Innovation and Commercialisation in Retail: A Case Study of Marks and Spencer and TESCO

This report analyzes the innovation and commercialization strategies of Marks and Spencer and TESCO in the retail sector. It discusses how innovation is fostered in each company, the types and processes of innovation, and evaluates their success and failure. The report also provides recommendations for supporting innovation and an action plan for business innovation.

layout for unit 8 innovation and commercialization
Part 1 (LO1 and LO2)
1. Introduction to your two chosen retailers/supermarkets that will be
analysed for their innovative approaches
Innovation may be defined as the process of developing the new product and services or
make changes in the existing in products. This is basically a process in which the needs of
market are connect with the technological capabilities through lots of research. The process of
innovation varies from industry to industry and the production line of the firm. Whereas,
commercialization may be defined as process of introducing the new goods and services or
production method within the business or in the market (Brenner and Adamovic, 2018). This
enables the consumer to have a choice of product and allows the firm to generate more
revenues. For the success of organization an important role is played by the innovation and
commercialization as this comprises the whole process of understanding the customer’s needs,
running a session of innovation, develop a prototype and combine this with the beefs and after
this start scaling. The following report is developed by a well-known grocery retailer name as
Shopper trends which not do, they business functions in UK. The following report is based on
the Marks and Spencer and TESCO and both the firm has a well-known image in the grocery
retail sector. The TESCO was founded in 1919 and the firms headquarter are situated in the
Weleyn Garden city where as M&S was founded in 1884 and the headquarter are located in the
London, UK. The following report is going to focus on how innovation is supported within the
selected organization along with the process of innovation in relation to the chosen companies.
This report also give recommendation on, how these retail stores support the innovation in the
goods and services, various channels of funding, tools which give assistance in order to protect
the knowledge and intellectual property (Haron and et. al., 2018) . And in the end an action
plan for the business innovation also been covered.

2. A thorough comprehension, analysis and discussion on how innovation is
sourced and fostered by each your selected retailers.
The procedure of innovation may be defined as the conversion of new and innovative
idea into the finished goods. The main goal of the innovation is to add some new value in the
product in order to create new product and improves the individual lives. So, for developing the
new product it is very important for the management of organization to be more innovative
and generate new set of ideas (Gong and Peng, 2018). In order to create the new product, the
firm must have to conduct the market research, collect the information and connect the needs
of customers with new ideas. Basically, there are two type of innovation that is revolutionary
innovation and the evolutionary innovation. Revolutionary innovation may be defined as an
unexpected which paid no effect in the existing market. The revolutionary innovation came
under the discontinuation of the innovation which is not profitable for the firm and not good
for the society. Whereas the evolutionary change may be defined to seek the incremental
change in the existing goods, process and structure. This came under the continuous innovation
and give assistance to the firm to become more competitive and earn lots of profit. In order to
improve the sustainability, the firm need to innovate their product on regular basis with adding
some new vales in the individual life. So that is why innovation is very crucial for the firm. In
relation to the TESCO and the Marks and Spencer, how innovation is foster has been discussed
below: -
TESCO: -
The Research and development department of the firm works on the innovation of
goods and services in which they are dealing. Basically, the research is done by them on two
basis which are needs of customers and their future needs. The needs of customers are
comprising of internal department and stores and future needs comprises of technological,
social, demographic and fashion trends (Altafe Hassan and Batool 2019). By identify these two
elements by the team members different types of ideas has been developed form pool of idea
taken into consideration. The employees which are working for TESSCO are very skillful and
talented, they work in a team in order to generate new ideas for effectively facing the
challenges. The online business of the firm is growing with a high rate. Several changes have

made by the TESCO management in their online business-like additional safety measures,
discounts, less delivery charges and many more which results in increasing the online sales.
Along with this, picking hour are extend by them, they also widened their delivery windows and
recruit the additional staff on temporary basis in order to support the online shift.
Marks and Spencer: -
This is also the well-known grocery retail brand of UK which fulfilled its innovation
process by offering excellent quality of products to their customers with better in store
experience. In order to implement the cutting-edge technologies which is the need of
innovation process they partner with well-known company to fulfill the needs and
requirements of customers (Lin, Xiao and Wang, 2021). The management of the Marks and
Spencer provide their online services to around more than 75 % British households. The pickup
facility of the firm is very good among its consumers that collect their online products all across
the nation. The online business of the respective firm grows in a very immense manner they not
only sell their products through their websites but also started selling through various online
platforms. The multi-channel strategy is follow by the management of the company in order to
sell their products in the global market and innovate their services on the basis of customers
feedback's.
3. Detailed analyses and discussions on type(s) and process(es) of innovation
in each of your selected retailers.
An important role is played by the innovation within the organization, this not only
develop different types or bundle of opportunities for the business enterprises but also helps
them to create better connections. In numerous ways, innovation assist the business like create
development opportunities, regular improvement, make the brand popular in the marketplace,
give competitive edge, responds to the new market trends and develop new selling point for
the goods and services (Giol and oCollins and Davis, 2019). In order to do innovation in a very
effective manner it is very important for the management of the business organization to adopt
the complete market strategy. With the help of this they can effectively identify the

