Managing Innovation in Business

This presentation discusses the importance of managing innovation in business, specifically focusing on Tesco's strategies for entering new markets. It covers topics such as adaptation and standardization of marketing mix, CBBE model, integrated communication mix, and measurement of success. The presentation provides valuable insights into how companies can effectively expand their businesses through innovation.

Managing Innovation in
Business

Table of content
• Introduction
• Adaptation and standardisation of marketing mix
• CBBE model
• Integrated communication mix and methods
• Measurement of success
• CONCLUSION
• REFERENCES

INTRODUCTION
Innovation refers to a practice in which helps in development of creative and
new ideas for an organisation. Through the help of this organisations bring
in new products and services in market to expand their businesses to a
number of new nations. Following report is done for Tesco which is a chain
of supermarkets (Vom Brocke and Mendling, 2018). This report is developed
as an addition to the earlier report for innovations which can be brought in
by Tesco Plc. In this following report adaptation as well as standardisation of
marketing mix for expansion of company is discussed in this report.

Adaptation and standardization of
marketing mix
•Product: It is dependent on products and services of an organisation which explains how well these companies
meet all the requirements and needs of customers effectively. Tesco is carrying on extensive research in order to
enter into this new market. It has been developed that the customers in the region are looking for competitively
priced high-quality goods. They also prefer the goods which are produced in country itself.
•Price: This is the element of marketing mix which helps in generating revenues for the firm. It is often seen that
companies face a number of problems while setting up price for foreign markets rather than that of domestic
market. Company came up with strategies of local pricing for market under which customers had to pay less for a
range of products to the company.

Cont…
•Place: This refers to setting up the stores of Tesco at various locations in Ireland. It requires 50
million euros by company to set up its stores al across Ireland. Company have made a number of
changes in its store specially in those located in Northern Ireland to make them more convenient for
the customers arriving
•Promotion: Company uses the principle of “Brand globally, advertise locally”. This is giving
company a consistent brand name on a regular basis along with the benefits company have attained
from economies of scale.

CBBE MODEL
•Customer based Brand Equity refers to the fact that how success of a brand can be directly attributed from the
attitude of customers towards that brand. The various factors of CBBE Model are mentioned below:
1. Who are you? Brand Salience (Identity)- This is something through which company can distinguish there
brand from their competitors. It helps in identifying depth as well as breadth of awareness about the customer.
Tesco have built its brand as a single place which provides the customer with every basic thing they need.
•What are you? Brand Performance and Brand Imagery (Meaning)- This is when customers of company want
to know more about the brand. they get interested in brand and want to know about its functionality,
performance, image, logo etc. The customers of company will come to know about the performance of company.

Cont…
•What about you? Consumer reactions (Responses)- It is often seen that human behaviour of every
person is distinct and the judgement as well as understanding of different person can be different in a
number of ways.it is the duty of customer to make their own comparison of product and services
provided by company (Biemans, 2018).
•What about you and me? Consumer Brand Resonance (Relationships)- It is assumed by companies
that when a customer is loyal to their brand it is presumed that the customer will then buy no other
products rather than the products of company. For this company is required to provide customers with a
number of facilities because competition in retail market is very high.

Integrated communication mix
The marketing mix communication focuses on various ways through which company focuses on various ways
through which they can easily reach a number of customers through it (Anwar, 2018).
•Advertising: the major objective used by advertising for Tesco is to inform the customer, persuade them, remind
them and also reinforce the product in the mind of customers regularly. In Tesco make sure that the presentation and
promotion of its goods and services is done efficiently through the help of advertising on television, radio, newspapers
and so on
•Sales Promotion: Sales promotion is a way of promotion or communication used by Tesco in which various
incentives, coupons, discount vouchers, short-term sale and so on methods are used by companies in order to attract
their consumers for buying the product and services provided by them.

Cont…
•Direct marketing: Direct marketing is an approach in which one to one marketing takes place. In this
kind of marketing the marketer directly shows the prospective customer and interact with them in order
to make sure that the purchase is made by them. There are a number of ways through which Tesco will
carry on direct marketing in its business in Ireland.
•Public Relations: Public relations basically refers to building good relations with society, customers
and government. In this company make sure that external environment of the company and people
living in this environment have a positive image about the company as well as all the employs in the
company

Measurement of success
•There are a number of ways in which Tesco will measure the success of the company in foreign
market. Some of the ways used by Tesco for measurement of its success are mentioned below:
•Sales target: At the end of every quarter company will look that the sales target which it have said in
the beginning have been achieved by the business or not. This is a common way of checking whether the
performance of company is according to the plan which is formulated at the beginning of the period or not.
•Market share: Market share refers to the amount of customers the company have in the particular
industry in comparison to their competitors. It can be measured by comparing the market share of
company in the beginning as well as at the end (Franceschelli, Santoro and Candelo, 2018).

Cont…
•Profitability: Profitability refers to the amount left with company after being of all its depth and costs.
It is essential for a company to earn profit in order to run for a longer period of time. If Tesco wants to
enhance its profit it have to cut down the number of cost and overhead which aren’t required and are
unfruitful for the company in future.
•Returns on investment: return on investment refers to the percent of return or profit the company is
earning on the actual investment that is capital which is invested on the business. It is important that
company owns a part of the investment every year so that the business can be said to be a successful one

CONCLUSION
Through the following report it can be concluded that Tesco needs to change
a number of factors in its marketing and communication mix while
venturing into a new market. Through the help of this company can
effectively set up in Irish market and even a number of other markets in the
world. It is necessary for company to make sure that they bring all the
required changes in their communication mix as well as marketing mix.
Through bringing in these various changes in strategies of company Tesco
may easily achieve success in all of the new markets.

REFERENCES
• Vom Brocke, J. and Mendling, J., 2018. Business process management cases. Digital Innovation and Business
Transformation in Practice. Berlin et al.: Springer.
• Foss, N.J. and Saebi, T., 2018. Business models and business model innovation: Between wicked and paradigmatic
problems. Long Range Planning, 51(1), pp.9-21.
• Biemans, W., 2018. Managing innovation within networks (Vol. 7). Routledge.
• Turulja, L. and Bajgoric, N., 2019. Innovation, firms’ performance and environmental turbulence: is there a moderator or
mediator?.
• Sousa-Zomer, T.T. and Miguel, P.A.C., 2018. Sustainable business models as an innovation strategy in the water sector:
An empirical investigation of a sustainable product-service system. Journal of Cleaner Production, 171, pp.S119-S129.