Innovation and Enterprise: Analysis of Zero Sugar Chocolates by Asda

This report analyzes the innovation of zero sugar chocolates by Asda, including the background of the company, theories of innovation, and evaluation of the selected product's strengths and weaknesses. It also discusses the plan for implementing the innovative product and achieving competitive advantage in the market.

Innovation and
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Background of company and analysis of current situation.........................................................4
Theories of innovation and its literature review.........................................................................5
Evaluating selected product and identify its strength and weaknesses. .....................................7
Plan of innovation product for organisation and development of implementation plan.............8
Solutions for improvement in weaknesses of selected product..................................................9
CONCLUSION ............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation refers to any change and improvement in a product, a process or any services.
For development of an organisation and enhance profitability company require to innovate
something new (Du and et. al. 2020). Entrepreneur is a person who generate new idea and
transformed that idea into reality. Innovation helps an organisation in achieving competitive
advantage in market. Which increase revenue and long term success for company. Asda is taking
into consideration for this report. Asda is a multinational retail company founded in 1949. Its
headquarter is in Leeds, England, UK. It deals in many products and services such as Grocery,
general merchandise, financial service, Asda mobiles etc. Its founders Peter and Fred Asquith are
decided to innovate in food sector and bring new zero sugar chocolates. Selected company
always try to satisfying changing needs and wants of their customers by innovating new
products. After conducting a proper research by selected firm, it can be analysed that current
market trend and customers are more concerned or focused towards their health. Relevance
company is planning for bring Zero sugar chocolates as an innovative product for effectively
fulfilling requirement of their customers. By offering innovative products to customers company
increase customers loyalty and achieve competitive advantage in market. This report includes a
proper evaluation of innovative product of company by analysing its strength and weakness.
Other then this it involves innovation theory & idea generation to products. In this report a
proposal for innovative product is developed by implementing a proper plan which helps in
improving weaknesses of innovative products. In last this report includes some recommendations
which helps selected organisation in properly innovating new product for market.
MAIN BODY
Background of company and analysis of current situation
Asda Stores Ltd. being one of most widely operating retail chain across UK. It is
headquartered in Leeds, England which was initially founded by Asquith family in 1949. It runs
in various segments of market having approximately 632 operational locations. Asda stores Ltd.
also known as Associated Dairies is considered as one of the biggest supermarket chain which
was also named as second largest operating retailer in UK with market share. It is working in
various market segment, but viewing current situation of increasing infections, viruses like
Covid-19 company has decided to introduce zero sugar chocolates in order to support healthy

living. It has been observed that chocolates are categorized as FMCG by reaching around 98% of
households in a year. Therefore in this reference, Asda is improvising by making large
investments over new chocolate segment that is zero sugar with use of maximum natural
ingredients in order to increase its health benefits. By implementing this recipe, company will be
able to provide healthier products which will help customers to boost their immunity in order to
deal with risk of prevailing viruses. In times of pandemic, company is trying to develop healthy
food habits of consumers by preventing various diseases leading to danger of life (Dvas and
Dubolazova, 2018).
Theories of innovation and its literature review
Innovation is referred to combination of new items including new sources, new
methodology, new market segment and so on. Over the years, it becomes necessary for
organisation to bring new innovation and up gradation in order to increase its long lasting
sustainability in the market. The organisation has been working on innovation of new products
by reviewing current market needs and other factors. In context with this, Asda Ltd. has carried
out use of various innovation theories which are discussed as follows:
Disruptive Innovation: It is considered to a significant change in a market segment
which will affect industry or marketplace as a whole. It implies to the completely changed or
modified approach towards market functioning. It normally has lower profit margins in
beginning with higher risks which disrupts in existed market or create new market segment
involving new technology that grows slowly while reaching its boosting point (Kylliäinen,
2019). Therefore, Asda Ltd. has made progress in identifying its new market by applying
significant theory of innovation. This theory will help organisation to evaluate prevailing
benefits due to innovation of zero sugar chocolates which will be healthier as compared to sugar
based chocolates. As per current trends people are becoming more health conscious due to
spread of Covid-19 and other infections across the globe. So with use of this approach it will
become easier for organisation to draw basis for innovations and evaluate its long term
advantages and disadvantages in the market. It will help to adapt with completely new
technology in effective manner.
Sustainable Innovation: It covers several factors of economic development of an
organisation. Sustainability generally refers to innovation which is mainly concerned for
environment and resources used (Ebrah and Mirbargkar 2017). It is considered as more