requirement as well as need of the consumer. Different types of steps are comprising under the
innovation process and it is very important for the company management to follow all these
steps in order to get the effective result (Li and et. al., 2021). The steps which are included in
the innovation process are idea generation and mobilization, advocacy and screening which
assist in determining that how much the idea is feasible, experimental stage which examine
that sustainability of the ideas, commercialization that develop the value of the idea in the
market and the implementation of the innovative idea. In context to both the retailer company
i.e., Marks and Spencer and the TESCO PLC the analysis of the innovation procedure has been
discussed below: -
TESCO PLC: -
The management of the respective company draws the corporate innovation program
by taking support from the selected external organizations and their 12 teams that showcase
the innovation to the CEO on which they are working. Basically, the respective company
management develop their procedure of innovation by following the four guidelines which
comprises of addressing the need of the potential customer's, involve the senior’s sponsors,
bifurcate the project according to the time and then complete openness for the all the team
members. Hackathons are run by them in which more than 350 employees are working with
proper collaboration and hard work in order to develop the business ideas to handle the
business in proper manner. Online business is innovated by the management of the business
organization by determining the all the aspects, deep analysis of the preference and the
shopping experience on the consumer and determine the new ways like, weekend grocery sale
which give assistance to the purchaser tom save their money (Stojčić, 2021). Their main aim
behind the innovation, is to make the buying experience of the consumer easier as well as
quicker and along with this provide them excellent quality of goods which added some value in
their life and satisfy the customers’ needs. In the process of innovation, the main strategy
which is adopted by the TESCO PLC is to develop the excellent quality of goods and services for
their consumer and serve them at a very reasonable price. Along with this, they also paid focus
on the continuous innovation which help them to enjoy the competitive advantage over their
rivals and make them consumer centric. For the continuous innovation, consumer needs are

anticipated by them and bring innovation within the organization by grabbing the
opportunities.
Marks And Spencer: -
The management of the Marks and Spencer paid focus on each and every portion of the
company. New app is launch by the business organization in order to provide new ways of
shopping which result in increasing the satisfaction level of the consumer with best buying
experiences. The respective company have the specialized team for digital innovation which
assist in the growth and development of the organization. According to the research it has been
identified that the Marks and Spencer have shown a growth of 50 % in their online business and
along with this they started home delivery services and the click and collect service on their
website (Shirazi and et. al., 2019). The innovation strategy of the Marks and Spencer comprises
of analyzing the needs as well as wants of the consumer and identify that what they are
expecting from the organization in the future. After this, on the basis of the collected
information strategies are developed and they analyze every single approach to innovate as per
the market value. In the last, best strategies are used in order to implement the best technique
of innovation in the best possible manner. The recent innovation which is done by the
company is the automated ordering system, this not only assist in reducing the cost buts also
help maintaining the stock level which result in saving the employees time and excellent
consumer experience.
4. A critical evaluation of the success (or failure) of the innovation in each
retailer.
Innovation can be inferred as a long-term process which is being measured in the light of a
company's competitive goals. In order to measure the innovation, the first step is to reach an
internal agreement within the organization (Chen, Liu and Zhu, 2018). The second step
involves measuring the technologies and methods which are used by the company
management in the innovation process, and the third step of measuring the innovation involves
tracking the process of innovation which is carefully chosen by the organization and finally

