Innovation and Commercialisation in Retail Industry

This report discusses how innovation is sourced and fostered in the retail industry, types and processes of innovation, critical evaluation of success or failure of innovation, and recommendations for unique products for a new online grocery retail store. It includes a thorough analysis of Unilever and Tesco, their innovation strategies, and evaluation of their success. It also suggests funding channels for innovation and an action plan to protect them.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
A thorough comprehension, analysis and discussion on how innovation is sourced and fostered
by each of the selected retailers. .................................................................................................3
Detailed analyses and discussions on type(s) and process(es) of innovation in each of the
selected retailers...........................................................................................................................5
A critical evaluation of the success (or failure) of the innovation in each retailer......................6
PART 2............................................................................................................................................7
Recommending unique products for a new online grocery retail stores supported by innovation
risk and benefit analysis-.............................................................................................................7
Suggestions of funding channels for the recommended innovation that is supported by analysis
of business value for potential investment...................................................................................8
Recommendation on Knowledge and intellectual property tool..................................................9
Action plan for the innovation along with the method to protect them.....................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
The organization is always anticipated generally in enhancing growth of an organization. Here
marketers mainly alter their existing or current product by simply observing the present situation
of particular demand. The organization mangers particular make plan to improves the current
product through some changes. Here the innovation mangers are mainly responsible for
commercialization of new product. Whereas commercialization means simply launching new
products into market place (Alipal and et.al, 2021). So, the customers also get innovated or new
products easily and can purchase it. Unilever is a multinational company located in London. The
company offers products such as food, ice cream, beauty products, clearing agents as well as
personal care. Tesco, is an second largest chain of the supermarkets in the UK. Both company
offers good quality products at fare price and offer wide range of products.
The report generally analysis how an innovation is sourced as well as fostered by both
companies. The report also discusses in more detail on type as well as process of the innovation
in both businesses. Moreover, the report includes critical evaluation of success or failure of the
innovation in both organizations. Also, includes some recommendation of the innovation
products for new online retail as well as innovation risk and also benefits analysis. The report
includes some suggestion of the funding channels particular for recommendation innovation. The
report will also explain explicit action plan for such innovation.
MAIN BODY
A thorough comprehension, analysis and discussion on how innovation is sourced and fostered
by each of the selected retailers.
Innovations are referred to the new things such as the new inventions, introduction of
new things or it can be the practices that help in developing the new things. Typically, it can be a
new product, new ideas but, at the same time it can also be a new and modified way of doing
some activity (Kahn, 2018). These are some extra efforts that are put in by the businesses in
order to create a great value for themselves as well for the customers. This has also became one
of the most important part as innovation directly implies to the improvements and modifications
that are done in the businesses to generate extra profit and offer something extra to the
customers. The whole concept of innovations is essential for the world as without the
innovations taking place, there is no betterment, there will be no improvisations and there will be

no progress made by the world (Gabriel, 2019.). As in the world today the whole digitalization
has taken place which is also giving a great advantages to the companies, businesses and many
other organisations by making their work easier but without the innovations, digitalization would
have not taken place and the world would be the same as it was earlier.
Sourcing and fostering innovations can be done in number of ways (Mazzarol, 2022). It
completely depends on the organizations to choose how they are going to source the innovations,
from whom they are going to source the innovations, how are are going to implement the
innovations etc. But, here is the example of how two companies from the retail sector source and
foster their innovations:
TESCO: Its not easy to live without updating the living standards or without the technologies.
So yes, innovations hold one important factor in the world and for its progress. With the great
innovations there are many companies that are doing wonders and are creating a great value for
themselves. The work's been done in a much easier manner than it was done yesterday. The
businesses have evolved and are still evolving with each passing day. Tesco's team of
innovations main aim is to start from the initial ideas and end on the minimum viable products
under six weeks. The team of the innovators run hackathons twice in a year which demands 350
people to work together and develop new ideas for the challenges that are coming or can come in
the company's business. The innovations in the company provide a competitive advantage which
gives the company an upper hand in the competitive market and makes it one of the most
successful company of the UK economy. Tesco source and foster its innovation mainly from its
employees and enables them to share the new ideas with the company. This strategy of sourcing
the innovations from the employees encompasses the transformation of the knowledge of the
employees and works well for the company also as it helps in developing the products or
bringing new technologies to the company. Thus, innovation in the company is mostly bring
forth by the employees and the work teams of the company.
UNILEVER: There is no end to innovations and technologies, they are still evolving on a good
scale. The big organizations also come up with good innovations in their operations as it gives a
upper hand to the companies in the market and make it easier for them to survive or to give a
neck to neck competition to the other companies. Unilever comes up with different products
through the innovations and craft its each and every product with the help of great experts,
collaborated with the partners network. The company also translates its scientific uncovering into

