VYSOKÁ ŠKOLA POLYTECHNICKÁ JIHLAVA

Obor Finance a řízení

Consumer Engagement Bachelor thesis

Author: Zuzana Pfefferová

Supervisor: Ing. Martina Chalupová

Jihlava 2012

Annotation

This bachelor thesis focuses on consumer engagement. In the theoretical part there is definition of consumers and their segmentations, motivating engaged customers, innovation and its methods. In the practical part there is an exploratory research form according to the data from the web portal http://springwise.com. Operation criteria of 12 foreign companies have been described and categorized here and they are followed by detailed case studies of three companies. The first one focuses on the brand Red Bull, the second is about Jet Restaurant and the third deals with Sephora perfumery.

Keywords Consumer engagement, customer, innovation, exploratory research

Poděkování Velice ráda bych poděkovala Ing. Martině Chalupové za veškeré její odborné rady a zkušenosti, které mi během zpracování bakalářské práce poskytla. Dále bych chtěla poděkovat Mgr. Martině Benešové, Ph.D., a také přátelům za jejich podporu.

Prohlašuji, že předložená bakalářská práce je původní a zpracoval/a jsem ji samostatně. Prohlašuji, že citace použitých pramenů je úplná, že jsem v práci neporušil/a autorská práva (ve smyslu zákona č. 121/2000 Sb., o právu autorském, o právech souvisejících s právem autorským a o změně některých zákonů, v platném znění, dále též „AZ“).

Souhlasím s umístěním bakalářské práce v knihovně VŠPJ a s jejím užitím k výuce nebo k vlastní vnitřní potřebě VŠPJ .

Byl/a jsem seznámen/a s tím, že na mou bakalářskou práci se plně vztahuje AZ, zejména § 60 (školní dílo).

Beru na vědomí, že VŠPJ má právo na uzavření licenční smlouvy o užití mé bakalářské práce a prohlašuji, že s o u h l a s í m s případným užitím mé bakalářské práce (prodej, zapůjčení apod.).

Jsem si vědom/a toho, že užít své bakalářské práce či poskytnout licenci k jejímu využití mohu jen se souhlasem VŠPJ, která má právo ode mne požadovat přiměřený příspěvek na úhradu nákladů, vynaložených vysokou školou na vytvoření díla (až do jejich skutečné výše), z výdělku dosaženého v souvislosti s užitím díla či poskytnutím licence.

V Jihlavě dne

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Podpis

Content

Introduction ...... 8 1 Theoretical part ...... 10 1.1 Consumer ...... 10 Consumer Segmentation ...... 10 Geographic Segmentation ...... 10 Demographic Segmentation ...... 10 Psychographic Segmentation ...... 10 Multiple Segmentation ...... 11 Consumer Adoption of Innovations ...... 11 1.2 Consumer Engagement ...... 12 1.2.1 Motivation Engaged Consumers ...... 13 1.3 Challenges for Businesses ...... 14 1.4 Innovation ...... 15 1.4.1 Principles of Innovation ...... 16 1.4.2 Business Innovation System ...... 19 1.5 Innovative Methods ...... 23 1.6 Innovative Marketing ...... 25 1.6.1 Innovation in Marketing ...... 26 2 Practical Part ...... 28 2.1 Cafe Therapy ...... 28 2.2 Zéro Gâchis ...... 29 2.3 Whiskersons of Bothwell Ltd...... 30 2.4 Lantmannen ...... 31 2.5 Brayola ...... 32 2.6 Volga Verdi ...... 33 2.7 Malaysian Jazz Club ...... 34 2.8 Tanita Shokudo ...... 35 2.9 Lacta ...... 36 2.10 Maynards ...... 37 2.11 TripHuddle ...... 38 2.12 Handsup.cn ...... 39 2.13 Evaluation of Exploratory Research ...... 40 2.14 Introduction of Company Red Bull ...... 42 2.14.1 Advertising ...... 43 Marketing Goals ...... 44 Target Group ...... 44 2.14.2 Competitors ...... 45 2.14.3 Consumer Engagement ...... 46 2.15 Introduction of Company Excalibur City ...... 48 2.15.1 Advertising ...... 49 Marketing Goals ...... 49 Target Group ...... 49 2.15.2 Competitors ...... 50 2.15.3 Consumer Engagement ...... 50 2.16 Introduction of Company Sephora ...... 52 2.16.1 Advertising ...... 53

Marketing Goals ...... 54 Target Group ...... 54 2.16.2 Competitors ...... 55 2.16.3 Consumer Engagement ...... 55 Conclusion ...... 57 Bibliography ...... 59 List of Web Sources ...... 60 List of Tables ...... 62 List of Figures ...... 63

Introduction

Everyone has different needs and every customer is motivated by different things. To meet the needs successfully is important in order to analyse their wishes and needs thoroughly. Customers are divided into groups, for example by age or lifestyle. It is not important only to acquire new customers but also to retain the existing ones. For this reason, companies should constantly invent new features and improve products and services. Innovation of product can be carried out by changing the packaging, the volume and composition, or just by introduction of a completely new product to the market. Innovation is becoming more favourite and something extra that every successful company wants to have. The innovation process is not simple.

Another important concept in my bachelor thesis is the consumer engagements. Abroad, this kind of cooperation is already more widespread than is the case of the Czech Republic. How else to identify the needs of customers best and meet them reliably? If they are given the possibility, consumers are not afraid to say their opinion and show what they want. There are many ways of consumer engagement, such as engaging them using surveys, questionnaires or contests. It is called the motivations of consumers. By finding out what the customer wants, the company will know what to look for and the consumer will be satisfied. It helps on both sides, consumers and businesses. There is not a fixed limit, customers are playful and inventive, and are not lazy to say their opinion. With the involvement of consumers it is possible to determine the form, or rather to recommend products and services, and price. Customers can be motivated by a financial reward for their ideas and opinions in the form money or a voucher, but this form of evaluation is completely normal and necessary.

Customer management research has evolved and has had a significant impact on the marketing discipline. In an increasingly networked society where customers can interact easily with other customers and firms through social networks and other new media, the authors propose that customer engagement is an important new development in CM. Customer engagement is considered as a behavioural manifestation toward the brand or firm that goes beyond transactions.

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The role of customer engagement in cocreating customer experience and value is receiving increasing attention from business practitioners and academics alike.

The objective of the bachelor thesis is to find innovative marketing solutions for the firms via exploratory research. Recommendations and new concepts will follow the latest trends in marketing, specifically customer engagement.

Exploratory research is used in the initial stage of research where it is necessary to formulate a hypothesis and clarify the problem. This research is preliminary. It no further steps of another marketing research are necessary and the result is usually just a verbal qualitative study. The main instruments of exploratory research are observation, interviews and group discussions or interviews through questionnaire. A questionnaire for potential customer can be divided into sectors or may be part of information and promotional materials. This form of research is not expensive and it is relatively fast possible.

I have gained the data for exploratory research through the web portal http://springwise.com.

Springwise is a Dutch company. It follows the successful business activities, ideas and concepts that are ready for regional or International modifications, enhancements, partnerships, investments or cooperation.

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1 Theoretical part

1.1 Consumer

The definition of the consumer According to the Act No. 634/1992 Coll. The consumer is: "Natural or legal person who buys goods or services for purposes other than business with these products or services." [1]

Consumer Segmentation

There are two methods for segmenting consumers. The first method is based on a consumer characteristics (e.g. demographic). The second method searches segments, depending on how consumers react to a brand or benefits provided products. The basis is to define the segment and the subsequent examination if each segment covered by different characteristics.

Geographic Segmentation

The market is divided into different geographical units such as nations, states, regions, countries or cities.