tracking the performance and the sales which is achieved. It is not very important to includes
the technologies within the process of innovation, but in most cases, it introduces new tactics
to do the different business operations. In relation to the Marks and Spencer as well as the
TESCO the assessments of achievement and failure of innovation has been discussed below: -
TESCO: -
The innovation perspective is basically a business setting, which occurs when new goods and
services finds different types of way to enter competitive market in order to increase the sale
and also find ways to meet the ever-changing demands of buyers. Along with this. It also
consists of executing new processes, activities and materials in products and services which not
only help in reducing the manufacturing costs but also helps in increasing the production
activity in proper manner. This allows businesses to grow in economic services. The
management of the Tesco has acquired the capability to implement new technologies that are
critical to business renewal. Different types of effective changes are brought up by the
innovation within the organization that not only help in contributing towards the company
success but also help in Improving the sustainability of the firm. Different types of interventions
are done by the management of the respective business organization with the help of
innovation in order to reach the goal. It affects the modernization of clients, influences the
people of the society in order to buy products made using different technologies, improves the
company's reputation, and innovation make sure the continues change the different
characteristics of products. The innovation process which is generally used by the management
of the management of the TESCO PLC is basically consists of eight aspects such as strategic
thinking, portfolio, research, ideas, directing, innovation development, market valuation, and
sales.
Marks and Spencer: -
The process of innovation and technology which is conducted within the organization assist the
company in getting success as it not only the trading pattern but also improves the sales. An
important role is played by the technology in the success of the Marks and Spencer, as the
innovation in the different product and the various online services bring different types pf

positive change for the firm. The innovation which is implemented by them in their machinery
brought long term positive changes in the company products. The investment which is done by
them in the machinery, increases 30 % of their sales along with this, they can effectively predict
the demand of the products whether it is up or down in the market and examine the sales data
automatically and effectively connect with the external information . After analyzing the current
climate of online stores, it has been evaluated that a sustainable growth is as well as profit is
attained by the Marks and Spencer which in comparison to their previous performance.
Innovative ideas are implemented by them in their digital technology which assist them in
providing easy, convenient and accessible services to their customers. They totally digitalize the
buying experience of the customer by making apps, introducing the loyalty app and scanning.

References.
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and commercialization of a circular economy for PV waste—The example of the
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(MIPRO) (pp. 0122-0127). IEEE.
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commercialization: evidence from universities in China. Scientometrics, 117(2), pp.687-
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Part 2 (L03 and L04)
5. A Recommendation for innovative products/processes for a new online
grocery retailer, supported by innovation risk and benefit analysis.
There is increasing market demand for innovation to announce new products, technologies and
new as well as innovative market plans. For the effective implementation of products, it
promotes the new idea for economic development. Innovation which is done by the company
in their goods and services, effectively reach to the consumer which strengthen the market and
this is all because of immense growth in the commercialization and industrialization From a
retailer's point of view, this can give great benefits to those who implement new product sales
ideas. Innovations in the development of new processes and products, assist in creating the
new organisational strategies which are needed to advance that helps in R&D to resolve
technical and scientific problems that may arises from external factors. Innovations in the food
retail sector are facing many changes to survive in a highly competitive market. Successful
innovation in the online market of grocery requires the implementation of new strategies and
planning to expand the organization for significant market share. Innovation is basically a
means which make the organization more competitive and providing new ways to gain market
share. Innovation progress is needed to respond to customer exceptions and generate positive
results from this retail business. The strategies as well as the approaches which are adopted by
the TESCO plc and the and Marks and Spencer is totally based on the variety of business
models, including customer preferences, customer effectiveness, and customer participation, to
help drive the process.
Shopper Trends, a new online grocery retailer, offers valuable technology, including processes
and goods and services innovation in the international market, by offering new inventory
systems, technology applications such as mobile marketing, and product at a reasonable price.
The well-known supermarkets within the United Kingdom are the TESCO plc, Marks and
spencer, Sainsbury and many more, the main reason behind their growth is the advancement of

the technology in the retail industry. The management of the business organization aimed to
analyze the demand in the market in effective manner, identify the threats and weaknesses
that may develops various issues in the future, change to sustain in a highly competitive market
and adopt new plans. Tesco which is a well-known United Kingdom retailers focus on customers
and their expectations and offer high standards of products and bank support systems with
easy access to online applications for shopping at this grocery store. The main reason behind
the success of the company is its management, excellent quality of after sale service, quality
products, reasonable price and brand value. Marks & Spencer, on the other hand, is also a well-
known food retailer brand in the UK. The respective firm specializing in product quality and
brand equity, they focus on fresh food services for their clients. A well-developed supply chain
is built by them, that not only improves their brand loyalty but also strengthen them and make
them more competitive (ElMassry, Ghoniemy, and Karam,2021). Therefore, it is very
important for the management of the Shopping Trends to come up with these innovative
thoughts to promote their products and services in the market of UK and meet their customers'
needs in order to survive in the highly competitive market.
6. Suggestion of funding channels for the recommended innovation,
supported by analysis of business value for potential investment.
In the initial stages of any business organization, company generates low revenue which
is not sufficient for all the expenditures of the company, so a business needs extra funding for
expenses like salary, bills, insurance etc. Also, when a business starts to grow and expand in
different locations, product lines, to maintain these activities, additional funding is required. A
business without funding sources can result in many debts. A business can opt different
channels of funding. The type of fund is basically chosen on the basis of the type of business.
The lack of funding may result into occurrence of failure of numerous imaginative ideas and
innovation of the business. Funding is very important part for the shoppers trends to design for
the success of the organization in order to accomplish the targets of the company (Bayram, and
Graham, 2022). To operate with ease into the organization and to run operations smoothly
makes it essential to have advanced ideas for the business. A innovative business means

