Theories of Innovation and Idea Generation for Cadbury's Dairy Milk Mystery Bar
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This report discusses the importance of innovation and idea generation for businesses, with a focus on Cadbury's new product, Dairy Milk Mystery Bar. The report covers theories of innovation, idea generation, and a proposal for an implementation plan and budget.
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INTRODUCTION Modernisation is an establishment’s procedure for announcing new ideas, services and products in order to influence people and adopt changes. This involves improvement of existing methods or practices that start from scratch. The environment is changing day by day, and it has become important to introduce changes that could help to grow business and provide competitive advantages. If there is lack of innovation and new products, then it could be challenging for companies to regulatetheir business.The important task for organization is to analysis the marketplace and bring innovative products that could help to attain higher performance. To develop an understanding of innovation and idea generation to products Cadbury chosen, that is British multinational confectionery company(Alqayed and et.al., 2021). This is second largest confectionerybrandintheWorldafterMars.Thisisinternationallyheadquarteredin Buckinghamshire where it is operating their business in more than 50 countries.It is known for its Dairy Milk chocolate, the Creme Egg and Roses selection box, and many other confectionery products.The company is planning to introduce new product that isDairy Milk Mystery Barthat will be most likely by customers. Firm is focusing over innovative theory and concepts that are used for managing the customers and attaining higher performance. The present report highlights ontheoriesoninnovationandplantolaunchedthatcanhelptodevelopthebusiness performance. MAIN BODY Theories of innovation and idea generation Innovation is the new concept that is the creation of new idea and thoughts generated by anindividualforthepurposeofintroducingchangesandmanagingwork.Thisisthe involvement of creativity consider act of turning new and imaginative ideas into reality. The management should have proper knowledge and skills in order to provide the better quality of products and services. The main purpose of innovation is to build something new and attractive that can help to attain higher performance (Kasirye, Radwan and Kreya, 2020). Cadbury is the larger organization of UK whose management analysis the markets and introduces kind of products that can help to influence number of customers and supports to increase productivity. The company is using theories of innovation and idea generation defined below: 2
Schumpeter’s Innovation Theory AccordingtoSchumpeter,modernizationdenotestoanydogmathataseparate undertakes to reducethe completecost of production then increate the demand of their products. This theory of innovation given by y Joseph. A. Schumpeter, who supposed thatan industrialist could earn economic profits by introducing successful innovations (Malerba and McKelvey, 2020). In other words, innovation the wider concept for entrepreneurs as it is used to improve the organizational performance by adopting the changes. The innovation can be classified into two categories: The category first involves all those activities which reduce the overall cost of production like as the introduction of new technique and method, which is being used by business concern and supports to influence the number of customers. The category second of innovation theory contain all activities which increases the demand of a product like as introduction of new commodity or new quality of goods, the emergence or opening of new market, and finding new sources that is used by business concern for the purpose of growing their business and attain higher productivity. An entrepreneur can earn larger profits for longer duration by managing the all functions and activities effectively (Chen, Han, and Qu, 2020). In relation to Cadbury, management mainly focused over innovation where they introduce new products or chocolates by changing taste that can help to attracts the larger number of customers and supports to increase the organizational profits.Dairy Milk Mystery Baris the new products of Cadbury after Silk Mousse that can help to influence the number of customers in changing environment and supports to increase sales.The management of such organization analysis the environment and make decision to leave the organization that can help to attain the higher profits (Varshney, 2020). Roger’s Innovation Diffusion theory This theory refers to an innovation theory, provides a foundation for understanding innovation adoption and the factors that influence an individual’s choice about an innovation. The theory is broad in scope which is used by individual for the purpose of introducing new changes and managing the business activities. This theory describes the pattern and speed at which new ideas, products, and practices spread through a population. This is important to individual to analysis the environment and comes to know what people wants and how they can be satisfied in changing environment. The management should be focus over changes and then 3
put efforts to grow the business (Roger’s Innovation Diffusion theory, 2019). The main players in the theory are innovators, early adopters, early majority, late majority, and laggards. 4
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Figure1 Stages to diffusion of Innovation theory, 2019 The stages are used by company while introducing the new products such as: Innovators – This involves people who wants to be first to try the innovation. These people generate new ideas and willing to take risk while developing new ideas. Early adopters – The opinion leadersare represented in this stage where change opportunityisadoptedbyleadertointroducethechanges.Inthisstrategiesare formulatedbyleaderthenimplementwithinorganizationbycreatingcomfortable working environment (.Nakamori, 2020). Early Majority – These people are rarely leaders and do not adopt changes or new ideas. They typically need to see evidence that the innovation works before and willing to adopt it (Yakob, 2021). Late Majority – The people who follow such stage are considered as sceptical changes, and will adopt only innovation after has been tried by majority. Strategies to adopting innovation states how many people have adopted it successfully that can help to develop the organizational functions (Bratton and Boak, 2020). Laggards – This type of people are very conservative and traditional. People are very sceptical of change and hardest group to bring on board. Strategies to appeal to this population involves statistics, feel fear, and pressure from other people to adopt changes that affect the organizational productivity. 5
