Innovation and Commercialization in Retail Industry: A Case Study of Sainsbury and ASDA

Project 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 in business refers to the change in internal and external activities to add value for the
business. Value can be determined in many methods like the creation of new products, re and services,
reducing cost, modification in pattern, outlook, design as well as improvements in current goods or
services to meet the desired goals and services. It refers to the making an effective plans and ideas as
well as implementing them in the form of launching new product and services, internal policies,
methods, process and technology to increase the overall productivity and profitability of company
(Bilandzi, Foth and Hearn, 2018). Commercialization can be understood as it is the process of
introducing new line of product and services to offer large number of variety in target market. In wider
term commercialization includes procurement, production, marketing, distribution, sales and customer
service or response as well as many other important functions in order to accomplish the commercial
growth or success of new commodity or service. To define the concept of innovation and
commercialization the selected two organizations are Sainsbury and ASDA which are multinational
retailers or supper market. Sainsbury was established in 1869 by John James Sainsbury at UK which
provides groceries items, home wares, electrical and many more household items. Whereas, ASDA was
established in 1949 by Noel Stockdale and J.W Hindell which deals in house hold items, George home
and clothing insurance, groceries and many more to the people.
This report highlights how innovation is sourced and supported within different types of
organizations and explore the processing of different types of innovation within organizations. Further,
it covers the process required to commercialism innovation within organisation. At last, it covers the
range of methods for protecting innovation within organizations.
2. A thorough comprehension, analysis and discussion on how innovation is
sourced and fostered by each your selected retailers.
In Sainsbury, the professionals decided to make innovation in their organisation and product or
services. For that they conduct board meeting and call manager, leaders and supervisions of all
department and team to make effective strategy in order to arrange and allocate their available
resources to foster the innovation. They strategies to introduce new product in their grocery line like
new flavoured beauty soap and new method of marketing to promote this product to the large number
of customers (Boretti, 2020).
There are various ways in which management of Sainsbury allocate their sources to foster innovation for
development-

Lead from the front- Innovation in Sainsbury, starts when professionals and leaders take
decision to modified their business operation and bring some thing positive and new in order to add
value by setting clear vision, goals for embrace change.
Create a culture of innovation- By modifying the internal culture and working policies to
encourage and engage them, so they push their limits and give more efforts to foster innovation. As they
want free and independent environment to think out of the box to create better ideas to execute the
plan of innovation into action effectively. By making strong, open and liberal organizational culture, they
will develop the mindset and commitment among employees to innovate and adopt changes (Bourke,
Roper and Love, 2021).
Build effective team- leaders of Sainsbury, must develop and form effective team by providing
elective plan, structure, clear objectives and real meaning in task the member of team does as well as
assigning duty to all as per their skills for achieving long term benefits. By effective communication and
providing physical safety they can motivate them to increase their efforts for innovation.
Reward failure or success- It is most important way to enhance employees performance and
creativity by giving them recognition and feedback for their practices in Sainsbury. Leaders can give
rewards and suggestion for the better work and idea given by employees to motivate them to think
innovative in order to make innovation in business.
Take ownership of clients problems– Leaders of Sainsbury must encourage their staff members to take
responsibility of issues presented by customers. By listening their problems and make improvement in
product, services, design as well as delivery they can grab great opportunity to implement innovation.
They can shared problems of customers to every employees so they adopt changes in their performance
to meet the demand of clients.
Benchmark against the best- Leaders and managers of Sainsbury must set benchmark of their
innovation strategy by conducing deep research about their competitors policies, positions and value in
target market. They can also set benchmark for the performance of their employees, new product and
services as well as marketing strategy to find out the achievements and failure (Brass, 2021).
Flat management structure- Top management of Sainsbury also use flat management structure
to provide better working culture as well as enabling better opportunities for free communication or
motivating confidence in employees for innovation.
In ASDA, the specialist and top level management consult with each in general meeting of
company about innovation and commercialization in their business to achieve more success across the
world.
There are many ways in that specialist of ASDA implement sources to foster the innovation for future
growth such as
Associating- Specialist of the ASDA have the ability to make links between ideas, problems,
questions related from various field. It enables them to formulate new strategy, ideas, technology to
makes changes in their organisation to solve the issues which they are facing. It can assist them to
connect two different situation as well as find new solutions to handle problems inventively (Daniels and
Amadi-Gabriel, 2019).