the everyday products related to the products that help improve the health of the people, their
well being and the confidence. Unilever source its innovation through its R&D department. The
company's R&D is great at its working and also encompasses over 5000 professionals. The
professional are all hired globally and are a great help to the company in building the brand with
great innovation Unilever invests almost
€1 billion each year in its R&D and hold a huge portfolio encompassing over 20000
patent applications and patents worldwide.
Detailed analyses and discussions on type(s) and process(es) of innovation in each of the selected
retailers.
There are different types of innovations that are adopted by the businesses in today's
world. Every organization choose its own kind depending on the functioning of the organization
and how the innovation is going to help the organization in current times as well in the coming
years. There are 4 types of innovations namely: Disruptive innovations, Radical innovations,
Incremental innovations and sustaining innovation. Here is the innovation type and process in
Tesco and Unilever:
Tesco: Tesco being a huge supermarket chain of UK, has wide operations. The company deal in
variety of products which makes the facility of all at one stop available for the customers and
also is the main reason behind the rapidly growing sales of the company. Innovations play a
crucial role in Tesco as it is the most customer centric supermarket and believes in facilitating
the customers with everything they want and make their experience a good one. For this very
purpose the company deals in Disruptive innovation (Mazzarol and Reboud, 2020). This is a
kind of innovation which introduces new technologies in the environment of the company and
also disrupts the presents market. Tesco follows a innovation technology of SELF CHECKOUT
which makes the customers to visits the supermarket again and again as they can shop without
any help offered by the company and without any help of the personnels there. This even saves
the time of the customers which is highly consumed while standing in the lines. Through this
innovation the customer simply buy the products and make an exit by scanning through the
barcodes of the company. The process of innovation followed by the company is Tesco corporate
innovation. This process help the company to maintain a harmony at the workplace, as through
this process shared leadership it gives each and every employee to share their idea of the
innovations, which result positively for the company.

Unilever: Unilever being one of the most affordable supermarket for the customers believes in
serving each and every customer with a good experience. The company also believes in creating
differentiated products that can make the company rule the market (Pynnönen, Hallikas and
Immonen, 2019). With this approach the company is already a leader of the market, when
counting in terms of the soaps. Unilever uses Radical type of the innovation which focuses on
building one innovative product and transforming the other industries. This often leads to new
market creations. As the company pay high focus on its R&D department, the department focus
on the breakthrough and exclusive technologies which hold good potentials. The process of
innovation followed by Unilever is the Ideation, which enables the company to to work on their
product ideas and new concepts of products. This process also creates a new demand in the
market and also enables the company to earn guaranteed profits.
A critical evaluation of the success (or failure) of the innovation in each retailer.
To evaluate the innovations is one important thing as it gives an idea about the potential
the innovation hold and how it will benefit the company in the future (Zhou and Wang, 2020).
Here in Tesco and Unilever innovations are made by the companies in order to enhance the
productivity as well create an explicit value for the customers. Here is the evaluation of the
following companies:
Tesco: To come up with a unique idea and to innovate something that serves in the favour of
both; the customers and the company, Tesco initiated with the new innovation of self check
technology, which is resulting in a very good way for the company and this technology is also
increasing the annual sales of the company. Customers these days do not wish to waste their
times and Tesco by coming up with this technology is saving the time as well as keeping the
interest of the customers aligned with the company (Dziallas and Blind, 2019). Thus, the new
innovation of the Tesco definitely holds good and is also a great success for the company.
Unilever: Being one of most famous brand which offers explicit value to the customers,
Unilever is determined towards innovating the ideas and concepts on which the company
generally make the products that are sold nowhere, but here. This innovation strategy is giving a
good return to the company and is also making the company a leader of the market. This strategy
of innovation holds good for the company thus, proving the innovations successful for the
company.