advantageous for business as it points major consumer demands with an ultimate sustainability.
Through this innovation, organisation will achieve optimum economic performance with help of
social and environmental based operations (Day, 2019). Therefore, Asda Ltd. will be able to
provide healthier, safer, eco-friendly, stable set of operations with use of sustainable innovation.
This would help organisation to perform sustainably by eliminating eco- destructive methods. As
per current times, people are concerned more about ecosystem in order to maintain protect
environment from any sort of destruction caused to it in form of air pollution, water pollution
and so on. In order to deal with the issue Asdal Ltd. has innovated a zero sugar chocolates with
natural ingredients which will promote sustainable environment and result in better brand image.
It is one of the most important theories of innovation where sustainability of both organisation as
well as environment has been considered.
Open Innovation: It is defined as a model of innovation which encourage collaboration
with individuals or enterprises outside respective company (Isomäki, 2018). It includes creativity
and contribution of individuals outside an organisation in achieving its strategic goals. It is
concluded as hybrid form of innovation comes from both internal as well as external ideas. Asda
Ltd. is calling for innovative ideas from individuals outside an organisation which will enable it
to produce more effective results as compared to already existing products. This technique
enables company to gather more relevant and creative data from customers and market forces in
order to produce better outcomes. In reference to company's new product that is zero sugar
chocolates was concluded from in-depth research in market in regard to customer's taste and
preferences. Nowadays individual of each age group wants to intake low calorie products with
various health benefits. So the company is launching new health supporting product having
unique features considering preferences of each age group.
Due to pandemic situation, every individual is concerned with health due to low
immunity levels which may allow infections to easily enter into body that may lead to serve
damage to a human body. By keeping in mind recent scenario, it has been concluded by
organisation to implement market research to understand needs and requirements of consumers
in order to deliver favourable results. This will lead to better efficiency and productivity of an
organisation in the long run (Hu and et. Al 2019).
It is believed that more knowledge enhancements will produce more effective results in
regard to consumers as well as organisation. It is necessary to develop innovation by keeping

track of health issues being developed by various individuals from sugar based chocolates in
order to reduce their use by adopting natural sweetening resources in zero sugar based chocolates
which will let people enjoy its uncompromising taste. Therefore, Asda Ltd. has made sure that its
innovation should be based on customer's needs and preferences in order or maintain its market
share (Zhang, Li and Zheng 2017)
Evaluating selected product and identify its strength and weaknesses.
Selected firm offers different types of chocolates such as twirl chocolate bar, giant button
chocolate bar, asda malted milk etc. After research on changing taste and preferences of
customers it can be analysed that peoples are more conscious towards their health. In terms of
this for fulfilling requirements of customers selected company bring zero sugar chocolates for
their customers. By providing something healthy to customers it will increase sales for company.
In context of selected products its strength and weaknesses are mention below:
Strength:
 In context of selected firm, by innovating zero sugar chocolates it will helps organisation
in attracting more and more customers towards their products. This is because customers
are more focused towards their health and prefer to eat something healthy. This chocolate
includes zero sugar which is good for customers health and fulfil their cravings of eating
chocolates. In terms of this it will increase customers loyalty towards company (Li and et.
al. 2021).
 Another strength of zero sugar chocolates is that it helps Asda in increasing its market
segment. This is because it is consumed by all age group people such as children, young
age people and old age people. In context of selected firm it increases sales of its product
which cause higher revenue and market share value for company.
 By providing something different to their customers it will helps organisation in
achieving competitive advantage and long term success in market. The selected products
is also consumed by diabetic patient which differentiate it with other products of its
competitors that helps in positioning their product in the mind of customers.
 One of the important strength is that it provides something unique taste & healthy product
to its customers which increases customers loyalty and goodwill for company. Which
assist selected firm to run their business for a long period of time.
Weakness:

