Innovation and Commercialization Report: Primark's Business Strategies

This report delves into the innovation and commercialization strategies of Primark, examining how the company translates ideas into successful products and services. The report explores the importance of innovation and its comparison with invention, highlighting Primark's approach to introducing new products and services. It analyzes how vision, leadership, culture, and teamwork contribute to innovation and commercialization within the organization. The report further examines the 4Ps of innovation (Product, Process, Position, and Paradigm) and the developments in frugal innovation, illustrating how Primark adapts to market trends and customer needs. It also discusses the significance of the commercial funnel and provides a case study-based analysis of Primark's business, including its competitors. Finally, the report touches upon tools for knowledge development, retention, and protection, providing a comprehensive overview of Primark's business strategies.

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovations and its importance comparison with invention:.................................................1
P2 Vision, leadership, culture and teamwork help in innovation and commercialisation..........2
TASK 2............................................................................................................................................3
P3 4Ps of Innovation..................................................................................................................3
P4 Developments in frugal innovation .......................................................................................4
TASK 3............................................................................................................................................5
P5 Importance of the commercial funnel....................................................................................5
P6 Innovation business on the basis of case study......................................................................6
TASK 4............................................................................................................................................7
P7 Different tools to develop, retain and protect knowledge.....................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation means translating any idea or invention into goods and services for which
customer pay money (Lee and et. al., 2010). It help in satisfying customers needs and society
needs and attract more customers to buy their services. In every organisation or company
innovation is key element of success. Primark is a company which is known as Penneys in the
Ireland and its headquarter is in Dublin,Ireland. The company opened its first store in UK
which is founded by Arthur Ryan in June 1969 on 47 Mary street,Dublin. The company get
success in all countries because of its innovative ideas (Crossan and Apaydin 2010). After
success led in Ireland the company opened its large store in Belfast City centre in1971 and
second one in Derby, England,in1973. It have 385 stores over all worldwide. It is an clothing,
housewares and cosmetic accessories company they have subsidiary of AB Food. It sells its
trendy and fashionable clothes at cheap rate below than the market price to the public. The
company make changes in their products after certain time gap according to the trend running in
the market. There is a case study of apple and virgin group and relate them with primark
company .
TASK 1
P1 Innovations and its importance comparison with invention:
Innovation and invention word are overlapping but different from each other. Innovation
means introduce something new or change in exiting products by using technology, methods or
any idea where Invention means process of changing or introducing something new for the first
time. Innovation and invention provide huge benefits to society and organisation so many
company focus on both to develop their organisation 'PRIMARK' is one of those companies
(Cosh and Hughes 2012). Primark start its business by launching eight stores in UK,they opened
its first store in Boston with innovation purpose where they provide free Wi-Fi,showcasing their
new products and services , high discount, provide a store within the store,as well charging
facility, 1,000sqft trend room, seating space across the floor to their customers. Innovation is
more helpful to organisation and there is less risk as it is used in other company so organisation
get idea how to apply in there company. It make change in exiting products and services to aid
more people. Invention is more risk taking process there is completely new idea which is not
applied anywhere else (Suvinen,Konttinen and Nieminen 2010). To aid customer's shopping
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experience company fitted 84 fittings rooms and 73 cash registers. They continuously make
something new to add more customers. Recently it have also created a cosmetics line in
advanced quality and low price which is called 'PS Prp'.Organisation have retailer such as Zara
and H$M they offer large range of products such as women's wear, men's wear, newborn, home
ware, accessories, footwear,beauty products,newborn products and children's clothings in low
price (Kuratko, Hornsby and Goldsby 2011). Innovation help in company's growth in market
place by improving exiting products condition and by implementing new thoughts and ideas to
make their products more attractive and useful. Invention must be done by customer's point of
view to solve their difficulties and complains. It is process of smart idea and convert them into
good product or service. Both innovation and invention play a very crucial role in the growth of
Primark company. As company always make some good changes in their products and service to
satisfy the customer's needs and wants and to attract more and more people towards their
products. Change and innovation are completely close but they are not same (Kianto 2011.). For
both existing organisation and new organisation innovation and change is important to make
their firm successful and to satisfy their customers..
