The Updated Innovation Bell Curve
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:
- Value brands are increasing their quality (including ease of use) and are moving into the Mid-Market area
- Consumers are increasingly buying value brands (e.g., store brands) as a way of saving money
- 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.