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Examples like Innocent, Apple and Tesla are fast becoming overused as exemplar companies to be like. With these also being large established brands, they hardly resemble the position of an SME.
By Rory Southworth, senior product designer, UCLan Innovation Clinic.
For an SME developing a new product, early consideration of the correct commercialisation and business model is vital.
There are however some SMEs with innovative business models worth aspiring towards.
Deliveroo are a brand that have come in to the take away food service market and taken control of the entire end-to-end experience. From taking the orders for restaurants (including ones that do not normally offer a take away service), through their website and app, to picking the food up with their own drivers and cyclists and delivering it to your door.
Whilst taking control of the entire experience is nothing new, by using this model Deliveroo have seen a month on month growth of 25%!
Back in 2013 saw the launch on crowd funding website Kickstarter of watch brand MVMT who use a direct to market strategy, reducing the product mark up and reflecting those savings back to the buyer.
This business model combined with their strong focus on social media and marketing has seen the brand turn over more than 10 million in watch sales in 2016 alone.
British bicycle brand Brompton makes some of the best folding bikes available, however with the cheapest bike costing £700, they are hardly a budget option accessible to everyone.
Although, in 2011 Brompton diversified, launching an affordable Brompton Bike Hire, a service that lets people hire a Brompton from £3.50 for the whole a day.
Not only adding a new revenue stream for the company (who turned over £27.5m in 2015), but also an innovative way for people to try out the bikes for a low cost.
The Innovation Clinic can support your growth through new product development. If you are an SME in Lancashire and want help bringing a new product to market give Iain Martin a call on 01772 892253 or email at IMartin@uclan.ac.uk.
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