Demographic Segmentation

Demographic variables are as age, family size, family life cycle, gender, income, education or religion. [2]

Psychographic Segmentation

There is a distribution of consumers according to their lifestyle, character or personality and particular social class. The segmentation can be by behaviour (behavioural). Consumers are divided according to their knowledge of the product, attitudes toward it, and the way or using the product or services according to reaction (fidelity, use, or ready to buy attitude).

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Multiple Segmentation

At the same time several variables are used to identify a better-defined small group. [2]

Consumer Adoption of Innovations

For consumers, the purchase of a new product-specific is decision-making process because this is something that does not yet have experience. There are five basic categories of consumers: - Early adopters buy the product first [3]. Fast beneficiaries are open to buying a new product. - The quick majority adopts a new product earlier than the average consumer, but their relationship to them is more cautious. - Slow purchase of most new product if it uses its surroundings - New verified by the consumer. - Latecomers buy a new product when it is used on almost every day. [3] The stages of the adoption of a new product according to Vysekalová [3] are: - Awareness. The consumer is aware of the existence of a new product through various means of marketing communication. - Knowledge. Through communication channels consumer receives detailed information. - Interest. Consumers feel passion and form their attitude towards the product. In the case of a negative attitude to the new product, the adoption process is terminated. Time may change attitudes. - Evaluation, justification. The consumer is considering the pros and cons of the product, seeks further information regarding purchasing intentions and decisions. - Experiment. The consumer buys a product to try, in case of ordinary goods consumption. If the goods are durable, uses the option try a product before buying. - Adoption. If the consumer is satisfied after trying the product, he/she will buy (For general consumer goods) or buy it (for durables).

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1.2 Consumer Engagement

One of the current trends in marketing is engaging consumers. [4] More active consumers have not only more questions, but due to the higher education and willingness to be engaged in the production also offer new possibilities. [5] The market becomes a place for participation in a changed culture where companies offer resources for consumers and the consumer offer a contact with the rapidly changing world of knowledge. The new trend of marketers is losing control over core activities such as brand and customers. The competitive advantage of firms is increasingly dependent on the activity of previously passive consumers who come in new enhanced roles. It is necessary to create and capture the social communication between businesses and consumers as well as among consumers themselves. The basis is the cooperation between consumers [4] that occurs in online communities. Online communities represent the accumulation of collective experience, which would be difficult to obtain elsewhere. Here the discussions, evaluation and improvement of new products take place. [5]

It is necessary to understand the role of new firms in the production process. Marketers are beginning to change their own role in which the company took over the role of the seemingly humble provider of technological resources in the hope of creating specific forms of innovation and to profit from the consumer participation. [4] Unlike the traditional marketing research does not detect virtual consumer integration only their opinions, wishes and needs, but also uses their creativity and ability to solve problems. Consumers are invited to the active cooperation for the development and to the evaluation of the new production of ideas, concepts, develop detailed production, testing and testing of new product features, and provide new information on products and on the actual consumption. [5] Consumers are becoming professionals with unique skills, knowledge of which enter charge into the production process. Their independent, creative and voluntary activities can now be a part of the corporate production. Companies do not only use the work of consumers, but also reduce the risks associated with consumer behaviour. The new marketing concept can be seen from the perspective of the cooperation in an attempt amended to introduce the basic relationship between marketers and consumers.

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The operation would not be limited to name, but could at least partially rely on work activities of consumers. Consumer masses become unmanageable, but also provide a supply of incredible creativity and innovative talent. The result is innovative products created by consumers and companies together. Theory consumer perceives as knowledge workers and is, therefore, associated with the management staff in the knowledge economy [4], the company creates stronger relationship with consumers and marketers focus on the communication plan, which is more consumer-oriented and works on input of consumers themselves. The result is one-to-one marketing. In this situation, companies are able to significantly customize every successful relationship, and consumer activities are necessary to correct directions. [4]

1.2.1 Motivation Engaged Consumers

The reason consumer input into the virtual product development, and may be different created by Füller (2006) from different themes: [5] - The actual activity is considered as a reward. Consumers are involved in innovation. - Curiosity can be defined as the desire for knowledge. Consumers can engage in a virtual development of new products just because of curiosity or because they want to escape from boredom. Consumers who are optimistic about their abilities to solve tasks and proactively manage difficulties may be perceived as a challenge activity. They can also be proud of its contribution. - People are motivated to improve their skills and knowledge. Engaging in virtual new product development may enable consumers to learn more about new technologies and products. - Online communities offer the opportunity to gain access to otherwise inaccessible information. The motivation for involvement may be the main drivers of innovation and information regarding the product. - Consumers are involved, to become visible and gain to recognition from other participants and manufacturers. Members of online communities share their knowledge and engage in activities for pleasure, fame and reputation.

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Further advantages for the consumers are involved resulting from the construction of a direct relation to society, which leads to special treatment. - The involvement of consumers can contribute to their selflessness. - Contact with other people. Consumers cooperating with relationship can be thought of as friendships with employees. The contact with similarly minded people can be motivating. - Sports enthusiasts have begun to modify or improve products, because of receiving benefits from the use of its own innovations. Dissatisfaction with existing products available on the market can lead to involvement in production. Personal needs to motivate consumers virtually participate in the development of new products, because this time had only a limited influence on the final draft. - Consumer engagement can be influenced by monetary incentives or bonus points. The more time and effort consumers spend, the greater their need for monetary compensation will be.

1.3 Challenges for Businesses

Challenges for companies engaged in consumer trends: - Attract and retain creative consumers - Form a creative and communicative environment where consumers, as workers can effectively apply their knowledge and improve the benefit of all. In terms of corporate engagement offers to consumer’s lower costs, higher profit margins rise in demand and constant access to consumer feedback and ideas. The challenge is accounted for creative consumer behaviour. [4]

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1.4 Innovation

Innovation is the main source of long-term profits, business success, and competitive advantage. All programmes for reduction of cost have limits because each system gradually depletes its potential improvement. Innovation is not only revolutionary technologies or scientific discoveries. Reference is not only to products but also to services, business and business processes. It is realized in the market for customers who are willing to pay a higher, different or completely different value than a rival offer. [6]

Zeleny [7] defines innovation as: „Innovation is such a quantitative or qualitative improvement in product, process or business model that significantly adds value to the customer, company, ideally to both sides simultaneously. If the added value is realized through a transaction in the market itself, there is an innovation in the market at the time of sale. Actually, it implements the customer. Therefore, innovation is fundamentally different from the invention, invention patent or a rationalization proposal - you may remain unrealized, safe, store in the Act, the patented office“. [7] Innovations are the basis of the current competitive strategies. The rhythm of new product launches is directly frenetic, but the failure rate is significant. It is, therefore, important to understand how innovations are created. [7]

Dewulf [6] is persuaded that: „Innovation makes better, easier, nicer, cheaper, safer functions. His definition is: Value = useful functions – (harmful fiction + interface + cost). “[6]

In the past, that talked mainly about product innovation, today is present in addition to product innovation increasingly important innovations in marketing and sales, logistics, organization, processes and resources throughout the enterprise and business systems. [6]

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1.4.1 Principles of Innovation

There are innovations that do not come from sources of innovative opportunities, so that innovation does not develop organized, purposeful and systematic. There are innovators whose innovations are the result of chance rather than hard, purposeful and organized labour. You cannot learn and cannot be learned. From classical invention is exceptionally very rare innovation, most of these random great ideas remain only ideas. Purposeful innovation as a result of the analysis are the only discuss and what can be presented as an innovative practice, and certainly include at least 90% of effective innovation. A person reaching in innovation performance will be as unusual as any other area of effective only if you master this discipline carefully and masterfully handle it. There are many warnings, and these following factors can be called the conditions: [8]

1. Purposeful and systematic innovation is called the analysis of opportunities:

- The unexpected success of the organization and its unexpected setbacks, unexpected successes and failures of competitors.