 In terms of selected product its biggest weakness is that most of peoples are think that
chocolates contain high calories, fat and carbohydrate which is harmful for them. So
because of this thinking these types of customers does not prefer to purchase or consume
chocolates (Mooijman and et. al. 2021).
 A sugar free chocolate is also contain fat so diabetic patents and health conscious people
consume it in a limited manner which cause low sales for Asda.
 In relevance of selected product, another weakness is, there are many companies which
also provide Ayurvedic chocolates, sugar free chocolates etc. Which increases
competition for company and reduce company revenue. So for archiving competitive
advantage its important for selected company to first make an effective strategy and then
introduce their innovative product in market.
 According to current situation related to COVID- 19 people prefers to drink healthy juice
and eat something healthy which increase their immunity. In terms of this people are not
that much consuming chocolates which reduces the growth of product in market and
effect on the revenue of company.
Plan of innovation product for organisation and development of implementation plan
Innovation of product means developing and introducing a new, redesigned and improved
product in market. According to current situation an organisation face dynamic environment and
competition in market. For successfully overcoming from these situation selected company need
to innovate something unique and different to their customers. Different steps for developing
innovative product is discuss below:
Step 1: Idea generation- It refers to the first stage of innovating new product in which a
company require to generate new idea related to a product from different available sources.
Different sources from where idea can generated is customers, newspapers, magazine, journals,
competitors, employees & suppliers of an organisation. Idea generation in an important stage of
developing new product because the overall process of product development is based on this
stage. In relevance of company after generating idea they examine the market and check that this
idea is not already existing in marketplace. Asda bring zero sugar chocolates after analysing
needs and wants of customers (Squicciarini 2017).
Step 2: Screening: In this stage of product development advantage & disadvantage of available
ideas is identified and select the best idea which is more beneficial for long term growth of

company and increase customers satisfaction. In context of selected firm, company take opinions
from their workers, customers and shareholders for avoiding costly unfeasible ideas. In terms of
this if company critically analysed pro and cons of every idea it will increase rate of success. In
relevance of company after analysing all strength and weaknesses of different ideas they select
zero sugar chocolates idea.
Step 3: Experimentation- It refers to a stage of product development where selected company
undertakes research for identifying sustainability, potential cost and profit generated from that
product. In context of selected firm, they conduct a SWOT analysis for identifying strength,
weakness, opportunity and threats related to their product in the market. In this step different
market strategies are formulate for identifying target customers related to product. In relevance
of Asda the concept of selected idea is properly developed in this stage (ZHU and LIU 2019)
Step 4: Commercialization- In terms of this step of product development selected firm needs to
analysis their customers in order to find out whether their innovative product fulfil the needs and
requirement of their customers or not. Zero sugar chocolates create a favourable situation for
Asda which increases commercialization and large scale production.
Step 5: Diffusion as well as Implementation: This is the last stage of innovation process which
attaining last acceptance of innovation of new product. Implementation refers to all activities
which helps in developing product structure, managing all resources required for production of
product (Sun, Miao and Yang 2017).
From above discussion on innovation process it can be analysed that for successful
development of an innovative idea its important to follow all these steps properly. In relevance of
company the product which is innovated is zero sugar chocolates which is innovate after
analysing market trends and taste and preferences of their customers. For successfully
developing this idea management of selected firm guide their employees to follow all these five
steps of innovation process. Which assist organisation in achieving positive response.
Solutions for improvement in weaknesses of selected product
For successfully developing innovative product in market its important for company to
make strategies for removing all these weaknesses. It will helps an organisation in achieving
competitive advantage and increase their performance level. Various solution related to
weaknesses of selected product are mention below:

 For improving weaknesses related to selected product, company require to produce small
size chocolates so that customers does not consume more chocolate and keep themselves
healthy (Xiaoyang and Sheng 2021).
 For facing competition in market company needs to formulate different policies and
adopt new strategies. In relevance of company, it adopt cost leadership and differentiation
strategy and provides unique and good quality products at a reasonable price. It will help
organisation in achieving competitive advantage in market and enhance profitability of
company.
 It is important for Asda to regularly conduct marketing and advertisement campaign for
developing mindset of those customers who think that chocolates are not good for health.
CONCLUSION
From above discussion it can be analysis that for long term growth and success of an
organisation its important for company to regularly innovate something new. Innovation helps
organisation in achieving competitive advantage in market. Which increase profitability and
market share for company. This report includes various theory of innovation such as descriptive,
sustainable theory and so on which helps company in bring innovation. In last for successful
developing innovation idea its important to follow all steps of innovation process.

REFERENCES
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