Innovation and Commercialisation: Importance of Commercial Funnel and New Product Development
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This report discusses the importance of commercial funnel and new product development in innovation and commercialisation. It also explores different ways to access funds and tools used for developing, retaining, and protecting intellectual property. The report focuses on McDonald's as a case study.
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Innovation and Commercialisation
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Table of Contents INTRODUCTION..........................................................................................................................3 TASK...............................................................................................................................................3 P5.Explanationofimportanceofcommercialfunnelandapplicationofnewproduct development...........................................................................................................................3 P6. Building an innovation business case for an organisation including different ways to access funds............................................................................................................................4 P7. Evaluation of different tool used by organisation for developing, retaining as well as protecting intellectual property..............................................................................................7 CONCLUSION...............................................................................................................................7 REFERENCES................................................................................................................................8
INTRODUCTION Innovation is a process of introducing something new in market which can be new ideas, products (Bakhtiariand Bruno,2020). It can also be done by making modification or improvement in existing products and service. This project report includes analysation of McDonald which is American restaurants. It was established in the year 1970 by Richard and Maurice McDonald. This project report includes importance of commercial funnel and its application in new product development. It consist innovation business ways along with ways of accessing funds. Moreover, it evaluate tool used by organisation for developing and retaining intellectual property. TASK P5.Explanationofimportanceofcommercialfunnelandapplicationofnewproduct development Commercial Funnel:Commercialfunnel refers to visual metaphor for path which is taken by customers to become of customer (Bansi,2019). It is used for purpose of sales as well as marketing organisation which helps companies for understanding as well as visualising sales process that measure conversion success among each steps of funnel. It is important for business of McDonald for various reason which are as follows: Helps in developing marketing strategy:It helps is developing effective marketing strategy as it assist entrepreneur to analyse and understanding different business model as well as marketing model which helps to get success. McDonald is developing marketing strategies to convert customers to actual sales. Helps to relate product with customers:Commercial funnel helps business to related their products as per needs of customers as there are different ways in which an organisation describe their content, communicating to their clients and producing content which can create impact on sales of McDonald. Helpstoincreasesales:Commercialfunnelalsohelpsmanagersofanorganisationto understand needs of customers which helps them to increase sales of products in market. McDonald is working on needs of customers as they are understanding of needs of healthy food of customers. New product development:
New product development is a process of introduction new products in market by renewing existing product or through introduction of a products in completely new market. It is an importantprocesswhichisconsiderbyanorganisationduetoincreasingcompetition, advancement in technologies, changing needs and wants of consumers and capitalising new opportunities. For developing new products managers of McDonald needs to follow certain steps which are mentioned below: Idea generation:In this step, managers of McDonald needs to develop numbers of ideas which can be done through competitors, employee, suppliers, customers (SeptemberHo and Chuah, 2018). Idea screening:Idea screening is a processes in which managers of McDonald filter different ideas in order to select idea which best suit to needs of customers. McDonald has selection ideas in which they will offer fusion of healthy as well as fast food. Concept development:In this step, managers of McDonald will develop detailed concept of products. In this managers decide, which types of salad they should choose for offering their new product. Managers in this step also analyse feasibility of products and service. Development of marketing strategies:It is another stage in which managers of McDonald focusing on development of initial strategy for introduction of their new product in market. For this, McDonald is develop strategies related to price, promotion and for other aspects. Business analysis:It is another stage in which managers of company analyse different aspects related to product like sales, cost and profit. Product development:Product development stage is one which include actual development of products (Kelly and Kim, 2018). In this managers of McDonald is focusing on actual product that is fusion of healthy and fast food. Test Marketing:Test marketing is a process which consist products as well as proposed marketing programme that are tested in real marketing setting. In this, managers of company analyse whether proposed products will generate profit for business. Commercialisation:It is another stage in which products is introduced in market. It incur huge cost on products like sales promotion, advertising as well as marketing efforts. P6. Building an innovation business case for an organisation including different ways to access funds Executive SummaryMcDonald is an organisation which is currently providing fast
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food and planning to launch new products that is fusion of food. It is providing different salads and vegetables along with fast food. ObjectivesTo satisfy changing needs of customers. To increase sales and marketing share in market. To build new positioning in minds of customers. SolutionFor achieving these objectives, it is important for managers of McDonald to introduce new variety of food which is fusion of healthy and fast food which helps them to fulfil increasing demand of healthy food in market (Narimani and Vaezi, 2017). InnovationMcDonald is adopting innovation in their food which adding healthyfoodlikedifferentsaladsforimprovinghealthand immunity of people. ResearchTo adopting innovation, managers of an organisation needs to conductvariousresearchwhichassistthemtounderstand requirement and needs of customers. FundingOrganisationcanaccessfundsfromdifferentmethodwhich includes bank loan, angel investors and many more. BenefitsThis innovation helps to get various benefits to business like it improvesatisfactionofcustomersandhelpsthemtoattain objectives. STP analysis: Segmentation:McDonald is an organisation which is segmenting their products on basis of geographic location as it is providing its products and service in different countries. Targeting:Targeting is process which helps firm to select most attractive segment among available.McDonald is selecting segment on basis of structure, size and attractiveness (Novikov and Arbelaez-Campillo, 2021).
