Innovation Strategy: Why Expanding Your Core Beats Copying Competitors (with FMCG Failure Examples)

Many product and brand managers in India face the daunting task of driving growth through innovation. The pressure to launch new products often leads to a common trap: looking at what competitors are doing and trying to replicate their success. This approach, however, often leads to significant product innovation mistakes and can be a costly misstep for any brand innovation strategy. As one expert succinctly puts it, "The only brief that, in my opinion, goes wrong when it comes to innovation is when you try to become the competition."

The Innovation Trap: 'Let's Just Do What They're Doing'

It's a familiar scenario: a competitor launches a successful new product, and the immediate instinct is to follow suit. Copying competitors can seem like a safe bet. It implies a proven market, existing demand, and a reduced risk compared to venturing into uncharted territory. However, this seemingly logical approach carries a fundamental flaw that often leads to brand extension failures. Your core users don't want you to be the competition; they want you to be a better version of *your* brand. When you mimic a rival, you risk diluting your unique brand identity and confusing your loyal customer base. Furthermore, when you attempt to replicate a competitor's successful product, their reaction isn't usually fear or panic. Instead, they might think, "Thank you for validating my strategy." You're not innovating; you're simply confirming that their original idea was strong. This reactive stance rarely leads to sustainable growth or a truly effective new product development strategy.

Case Study 1: The Fruity Gems Failure

One classic example of product innovation mistakes in the Indian FMCG landscape involves a well-loved chocolate button brand: Gems. The flawed brief, in this instance, was to perceive sugar-boiled candies as Gems' primary competitor. The proposed solution? To launch fruity-flavored Gems. The thinking was that if sugar-boiled candies offered a variety of fruit flavors, then Gems should too, to capture that market segment. However, this approach overlooked a critical consumer insight: the 'occasion' for Gems was entirely different from that of generic sugar-boiled candies. Gems were often associated with specific indulgent moments, like watching TV or as a special treat. Sugar-boiled candies, on the other hand, were typically consumed more casually, perhaps while playing or as a quick, inexpensive sweet. The consumer disconnect was stark. As observed, "When you launch fruity Gems, it makes no sense." The core appeal of Gems was its chocolatey experience, not its flavor variety in the way a candy offers. The lesson here is profound: don't just look at the competing product; understand the competing 'need state' or consumption occasion. A strong brand identity checklist for startups would emphasize understanding these core consumer connections.

Case Study 2: The Perk Ultra Bomb

Another significant misstep in new product development strategy involved Perk, a chocolate bar known for its light, wafery texture. For years, Perk was seen as fighting against Munch, a chocolate bar perceived as more "wafery" on the outside. The flawed brief emerged from this competitive framing: "Munch is seen as more 'wafery,' so let's launch a Perk with wafer outside." This led to the introduction of 'Perk Ultra,' which featured a wafer exterior with chocolate inside. The consumer reaction was immediate and decisive: it bombed. The market essentially said, "If I wanted a Munch, I'd buy a Munch." Perk Ultra failed because it tried to be something it wasn't, abandoning its own core identity in pursuit of a competitor's perceived strength. The brand innovation strategy here was to imitate, not innovate. The successful pivot for Perk came not from copying, but from making the product "more of what it was." Later innovations, such as introducing a double wafer or increasing the glucose content, resonated far better with consumers because they enhanced Perk's established attributes. This demonstrates why new products fail when they stray too far from their brand's essence. Understanding your brand's unique narrative is key, as explored in various brand storytelling examples from India.

The Winning Strategy: Expand Your Brand's Core

So, what does a successful brand innovation strategy look like? It means expanding your brand's core. This isn't about launching something entirely new or trying to mimic a competitor. It's about making your brand *more* of what it already is, deepening its existing value proposition, and reinforcing its unique connection with consumers. This approach ensures that your innovations feel authentic and additive, rather than confusing or dilutive. To identify your brand's core truth, you need to look inward, not outward at competitors. What is the fundamental promise your brand makes? What unique need state does it fulfill? What are the emotional and functional benefits that truly define it for your loyal customers? This requires deep consumer insight and a clear understanding of your brand's heritage and perceived strengths. For instance, understanding how to make your customer the hero of your brand story can reveal these core truths. A successful example of this strategy is Cadbury Eclairs. Instead of trying to become a generic caramel candy, Eclairs innovated by launching with "double the chocolate gush." This amplified its core appeal – the rich, gooey chocolate center – making it *more* of what Eclairs already was. This approach resonates because it leverages existing brand equity and consumer expectations. As one expert highlights, "When you launch a Gem Surprise which is more of what Gems is, it does extremely well." This principle applies broadly: "Innovation works best when you expand the brand's core rather than trying to become the competition." For product managers, brand managers, and startup founders, evaluating your next innovation idea can be simplified with a clear framework:

1. Does this innovation make our brand *more* of what it already is?
2. Does it leverage our existing core strengths and unique selling propositions?
3. Does it address a specific consumer need state that *our* brand is uniquely positioned to fulfill, rather than a generic market need?
4. Will our core customers instantly understand and appreciate this innovation as a natural extension of our brand?

By focusing on these questions, you can avoid common product innovation mistakes and craft a brand innovation strategy that truly drives growth and strengthens your brand's position in the market. Insights like these are deeply explored in Juno's free certificate course, The Practical Marketer, which offers practical guidance for navigating the complexities of brand and product development.