- Anomalies, mainly in the manufacturing or distribution process

- Requirements Process

- Changes in the business sector and changes in the market structure

- Demographic changes

- Changes in the conception and perception

- New findings

2. Innovations have both conceptual and perceptual characters. Another important prerequisite for innovation is to look around, ask questions and listen. Successful innovators use their right and left cerebral hemisphere. They look at the numbers and look at people. Derives which innovation must be to satisfy the occasion. So watch what the customer expectations, their values and needs are.

3. An innovation must be simple to be effective and must have a clear focus. It should be determined only for one purpose, because otherwise it is stated in

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confusion. Every new product tends to have problems and even innovation that creates new applications and new markets should be geared towards a specific and clear application. It should focus on specific needs that it will satisfy.

4. Effective innovations start on a small scale. They are not grandiose, trying to reach a particular goal. Big and crazy ideas have little chance for success. It is important not to require a lot of money from the beginning, not to require many costumers.

5. The aim of a successful innovation is as the last a recommendation to achieve a leading position. Nobody can predict whether a given innovation will end as a great business or just as a modest access.

For a successful innovation process according to Drucker a marketer has to avoid diversification, it means he/she should have clear focus. An innovation which escapes the main focus tend to be too scattered, remain just ideas and do not become one real innovation. And stop innovating for the future but only for the present. An innovation can have lasting effects and it can happen that it would not reach full maturity in twenty years. Innovative opportunities can easily get a long initial time. [8]

Three conditions for successful a innovation are: 1. The innovation is work. It requires knowledge and creativity. Innovators also rarely work in more areas. In innovation as in any other work depends on the talent and the innate ability. 2. If innovators want to be successful, they must build on their strengths. Successful innovators have a look at a wide variety of opportunities and realize which are appropriate for the business. Building on its own merits, however, is even more important for the innovation because of the their riskiness as well as the resulting special premium in the form of knowledge and performance capacity. 3. The innovation is a certain impact on the economy and society, it changes customer behaviour. Or it is the change in process - the way people work and produce. The innovation, therefore, must always be close to the market; it must be market oriented, and it even has to be controlled and operated. [8]

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Analysis of innovative projects shows that:

- more than 80% of innovation projects failed even before they reached the market; - more than 80% of innovative projects that come on the market is unsuccessful; - more than 90% of innovation is put on the market too late; they have exceeded the budget or the quality lower than planned; - in 97% of patents they do not return back costs that they incurred. [6]

The fact is that the innovation is a risky business, for people who like excitement, change, risk and adventure.

Tab. 1 The Different between Improvement and Innovation Area of solution Improvement Innovation Benefits Several hundred thousand ten to hundred of to several million crowns million crowns Organization Individual, workshop, Innovation project workshop cascade, six sigma

Worker Up - people from process Limited - specialists engagement Area of solution Local problem Transversal (production) problem. Marketing, development, logistics, trade

Time Short. Days, weeks Long. Months Source: Košturiak, J., Chál, L. : Inovace,vaše konkurenční výhoda. Computer Press Brno 2008.

Businesses must be able to innovate products, services, company processes and links with partners across business systems and model of company management. In terms of permanent competitiveness for the continuous development of innovative capabilities of the company and major changes that is called innovation. It is important to find the right rhythm of these changes. Customers and competitors are unpredictable. The company is not a machine; it works on the principles and, therefore, needs more courage to try their own way. [6], [9] Mostly frequent innovation generally relate to a product innovation, service, or enters a new market.

The objectives could be to achieve greater penetration to existing markets (to increase sales, to capture new market segments), to improve products and services (new features,

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simplicity, reliability, efficiency), to improve sales performance (more clients, higher profitability per customer), streamlining sales (faster and easier service customer channels such as electronic, Internet), transition to new geographic markets (product and process adaptation to local conditions, representations) or new products for existing or new customers.

The product innovation can be viewed from different points of view:

- In terms of function - what functions to put into the product, to improve or to add a function that eliminates its begin.)

- In terms of value - how to create a new value)

- In terms of principle - to fulfil the function of another principle or a new technical solution to fulfil the function at a lower cost)

- From a design perspective - what to put to product regarding design, luxury, emotion, beauty, belonging to the group, atmosphere)

- In terms of products - to develop a completely new product, a new generation of an existing one)

- In terms of evolution - what is the next generation of a product, what evolutionary trends can be expected)

- From the user point of view - technical, psychological, educational, social, ecological) [6]

1.4.2 Business Innovation System

The business system of the company is a value chain whose structure consists of internal business processes, as well as of all external links with partners (customers, general partners, suppliers, banks). The subject of innovation can be elements of the corporate business system and its links. The strategic business innovation system can be divided into the following categories:

A completely New Market

It is a strategic innovation in the form of a completely new market; the foundation is to discover unsatisfied customer needs or to meet existing needs in new ways.

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A new Segment on an Existing Market

This innovation means creating a new segment within the existing market in the form of temporary monopoly.

A new Product or Service

The innovation is the foundation of new a commercial properties offer to customers.

A new Business System

The way of innovation, implementation and the distribution of a customer value method of payment and the flow of finance dealers.

Increasing Customer Spending

There is an innovation for the provision of comprehensive services to customers with one supplier. In many cases, it is also a combination of these types of strategic innovation. [6] [10]

The customer usually asks for the offering as much as possible. Usually it is what is already available on the market. It is important to identify the needs and their level of satisfaction if the company can meet or satisfy better than before, creating the basis for a new market.

Innovation is the process of cyclically recurring activities which creates a new value for customers in the following steps (see Figure 1). Analysis and understanding of customer want, analysing resources to satisfy our customers, finding a solution that creates a value for the customer and assess its potential. When finds the potential market - implementation of solutions, creating a functional system to serve the customer - distribution service. [6]

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Select the right people

Select the correct problem

Define the problem correctly

Identify the right reasons

Find the right customer

Finding the right product value and customer

Finding the right way for the customer and firm

Achieve the right cost

Finding the right time to sell

Find the right time for innovation

Identify customer’s unfulfilled dream

Figure 1 How to Create a Customer Value through Innovation

Source: KIM, W. CHAN, Mauborgne, R.:Strategie modrého oceánu. Management Press, 2005. ISBN: 80-7261-128-3.

Manage the correct group to analyse customers, their needs, their degree of fulfilment and trend. In this innovative strategy it is a good alternative to look through the industry and to find new combinations. [11]

In promotional materials of many companies there is a word of innovation. Managers should be able to answer, as was created by the innovation process in their company, how many people have been trained in innovation and what metrics is used to measure

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their innovation performance, to allocate funds to new ideas and innovative experiments, and who is responsible for the management of strategic innovation.

Most people in business would say that the biggest barrier to innovation is question of time. The fundamental question for every company is, what and how to innovate today and in the future for long quality and to secure the existence of the company.

Innovative formula: Revenue = f (market, product, technology, partners, capital)

This innovation will be successful with the correct values.

Key areas to encourage the innovation process are the innovative culture (diversity of views, the market of ideas, time and space for innovation, open space for traffic), the development of talent and people (developing key skills and innovative talents, learning, management ideas, multifunctional teams, motivation to innovate), innovative approaches and methods (difference, change of the definition and contradictions, revealing trends invisible, understanding of unspoken customer requirements), organization of the innovation process (generating and evaluating ideas, the connection of ideas, talent and capital, innovation of projects and its organization and management).