PART 2
Recommending unique products for a new online grocery retail stores supported by innovation
risk and benefit analysis-
Unique products generally give organizations a competitive advantage over other
competitors. The main aim of the making various products is particular to attract the consumer
towards new organization (Kahn 2018). There are some external factors such as choice of
consumer, seasonal factors as well as price that generally be kept in mind while present the new
products in the market. Here list of some unique products for the new online grocery retail
organization are:
Diet drinks-
The sugar free drinks as well as beverages particular gives healthy life to peoples. Selling
such diet drinks will give competitive advantage. The low-calorie drinks in bottles additional
added uniqueness to such product of grocery retail store. Obesity and even diabetes has become
very common issue in United Kingdom and addressing this problem in market will become also
a reason behind success of the business. The diet drinks as well as beverages should be added in
grocery store. Even the increasing awareness in the environment problem further can also give
competitive advantage. The grocery business should avoid plastics in its food items as well as it
can focus on bringing some eco- friendly items while packaging.
Organic items-
It is normally recommended that the grocery business must focus on the organic items in
market of U.K. Generally organic products are more like by the customers. Will be shifting to
organic items in the future, so by utilizing this opportunity the business will take competitive
advantage. The raising apprehensions regarding health of people will give main advantage to the
grocery store for get successful. So all items like cakes, chocolates, cookies, snack must contain
the healthy ingredient. However, it is also difficult to make such organic food items with
particular good taste as well as flavours but also good investment in the technology that
generally will bring innovation in existing market, that also give grocery store high revenues.
(Nedumarans 2019).

Suggestions of funding channels for the recommended innovation that is supported by analysis
of business value for potential investment.
There are different sources from which business can take funding and same sources are
available for starting a grocery store in the retail market of UK. Further, This also can be said
that enhancing the financial resources of the organizations offers productivity in the
organization. The options of funding channel available for making innovations in business are as
follows-
Bank loans-
For offering innovations in grocery stores, the store should focus on increasing fund and
that can be done through the source of bank loan. Bank loan simply means giving finances to
organization in the exchange of interest rates (Bordo, and Duca, 2018). This bank loans does not
take equity of company In exchange for loan which says that there is no way that the bank can
manage and take decision s of the company. The only disadvantage while taking loan from bank
is that bank requires collateral that need to be given by the organization still loan act as good
funding channels which in turn can help grocery store in order to start business and earn good
amount of revenues in the market.
Venture capital-
Venture capital is other type of funding, in which venture capitalist fund organization in
the exchange of equity (Röhm 2018). This funding helps organization to grow in market as
equity shareholders manages company but to raise fund from this means of channel is quite
difficult as it has already been seen that the venture capitalist invests in the company which has
high potential to get success in market and has already being seen the significant growth.
Venture capitalist offers good performance in the company. This is also called as the firm's
capital as it act as the good source of funding.
Subsidies and grants-
The another is the subsidies and grants that are given by the government and this act as
the good source of financing. It has been clear seen that every country is focused towards making
manufacturing sector as its wealth and giving funds in order to gain competitive advantage over
countries will benefit country. The government of UK is also acting as good source of funding

for the new start- up. The donations are done to those that have growth potential in the market.
This is the easiest way and company can reach government.
Recommendation on Knowledge and intellectual property tool
Knowledge and intellectual property tool is highly important in order to protect the
organic products which is offered by the business to its customer. The ingredients they use and
direction of preparing diet conscious products are easily stolen by the competitors. Hence, to
protect the unique product ideas of business, the following tools of Intellectual property is
available to business:
Patents: A patent is a government granted monopoly with the help of which business can
protect its products and processes as well as use their own new and innovative ideas. The
advantage and disadvantage of patent IP tool is as follows:
Advantage:
 The exclusive rights of the patent are one of the key advantage with the help of which
business can make, use, sell and import goods.
 It also best for protecting sparks innovation.
 It is easily commercialised (Wang, Gui and Ma, 2020).
Disadvantage:
 The disadvantage of patent is that it is difficult to acquire and costly for the organizations.
 Limited time and dealing with infringers is also a disadvantage of patent.
Trademark: It is used for goods and services which is consider as a word, symbol, phrase
or combination of all these that help the customers recognize client’s business.
Advantage:
 Trademark is a cost effective and is valid for 10 years.
 It protects company against unfair competition.
Disadvantage:
 The classes of trademark cannot be altered.
 The risk of being genericised is also a disadvantage of trademark.

