Innovation in Lock Systems: Yale Case Study

This presentation discusses the innovation in lock systems by Yale, a lock manufacturer headquartered in the UK. It explores the different types of innovations, the market segmentation, target market, decision-making process, marketing strategy, and the extended marketing mix.

Presentation

INTRODUCTION
Innovation can be determined as a diverse activity. Innovations
are made as per the type of issues or problems that are faced by
people. These are helpful enough to make sure that problems are
solved and organization or the person behind the idea get
benefited. Ultimate aim of any organization to gain maximum
profit. This is only possible when they will be able to understand
the need and requirement of customers and delivering them
services accordingly. Present report presentation is based on Yale
which is a lock manufacturer headquartered in UK has identified
an issue and for this they have solution. This is over entry lock
system and it is based on an application that will help to lock the
doors, even if one is miles away from their home.

Type of innovations
 Breakthrough innovations
 Sustaining innovations
 New market innovation
 Disruptive innovation

2. Pitching innovation
Among all innovation types, the current innovation falls under sustaining.
There are many different type of lock systems available in the market.
However, there are conditions in which people forget to lock up their room
and just to lock it up they have to go back and do it. However, this innovation
will be helpful enough to solve their issues as they do not need to go back but
they just need to use the application which will enable customers to lock their
room automatically. This way time and energy will be save and home will be
safe.

3. BCG matrix
This is a type of strategic management that enables the
organization to know their position in the market. In this context,
there are four type of categories that are based on market share
and market growth in relation to competitors. With this respect,
below given are four categories:
• Question mark
• Stars
• Dogs
• Cows

Cont...
As per the findings, it can be stated that Yale falls under
cows, in which they have high market share but low market
growth. However, with the help of this new innovation that is
made improvement in the lack system, the growth of the firm
will also improve.

Market segmentation
It is a type of strategy that enables to divide the people on the
basis of preference and customers population. This is done as
per the type of products and services that the firm wants to
deliver to their customers.

Cont...

Cont...
Types of market segmentation:
 Demographic segmentation
 Behavioural segmentation
 Psychographic segmentation
 Geographic segmentation

Cont...
Among all these, as per the new innovation, segmentation will be done
on the basis of demographic and Psychographic. This product will be
preferred by youngsters and old age people. More specifically, people
with families. Further, Psychographic segmentation is selected as
changes in lifestyle occurs with time and with change in technology. So
this type of segmentation will be favourable for cited firm to distribute
their target audience.

Size of target market
Lifestyle: As per the target market, there are people who prefer to make
purchases as per changing technology. With this respect, there will be
customers who will prefer to make use of this innovation in order to
adopt the changes as per technology.
Social class characteristics: Mostly, those people who have high
living standards will prefer to make use of this product. However, there
will be customers who will prefer to make use of services in order to
save their time and energy.

Cont...
Geo-demographics: There are areas in UK where there are many issues
of theft or house break-in. In order to make sure that this type of
condition does not take place, people will make use of innovation
product at these areas more.
Motivation: This innovation will boost up people as they do not
need to get tensed up for thinking about their home to be unsafe. Any
type of issues or trying to break in will be identified and that information
will be received to customer.

Importance of decision making
process
There are certain expectations that people have when they purchase
a product. There are 8 steps that are involved in decision making.
All the aspects that are considered by customers at each level
should be identified and that should be satisfied.

Marketing strategy
Cited firm has delivering a product that is not being provided by any of
the organization. From this it can be stated that they are making use of
differentiation strategy. The product is different and unique and
effective enough to make the organization attract customers. There are
many organizations, that deliver their customers with similar products
and services. When differentiation is made over the products that are
delivered, people will make use of the services more and they will
prefer the product that is delivered by cited firm.

Marketing mix
Below given are the marketing mix for innovation product:
Product: It is a lock system in which it is operated with the help of mobile
application. The door gets closed up and gets locked with one single click.
Further, it also includes password protection in which number has to be
dialled in order to open up the door.
Price: The price of this product will be kept high. Cited firm has a brand
name and so people will make use of the product.
Place: The products will be sold at London initially and then it will be sold
at different markets.
Promotion: In order to promote the product, cited firm will make use of
online sources. The use of internet users are increasing at raising rate and
this is helpful enough to promote the product online.

Extended marketing Mix
People: Employees will be trained so that they will be
able to install and make customers understand about the
product.
Process: Customers can order it online or they can visit
to physical store in order to order the product.
Physical evidence: The product will be packed in such a
way that it may not get damaged easily.

REFERENCES
• Davenport, T. H., 2013. Process innovation: reengineering work through
information technology. Harvard Business Press.
• Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
• Edquist, C., 2010. Systems of innovation perspectives and challenges.
African Journal of Science, Technology, Innovation and Development.
2(3). pp.14-45.
• Stokes, D. E., 2011. Pasteur's quadrant: Basic science and technological
innovation. Brookings Institution Press.
• Teece, D. J., 2010. Business models, business strategy and innovation.
Long range planning. 43(2). pp.172-194.

Thank You