The company has developed six basic skills of innovation:

- Ability to identify opportunities

- Ability to create, design, plan innovative changes

- Ability to realize and effectively use innovation

- Ability to learn

- Ability to cooperate

- Ability to lead and manage the entire innovation process

How to create a functioning innovation process in business is to create a business market for business ideas. Free, fair and open market is not the prerogative of the elect in the top leadership. Do not punish employees for mistakes, original ideas that emerged were based on numerous errors and mistakes. Allow people to participate in the success of the business and retain talent. It is necessary to give a chance to correct and talented

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people and combine creativity with entrepreneurship. Then, do not try to go against the competition or copy. Manage the presence of the future through a process of strategic development. Create a market for venture capital. Capital for the financing of entrepreneurial experiments further development. And accelerate the creation of new knowledge and wealth creation in other views. [12]

Types of people for innovative team are:

- Innovator - comes with an innovation in any organization

- Entrepreneur - transforms ideas into reality

- Sponsor - gives support to the idea

- Champion - checks out if the idea is successfully implemented

- The inventor - launches a new business idea

- Creative thinker - has the power or ability to produce new ideas [13]

1.5 Innovative Methods

There are many methods and procedures that are classified as innovative. The general procedure for finding an innovative project:

There is introduction to the problem, defining the problem and the innovation project. Measurement - the market, customer needs, processes, requirements, parameters. Then analyse of the cause and reason of the problem, analysis of constraints, critical processes and functions, contradictions. Finding solutions to overcome contradictions, generating ideas, finding analogies and inspiration, implementation of ideas, solution testing, pilot projects, prototypes, tests on the market, experiments. The last phase includes extensions of innovation, business plans and investment.

Short overview of the most used methods to identify innovations:

Six Thinking Hats Method. Of creativity and support for parallel thinking in the team, the balance of views from different angles to solve the problem in developed team. Edward De Bono, promoter of lateral thinking. [14]

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Bionics is a systematic method of the transmission of biological structures, mechanisms and systems to the development of technical systems, new technologies and innovations. [15]

Brainstorming Method, brain writing, 635 is an intuitive method to generate ideas and suggestions.

Method DFMA (Design for Manufacturing and Assembly) Workshop focuses on changes in design and technology of products, structural elements and components in order to reduce demands on the production and consumption in terms of installation, time, cost, poor quality and to minimize other adverse effects. [16]

IRM method (Innovation Road Map) is a systematic methodology aimed at innovation of technical products. [17]

Method of Value Analysis is a methodology for effective design and improvement of systems. [18]

Systematic Innovation is a set of tools for systematic innovation. [10]

The Six Sigma is a systematic methodology for process improvement by reducing their variability. The basis of Six Sigma is a detailed knowledge of customer requirements, disciplined use of facts and the objective of data, statistical analysis and continual efforts to optimize processes. [19]

TOC (Theory of Constraints) – this limit theory is a methodology that systematically identifies and removes restrictions in systems. It is based on the recognition that the system performance is limited by each of its weakest element - restrictions. TOC offers search tool constraints in business processes (manufacturing, logistics, marketing and sales, project management and development processes).

WOIS - Innovative strategies focused on contradictions, and many others.

The most common ways of creating innovations can be:

There is innovation consisting in the rotation, changing the typical characteristics of a product or service. Usually increasing or decreasing the value of functional or physical properties or innovation consisting in a change package size, there are no fundamental changes in the nature of the product. The only difference is the intensity, frequency of

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use, quantity, volume or content of offer. These innovations are usually successful because they increase the market potential and lead to a situation where the customers become potential real customers. Next is innovation are based on changing the form of packaging. The way the product is packaged can be modified according to how it is perceived by customers, what its function is or on what occasion it may be used. It is possible to pursue a greater number of customers and to develop the maximum potential of the market. Then, innovation reflects a change outside of the product and creates new products that change its own appearance. Or innovation in complement / supplement focuses on adding extra additional components or services to the basic product or service. And last one can be innovation of facilitating the purchase of a product when deciding to buy a product or service, it cost factor.

Customer value = customer benefits / effort to make the purchase

Innovation, therefore, does not change the product itself, but facilitates the process of purchase. [7]

1.6 Innovative Marketing

Innovative marketing, work is a sequence of operations which are applied to products and lead to the creation of new products or new services satisfying new needs, bringing new application areas, exploring new situations or new target groups of consumers. It is a process that offers a significant opportunity to create entirely new product category or to form an entirely new markets. Innovative marketing has the character of the process; this process requires a methodical approach, organized sequence of steps. Innovative process is not applied to existing objects (products, services or business activities). Innovative marketing brings innovations that may represent a new category or a new market. [20]

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1.6.1 Innovation in Marketing

Marketers in many industries know that innovation through a new product development is vital to remain competitive. But product decisions are not the only areas affected by new developments. Innovation can affect almost all marketing areas (see Tab. 2). Tab. 2 Effect on Innovation Marketing Area Effect of Innovation Marketing Research Creates new ways to conduct a research including more sophisticated methods for monitoring and tracking customer behaviour and analysing data. Targeting Markets Allows extreme target marketing where marketing-to-person is replacing mass marketing. For customer service, technology makes it easier to manage relationships and allows rapid response to customer’s needs. Product Creates new digital products/services. Incorporation of innovation into an existing product/service enhances value by offering improved quality, features & reliability at a lower price. Promotion New techniques allow better matching of promotion to customer activity and individualized promotion. Makes it easier for sellers to offer product suggestions and promotional tie-ins. Distribution Creates new channels for distribution and transaction (e.g. electronic commerce) that include making it easier for buyers to place orders. Allows more control over inventory management and closer monitoring of product shipment.

Pricing Enables the use of dynamic pricing methods. Source: Innovation in Marketing Available: http://www.knowthis.com/principles-of-marketing- tutorials/managing-external-forces/innovation-in-marketing

Many of the benefits shown in Tab. 2 are driven by the evolution of the Internet. The Internet is transforming how all functional areas of an organization perform work. It can be argued that no functional area has been more affected than marketing. Over the next decade it is expected that the Internet’s effect on marketing will continue to grow and marketers are well served to embrace this. [21]

Various authors suggested innovation order; Table 3 shows one of them.

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Tab. 3 Order of Innovation Procedure Designation What shall be What changes Example Innovation retained -1 Degeneration Nothing Loss of Measurement properties 0 Regeneration Object Restoration of Maintenance, property repair

RATIONALIZATION 1 Quantity changes All features Frequency Other labour factors 2 Intensity Quality and Speed of Increased shift of interconnection operations the zone

3 Reorganization Qualitative Division of Movement properties activities operations

4 Qualitative Quality for users Binding to other Technological adaption factors design

QUALITATIVE INNOVATION 5 Variant Design Partial quality Faster machine

6 Generation Design concept Design Electronic machine

7 Type Principle of Design concept State jet technology 8 Genus Belonging to the Principle of Non-woven tribe technology fabric

TECHNOLOGICAL REVOLUTION 9 Strain Nothing Access to the Gene nature manipulation

Source: VALENTA, František. Inovace v manažerské praxi. Praha: Velryba, 2001

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2 Practical Part

An exploratory research was formed according to the data from the portal http://springwise.com. There are described and categorized the criteria of 12 foreign companies and a case study in detail of the three companies.

2.1 Cafe Therapy

Cafe Therapy in the Czech Republic offers art sessions for addicted people to deal with their addictions by using the crockery they create to serve food. The Prague eatery has made connections with the local aftercare centre, whereby those in treatment or rehabilitation can attend ceramics and candle-making workshops as art therapy sessions. The scented candles they produce during these classes are sold in the café shop, while pieces of crockery are used for serving customers. The aim is to provide a place of repose for recovering addicts as a way to ease them into employment by selling their art; Cafe Therapy also provides a way for customers to know their money goes on a good purpose.

Cafe Therapy is both a restaurant and a social enterprise, connecting consumers directly with the addiction sufferers providing the crockery they use and gifts they can purchase.

Order of innovation

According to Valenta, it is the fifth order innovation - a new variant. [22]

Target group

Makers of candles are addicts on art therapy sessions. They do not need any special knowledge and skills, and the visitors of Cafe help them make their life better and get back to society.