Questioning- After making plans innovators of ASDA asking questions to their employees
constantly in order to understand the process and progress of innovations to detect errors, area of
changes and development for the achievement of predetermined goals.
Observing-Further, leaders of ASDA monitor and observe the working of employees by
providing them freedom and better environment so they improve the quality and adopt changes for
innovation. To give feedback to them and know the full details about the process of innovations.
Experimenting- Then, professionals of ASDA, wants to test the ideas of innovation in market in
order to take positive and negative response of customers about innovation. Also, by offering new
product and receive positive and negative response to implement modification in product to make it
better.
Networking- Specialist of ASDA build network outside the company to get better ideas,
technology, strategy from other industries and countries for their new products and services. They talk,
consult and take advise from other companies and specialist to get best idea and their viewpoint on
innovations (Gan, Hong and Hou, 2021).
3. Detailed analyses and discussions on type(s) and process(es) of innovation
in each of your selected retailers.
In Sainsbury the innovation of new product and flavour of their soap in grocery items are
successfully developed and embedded by using all these ways effectively as well as they launch their
innovation in market and get positive response to the target customers. In ASDA, managers can use the
ways of implementing potential resources by using all innovations types to modified and utilise new
technology in online business (Şen, 2020). Innovation can be classified in many ways and in two
dimensions that is technology newness and impact of the market. There are various types of innovation
which the professionals of both company can use to expand their product portfolio or services in the
target market. The four P's of innovation in context to Sainsbury and ASDA are as follows-
Process- It is the innovation process which is directly linked with the internal process of
company. as management of Sainsbury can change their internal process like change in organizational
culture, structure, policy ,methods and others to bring innovation. This innovation helps them to
motivate their employees in order to increase their productivity, profitability as well as quality of their
product and services to increase the experience of their potential customers.
Position- This innovation is refers to the change in target segment and positioning of their
product and services to offer them in new market in order to attract large number of customers. Such as
marketers of ASDA can use this innovation type by making change in their target segment as well as
increase number of store in market place, offer their products or services of different age group and add
more value to customers in order increase their experience or customer base.
Paradigm- This innovation is related to the change in traditional style by adopting new trends,
technology to modified the methods of business operations. This innovation is concerned with inventing
new thing which no one can offer before in order to change midst of people and set new trends in
market. Management of ASDA can bring this innovation by adding digital changes in their marketing

services, add artificial intelligence and robots in their supper market in order to attract large number of
customer and increase their brand value
Product – This innovation is concerned with the modification in the product and services and
add more features, flavor and variety in their product line or services in order to increase the experience
of targeted customers. As professional of ASDA and Sainsbury can bring innovation by adding more
items in their product line, adding new or unique flavors in their grocery item to add value to their loyal
customers base.
There are four steps in the innovation process which the management of both company must follow
while introducing and bringing innovation in their products or processes. These steps are as follows-
Ideation- It is the first step in which marketers can conduct deep research about the recent
trends, customers preferences, problems and issues to introduce new innovation to mitigate issues and
meet their expectations
Project selection- Professionals of ASDA and Sainsbury must select the most appropriate
innovation type in order to achieve success, desired objectives. As well as the innovation in which they
invest to gain profit or profitable return on investment
Product development- In Sainsbury, they decided to bring product innovation by adding new
flavor like saffron in their soap line to increase customer base. Whereas, management of ASDA decided
to bring process innovation to expand their business online by launching new app.
Commercialization- By using new marketing technology like digital to promote their innovations
in targeted market and lancing the goods and services to potential target segment as well as adapting it
to customers needs.
4. A critical evaluation of the success (or failure) of the innovation in each
retailer.
The Sainsbury received positive response on their new innovation and new line of grocery
product from the target customers in target market which helps them to make innovation in constant
basis. As they add new product in their soap or grocery item which helps them to drive attention of
people towards their innovation and increase their customer base. The company received positive
feedback or favorable response from their targeted customers which motivate them to bring more
innovation and launch unique items in global market in order to reach at the top in the industry.
Professional of Sainsbury bring innovation by adding saffron flavor in their soap by conducting whole
innovation process. It is the product innovation which the company introduce in the market in order to
attract customers specially women who try to experience new flavor which helps them to improve their
skin texture.
Also, in ASDA , the company also achieved huge success by introducing new technology like
online business from potential customers in new market globally. This is the process innovation by