P2 Vision, leadership, culture and teamwork help in innovation and
commercialisation
Organisational vision, leadership,culture and teamwork play a major
role in innovation and commercialisation. To be successful every company
whether its small or big have a clear mission and vision which help them to
regulate the organisation smoothly and vision is key element to innovate
and commercialisation. Primark have vision to spread their business overall
world wide and to satisfy customers needs and wants in reasonable price
which is possible (Romero and Molina 2011.). In small organisation a teamwork
can produce innovation which if implement in right way then it can help
company to lead commercialisation of good service and products. The
employees do their work and make their full efforts to achieve goals
according to vision of the company. Leader is a person who help their
employees to do right things and set direction of path for them which is
very important in every organisation to guide their employees. Leadership
bring all things together which is needed to do in the organisation. They
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motivate employees to do hard things which is not done by them and set
direction for themselves. Organisational culture means their
perceptions,beliefs and value that existed in the organisation for long
period of time according to which they perform all the activities in the
organisation. Beliefs and value reflect the attitude of employees while
making products and services for their customer. They try to give
qualitative and quantitative products to the people according to their need
without do any fault in them (Standing and Kiniti 2011). All these organisational
factor vision, leadership, culture and teamwork help company to get
success if follow them correctly. Within the organisation the culture play a
very important role it provide rules and regulation within organisation it
should be positive that help to provide happy and healthy environment to
their employees. Leaders have to motivate their employees to maintaining
their functions in the organisation that help in reducing conflicts which
arises between the employees related to their work and help to create
healthy working place. If organisation's vision is set then employees get to
know what they have to do according to vision they make plans and
strategy to achieve their goals and development of the firm. Organisational
culture tells their employee's value and beliefs which they have to follow
while doing work in the organisation (Wonglimpiyarat 2010). The organisational
vision, leaders, culture help to their employees to create something new for
their company.
TASK 2
P3 4Ps of Innovation
There are 4 P's of innovation. They are Product, Process, Position and Paradigm all these
are invented to narrow the investigation on specific place of organisation.
Product: While innovating product for the first time first thing that comes in everyone's mind
that is which ingredients will be good for the product ,shape of the product, colours and so many
things. Before innovating the product in the market make everyone part of it so everyone share
their valuable ideas and thoughts related to products that help to make good product. The
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product should be in good quality and quantity, stylish and prettier so that people get attracted
towards it. In today times customer is king for making money customer's satisfaction is must so
when making products for the customers make sure it is according to the customers point of
view to full fill their needs and wants (Sonne 2012).
Process: Innovation focus on process through which products are created. Most organisation
enhance their effectiveness and efficiency by improving the process of making products into
innovative process. Innovative process help in cost reduction and useful in time saving by using
high technology and good idea. Process is very important part in innovation which process is
used in making of product and services is most typical part of this process (Ferrary 2011). It help
to save time of the employees and cost of production through using right process of production.
Position: The third step of innovation is re-positioning of product from exiting position of
product and services of the organisation. Position based innovation tells how to change take
place in specific product and services as they are used to achieve the organisational goals. Right
positing of products is very important as it directly effect on the sale of the product so it must be
in right position. It is the process of re-positioning the perception of making the products in the
firms.
Paradigm: The last P of innovation is used to know the dominant paradigm of business. It is
related to mental cause which help to know the type of business. This P help to know about
business and its products and services. It is shape of peoples wants and need according to which
next step is to be taken in the organisation to achieve the specific goals.
P4 Developments in frugal innovation
Frugal innovation is a marketing strategies that help to bring products to poorer
customers through re-inventing,lowering their price,high value consumer products. Labour
standards and exiting environment can lead to increase environmental wastage and exploitative
labour situation. FI means reduction in the cost of productions and maintain product
sustainability by using techniques. Its main aims is to bring products and services to billions of
poor and all middle class people. By cutting of costs,innovation idea, new techniques and
methods and new process of economy (Kutvonen 2011). Frugal innovation help in development
and try to satisfy customers needs and wants by giving them products and services at reasonable
price in good condition. It mainly focus on values sensitive thoughts which help them to reach at
more and more people. They discover new methods,value chain of products and new business
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model to make stability in the market. By the use of resource, new techniques of production and
new innovations the products and services provided to customers in new ways. It help to remove
non essential elements from durable goods i.e. laptops, phones, cars etc. They use new methods
and try new innovation to make their work easy and to reduce their cost of production so they
can provide product in low cost to their customers to make them satisfy .There is so many
organisation like Apple, Virgin group who use frugal innovation to increase their sell and their
profit of the organisation. It is a process in which customer's needs and wants put first and
according to them strategies adopted to develop goods and services. There is so many reasons
why frugal innovation important in organisation one of them is: it help in explore technology and
skills to develop organisation and to solve customer's problem. It help to adopt new opportunity
and development of economy by providing goods and services in low cost. The organisation
learn something new and innovative from developed countries in less economies. By day to day
the need of frugal innovation increase in organisation to make their work easy comfortable by
implementing new techniques in their products they make more money and increase standard of
living and help to cut manufacturing cost and research and development cost. By using this
techniques the products redesigned and re-produce in low cost in organisation so that poor
people also ready to buy the product without any financial problem.