Rewards for consumer

They can buy candles made in a special way, but it primary helps to good things.

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2.2 Zéro Gâchis

In France, Zéro Gâchis is planning to reduce the amount of food which is thrown away by businesses. Merchants that find they have stock which is reaching its expiry date will be able to send Zéro Gâchis price reductions they are willing to make on the products. This will help grocers to reduce the amount of food waste they produce and to offer savings to shoppers, while the likelihood of a purchase being made will be increased due to the immediacy with which customers can take action.

Order of innovation

According to Valenta, it is the fourth order innovation. [22]

Target group

Consumers with the Zéro Gâchis application in close proximity to those businesses will be alerted to the discounts in real-time.

Rewards for consumer

Buyers will be able to gain points on the site each time they take advantage of discounts, which can be converted into cash directed towards food waste charities such as Restos du Coeur or Banque Alimentaire.

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2.3 Whiskersons of Bothwell Ltd.

Scottish Whisky Blender is a site that enables visitors to design and name their own custom whisky blends. The brainchild of Glasgow - based Whiskersons of Bothwell Ltd., Whisky Blender gives users seven hand-picked whiskies to choose from when crafting their own blend. Consumers simply pick which ones they would like to include and in what proportions, and then come up with a name for their personal blend.

Order of innovation

According to Valenta, it is the sixth order innovation [22]

Target group

It is for everyone who wants to make own Whiskey for special opportunity or classic days.

Rewards for consumer

Whisky Blender will blend, bottle and brand the whisky in a 70cL corked, lead-free crystal decanter bottle, including a hand-written, personalized label. And Whisky Blender also enters the blend into its ever-growing archive along with a unique code, so it can be enjoyed by others and revisited by the person who originally created it.

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2.4 Lantmannen

In Sweden, farmers’ cooperative Lantmannen pairs up singles to share leftover dishes or ingredients, creating an environmentally-friendly dinner date.

According to Lantmannen, every fifth bag of food in Sweden is thrown away, which prompted the creation of Restdejting in an effort to reduce waste.

Order of innovation

According to Valenta, it is the fourth order innovation. [22]

Target group

Members are encouraged to combine their leftover ingredients and create a meal with another person. Consumers begin by visiting the website and entering up to five ingredients they have left over. This list is then published to Facebook for other Restdejting singles to browse. There is also a speed dating option, where users can select the ingredient they are looking for to complete their meal, before choosing whether they wish to set up a “dinner for two, three or four”.

Rewards for consumer

Good chance for singles, make date or just have a good dinner.

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2.5 Brayola

Brayola has launched a free platform enabling women to anonymously recommend their favourite bras to others in order to receive recommendations in return. Each customer visiting the brayola website is given a ‘brayola drawer’ — virtual spaces where they can enter their bra size and list their favourite bras by brand and model. Searching only among members with the same bra size as the visitor, brayola then scans for other ‘drawers’ on the site containing a similar collection of favourite bras. Using these, the platform can then recommend new bras to the visitor, along with links to Bare Necessities and Amazon from which women can purchase the recommendations. It is according to the start-up statistics. While recommendation engines have been helping customers on a wide range of e- commerce sites for some time now, brayola is targeting a particular area of the fashion industry it believes is in need of help.

Order of innovation

According to Valenta, it is the fourth order innovation. [22]

Target group

Women who want to share their experience and recommendation to others. And as well women can get good information and recommendation.

Rewards for consumer

Get useful advice.

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2.6 Volga Verdi

Volga Verdi is a California-based fashion brand that offers its customers discounts depending on the number of friends, followers or fans they have on popular social network. To participate in Volga Verdi’s Exchange program, shoppers begin by referring to a chart on the site listing the size of the discount it offers for the number of friends or followers they have on Facebook, Twitter, and Google+. To get the discount, they must follow Volga Verdi on Twitter, tweet a specified message about the brand, and then email Volga Verdi to confirm they have taken part. Those on other social networks would need to perform similar actions tailored to the social network they are using. Volga Verdi then proceeds to issue a unique voucher code for the corresponding discount.

Order of innovation

According to Valenta, it is the sixth order innovation. [22]

Target group

For people who like fashion, discounts and have more friends on social networks.

Rewards for consumer

Twitter users, for example, get a discount of USD 7 if they have between 20 and 200 followers, or USD 15 if they have more.

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2.7 Malaysian Jazz Club

BlackBerry Malaysia recently partnered with Kuala Lumpur jazz club No Black Tie to enable patrons to order their drinks directly from the bartender using BlackBerry Messenger (BBM). Table Service gives BlackBerry users a way to order drinks without having to flag down a waiter. To do so, they begin by adding the bartender’s PIN on BBM and then scanning a QR code to activate the service. Once they’ve received a confirmation message, they can place drink orders or even call a waiter using their device; all they need provide is their table number.

Order of innovation

According to Valenta, it is the fifth order innovation. [22]

Target group

For users of BlackBerry Messenger.

Rewards for consumer

Visitors of jazz club do not have to go order to bar, using a mobile is more comfortable. Users of the BBM Table Service will receive a free beer, wine or soft drink courtesy of BlackBerry Malaysia.

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2.8 Tanita Shokudo

Tokyo canteen Tanita Shokudo provides nutritional advice and dietary equipment to help diners eat healthily and bring this advice directly to consumers’ tables. They provide expert culinary information about all items on the menu, aiming to help those wanting to eat out without compromising their diet plans.

Order of innovation

According to Valenta, it is the fifth order innovation. [22]

Target group

For people who wants to be fit and healthy.

Rewards for consumer

Professional dieticians are also on hand to provide free advice on eating regimes in a special counselling room. Consumers are becoming ever more health conscious and nutrition transparency in restaurants is a trend that has grown around the world, but the mix of a good-for-you lunch alongside professional dietary advice takes these services to another level.

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2.9 Lacta

In Greece, consumers can use their phone to send a message to a friend via any chocolate bar from Kraft Foods’ Lacta brand. They begin by composing the message on the Lacta app, which also shows how it will appear on a Lacta bar. Next, they select the name of the friend they would like to send it to from their list on Facebook. The recipient receives a Facebook notification, and once they download the app, the camera of their phone automatically turns on and can be used to reveal the message on any Lacta chocolate bar.

Order of innovation

According to Valenta, it is the fifth order innovation. [22]

Target group

Users of Facebook, users of application Lacta and everyone who wants to surprise their friends and send a message.

Rewards for consumer

Extra chocolate bar with message.

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2.10 Maynards

In Canada, Maynards give customers the chance to have their face immortalised in candy. The competition is being managed via Facebook. Users first have to ‘like’ the Maynards Canada Facebook page in order to then upload a photo. Using the trace tool they cut their face from the picture and can choose to transform it into one of Maynard’s most popular treats.

Order of innovation

According to Valenta, it is the sixth order innovation. [22]

Target group

Fans candies, everyone.

Rewards for consumer

Officials will then select the top ten faces to be showcased on the Facebook page before a winner is determined by a random draw. The prize includes CAD 5,000, a trip for two to Toronto for a photo shoot, a tour of the Maynards factory, and a year’s supply of Maynards candy featuring the winner’s face.

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2.11 TripHuddle

There is the American company TripHuddle, which made a social trip-planning application that aims to make coordinating trips easier and more fun by helping people work together and share their travel information.

Users of TripHuddle begin by registering with the site and then creating trips, entering their travel plans and inviting their friends. Trips can always be kept private, but those who are invited can see who is attending and the details of their travel plans. Users can also edit a trip-specific shared calendar and post to a message board to make sharing easier. Each trip created then gets its own profile and features a list of who is going, a shared calendar for events and a bulletin board for posting thoughts and questions. Free for users, TripHuddle currently seeks advertising partners.