commodity improvement process, valuation scheme, marketplace growth, and lastly the client
awareness program. For implementing all these operations a company needs investments and
financial support to run these activities smoothly. There are many ways in which shoppers
trends can acquire monetary fund. Some channels of funding are given below
self funding – self funding is also known by bootstrapping. when a company just starts
operating its business in the market, it is an effective way to finance because new businesses
don't get funding easily. So, investing from personal savings is the better as well as safer option
to run the business. One of the best part of the self funding is that it doesn't requires any kind
of formalities, regulations and legal documentation. In context of the company shoppers
trends, they are able of doing bootstrapping in the UK because they have as good wholesale
business enterprise outside UK. So for shoppers trends, self funding is the great option to opt
for.
Crowd funding – it is type of funding in which public contributes to the business. In this
funding, the businessman puts up all the data regarding the business like business goals, plans
of making profit, investment needed, reasons for funding and many more. Then, the consumer
reads the description and all the information carefully then they offer money to the
businessman if they think that the idea is gainful. It is provided through online assurance. In
context to shoppers trends, its a outstanding thought to raise monetary resource from public,
as their business idea is quiet profitable and effective (Perez-Martinez, and et. Al, 2022.).
Bank loans – loans are the ordinary way of financial support and also entrepreneurs
believe this as the basic choice to increase funds. Bank basically provides two types of finances.
First one is operative capital, which involves loans for the accomplish procedure of the business
organization. Second is the financial support, involves acquiring money from bank by sharing
business organization's thought and information of valuation. In context to shoppers trends,
this financial support channel is also suitable as it is secured in comparison to different
alternatives of the financing channels.
Funding through government programs that offers funds for start ups – the authorities
of UK has launches numerous strategies that promotes the startups to commence their

business organization in the country. In this the business owner has to render business ideas to
the authorities to get loan. In context to shoppers trends, they can also go for this alternative as
it is advantageous for their business organization.
Loans from micro finance provider – they render the fiscal services to those who don't
have an kind of access to the finance services. This financial support is getting popular and it is
suitable for the person who doesn't require much. In context to shoppers trends, it is much
simple to increase finances as from micro finance organization as they render loans on
effortless terms (Gencarelli, and et. Al, 2022).
7. Recommendation of tools to retain and/or protect the knowledge and
intellectual property (IP), generated through the innovation process
above, complimented with a critical evaluation of the tools.
saving your knowledge as well as intellectual property is important as it makes your
business unique and apart from other competitors. It is also important for offering the
customers new and different products and for the security of loans. Assisting your brand name,
logo, designs, trademarks, invention is important to make your business very different and
attractive than others (Jørgensen, and et. Al, 2021). To foster creativity in the organisation,
security is much required. without it, the thought of the business organization and individual
will not get its full benefit of their inventions and also, they will not get the benefit of the
searching and development. There are many protections tools that allows the differentiation in
business from another challengers by creating something unique and brand-new which is
secured from the other companies. There are five protection tools discussed below which
shoppers’ trends can use to assist the company's intellectual property(Malvajerdi, and et. Al,
2019).
Patents – these are the legal rights granted by government to the owner of the
business for a particular invention which exclude others to sell, use or create the owners
property. There are basically three types of patents utility, design and plant patent. Each
patent protects a specific invention. The government of UK has given the protection rights,