TASK 3
P5 Importance of the commercial funnel
Selling products and services to people is most difficult task for every organisation
because of this organisation spend money on commercial to advertise their products and services
so that more and more people get aware about their products and services. Advertising of
products help to increase awareness, increase the growth of sales and help producer to find out
their competitors . Customer's point of view should be put on first before making advertisement
as customer is most important ingredient of business. It is important for the society to educate
people about social issues like girl child killing, child labour, family planning education,
smoking, etc. It today's times advertising play very important role it become necessity,to the
producer,customer, seller, society and traders. Without taking much time and cost
commercialisation help to spread information overall worldwide about new product. It help to
gain customer royalty and goodwill of the organisation. When organisation going to innovate
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new product all this eight process should be perform i.e. Idea Generation, Screening the Idea,
Research on market, Business Analytics, Customer's expectations, Product Development,
Commercialize, Perfect Pricing, Post Launch Review. Advertisement is important in customer's
life. No customer will know about the new products available in the market without
advertisement and they will not purchase the products (Troshani, Rampersad and Plewa 2011).
New product development covers all steps of bringing new product in market before launching
new product plugging mechanism should be in right way. It includes:Sequence, commitment and
good messaging.
Message: Every entrepreneur know the importance of good marketing of product. In new
Product Development (NPD) processing good marketing message should be add on which carry
the answer of people's needs. Thus it should always prepare according to customer's point of
view.
Sequence: Sequence play very important role while introducing new products it can't be mess up
as every stage is important and critical.
Commitment: It help to lock customers for long period of time and help to increase more
customer by giving them commitment of good quality products.
P6 Innovation business on the basis of case study
Primark have retailer like Zara and H&M who offer clothes in bottom price. Change in
consumer's habit and need cause the financial crises to company. Apple and the Virgin Group
continually come with some change to cover all the market sector. As apple innovate small
iPod to fulfil customer's need by giving them device who hold lots of music
whereas, Virgin also make some changes in their products and services just
to attract more people. Recently primark built three cores by sell jeans with
the help of its efficient supply chain,low operating cost and by big stores. It
offer innovated products and services by making strong strategies to lead
the market which is first choice of people in low price (Edison, Bin Ali and
Torkar 2013). The company use new technology to operate successfully in
many countries now the company has plan to introduce its products and
services in India. Apple is leading company over all worldwide which is
world's most valuable brand who enjoy high brand royalty because of its
high technology that develop , design and sell computer software,consumer
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electronic and online services like iPhones, iPod, tablet,apple watch, digital
media etc. Primark also lead market through its innovation where they
provide free Wi-Fi,showcasing their new products and services , high
discount, provide a store within the store,as well charging facility, 1,000sqft
trend room, seating space across the floor to their customers. It is best known
because of its trendy clothes and cheap price (Wonglimpiyarat 2010.). It offer large range of
products for everyone such as women's wear, men's wear, newborn, home ware, accessories,
footwear,beauty products,newborn products and children's clothings with high quality in low
price. Every organisation need innovation it is essential element for the life of company to be
successful in the competitive market to increase its profitability. In order to introduce its
products and services in India. The company think to enter into franchising with exiting
company so that will help to understand the requirements of peoples and get better growth with
limited risk. The organisation have to launch new fashion dresses. For the development of the
organisation it is important to make strong market strategies. Every organisation should look in
different ways to expand its business. Currently the expansion of primark working with cotton
connect and self employed association to support female over 11000 cotton farmers in India
which help them in increasing consumer interest and provide stability to their customers.
Organisation considered their employees as stakeholders of the company and treat them well so
that they give full efforts to make their company successful. Customer easily get attracted
towards something innovative and new because of this reason organisation continuously make
some positive change in their products and services to retained their customer for long period.
