Product Innovations That Have Emerged from Crises
To provide examples of product innovations that have emerged from crises, including how and why they were created.
- Swiss Group Nestle, has continued to expand its coffee base in the United States, where it now owns a majority stake in high-end brand Blue Bottle Coffee in California, as well as acquired Chameleon Cold-Brew in Texas.
- During the first quarter of 2020, even with the ongoing coronavirus pandemic, Nestle launched a new range of over 20 premium coffee products in collaboration with Starbucks.
- Nestle has increased its speed and innovation and even though the sluggishness in consumer spending has seen the sales prices go up by just 1.2% in the quarter, the company’s sales spiked.
- Due to the launch of its 24 premium coffee products, Nestle has made bigger operating profit margins in the first quarter of the year.
- During the Great Recession, Amazon grew its sales by 28%, at the time when most businesses were struggling in sales.
- During the Great Recession, Amazon developed Kindle 3, a strategy that helped Amazon to innovate even more products and expand its market share. Amazon still uses the Kindle 3 strategy to anticipate crises and changes in the market.
- Domino’s Pizza overhauled its cardboard crust and ketchup sauce recipe to a new improved pizza recipe and created a new campaign during the Great Recession crisis.
- Surprisingly, the new recipe was well received as it doubled the brand’s profits even when other businesses were struggling.
- In the fourth quarter of 2009, Domino’s Pizza increased its sales by $23.6 million. The novelty proved to be a positive turnaround for Domino’s Pizza.
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