Innovation Strategy Tools (Part Three)

Last month, we discussed how you can develop an innovation strategy from using the Lean Canvas and how market researchers can use this to develop an innovation strategy that has the potential to grow a business. This month we’re talking about creating a red and blue ocean strategy for innovation and how it can help market researchers create better research products for their organization.

What is red and blue ocean strategy?

Red ocean strategy refers to the traditional approach of competing in a crowded and established market. In this strategy, companies are competing against each other for a share of the existing market. the name “red ocean” which represents a bloodied and crowded marketplace.

On the other hand, blue ocean strategy refers to creating new market spaces and breaking into untapped markets. This strategy is characterized by creating new demand, rather than fighting for a share of existing demand. The name “blue ocean” represents an uncharted and wide-open marketplace.

Why should Market researchers understand red and blue ocean strategy?

As a market researcher, it is important to understand the concepts of “red ocean” and “blue ocean” strategy so you can guide your organization’s innovation process in creating new products.

Innovating new research products using Red Ocean strategy

When working with a red ocean strategy, the focus is on competing in a crowded and established market. Here are 3 key elements to note when using red ocean strategy.

Understand the current market and the existing competitors:

Before create your product, do research to understand the current market landscape, including the existing products and services, market size, and target customer segments.

Identify unmet needs or pain points:

Look for opportunities when creating your product to address unmet needs or pain points in the market that your competitors are not currently addressing.

Differentiate yourself from the competition:

Find ways to differentiate your product or service from existing offerings in the market to stand out and attract customers.

Innovating new research products using Blue Ocean Strategy

On the other hand, when working with a blue ocean strategy, the focus is on creating new market spaces and breaking into untapped markets. There are 3 key elements to note when using red ocean strategy.

Identify new opportunities and untapped segments:

Before creating your product, do research to identify new opportunities and untapped segments in the market. This may involve looking at different industries, markets, or customer segments that your organization is not currently serving.

Create new demand:

As you are opening up a new market for your product, you need to focus on creating new demand by identifying and meeting new customer needs that have not yet been met.

Emphasize value innovation:

When creating a product using Blue Ocean Strategy, it is critical to create a new market by offering a unique value proposition that is not currently offered by existing products or services.

Takeout for Market Researchers

Both strategies have their own unique advantages and disadvantages, but they are not mutually exclusive. In fact, many organizations use both strategies in their innovation process. By understanding the key elements of both red ocean and blue ocean strategy, you can guide your organization towards making informed decisions on which strategy to use and how to execute it effectively when creating a new and innovative product.

Additionally, a market researcher should also have a good understanding of the company’s resources, capabilities and external environment, as well as the organization’s goals and vision to make the right decision on the strategy to use.

Next Month

Next week on Monthly Dose of Design we’ll discuss how to build a roadmap for your research product that outlines the goals, milestones, and tasks required to bring a product to market. It provides direction, clarity, and a framework for decision-making to keep the project on track and within budget.