products, and organizations are utilizing

knowledge gained from social networking data to better serve communities (Bughin et al., 2010).

At Glow-Foods, consumers drove the brand awareness campaigns by snapping pictures

of themselves drinking a Green Tea Shake in different locations, participating in contests, and

commenting on serialized videos on Youtube (McKeen & Smith, 2012). In addition, Glow-

Foods’ youth consumers even helped in modernization by creating packaging designs for the

company’s products (McKeen & Smith, 2012). This symbiotic relationship has never been

stronger than today; slowly blurring the lines between the consumer and the producer (Weber,

2011).

Web 2.0 marketing technologies are needed at IFG to assure the consumers are engaged

on a platform that is most relevant to them. Media platforms including Facebook, with over 500

million users, and mobile applications, with over 4 billion cell phone owners around the world,

are no longer interested in traditional marketing (Bughin et al., 2010). Consumers are engaging

in these platforms on a daily basis, and it is the way they prefer to reach their favorite products as

well (Bughin et al., 2010).

When consumers are empowered by an organization, they are more likely to create brand

awareness by sharing their experience (Piller, Vossen, & Ihl, 2012). Word-of-mouth in the viral

world travels so quickly that it could either build a brand or crumble one (Piller et al., 2012).

INNOVATION AT INTERNATIONAL FOODS GROUP 4!

However, IFG will never experience either form if experimentation does not occur. For example,

Toyota Motor Corporation marketed their new Scion vehicle to the youth demographic through

using hip song choices in their internet and video campaigns (Wind, 2008). By targeting youth,

rather than their traditional, older, established audience, sales rose due to word-of-mouth (Wind,

2008). The benefits that the new marketing tactic brought for Toyota would not have been

realized if experimentation never took place.

Innovation and experimentation is not happening solely to create brand awareness,

companies are utilizing different strategies to take note of consumer perceptions and align

company ethics (Wind, 2008). Organizations are facilitating business by including the consumer

in the development of their products, prices, and plans (Wind, 2008). For instance, Priceline.com

Inc. allows their consumers to name their own price, and Nike customers can create their own

color designs for shoes (Wind, 2008; Weber, 2011). Furthermore, after releasing a marketing

campaign, Southwest Airlines monitors their Facebook and Twitter sites to gain insight into

consumer perceptions (Bughin et al., 2010). Organizational innovation is not as difficult any

more, due to consumer’s having a significant role in the products produced. IFG could utilize

their social media networking sites to create new product lines, change current products, and

establish a relationship with their consumers.

Experimentation on these media platforms is not an easy task. Some companies have

tried and failed, and others have been extremely successful (Piller et al., 2012). Either way, trial

and error is needed to know consumer’s perceptions, and ultimately to stay competitive in the

industry (Piller et al., 2012). In order for IFG to capitalize on the technology roadmap strategies,

they must begin to experiment with this symbiotic relationship with their consumers, but also

understand, the benefits may not be as clear as traditional marketing strategies.

INNOVATION AT INTERNATIONAL FOODS GROUP 5!

The Benefits

The change in the technology landscape must also lead to a change in traditional business

strategies. Benefits in marketing are often thought of in terms of monetary value (Bughin et al.,

2010). In retrospect, the benefits of experimentation and innovation in marketing strategies today

are delivered in much different forms. The clearest benefit is the knowledge gained from

consumers (Weber, 2011). The contribution from consumers to help develop and change

products is simplifying business processes.

IFG’s innovation team has the duties of developing new tactics that relate to the under-

thirty demographic (McKeen & Smith, 2012). However, within time of experimentation with

social networking and mashups/multimedia strategies, consumers will begin to help the

innovation team. For example, Apple Inc. found their consumers used their ipod products during

physical activities, and decided to merge with Nike Inc. to deliver shoes with sensors that can be

used alongside their product (Wind, 2008). Apple and Nike allowed their consumers to drive

their business strategies, making their business processes more efficient. Another great example

is Facebook users that were recruited to help translate the site into 70 different languages

(Bughin et al., 2010). The Facebook user community simplified the organizational functions that

Facebook management would have had to outsource. Tapping into different communities

through different tactics, will create business value for IFG that could not be seen without

consumer insight.

This shift from Customer Relationship Management (CRM) to the consumer managing

their relationships with the brands is where IFG will most realize the benefits of experimentation

and innovation (Wind, 2008). Alongside co-creation of products and business strategies, through

INNOVATION AT INTERNATIONAL FOODS GROUP 6!

social media networking, IFG can experiment with their strategies to gain insight on which ones

are most efficient. IFG management is worried that if experimentation is not successful, their

reputation will be at cost (McKeen & Smith, 2012). However, Wind (2008) explained, when

experimenting with marketing, the organization can allocate their funding and strategies in

different communities to see which ones are most beneficial. For example, IFG’s technology

roadmap calls for tapping into different communities to gain insight into their needs. If IFG

chooses three different communities, and released three different marketing strategies in each

community, at least one strategy will be successful. This is an extremely beneficial form of

marketing, allowing the consumers in different communities to be the basis of research and

development on funding and marketing.

