Co-creation and Crowdsourcing

“The real revolution here is not in the creation of the technology, but the democratization of the technology.” Chris Anderson.

Consumers are connected and empowered, and they increasingly express their views and ideas online for brands that they harbour strong feelings for. Their affinity for a brand can be constructively channelled towards co-creation, a process where brand owners collaborate with consumers in creating brand value.

New product development - Crowdsourcing new product ideas - NIKEiD 

Exhibit 9.13   NIKEiD is a service that allows you to customize your shoes exactly how you want them.

Co-creation is a growing phenomenon; more and more companies encourage consumers to participate in activities for the development of advertising and new products. People are building their own shoes (NikeiD, Exhibit 9.13), rings (Blue Nile), designing their own T-shirts, mugs, cards, calendars etc., conceiving their own pizzas (Papa John’s), and developing advertising content for companies as diverse as Coca-Cola, General Motors and Microsoft. These activities, usually contests or games, are helping companies engage with consumers and innovate at low cost.

Crowdsourcing (‘sourcing from crowd’) is the process of securing ideas, services or funding from a crowd.

The Wikipedia approach to content creation exemplifies crowdsourcing. There are also an ever-increasing number of instances of the use of crowdsourcing for product development and marketing.

New product development - Crowdsourcing new product ideas - LEGO IDEAs

Exhibit 9.14   LEGO IDEAS — ideas.lego.com

Take for example LEGO IDEAS (Exhibit 9.14), a crowdsourcing programme that invites participants to create a Lego project, share it on the IDEAS website, and seek supporters. Projects that secure 10,000 supporters are reviewed by LEGO for a chance to become an official LEGO product. And if the project passes review and is chosen for production, the creator receives 1% of net sales as royalty.

As of February 2014, there were 5,563 live projects at LEGO IDEAS and seven co-created products had been launched.

Another highly successful crowdsourcing example was Kraft’s “How do you like your Vegemite?” campaign of 2008. It generated over 300,000 submissions, resulting in the formulation of a new variant, blended with cream cheese.


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