Positioning:Positioning is process of development of different image of an organisation in minds of customers.McDonald is creating different image by providing healthy food. This image can be done with strong promotional strategies. Marketing mix: Product:McDonald is offering healthy food like salad and fusion of healthy vegetables along with their junk food (Siontorou, 2022). Price:In order to capture more market share,McDonald is offering affordable prices of their products. Place:McDonald is providing their products and service in their returants where customers can eat food there or take away. Promotion:For promotion of products and service,McDonald is adopting digital marketing specially social media marketing which helps them to interact with customers. SWOT analysis: StrengthWeakness McDonaldisamultinationalorganisation whichhastheirrestaurantsindifferent countries. Ithashighlyskilledemployeesforgetting competitive advantage in market. Competition create threat forMcDonald as it decrease profitability level and marketing share of company. OpportunityThreat McDonald can expand their business in more countries on basis of innovation. Theycanalsotargetcustomerswhichare preferring healthy food. Brexit and other political issues create threat for their business. Due to covid-19 company needs to adopt more measures which create impact on business. Ways of accessing funds: Crowd Funding:Crowd funding refers to ways to access funds for a project with raising small amount from many people through internet. It provide various benefits toMcDonald as it is one of easier way to access capital and does not create much pressure on management.
Bank Loan:Bank loan refers to a source of fund that is borrowed by a business or individual person from bank. It is beneficial forMcDonald as itdoes not create burden on business and providing loan at reasonable rate and east terms and condition. Angel investors:Angel investor is another method for accessing funds in which individual provide funds to business in exchange of ownership share in business. It provide benefit to McDonald as it these individual share their knowledge and experience with business. P7. Evaluation of different tool used by organisation for developing, retaining as well as protecting intellectual property Intellectual property: Trademark:Trademark is one of intellectual property which includes sign, expression as well as deign which create unique identify of products and service. It can be register through a person, business organisation or any legal entity. These trademark are placed at voucher, package, label of products. Patent:Patent is one of intellectual property which is granted to an individual for invention that can be a prices of products offer new ways of doing things. It helps McDonald to prevent other to use their invention. Copy right:It is another intellectual property which provide right to own of creative work to prevent others to use it for a certain period of time. This work can be in form of artistic, musical, educational and literary. CONCLUSION From above mentioned project report, it can be concluded that commercial funnel is important aspect as it reflect journey of customers. It helps business for select an effective marketing strategy and relate products of company with requirement of customers. It also helps business to increase sales as well as profitability of company. In order to develop new products, business needs to follow certain steps which helps them to get competitive advantage in market.
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REFERENCES Books and Journals Bakhtiari,S. andBruno, A., 2020.GovernmentCommercializationGrantsandBusiness Performance. The Singapore Economic Review, 65(05), pp.1271-1291. Bansi, R., 2019, September. Challenges to the Commercialization of University Innovation: A South African Study. In European Conference on Innovation and Entrepreneurship (pp. 117-XV). Academic Conferences International Limited. Ho, S.C. and Chuah, K.B., 2018. Determinants of ITF R&D Technology Commercialization in logistics and supply chain industries: R&D technologist perspective. In Innovative Solutions for Sustainable Supply Chains (pp. 17-53). Springer, Cham. Kelly, R. and Kim, H., 2018. Venture capital as a catalyst for commercialization and high growth. The Journal of Technology Transfer, 43(6), pp.1466-1492. Narimani, A.R. and Vaezi, R., 2017. Identify factors to the commercialization of research in Knowledge of public administration. Novikov, S.V. and Arbelaez-Campillo, D.F., 2021. Commercialization of Intellectual Property at High-Tech Enterprises. Russian Engineering Research, 41(8), pp.762-764. Siontorou,C.G.,2022.University-industryrelationshipsforthedevelopmentand commercialization of biosensors. Handbook of Cell Biosensors, p.707.
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