Copyrights: This is another important IP tool which protect the original work and
expression of business owners. It done not protect ideas of business.
Advantage:
 The public record of ownership is an advantage of copyright registration.
 It protects against importation of infringing works.
Disadvantage:
 Limited duration and dissemination is one of the major disadvantage of copyright.
 The cost of acquiring copyright is also high which create financial difficulty for business
to move online grocery market.
Trade secrets: This is also a type of intellectual property on confidential information. It is a
process of a company which is generally not known outside of the company. The client with the
help of trade secrets able to provide them competitive advantage over competitors.
Advantage:
 It provides indefinite protection to the confidential information of the company which is
its one of the major advantage.
 It is allowable to provide protection over the limit of 20 years (Trencheva and et.al.,
2020).
Disadvantage:
 In case if business owner came with an idea which is their own, then in such case trade
secrets is no longer protected by law.
 It does not provide protection from reverse engineering by the public or a competitor.
Recommendation:
On the basis of the analysis of different intellectual property tool, it is recommended that client
should adopt patent for its new business idea. It is because patent is one of the best intellectual
property to protect and sparks innovation. The business idea to sell diet drinks and organic items
are highly protected from copying, manufacturing, selling and importing by the competitors
without client permission. However, it is costly but with the help of this technique the company
able to solve its protect its new and unique business idea from competitors over the specify

period of time (Modic and et.al., 2019). Hence, it is recommended to client business to acquire
patent as an intellectual property to protect their new innovative idea.
Action plan for the innovation along with the method to protect them
In order to implement the strong innovative products such as diet drinks and organic item within
the UK online grocery market, the following action plan is going to be followed by client
business:
Five steps of action plan
Step 1 Setting SMART Goal:
In the first step, the smart goal is required to be set by the client for its business such as:
 Specific: To increase the sales of UK online grocery market by 10% and customer
retention rate of business by 15%.
 Measurable: To measure the success of goal through internal trend analysis and customer
retention rate on social media platform.
 Achievable: To make goal achievable, company will enter UK online grocery market
with its unique and innovative products such as diet drinks and organic items.
 Relevance: To improve the overall reputation of business with innovative products
(Colombo, Pansera and Owen, 2019).
 Time bound: To increase the sales within the first quarter and customer retention rate
within the one year of innovative product development.
Step 2 Creating list of action:
 Agreement with the sustainable supplier: This is the first action which is going to be
implemented or taken by the client business in order to make its innovative products
successful. Under this method, business with make agreement with the supplier to buy
organic food products.
 Solar panel: This is another action in which client will incorporate the solar panel within
the business to save electricity resources. This action is beneficial for providing diet
drinks using automatic machines.

 Just in Time inventory management system: This is an inventory management system
which is followed by the client business to order the raw material from the supplier at the
time when it is required. This is done to save the cost of transformation and wastage of
resources.
 Arranging funds from bank loan: The company will take loan from the Bank of England
to sell the innovative product in UK online grocery market.
 Intellectual property tool adoption: With the help of patent IP tool, business will protect
its business from the wider business environmental factors and competitions (Gainza,
Brooks and López, 2020).
Step 3 Set a timeline:
The desired goal will be achieved by the client business within the time line of one year with the
help of sales rate and customer retention rate monitoring.
Step 4 Designate resources:
The resources which is going to be used by the business for its innovative business idea is
physical, human as well as financial resources. The loan of £50000 will be acquire by business.
Step 5 Monitoring the progress:
To monitor the progress of the actions taken by business to successfully offer innovative
products in online grocery market of UK, the sales rate and customer retention rate on social
media platform will be monitored over the period of time (Gainza, Brooks and López, 2020).

CONCLUSION
From the above report it has been concluded that innovation plays a very important role
when it comes to commercialisation. It helps in improvisations and also helps the business
organizations in serving a better quality. The following report has focused on two different retail
organizations, how the innovation is sourced in those organizations, types and processes of
innovation followed in each organization and an evaluation of the innovations adopted by both
the companies. In part two the report also recommended innovative products and processes for
an online retail store, suggestion of the funding channels, detailed tools required to protect the
intellectual property and lastly an explicit innovation action plan.

REFERENCES
Books and journals
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business services in technology commercialisation. Technology Analysis & Strategic
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