Designing the iPhone of diapers

Innovation isn't just for Google and Apple. How Kimberly-Clark gave birth to a lucrative new product.

FORTUNE, August 25, 2008 — In a windowless room at Kimberly-Clark's research offices in Neenah, Wis., a mother hoists her baby girl onto a table painted on its side to look like a school bus. Photos of puppies and kittens decorate the walls, and a mobile with Sesame Street characters hangs overhead.

Learning from the Olympics

From GE to Nestlé to watchmaker Omega, companies use the Games to test-drive new ideas—and strut their stuff

BusinessWeek, August 7, 2008 — When U.S. Women's soccer defender Heather Mitts hits the field for the Olympics, she'll rely on more than her gear, teammates, and fans for support. Mitts suffered a torn ligament last year and had to sit out the World Cup in September. But she's back for the Beijing Games. And her confidence will no doubt be boosted by the knowledge that doctors are nearby, ready to scan her knee at the first signs of stress. They'll be using a compact ultrasound machine, the LOGIQ i from General Electric Healthcare (GE). The 12-pound device can produce detailed images of even the tiniest tears in her ligament—every bit as sharp as those from the 800-pound machines found in hospitals.

It's part of GE's strategy of using the Olympics to show off its latest innovations.

Schultz Announces 1,000 More Job Cuts at Starbucks†

Senior VP-Global Strategy Michelle Gass Shifts Back to Marketing Role as Part of Reorganization

Advertising Age, July 29, 2008 — Starbucks CEO Howard Schultz said the coffee retailer will cut 1,000 jobs in addition to those resulting from the 600 store closures announced earlier this month. It's unclear how many marketing personnel will be affected, but those familiar with the matter said some groups are facing double-digit cuts in what's being described internally as a "bloodbath."

In another organizational move, Michelle Gass is back in the marketing department, as senior VP-marketing and category. Ms. Gass, a 12-year Starbucks veteran, is credited with much of the Frappuccino's success. She was elevated to senior VP-global strategy in January, and has been overseeing Mr. Schultz's much-discussed (and debated) turnaround plan. Her move is viewed as a need for her expertise in... continue reading

Google Introduces a Cartoonlike Method for Talking in Chat Rooms

New York Times, July 9, 2008 — Google, known for its plain-Jane approach to Web design, has come up with something much wackier. On Tuesday the company introduced Lively, an online tool that allows people to embody a cartoonish online avatar and have text-based conversations with friends and other Internet users in virtual chat rooms. The rooms can be added to any blog or Web site.

Campbell's Chief Looks for Splash of Innovation†

Conant Plans New Line of Light Soups and a Move Into Markets in Russia and China

Wall Street Journal, May 30, 2008 — When Douglas Conant became CEO of Campbell Soup Co. seven years ago, naysayers bet against him being able to revive soup with today's busy and health-conscious consumers. Mr. Conant proved them wrong after remaking the company's condensed soups, introducing soup in microwavable containers, revamping marketing and redesigning shelving systems in supermarket soup aisles.

Campbell CEO Douglas Conant is launching new soup lines next year.

Now, Mr. Conant, 56 years old, has more proving to do. Campbell, which also makes Pepperidge Farm foods and V8 beverages, is struggling with high ingredient and energy costs as well as a competitor that beat it to market with a successful new product.

Heinz Is Expected to Increase Profit and Sales Forecasts†

EmergingMarkets,New Products Help; Real Pricing Power

Wall Street Journal, May 29, 2008 — H.J. Heinz Co is expected Thursday to raise its profit- and sales-growth forecasts as the company unveils its first two-year plan since a proxy fight with activist investor Nelson Peltz in 2006.

The Pittsburgh-based ketchup giant will report results for the fiscal year ended April 30 at an investor meeting in New York City, where it is also expected to increase its sales-growth outlook for the next two years to 6% or more from 4%, and its earnings-per-share growth forecast for the same period to between 8% and 11% from the previous projection of 7% to 9%.

People close to the company say the growth is expected to come from new products, higher prices for existing products and an accelerating push into emerging markets.

Tub of Cool Whip too Challenging? Try the Can†

Kraft Wants to Prove It Can Innovate by Unveiling Slew of Even-Easier-to-Use Products

Advertising Age, May 5, 2008 — Kraft Foods, which has made a business out of making meals easy, has heard from consumers that its products still weren't easy enough. And so Kraft is preparing to unveil to grocers some 80 new products at the Food Marketing Institute show in Las Vegas next week designed to appeal to even the laziest Americans.

The launches come as the company negotiates a complicated turnaround. It is beset with an unwieldy portfolio, old-but-storied brands and sky-high commodity costs. In order to hold prices and still drive demand, Kraft has boosted marketing spending, reformulated products such as Maxwell House and Oscar Mayer franks, and attempted to make its products more convenient and portable.

At Starbucks, Low Key Vet Plots Course†

Wall Street Journal, March 18, 2008 — For the past two months, Howard Schultz has been the public face of Starbucks Corp.'s effort to turn around its coffee empire.

But the person crafting many of the strategies is a 40-year-old chemical-engineering graduate who was behind the success of Starbucks's Frappuccino line.

Tomorrow , Michelle Gass will sit in one of the front rows at Starbucks's annual shareholders meeting in Seattle while Mr. Schultz stands on stage and unveils fresh details of plans to revive the company. Mr. Schultz is expected to address how Starbucks will reassert its position as the world's coffee authority, reignite what the company calls its emotional attachment with customers and carve out new areas for growth.

Ms. Gass has been Mr. Schultz's right-hand person in... continue reading

Fix the Actual Process of Developing New Products†

Get Going: There Is Much That Can Be Done Very Early in the Game

Advertising Age, March 3, 2008 — An article published Oct. 1, 2007, in Advertising Age sported the provocative headline, "Want New Products That Get Noticed? Change the Process." The article offered data regarding marketers' views of product introductions.

And it's a dismal picture: Even marketers believe most new products have little innovation or reason for being. And they don't expect to be doing genuine innovation in the near term.

Author Barry Curewitz did a great job of laying out the many ways creativity is not a core value, is not rewarded and is not invited into typical marketing management. My belief is that beyond introducing more creative content, the process of product development can be improved as well. In fact, there is much that can be done to improve the... continue reading

The Pepsi challenge

Can this snack and soda giant go healthy? CEO Indra Nooyi says yes, but cola wars and corn prices will test her leadership.

FORTUNE, March 1, 2008 — Pepsi can have a strange effect on people. The company, that is, not the beverage. No sooner had PepsiCo president Indra Nooyi gotten word 18 months ago that she was to become the next CEO than she hopped on a plane to Cape Cod, where Mike White, her main challenger for the job, was vacationing. The two had worked together for years. Both had been CFOs and rising stars. Both loved music. When they'd been kicked out of a board meeting the previous month while their fates were being discussed, they went to the Jersey Boys musical on Broadway and sang along to all the Frankie Valli songs.

As Nooyi's plane landed on Cape Cod, there was White waiting for her at the airport with a card he'd written to congratulate her. They took a long walk on the beach. Back... continue reading