Name: Choosing the idea that’s going to be a hit
Uploaded: 2022-04-07T11:40:16.146Z
Duration: 345.85
Description: You might have 100 ideas to develop your business but how do you know which one will take off? Michele Sandoval, director of innovation at E&J Gallo Winery, offers her advice.

hit idea.vtt

English

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The definition of opportunity
is really created from a

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favorable set of circumstances.

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So again, what is that?

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And you need to look through it
from the consumer and customer lens.

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Because there are a fair number of
ideas that are ahead of their time.

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And there are a fair number of ideas
that, you know, maybe are passé.

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And so you really have to just look
at the circumstances surrounding

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your opportunities and say, you
know, are they fitting some kind

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of a consistent long-term trend?

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Are they meeting some kind of a need?

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Like, do I see a behavior, some
type of a repeatable consumer

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behaviour or repeatable action
that, you know, tells me that

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there's going to be a good source of
volume or a repeatable interaction?

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It's kind of like the analogy of,
you know, yeah you sell the razor,

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but all the money is in the blades.

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Right.

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It's the same kind of thing.

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Where do you see that
revenue stream coming in?

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And then from an external
standpoint, you know, you've got

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to evaluate your competition?

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And even the strongest
competitors can fall.

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I mean, Sears at one time was the
number one retailer in the world

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and they don't exist anymore.

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Same with blockbuster, right?

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We already went through that example.

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And you know, and technology
nowadays, I mean, is reducing

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significant barriers to entry.

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So, you know, how can you leverage
either technology or process or again,

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part of that consumer experience to
help you as a company do something

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better than your competitor?

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And then differentiation.

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If there's really, if all of the
offerings are similar and by the

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way, we struggle with this in wine.

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What is your vision?

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What is your mission?

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What is your value?

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Because a lot of ideas can be called
through just based on, you know,

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as a company, what you stand for.

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So for Gallo, we want to
help serve enjoyment in the

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moments that matter most.

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So if an idea is in some way not
going to provide enjoyment to

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our consumer, then it's probably
an idea that goes toward the

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back of the bottom of the list.

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And maybe it's not something
that you work on now, but maybe

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it's a future opportunity.

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Again, our mission, democratise wine.

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So if there's an idea that is
in some way going to alienate

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or will try to, I'm thinking
back to the Frazier days, right?

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When they were very snooty
with their wine drinking.

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You know, if it's gonna create
the wrong consumer perception,

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then maybe that's an idea
that again gets called out.

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Or that doesn't fit with
your consumer values.

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I mean, there's so much authenticity
and so much transparency with what

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we're seeing today that I think it,
you know, those values and what you

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want to say about yourself through
the innovation and the products

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that you're introducing really
is something important as well.

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There are many models out there.

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Look at innovation and
what's the right balance?

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How much should you have?

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Again, I just tapped into this
one on the left is from a Harvard

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Business Review article about
a decade ago, that talks about

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core, adjacent, transformational.

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You know, what does that
look like for your company?

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You know, how close in are you going
to do things that are meeting the

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needs for your existing customer?

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How close in are you going to push
out to kind of maybe things that

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you as an organisation do well, but
you know, could meet a new consumer

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base or a new market to things
that you aren't good at, at all.

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And have no expertise on, but
know could very much transform

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the way you do business today.

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And in that case, you know, that
kind of falls to the second model,

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which is, you know, build by partner.

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How do you invest then, you
know, to create innovation

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within your organisation?

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Do you create it yourself?

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Which by the way, is the Gallo model.

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We do everything almost internally.

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You know, or do you buy it?

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We've done that too.

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And do you partner?

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We've done that as well.

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So, you just have to evaluate.

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So what I would say is, you
know, identify what those

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prioritisation criteria are for you.

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Is it size of price?

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Because you know, a big idea for
us, you know, or a small idea for a

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large company like mine could be a
huge idea for a much smaller company.

