The Updated Innovation Bell Curve

March 10, 2009  

In a previous blog entry on the innovation bell curve, I presented a bimodal distribution curve rather than a bell curve.  I did this because I wanted to clearly show the contrast between the existing model and the emerging model.  I also did this because I am “graphically challenged” and I could not find a way of illustrating the movements in one chart.  However, the changes are more subtle than a total shift to a bimodal curve.  After working with a talented graphic designer for the past week, we finally have a more accurate depiction of the movement taking place.

You see the 3 main movements:

  1. Value brands are increasing their quality (including ease of use) and are moving into the Mid-Market area
  2. Consumers are increasingly buying value brands (e.g., store brands) as a way of saving money
  3. Premium brands are reducing prices while also offering different, lower-cost products.

The result is pressure on the Mid-Market brands that is squeezing many of these companies out of business.

Be sure to read all of the articles on the innovation bell curve to get a better understanding of the shifting dynamics.

Leave a Reply

Old Comments

One Response to “The Updated Innovation Bell Curve”

  1. Clarence N on March 21st, 2009 9:47 am

    Totally agree with your analysis. I’m telling my clients to drop prices by 10% and coaching them to build stronger relationships with customers.