Most Innovative Company

Crayola says it is "obsessed with consumer needs" and makes decisions based on insights about the consumer. The company's innovative vision is to encourage innovation from everyone and in everything it does, to generate and share creative ideas, and to "experiment, experiment, experiment" -- a vision that earned it CGT's Most Innovative Company Award in 2007. Jeff Rogers, director of portfolio marketing for Crayola accepted the award at the Consumer Goods Growth & Innovation Forum in September 2007. He explains, "Our biggest focus is on the consumer, who is front of mind in everything we do -- in marketing, in product development, and as a corporation. We try and turn consumer insights into needs. We start with the consumer and keep them involved throughout our entire product development process."
 
The company created a paradigm shift three years ago when it reorganized itself into platform teams, including marketing, for different product areas.
 
"The biggest change in innovation then was that we had often started our development with a technology, rather than starting with the consumer need and then identifying or developing a solution through technology, as we do now," Rogers explains. "Our innovation journey is now part of everything we do -- beyond the product -- like creatively reaching busy Moms with our marketing. We have a unique space within the kids' world in that we're multi-functional. We combine chemistry, design, mechanical and electronic capabilities, and these drive our unique and proprietary innovation."
 
Crayola creates not only new products, but new product categories. "You have to be very comfortable dealing with what I call 'white space,' creating something totally new to the world," Rogers says. "For example, the 'no mess' business we created with Color Wonder in 2000. That had never been done before. Then three years ago we created Color Explosion for the older kids, which is also based on a marker and paper system, but with unexpected and surprising results when they react together. With Crayola Outdoors, we created a sidewalk chalk and paint with our chemical technology, and created a whole new selling season -- in summer."
 
Rogers says that a cross-functional group now looks at all new products in the pipeline: "We've raised our own expectations. Now we'll say, 'That's cool, but it's not cool enough.'"
 
Most of Crayola's recent innovations constitute first-ever technologies or markets for the company. Crayola launched a new range of products for the holiday season, including Fusion Beginnings activity products for toddlers -- the first time the company has targeted the under age 3 category. Ergonomically designed chunky crayons and spillproof, capless paints and markers are activated by a valve that regenerates itself when the child pushes down on the gumball tip.
 
"We just introduced a new extension to the Color Explosion line -- the Color Explosion Glow Board. Children can create on two plates of plastic with our glowing ink technology, and backlighting creates a 3D effect. They can sequence the two, making it almost animation-like. This is our first activity utilizing light," Rogers explains.
 
The Fusion category now includes a next generation version for the 5 and older age group. "In our compounds -- clays and putties -- we just added Fusion to our old line of Model Magic. Now kids can create 3D objects with unique finishes like alien skin or glow-in-the-dark beads."
 
Crayola's innovation appears to be limited only by the powers of its own imagination. CG
 
 
Outstanding Achievement Awards
 
The Kellogg Company
Innovation is a core component of The Kellogg Company's business strategy. Corn Flakes were a major innovation in 1906, creating an entirely new category: breakfast cereal. In 2006, 17 percent of Kellogg's sales came from new product innovations.
 
"Innovation is a team sport; it is our lifeblood," explains Silvia Uribe- Saucedo, senior director of technology, scouting and open innovation for Kellogg. Uribe-Saucedo gains competitive advantage for Kellogg by scouting for functional ingredients or new technologies from new companies, research institutions and universities.
 
This year's new product innovations include Smart Start Cinnamon Raisin cereal (pictured), which may help lower blood pressure and cholesterol, and Special K20Protein Water Mix, a new category designed to meet consumer desires to increase protein and fiber intake while managing their weight.All-Bran crackers are the first crackers to provide 5 grams of fiber per serving, and Morningstar Farms Breakfast Starters Classic Scramble fills a need for convenient, healthy foods.
 
"In the future, we'll continue to look for more convenience in our new categories and new products," she promises.
 
Tyson Foods Inc.
Tyson has secured its position as an industry leader in research and development with its newly opened Tyson Discovery Complex, designed to enhance collaboration with consumers to create new foods and bring them to market more quickly.
 
"We recognize that innovation comes through building a strong R&D team and equipping them with the best tools and the industry's best food R&D facility," says Hal Carper, Tyson's senior vice president of corporate research and development. "It also involves broadening our team's knowledge beyond food and meat science to include culinary skills, and equipping the business to more effectively innovate and manage the life of our products."
 
All of Tyson's food technologists receive 120 hours of hands-on culinary training. As a result, it has more Certified Culinary Scientists on staff than any other company.
 
The Discovery Complex includes 19 research kitchens and an adjacent multi-protein USDAinspected pilot production plant, which duplicates processes in the company's production plants and enables concepts to be brought quickly to market to test their feasibility. The company also implemented product lifecycle management and product data management systems to help coordinate, track, and measure the creation, manufacture and use of new products. CG
 
 
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