The final, and most necessary benefit experimentation and innovation will bring for IFG,

is the change in organizational models. At the moment, IFG has many processes and procedures

before a strategy is released (McKeen & Smith, 2012). This thought process of organizational

consistency among procedures is valuable, if marketing in a traditional manner. However, IFG’s

youth demographic will not respond to traditional marketing. Therefore, the mental thought

process of management must also change to welcome experimentation.

In order to include the consumer in the co-creation of products, word-of-mouth

advertising, and simplified business processes, management must let go of some control and

learn from their consumers (Weber, 2011). The organizational change that is brought on by

innovation and experimentation has many long-term benefits. For example, Dow Chemical

found by making a social networking site, something they were very opposed to, they were able

to recruit the best talent from all over the world for their business functions (Bughin et al., 2010).

It is not the first company that someone may think of having a social networking website, but it

INNOVATION AT INTERNATIONAL FOODS GROUP 7!

has transformed their business ethics, and increased their productivity (Bughin et al., 2010). IFG

can gain not only organizational insight, but long-term functional benefits from experimenting

with social media networking, mashups, and mobile applications.

Conclusion

The marketing industry and the supporting technologies have transformed the way

organization’s view strategies. The need for International Food Groups (IFG) to experiment with

new marketing strategies, including social media networking, mashups, multimedia and mobile

applications are important to stay competitive in the industry. The symbiotic relationship that is

created when organizations engage in Web 2.0 technologies is needed for the consumer, and the

producer. Consumers are demanding products to be customized, easily accessible, and to have a

say in the market. IFG must adapt to this type of marketing and business strategies by

experimenting on different levels. The need for brand awareness, and perception are two

important reasons for IFG to experiment with social media networking. In addition, IFG cannot

build a relationship with their under-thirty consumers if they do not outreach through these

media platforms that are most relevant to that age group.

The benefits of experimentation and innovation will be seen for IFG through co-creation

and refinement of products, as well as simplifying business processes. Consumers would rather

manage their own relationships with their favorite brands. This not only simplifies business

processes, but allows IFG’s innovation team to collaborate with their consumers in innovation.

Furthermore, experimenting with different communities will lead to knowledge about consumer

perceptions, which in turn will minimize risks of ineffective marketing strategies.

INNOVATION AT INTERNATIONAL FOODS GROUP 8!

Finally, the organizational changes that will occur within IFG are most valuable. The

strict policies and procedures instilled in management are not friendly for experimentation and

innovation. The change that occurs when organizations practice and experiment with social

media networking, can innovate business policies and procedures. The food industry is a

competitive landscape, and IFG must lead the path with their flexible, yet tactical business

strategies. If innovation and experimentation are not practiced, business value may never occur,

leaving the company in second place.

INNOVATION AT INTERNATIONAL FOODS GROUP 9!

References

Bughin, J., Chui, M., & Manyika, J. (2010). Clouds, big data, and smart assets: Ten tech-enabled

business trends to watch. McKinsey Quarterly, 56(1), 75-86.

McKeen, J. D., & Smith, H. A. (2012). IT strategy: Issues and practices, (2nd ed.). Upper Saddle

River, NJ: Prentice Hall. ISBN-13: 9780132145664

Piller, F., Vossen, A., & Ihl, C. (2012). From social media to social product development: The

impact of social media on co-creation of innovation. Die Unternehmung, 65(1).

Weber, M. (2011). Customer co-creation in innovations: A protocol for innovating with end

users. Industrial Engineering and Innovation Sciences Innovation Technology

Entrepreneurship Marketing, 507.

Wind, Y. (2008). A plan to invent the marketing we need today. Sloan Management Review,

49(4), 20!28

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INNOVATION AT INTERNAL FOODS

Student Name

Course Number—Course Title

Colorado State University – Global Campus

Instructor Name

Date

International Food Group (IFG)

Products sold: • Breakfast Cereal • Soft Drinks • Frozen Pizza • Cheese • Snacks

Primary Marketing Target: • Women with Children

Marketing Approach: • Functional website

(McKeen & Smith, 2012)

Glow-Foods

Products sold: • Green tea shakes • Others

Primary marketing target: • Teens and young adults

Marketing Approach • Social media outlets • Contests

(McKeen & Smith, 2012)

IFG’s New Technology Process

Idea is formed

Marketing liason

Chief Technology

Officer (CTO)

Information Technology (IT) Finance

Officer

Manager of IT

marketing

IT marketing president

(McKeen & Smith, 2012)

Obstacles and Challenges

Glow-Foods approach • Relaxed, modern, innovative

IFG’s process regulations • Marketing approval is lengthy • Direct contact with product lines

is discouraged • Cost and benefits must be

outlined months in advance • Trial and error is not an option

(McKeen & Smith, 2012)

References

!  McKeen, J. D., & Smith, H. A. (2012). IT

strategy: Issues and practices, (2nd ed.).

Upper Saddle River, NJ: Prentice Hall.

ISBN-13: 9780132145664