Order of innovation

According to Valenta, it is the sixth order innovation. [22]

Target group

People who like travelling, and people who are interested about others experiences.

Rewards for consumer

Consumers can find easier way to coordinate arrivals, departures and accommodations.

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2.12 Handsup.cn

Chinese website Handsup.cn aims to hand power over to customers by asking them to recommend products they want to buy, as well as the price tag. The concept Handsup.cn is invite users to submit and vote on the products they would like to see on its virtual shelves. Hoping to create an “infinite” range of available products and services, the site also allows consumers to suggest how much they would like to pay. A greater number of voters for a particular product increase the likelihood of the price being lower.

Order of innovation

According to Valenta, it is the fifth order innovation. [22]

Target group

Everyone, who wants to submit and to vote about products and their price.

Rewards for consumer

A consumer can get a product for low price.

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2.13 Evaluation of Exploratory Research

Figure 2 Represented Countries in Exploratory Research Source: own research

There are three companies from twelve forms the USA. From this result we can conclude that the practice of consumer engagement was clearly the most widespread in the United States.

Figure 3 Requirements for the Target Group of Consumers Source: own research

In 58% of cases, which in this case is 7 companies there are companies with no specific knowledge or skills. However, in 33% of examples are special requirements such as, the

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use of social networks (Facebook, Twitter), the use of different applications or smartphones.

Figure 4 Reward Consumers for their Cooperation Source: own research

Consumers need to encourage cooperation, but 58%, seven out of a total twelve firm thinks that the remuneration is not necessary. There are in most cases the rewards for adding your ideas, evaluation or the vote. In case of using the Black Berry messenger, visitors in club are rewarded with free beer, the company Volga Verdi offers financial reward.

Figure 5 Order of Innovation Source: own research

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Order of Innovation was determinate on basic of classification of Valenta. In 42 % it is fifth order – new variant.

Concepts Exploratory research was created on the three concepts. The first one focuses on brand Red Bull, the second is about Jet Restaurant and the third deals with Sephora perfumery. Operation of 12 companies above helps to find news for these three companies.

Red Bull Logo Source: RED BULL. Company. Available: http://authoring.redbull.com/cs/Satellite/en_US/Products/Company-021242755317296.

2.14 Introduction of Company Red Bull

Red Bull is a famous energy drink sold by Austrian Red Bull. The product was created in 1987 by the Austrian entrepreneur Dietrich Mateschitz in partnership with Thai businessman Chaleo Yoovidhya, he has launched an earlier energy drink that had been popular in Thailand. [23]

Mateschitz was inspired by an energy drink called Krating Daeng, which he discovered. He took this idea, and to suit the tastes of Westerners, modified the ingredients, and founded Austrian Red Bull in partnership with Chaleo Yoovidhya.[24]

The slogan "Red Bull gives you wings"[25] is used in marketing activities. Claims about the drink effects and performance have been challenged on various occasions and the product is marketed through advertising, tournament sponsorship (Red Bull Air

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Race, Red Bull Crashed Ice), sports team ownerships (Red Bull Racing, Scuderia Toro Rosso, EC Red Bull Salzburg, FC Red Bull Salzburg, Red Bull New York, RB Leipzig, Red Bull Brasil), and celebrity endorsements.[26]

Dietrich Mateschitz and Chaleo Yoovidhya, they each invested $500,000 of savings and took a stake in the new company. Chaleo and Dietrich each held a 49% share of the new company. They gave the remaining 2% to Chaleo's son Chalerm, but it was agreed that Mateschitz would run the company. [27] The product was launched in 1987 in Austria.

Approximately 4 billion cans of Red Bull are consumed each year in 160 countries.

2.14.1 Advertising

Red Bull has an aggressive international marketing campaign. The numerous sponsored activities range from extreme sports like BMX, mountain biking, windsurfing, motocross, skateboarding, snowboarding, kayaking, wakeboarding, surfing, cliff-diving, skating, freestyle motocross, rally, Formula 1 racing, and break dancing to art shows, music, and video games. Red Bull also sponsors association football teams. By associating the drinks image with these activities, the company seeks to promote a "cool" public image and raise brand power. [28]

Company Red Bull is all about creativity, innovation and doing things differently. At Red Bull Racing, company has the same philosophy. Red Bull takes a completely different approach to Formula One and offers partners the ability to make their sponsorship; to create something people will remember - and have it stand out in a crowded marketplace.[29]

Red Bull Mobile offers state-of-the-art telecommunication services. The main elements driving this commercial offer are - Branded handsets - Tariffs - Multimedia services - Television - Unlimited Access to the World of Red Bull

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Red Bull Mobile is always offered in co-operation with one mobile operator and Red Bull Mobile is integrated in Red Bulls marketing and communication mix as well as in Formula One, Red Bull Air Race and other events. Red Bull enters a new charter in the mobile industry and joint forces to create a Signature Partnership with Nokia. It will reset in Unixe. The main goal is to deliver Access to amazing experiences, great culture and sporting content every day. Customers of Red Bull and Nokia will be able to Access the exciting World of Red Bull through Nokia device in a way that has never been seen before. Red Bull will leverage Nokia Lumias built on Windows Phone's best in class capability and take content consumption to a next level. [30]

Marketing Goals The main marketing goals of company Red Bull is to increase interest in Red Bull among males and females age 35 to 65, to increase the revenue growth and the most important goal is to position Red Bull as an alternative to coffee.

Target Group Red Bull’s target group is not determined by demography, but by a „state of mind“. Red Bull consumers have style, are active and dynamic. Consumers want to be physically and mentally fit and wide awake. [31]

Marketing Message Red Bull is an essential step to stay concentrated and productive all day. Negativity in the work place is what really kills concentration. Red Bull is a lightly carbonated drink that enhances mental and physical activity. It is a blend of ingredients found naturally in your body. [31]

Brand Positioning The brand positioning comes from out of the product benefits the slogan of Red Bull vitalizes body and mind, is why have become the basic for the unique famous brand personality of Red Bull: - Innovative - Self-Ironic - Intelligent - Nonconformist

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- Self-confidence - Witty, charming - Polarising - Unpredictable One Brand - One Product In order to put the entire focus on this one product. Communication Concept - Above-the-line Advertising is to build up awareness and image - Opinion Leader Marketing is to support credibility of the product and the brand - Event Marketing means to prove that the brand is up-do-date and different - Sampling is to convince consumers Opinion Leader Marketing Opinion Leaders, especially in the sport and cultural area, are a perfect target group for Red Bull. Red Bull develops relationships with them and treats them like friends. Red Bull worldwide has over 250 agreements with top athletes, but not one written contract.

2.14.2 Competitors

Red Bull can compete within the market share of soft drinks, non-alcoholic drinks and energy drinks. The competitors are product lines of larger brands; Red Bull is a private company. The top competitor is: Monster - Monster offers their product at twice the size of a Red Bull for the same price. - Monster sponsors teams, athletes, sports and bands such as wakeboarding, - Monster promotional items are hats, T- shirts - Monster contains additive ingredients such as guarana that have not been approved by the FDA. - Monster holds a significantly less percentage of the energy drink market share. - Monster is a product of a larger corporation. [31]

Innovation is a modern hit on market by consumer engagement. Marketing of Red Bull is considered as the most sophisticated, consistent and belonging among one of the best. Marketing is based on the adrenaline of extreme sports, where Red Bull acts as a major sponsor, so the logo is seen there.