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There are wineries out there
that would look at 70,000 cases

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of a limited edition product.

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And that could be five
years of their inventory.

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Whereas for us, as you know,
that was less than a month's

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worth of inventory for us.

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So again, think about, you know,
what are some of the criteria

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that you would use to evaluate?

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Is it organisational complexity?

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Is it organisational fit?

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Is it strength of the consumer insight?

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Is it the competitive environment
and how well, and how distinctive

{{00:05:35}}
you think you may be able to
stand out amongst your competition

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as you're being evaluated?

The definition of opportunity
is really created from a

And you need to look through it
from the consumer and customer lens.

Because there are a fair number of
ideas that are ahead of their time.

And there are a fair number of ideas
that, you know, maybe are passé.

And so you really have to just look
at the circumstances surrounding

your opportunities and say, you
know, are they fitting some kind

Like, do I see a behavior, some
type of a repeatable consumer

behaviour or repeatable action
that, you know, tells me that

there's going to be a good source of
volume or a repeatable interaction?

It's kind of like the analogy of,
you know, yeah you sell the razor,

Where do you see that
revenue stream coming in?

And then from an external
standpoint, you know, you've got

And even the strongest
competitors can fall.

I mean, Sears at one time was the
number one retailer in the world

And you know, and technology
nowadays, I mean, is reducing

So, you know, how can you leverage
either technology or process or again,

part of that consumer experience to
help you as a company do something

If there's really, if all of the
offerings are similar and by the

Because a lot of ideas can be called
through just based on, you know,

So for Gallo, we want to
help serve enjoyment in the

So if an idea is in some way not
going to provide enjoyment to

our consumer, then it's probably
an idea that goes toward the

And maybe it's not something
that you work on now, but maybe

So if there's an idea that is
in some way going to alienate

or will try to, I'm thinking
back to the Frazier days, right?

When they were very snooty
with their wine drinking.

You know, if it's gonna create
the wrong consumer perception,

then maybe that's an idea
that again gets called out.

Or that doesn't fit with
your consumer values.

I mean, there's so much authenticity
and so much transparency with what

we're seeing today that I think it,
you know, those values and what you

want to say about yourself through
the innovation and the products

that you're introducing really
is something important as well.

Look at innovation and
what's the right balance?

Again, I just tapped into this
one on the left is from a Harvard

Business Review article about
a decade ago, that talks about

You know, what does that
look like for your company?

You know, how close in are you going
to do things that are meeting the

How close in are you going to push
out to kind of maybe things that

you as an organisation do well, but
you know, could meet a new consumer

base or a new market to things
that you aren't good at, at all.

And have no expertise on, but
know could very much transform

And in that case, you know, that
kind of falls to the second model,

How do you invest then, you
know, to create innovation

So what I would say is, you
know, identify what those

Because you know, a big idea for
us, you know, or a small idea for a

large company like mine could be a
huge idea for a much smaller company.

There are wineries out there
that would look at 70,000 cases

And that could be five
years of their inventory.

Whereas for us, as you know,
that was less than a month's

So again, think about, you know,
what are some of the criteria

Is it the competitive environment
and how well, and how distinctive

you think you may be able to
stand out amongst your competition

Best Practice

You might have 100 ideas to develop your business but how do you know which one will take off? Michele Sandoval, director of innovation at E&J Gallo Winery, offers her advice.

Innovation

Insights

Ideas

thumbnail_Michele+Sandoval.jpeg

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Michele+Sandoval.jpeg

Michele Sandoval

Director of Innovation

"The definition of opportunity is really created from a favourable set of circumstances."
Sandoval discusses looking at idea opportunities through the lens of the consumer.

Assess whether the environment is favourable

What is your vision? What is your mission? What is your value? Sandoval emphasises the need for your idea to serve the company's mission statement.

Is it a good fit for your company?

Sandoval refers to the Core, Adjacent, Transformational innovation model as a tool to help your idea become reality.