Idea generationto products, processes or services is considering as process which is used by entrepreneur via using critical thinking as it provides planning and sources to come inti new market and influence the number of customers. The management of Cadbury analysed the marketplace to know why customers are switching to other brand and what taste they like then it makes the use of innovation and introduce new chocolates as per customer taste. To manufacture this products, management and producers go through various processes, procedures, and services that can help to develop innovative idea and increase the organizational performance in changing environment (Nordberg, 2020). A proposal for an innovative product, process or service for a working organisation and produce an implementation plan. To run a business successfully in changing marketplace, change is considered as important aspects which is used by people to managing the business functions. Before launching and introducing new products, processes and services there is need to conduct the market research as it can help to operate the business and supports to increase productivity. Cadbury is the larger size multinational company that is larger organization selling different types and taste of products made of milk, influenced the number of customers and supports to increase the business performance (Rydvalova and Skala, 2021). The management identify the condition of company and formulate effective plans to increasing number of customers. The company is planning to introduce new product such asDairy Milk Mystery Barwith the help of business plan that defined below: Executive SummaryCadbury is the British multinational confectionery company, running their business by offering different taste and flavour of chocolates and other Cadbury products. The company is understanding the needs and wants of their customers and bring new taste and design of products that can help to influence the number of people. Now, company is planning to introduceDairy Milk Mystery Baras new taste and design. There is need to follow such stages: Market AnalysisStrength-Dairy Milk Mystery Baris new products that will likely by more customers. This contain a new taste and flavour. Company is operating the business by managing all functions and resources in changing environment. It is world’s leading confectionery company, 6
having strong brand reputation. Weakness –Having many competitors of Cadbury such as Nestle, Mars, Ferrero Rocher, Toblerone, Lindt, Hershey’s and others. Few controversies regarding advertisement. Recalling of product that hampered Cadbury’s brand image. Opportunities –Cadbury increases their reach and penetrate in untapped markets, acquiring competition that can boost the market dominance of organization, diversification of product range in to food segments. Threats –People are health conscious that can reduce the intake of chocolates, inflation, and increase cost of raw material. StrategiesMarketing mix:This is a model which is used by Cadbury to enter into market and introduce the products that can help to increase performance. The model is explained below: Product:DairyMilkMysteryBarisnewinnovative products that will introduce by Cadbury. Price:Cadbury is adopting price skimming strategy as it provides better quality and design of chocolates influenced people to make buying decisions (Sartipi, 2020). Place –The chocolates will be introducing in England, UK as customer demanding more. Promotion–Cadburyisusingsocialmediamarketing, influencer marketing, you tube, and others that can help to attracts the number of people and supports to increase the organizational sales. Differentiation strategy –This is important strategy which is used by organisation for the purpose of introducing new products with effective design and taste to influence the number of people. This can help Cadbury to attract the higher range of people and increase organizationalsales.Thissupportstoattainthecompetitive advantagesandmaintainhigherperformance(Menzli,Smirani, 7
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Boulahia and Hadjouni, 2022). BudgetTo formulate the plan in introducingDairy Milk Mystery, bara budget is prepared such as: FrequencyAmount (£) Operating expenses£ 2000 Investment expenses£ 5000 Financial expenses£ 3000 Total£ 10000 Measure and analysisTheallstagesandplanningwillbeevaluatedbyCadbury’s management by using KPI tool and Benchmarking. KPI –This is a technique and tool which is used by company to evaluatetheorganizationalandemployee’sperformancewhile introducing something new product and services. This can help to bring changes in existing performance and supports to adopt changes effectively (Masciocchi, 2020). Benchmarking –This is another tool which is used by Cadbury to comparing business processes and performance metrics to industry bests practices from other company. This can help to maintain the high quality of products that can help to influence the number of people and supports to increase the organizational sales. The above discussed plan is implemented by Cadbury that can help to maintain the higher competitive advantages and supports to increase theadministrative yield.This also helps to providing higher benefits while introducing new products and process. CONCLUSION From the report it can be concluded that business ideas and innovation is the process of bringing new product, process and services that supports to run business effectively. Market research and use of innovation theory considered as main phases that are used by marketing management in an organization. This is significant for organization to analysis the market and familiarise products accordingly which can help to attain the competitive advantages and develop the organizational productivity. 8
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2021Sartipi, F., 2020Menzli, L. J., Smirani, L. K., Boulahia, J. A. and Hadjouni, M., 2022 Masciocchi, B., 2020 10