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The idea of the concept Red Bull is the style, image, entertainment, adrenaline but also luxuriousness. That is the reason why people buy and use Red Bull; they want to look free, stylish. There are many competitive companies, and they could compete mainly on price. Other energy drinks are cheaper by almost half than Red Bull. Red Bull does not want to be a commercial brand so it does not want to have their logo owned by ordinary users, so we will see such caps only for sports, who are proud of their brand and they are sufficient sponsorship. Belts, T-shirts or sweatshirts could be bought on the website Red Bull but the price is higher as well as the standard with the product itself. The promotion of Monster could be via T-shirts, pens and Monster stickers but rare is the existence of material printed with two bulls in the sunset.

2.14.3 Consumer Engagement

When coming up with marketing to improve consumer engagement refers only to be more visible. Loyal customers want to feel exceptional and unique. Red Bull has no problem with organizing various events from sports, music and events for students and artists. The new trend is an interesting application on Smartphone. People like to collect and compete. Collect pictures with drink Red Bull and sharing it on social web. The best pictures with the most likes from friends win. In picture 1 can see invitation for this event. Friends on Facebook share it and invite next friends. On picture 1, there is an invitation for special event of company Red Bull, Show your wings! Everybody can see who is invited and information about action.

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Pic. 1 Invitation to the event of Sephora beauty Source: http://www.facebook.com/events/320384654697327/?context=create

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2.15 Introduction of Company Excalibur City

In the 90’s Years Ronald Seunig came up with the idea to build a large shopping complex in the Czech-Austrian border. Since Excalibur City was founded by Ronja s.r.o. in 1993, the shopping complex grown in shopping and entertainment centre. This shopping complex annually attracts nearly 4 million visitors.[32]

At the end of 2003 was built in Excalibur City area with a total area of almost 130,000 square meters. There is a shopping centre, Travel Free Shop, supermarket, restaurants, warehouses, offices and 1,000 parking spaces for customers. Excalibur City is directly on the transport axis Vienna (65 km) - Prague (200 km). In the neighbourhood there are on the Austrian side of the approximately 300,000 inhabitants (excluding Vienna), on the Czech side and more than 600,000 inhabitants.[33]

Jet Rest restaurant Logo Source: EXCALIBUR CITY. Restaurace Jet Rest. Available : http://www.excaliburcity.com/cesky/restaurace/jet-rest

Enter the board of a plane Illuschin UK-62, where are meals of five continents prepared. You can also visit here the Cuba-bar with wide offer of mixed drinks.

The plane has been designed by professor Ernst Fuschs. He created one of artwork of fantastic realism of old Viennese school of arts.[33]

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There is according to a survey of the Association of Hotels and Restaurants of the Czech Republic the fifth restaurant to fail because of the crisis.[34]

2.15.1 Advertising

Although a lot of owners, operators and managers do not permit, guests are very sensitive to the details. High quality coffee will not stay in memory so long but all feelings during the visit will.

Restaurants advertise their services either by means advertisements, or they offer in the local cultural journals coupons for discounts. The discount is a question of loss, if a guest comes only once. There is the same advertisement, to make customers re-visit and get them if they are satisfied.

The best advertising is a personal recommendation and buzz marketing. Success can be gained exceptional meals, unique style and excellent service.

Marketing Goals

The crisis and rising unemployment, critically in Znojmo (of 14%) could be used to improve the quality of the staff. Jet restaurant staff is regularly trained and well- motivated. They are regularly analysed by the quality of their work performance and the behaviour of guests. Famous visitors aircraft were Karel Gott and Andreas Nikolaus "Niki" Lauda, he is an Austrian aviator, entrepreneur, but also is a former Austrian Formula 1 driver, three-time world champion of 1975, 1977 and 1984.

It is important to make reason for repeated visits; the focus is usually the biggest tourist attraction of the interior and perfect harmony menu with the environment.

Target Group

It is important to define who the customer is. Excalibur City is a complex of restaurants visited by Austrian customers and tourists from all over the world. There are people who travel for a holiday from a different country to visit the restaurant. The restaurant is a colourful plane, its interior is with thematic pictures and meals are therefore from five

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continents, served as shark steaks or kangaroo soup. Meals are served by ladies dressed as stewardesses. All these epicurean experience is based on the feeling of real flight.

2.15.2 Competitors

There is so many other restaurants in Excalibur City (Heurige, Kinderwelt). Visitors can choose if they want typical Austrian food or a restaurant with nice view. Jet Rest is an unique one with the design of a plane.

2.15.3 Consumer Engagement

In every company is important to engaged consumers. One of the best ways in restaurant can be let consumer cook their specialities. Customers can make their favourite pancake by nowadays special way, flambé.

The most popular is undoubtedly a flaming crepe called Crêpes. Another delicacy is flambéed banana or cherry. Desserts and fruits before lighting the semolina lightly sprinkle with sugar and poured with the liqueur after. This will provide a light caramel layer. Nowadays flambéed specialties are offered by expensive and luxurious restaurants like utter commonplace for engaging consumers so they directly introduce this trend to the hands of guests. After a good lunch, a good coffee or just to taste your customers will be able to flambé a pancake to flame at the table, alone, under the supervision of an experienced cook. [38] Let’s make and flambé a taste pancake with friends and share this event directly on Facebook. Invite family and friends and make some pictures. Consumers can come for all and spend a lot of fun. Pancake can be designed with nuts, jam, fruits. This picture can be seen by all your friends, and they can support you. A few best pictures can win the dinner for couple in Jet Rest restaurant. By this campaign become restaurant more favourite, famous and advertising on social sites makes it better. On picture 2 is described event of Excalibur City.

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Pic. 2 Invitation to the event for Jet Rest Source: Facebook : Official website. Available: http://www.facebook.com/events/431093206901182/?context=create

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2.16 Introduction of Company Sephora

Sephora Logo Source: SEPHORA. Sephora: Official website. Available : http://www.sephora.com/contentStore/mediaContentTemplate.jsp?mediaId=10800104

Sephora is a visionary beauty-retail concept founded in France by Dominique Mandonnaud in 1970. Sephora is open-sell environment features an ever-increasing amount of classic brands across a broad range of product categories including skincare, colour, body, fragrance, smile care, and hair care, in addition to Sephora own private label.[36] Nowadays Sephora is not only a chain of perfume and cosmetics stores in France, but also a powerful beauty presence in countries around the world.[36]

Sephora.com Launched in the U.S. in 1999, the foremost beauty site on the Internet is also Sephora largest North American store in terms of sales and selection of products and brands.[36]

Beauty Insider In 2007, Sephora launched a client loyalty program as a way of thanking clients with special products, exclusive information, and an all-access pass to personalized beauty. The Beauty Insider program is available in Sephora stores nationwide and at www.sephora.com. In 2009, Sephora launched V.I.B. [Very Important Beauty Insider], a premium level for Beauty Insiders giving clients access to exclusive gifts, event invitations, and early access to select products. [36]

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Worldwide Chain Sephora Sephora is a worldwide chain of perfumery, which originated in France in 1969 and is part of the world leading luxury products group LVMH - Louis Vuitton, Moet- Chandom Hennessy. You can find luxury brands such as Dior, Armani, Lancome, Helena Rubinstein, Givenchy, Kenzo. Sephora is a unique business that offers more than 200 classic and new brands in all categories of cosmetics; it offers products for the care of skin, body, hair, favourite perfumes and makeup. In addition, it has its own collection of Sephora cosmetics. [36]

Sephora operates 515 stores in 14 countries, and has extended it with more than 250 stores across North America. In the Czech Republic Sephora has been since 2002.