which allows an organization or parties to protect their own making, selling and invention of
a product and services. For taking a patent right, an enterprise has to file an application
mentioning the invention for which the patent is needed. After examining the Invention that
its new or new or not, they issue a patent which is a process of about 1 to 2 years.
Trademarks – a trademark is basically a sign, word or phrase that symbolizes the
organization's commodity, name, and the services in the market. These are mostly utilized to
make distinction among the products of the organization from other rival's products and
services. If a company have its own trademarks, then it is much more easier for customers to
recognize the company. Also, the trademarks never expires, as long as you are using it. To build
up the ownership of the trademark, a firm must include in commercialized sales of product and
services (Trovato, and Ali, 2019).
Copyrights – these are basically the legal rights which a creator have of their own works.
copyrights are utilized to assist any work of writing, literary, computer program or artistic works
which includes music, scripts, package designing, gross sales Manuel, advertising and another
things. To assist these rights, ensure that a proper created notice appears of every activity and
shown to the public. To have a copyright it is mandatory to be original, it must be tangible
medium of expression, and work of authorship.
Trade dress unfair competition laws – in order to protect the patents, trademarks, as
well as copyrights. There are majorly two crucial protection laws are given. One of them is the
trade dress partial rivalry, this refers to a product's designing, labeling, packaging as well as the
color schemes which characterized as “dress up”. It covers against the prohibited copying of the
distinctive packaging and commodity design which public can utilize and which is also coming
from a specific source. This security right doesn't need any application process, this right exist
automatically.
Trade secrets – this is referred as the protection law which secures all the documents
and the data in the organization. The information is hided by the specific company from the
outsiders. This law is used to hold up the privacy and hide all the confidential information

regarding the business from outsiders which prevents an outsider to use the company secrets
(Scorza, and Santopietro, 2021).
8. Explicit action plan(s) for the innovation (recommended above),
supported by methods to protect them in a wider environment context
For all the technological difficulty faced by the business nowadays, there is the new solution to
those problems which is the innovation. It can also be secured by different methods and these
methods assist the interest of of the capitalist by ensuring that the capitalist can handle the
usage of their innovation. The company, shoppers trends is basically a wholesale supermarket
which wanted to come in the marketplace of UK and assist its rights from the public as well as
the rivals they need to develop an action plan to their designed innovations and methods.
There are some ways discussed below in which the company shoppers trends can develop an
action plan to protect their innovations
Update intellectual property protection - seek for experience of a professional from an
intellectual property attorney to help in the success of the company's plans and avoid the
duplication and theft of owners ideas, design, and other concepts. In order to protect the
companies innovations and creations and to assist the patent system, a organization should
upgrade a serial of technological instrument and make them suitable in the digital procedure
which also includes the optimization of supplementary security certificates . To promote the
usage of advanced technologies, tools and techniques they should buildup a powerful security
for geographic indicators. (Iwu, and Patrick, 2021).
Betterment of IP enforcement – it is basically referred as the exclusive legal action
which an owner takes to maintain their IP rights as well as ensure that no third party uses it
without any proper authorization and obtain the compensations for all the losses when they
do. By implementation of a tool case for the security, clarifying the duty on the digital platforms
by the digital services act and also by building the function of an anti fraud office. Other
authorities can assist their own inventions and systems in a much improved manner. This
commission will enhance a much more effectual and needed balanced rights of IP

Encourage the use of IP - in our economy, intellectual properties serve as the base or
foundation of the innovation. There are rights granted by the government which incentivize the
researching and creativity by providing the creators an opportunity to earn profit from their
innovative work. In any company, encouraging the usage of IP by informing about the
advantages of IP and filling systems to the management. The rights of IP also facilitate the flow
of information freely. The well built IP systems impacts the innovation by attracting the
investments, rewarding the inventions, and encourage the investors to build up their ideas,
thoughts and make sure their knowledge is protected. Encourage the financing of the
organisation is based on the intangible and also ensures that there is accessibility of critical IP in
the crisis.
Facilitate the sharing of IP – this thought is majorly used to secure the intangible,
recognizing the vital role of IP which is useful in tackling all the issues and problems of hacking.
For the betterment of the legal right structure in the organisation, there is an absolute
requirement to mobilize the IP secure data better (Tanno, and Demoly, 2020).
CONCLUSION
From the respective report it is concluded that the innovation as well as the
commercialization plays an very important part in achieving the organization's goals and in its
success. It renders a comprehend study of how the innovations assist in fostering the enterprise
and comprise an analysation on how the company tesco and marks and Spencer applies the
innovation strategies and how it aids them in the improvement and growth of their business
organization. After that it renders a detailed judgment of innovation process of both the
wholesale companies. Then it include that how does the innovation leads to the success or
failure of the tesco and M&S. This report also consists of brand-new organization “shoppers
trends” which should introduce and process their products digitally on various digital
platforms. Then it consist of all the various channels of financial support like self funding,
finance funding, crowd funding and different other authorities schemes. Also there are many
instruments which secures the organisation data and innovations are the patents, copyrights,
trademarks, trade secrets and trade dress competition law. it also suggests various tools which

assisted the intellectual properties through innovations. Lastly, it consists of action plan for
innovations like promote the usage of IP, sharing of IP, modify the security procedure and
enforcement of IP use.
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