TASK 4
P7 Different tools to develop, retain and protect knowledge
Primark is biggest fashion retailer it provide trendy and fashionable
clothes at reasonable cost to their customers in good quality. The
organisation educate their employees on the basic of patents, copyright ,
trademark and trade secrete of the company because these are the
important tools of the firm which help to maintain their stability in the
market for long period. Every organisation use different tools to develop,
retain and protect knowledge and intellectual property it helpful to
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maintain goodwill and improve image of company. Primark use following
tools which is helpful in company profitability and performance and secure
from their competitors. These are as follows:
Trademark: It can be any symbols,image,devices or any name which help to make different
identification from other brand or product. Trademark owner can be any company, any
individual or any legal entity. Primark have its trademark which help to their customers to
identified its products and services. It is mainly know for its high range of products and services
provided overall world wide in lowest rate.
Patents:It is like assets of organisation. Primark have patent right for their
all products and services whether its clothes, bag , shoes or cosmetic
product. No one can use its products and services for business purpose
without its knowledge. It provide security to an organisation from its
competitors it does not allow anyone to make,sell or use of invention.
Copyrights: Copyrights is created by law which provide legal right to
organisation applied on wide change of invention and creativity. It help to
protect expression of ideas,thoughts and methods. It is form of intellectual
property to secure creativity of idea or work. Primark have copyright of the
company which does not give permission to any person to sell and produce
their goods and services without their permission.
CONCLUSION
From above report it is concluded that In today's era most of the companies are
struggling for their survival because they don't make any change in organisation, Primark is the
only organisation who is doing good in recession time in UK. Information technology is
important tool of success that help in the whole structure and organisation profitability. They
doing well only because they understand importance of innovation in their business. For every
organisation innovation is very important to attract more customers and maintain stability in
market but people scared to adopt any change in their product and services as they don’t know
innovation will be useful or bad for their organisation. Primark has make continuously change to
operate their work effectively and efficiently and to retained their customers. They are also
opening new stores of cosmetic which are more trendy than before. The reason behind their
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success is innovation and change. They make innovation in manufacturing, technology,
management and organisation which plays a very important role in growth of company.
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REFERENCES
Books and Journals
Cosh, A., Fu, X. and Hughes, A., 2012. Organisation structure and innovation performance in
different environments. Small Business Economics.39(2).pp.301-317.
Crossan, M.M. and Apaydin, M., 2010. A multi‐dimensional framework of organizational
innovation: A systematic review of the literature. Journal of management
studies.47(6).pp.1154-1191.
Edison, H., Bin Ali, N. and Torkar, R., 2013. Towards innovation measurement in the software
industry. Journal of Systems and Software.86(5).pp.1390-1407.
Ferrary, M., 2011. Specialized organizations and ambidextrous clusters in the open innovation
paradigm. European Management Journal.29(3).pp.181-192.
Kianto, A., 2011. The influence of knowledge management on continuous
innovation. International Journal of Technology Management.55(1/2).pp.110-121.
Kuratko, D.F., Hornsby, J.S. and Goldsby, M.G., 2011. Innovation acceleration: Transforming
organizational thinking. Pearson Higher Ed.
Kutvonen, A., 2011. Strategic application of outbound open innovation. European Journal of
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Lee, S. and et. al., 2010. Open innovation in SMEs—An intermediated network model. Research
policy.39(2).pp.290-300.
Romero, D. and Molina, A., 2011. Collaborative networked organisations and customer
communities: value co-creation and co-innovation in the networking era. Production
Planning & Control.22(5-6).pp.447-472.
Sonne, L., 2012. Innovative initiatives supporting inclusive innovation in India: Social business
incubation and micro venture capital. Technological Forecasting and Social
Change.79(4).pp.638-647.
Standing, C. and Kiniti, S., 2011. How can organizations use wikis for
innovation?. Technovation.31(7).pp.287-295.
Suvinen, N., Konttinen, J. and Nieminen, M., 2010. How necessary are intermediary
organizations in the commercialization of research?. European Planning
Studies.18(9).pp.1365-1389.
Troshani, I., Rampersad, G. and Plewa, C., 2011. Adopting innovation management software in
university innovation commercialization.Journal of Computer Information
Systems.52(2).pp.83-92.
Wonglimpiyarat, J., 2010. Commercialization strategies of technology: lessons from Silicon
Valley. The Journal of Technology Transfer.35(2).pp.225-236.
Wonglimpiyarat, J., 2010.Innovation index and the innovative capacity of
nations. Futures.42(3).pp.247-253.
Online
Innovation and commercialization, 2010: McKinsey Global Survey results. 2017. [online]. Available
through:<http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/
innovation-and-commercialization-2010-mckinsey-global-survey-results>. [Accessed on 26th
September 2017].
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