Marketing Strategy and Innovation at Michelin (Published)
The great management guru, Peter F. Drucker, once made a very profound observation that, “Because the purpose of business is to create customers, a business enterprise has two and only two basic functions – marketing and innovation. Marketing and innovation produce results; all the rest are costs” (Drucker, 1995). In this paper, we focus on the marketing strategies and innovation strengths at the France based company, Michelin. The company simply produces tires made of rubber, but still has a multi-billion dollar empire and is a leader in the tire industry, and continues to generate new plans for advancing its business. Indeed, Michelin has one of the most recognizable logo in the world (see above). We delve into the history of Michelin, its association with French culture, and seek to deduce what are the factors resulting in its marketing and innovation models that contribute to its huge success over the last 125+ years. The central scope of the paper is to understand the marketing strategy of Michelin in the global marketplace, and, at the same time, to analyze how Michelin has been successful in being able to innovate and maintain a stronghold in this sector in terms of market share. With respect to innovation, we note key disruptions that Michelin has been producing in its research labs and with respect to its marketing. We dig deeply into the strategic-branding approach at Michelin and analyze topics such as brand positioning, brand image and equity, advertising, market segmentation, and targeting, all in the aforementioned global setting.
The study aimed at assessing the product innovation strategies adopted by banking industry in Eldoret, Kenya. The study was guided by the following two objectives; to assess product innovation strategies employed by banks in Eldoret, to establish the relationship between product innovation and growth of banks and to find out the challenges of product innovation strategies implementation and improvement. The study employed a survey research design of 25 banks within Eldoret municipality and targeted the branch managers and the employees in the banks who are 578. A total sample size of 191 respondents was therefore employed in the study. The study employed purposive sampling in selecting the branch managers and stratified sampling in selecting the employees. A questionnaire was used as the main data collection instrument. Descriptive and inferential statistics were both used to analyse and interpret the data. The study found out that market surveys and customers’ feedbacks had effect on product innovation strategies. The study concluded that to a large extent banks innovate new products leading to new customers (new markets). The study recommended that apart from continuous improvement of existing products, it is the responsibility of the banks to come up with new products and services to suit their target market rather than being an adopter of innovation