2.16.1 Advertising

Sephora build own marketing from the outset known through leaflets, Internet and Internet shopping and billboards on the roads. It is possible to buy directly online store, or retail. At the competition, when a quantity of selective cosmetics is huge, marketing plays the most important roles. Get on the basis of good advertising for new customers but also keep existing in the form of various bonuses (customer cards for a discount) and bonuses (when buying perfume, body lotion to get for free). [37] A well organized salon, which could recognize the professional achievements, is the best and yet cheapest advertising. A good marketing plan is the key to why it is beneficial to look for what others have done, not only in the Czech Republic but also abroad and be inspired. So often enrich their ideas about the concepts that they would not come and can move forward by leaps and bounds for the success of the company. To a favourable environment, good-looking shop, where it is important colour, lighting and scent it is important. There is important, when the costumer enter the store, their feelings, acting on him all the factors including the behaviour and appearance of employees. Employees are called cosmetic consultants. Help you choose the type of skin colour when purchasing a product of selective cosmetics, fragrance favourite composition. Employees are regularly trained on appropriate behaviour, customer care and in particular on new products and product brands. It is motivates the employers but also from suppliers when they are promised a reward in the form of cosmetics and fragrance tester for a sale. There are suppliers of different brands depends primarily on the recommendation of their brands to customers. For employees of their work is

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connected with the game interesting prizes for selling a certain volume and quantity.[37]

Sephora Mobile

Sephora has also been recognized as a leading digital brand, and continues to advance this arena through mobile and social media initiatives including an active Facebook page, Beauty Talk (its online beauty community), its mobile site, and iPhone App. [39]

Marketing Goals

To build the most knowledgeable and professional team of product consultants in the beauty industry it ensures that its team is skilled to identify skin types, have knowledge of skin physiology, the history of makeup, application techniques, the science of creating fragrances, and most importantly, how to interact with Sephora diverse clientele.[36] If they are looking for beauty Sephora cosmetics are world-famous cosmetic company this one, and for a good reason. Sephora has one of the largest selections of all kinds of cosmetics and you they choose one, but also to make sure that their products are hypoallergenic, so if they have sensitive skin, they do not have to worry when using any products from Sephora.

Target Group

Sephora is for many women like a magical world, or as an entrance into the kingdom of smell. A self-perfumery offers luxury brands, but even the most affordable and attractive as well. Beautiful perfume pulls us all kinds of cosmetics. One can choose from a full hour makeup, make-ups, and perfumes and find secret of perfect flawless appearance. Luxury is always selling, whether it is a crisis or prosperity. Therefore, here is always some room for luxury products and services. The problem is that minority people are living extremely luxuriously, while most have not met basic needs. There is not exist a single solution, it is naturally impossible for everyone on Earth to live just like an average American or European. Firms attack on all human senses, the positive negative emotions. To satisfy consumers needs at the moment it may not be enough. [6]

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2.16.2 Competitors

There are many competing companies. Nowadays, customers usually prefer buy perfumes on web site, in drugstore. Here are two the biggest competitors:

FAnn Perfumeries

The company also has been selling selective cosmetics in the Czech market since 1991. FAnn perfumes are represented in Slovakia. This company has partnership programs with discounts, for example holders of Isic, Citibank. [38]

Marionnaud Perfumeries

Founder Marcel Frydman took a chain of boutiques and perfumeries. Network Marionnaud perfumery in 2004 expanded into Poland, Hungary, the Czech Republic and Slovakia. The group currently has more than 1,250 perfumeries. The perfume Shop represents the world beauty and healthy lifestyle.

Today Marionnaud Perfumeries owns the largest number of sales outlets in Europe in this sector. [39]

2.16.3 Consumer Engagement

The current trend of modern marketing is the engagement of consumers. When upgrading, the company Sephora seems the most successful way of using makeup and cosmetics. Every woman cares for her beauty. Customers join the new innovation, find another consumer and increase the sale of cosmetics. They are under the supervision of a professional make-up artist doing their makeup, which will play a major role in the proper use of colour lipstick. Share pictures on social communication and comment it with all friends. An eventual winner of the chosen shade on web site will be able to take a lipstick home for free. A side effect is that customers can try the brand and do their makeup and pleased with it and in most cases a purchase it. A professional makeup artist consults the make-up with them, but the actual make-up advice on the photo depends on the consumer. The competition will last for a month and will help to present posters and information on the website. There is a sample of invitation for Sephora.

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Pic. 3 Invitation to the event of Sephora beauty Source: Facebook : Official website. Available: http://www.facebook.com/messages/?action=read&tid=id.344825215580737#!

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Conclusion

In my bachelor thesis I focused on consumer engagement. There is definition of consumers, what do they want, motivating engaged customers, and about innovation. Every company that wants to keep the market should look for new things, new opportunities and new procedures. If a company wants in the 21 century succeed, must have a stable operating base that is in all of the items (cost, quality, time) on par with the competition, and it should also have a competitive advantage. Innovation can take place only in the product (introduction of new or improved) or technology (New Technology), but also raw materials, energy, labour qualifications, equipment (machines) in the organization and management. Every customer has specific needs, which wants to satisfy. The mission of the company is to manufacture products or provide services. These satisfy the needs of its customers, who pay him for it, which is the proceeds for the company and it will then satisfy the needs of all stakeholders in the business. Each product is determined by the customer, not the manufacturer. Therefore, each manufacturer must know the needs of its customers to create a product that consumers will be fully utilized. Each product has a specific function.

Consumer engagement is absolutely new trend in marketing. The best way is via the Internet. Mass market, which had long been considered "dead", the Internet received his resurrection. The advent of the Internet in the 90 of the last century opened up a whole new era of consumer engagement. Bring consumers to the Internet through easy access to the internet accurate and dynamic interaction between marketers and their customers. Each site visit, every click and every registration represent a new piece of information about the identity of the customer. And they are beginning to potential and existing customer’s marketers identify their interests and opinions in the way that we never dreamed of in the past. This on-line participation resulted in the formation of a deeply committed group of users who design, therefore takes-you provide marketing services and buy the products - the company whose customers are in fact they part of the company.

In practical part I did exploratory research. Compared consuming engagement abroad and use it in the Czech Republic.

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There is clear that consumers of engagement do not have to be rewards in the form of money or discounts or not always be rewarded for this work at all. It is an important factor, the customer is directly excited if they can participate in this event, give their knowledge and experience. There are experience and advice of product or service share with each other to consumer. Another important factor in engaging consumers is visibility. People want to show off where they will attend the event and where to successfully help or advice. Nowadays there are many social networks and blogs with advice for consumers. Customers can share feeling from their computer or by using smart phones. In the practical part there is an exploratory research form according to the data from the web portal http://springwise.com. Operation criteria of 12 foreign companies were described and categorized. Then is a special focuses on the brand Red Bull, marketing information about Jet Restaurant and work with Sephora perfumery. According information from web portal where is shown consumer engagement, is made innovation and consumer engagement for this three chosen companies. Exploratory research has shown that consumer engagement is a trend that can be used in several ways. It is suitable for a wide group of companies with a variety of focuses, when the majority of consumers do not require any special skills, only basic knowledge of using the Internet and social networks. Currently, the Internet is the most widely used method of communication with the customer. Modern technologies such as mobile, the Internet, smartphone facilitate engagement of consumers. In my bachelor thesis I have met the main aim which was to find new innovations for firms and to valorise consumer engagement abroad.

This theme was also very beneficial for me. Interesting is the distribution of customers by country or continent, identify differences in the preparation of all types and ways of consumers engagement. It is a trend that can be changing every day; marketing is in this direction being constantly improved and still finds new and very interesting industry. Marketing in the development and innovation is not limited.

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List of Tables

Tab. 1 The Different between Improvement and Innovation ...... 18 Tab. 2 Effect on Innovation ...... 26 Tab. 3 Order of Innovation ...... 27

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List of Figures

Figure 1 How to Create Customer Value through Innovation ……………………….20 Figure 2 Represented Countries in Exploratory Research………………………………39 Figure 3 Requirements for the Target Group of Consumers………………………….39 Figure 4 Reward Consumers for their Cooperation…………………………………..40 Figure 5 Order of Innovation………………………………………………………….40

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