Innovation and Commercialisation: A Report on Unilever Food Solutions

This report examines innovation and commercialisation strategies within the context of Unilever Food Solutions. It begins by differentiating innovation from invention, highlighting the importance of organizational vision, leadership, culture, and teamwork in fostering innovation and commercialisation. The report then delves into the 4Ps of innovation (Paradigm, Product, Position, and Process) and the application of the innovation funnel. Furthermore, it explores frugal innovation and provides examples. The report emphasizes the significance of the commercial funnel and the New Product Development (NPD) process. It also includes an innovation business case for Unilever and discusses funding sources. Finally, the report evaluates various tools used to protect knowledge and intellectual property, concluding with a comprehensive overview of the key findings.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation importance in comparison to invention...............................................................1
P2 Organisational vision, leadership, culture and teamwork shape innovation and
commercialisation.......................................................................................................................2
TASK 2............................................................................................................................................4
P3 4Ps of innovation and the use of innovation funnel...............................................................4
P4 Frugal innovation and examples of using .............................................................................6
TASK 3............................................................................................................................................8
P5 Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation.............................................................8
P6 An innovation business case for Unilever and includes ways to access funding................10
TASK 4..........................................................................................................................................11
P7 Different tools used by Essence Drinks to protect knowledge and intellectual property....11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation refers to creating modern, creative ideas and thoughts. Innovation involves
new imaginations and introducing new technologies and methods in an organisation. Innovation
is done in products to meet current demands and unarticulated needs in the market. Innovation
also required for providing better solutions. Commercialization is the process of managing
something which gives financial benefits to the company. Present study will lay emphasis on
Unilever Food Solutions
Unilever Food Solutions is a British-Dutch consumer goods Company. The Company was
founded on 2 September 1929, 89 years back. The Unilever food solutions is the Europe's
seventh most valuable Company. The company's founders were William Lever, 1st Viscount
Leverhulme, Samuel Van den Bergh, Singrose and Georg Schicht. The headquarters were
situated in Unilever house, London in UK and Rotterdam in Netherlands. The food products of
Unilever are available across 190 countries. Unilever Food Solutions offers tasty ingredients and
recipes which saves consumers preparation time. Commercialization refers to introducing new
and innovative products in the market. The project report will outline the innovation and will
explain its importance in an organisation with comparison to innovation. The project report will
describe the vision, leadership, culture and teamwork which is helpful in shaping innovation in
an organisation. The report will further explain the 4Ps of innovation and will explain the use of
the innovation funnel in order to shape innovative ideas. The report will explain developments in
frugal innovation and will provide relevant examples in the context of organisation. The report
will showcase the importance of commercial funnel and the application of new product
development. The report will provide sources of funding for the purpose of innovation in the
organisation. Lastly the report will evaluate different tools that organisation can used to develop
the products.
TASK 1
P1 Innovation importance in comparison to invention.
Difference between Innovation and Invention
Innovation refers to making improvement and development in existing product through
generating new and creative ideas. Invention is defined as discovering new product for the first
time. Innovation is done in existing products to make them better in order to match with
consumers suitability and in accordance with current market demands whereas Invention is done
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for the first time. Invention refers to launching of completely new product which had never been
developed before (Hossain and Kauranen, 2016). Innovation is done for the purpose of making
improvement in an existing product whereas Invention is done for the purpose of discovering
new products in the market which make life easier and which could make work more efficient in
an organisation. Innovation is done on the continuous basis for developing an existing product
whereas Invention is done for the first time for discovering a particular product.
Importance of innovation as compared with invention in Unilever food solutions
 Innovation manage to look for the problem to solve through generating new and creative
ideas for the improvement purpose.
 It is helpful in innovating new food products in Unilever food solutions. Invention don't
look for improvement in existing products.
 They simply discover the new product. The Unilever food solutions is innovating new
milkshake namely, “Chocolate shake with marshmallows”. Innovation is helpful for
cutting off competitors in Unilever food solutions.
 Through doing innovation consumers needs get fulfilled in Unilever food solutions.
Milkshake is invented in the past but through innovation the Unilever food solutions
tends to innovate and add on more flavours into their milkshakes as per consumers
desirers and taste & preferences. Innovation is helpful for making continuously
development in the existing products of Unilever food solutions whereas Invention
generate and discover completely new products in the market, Invention doesn't have any
role in the existing ones.
P2 Organisational vision, leadership, culture and teamwork shape innovation and
commercialisation.
Vision – The Vision of Unilever food solutions is to become the leading provider of better food
solutions to their customers by offering tasty ingredients and recipes. The Vision of Unilever
food solutions is to following up practical actions in order to translate vision into tangible results.
Vision is to make improvement in the food products and encouraging suppliers to do the same.
Vision is to provide healthy solutions for insuring health and wellness of consumers.
Vision can shape innovation and commercialisation.
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The Vision of Unilever food solutions is to make improvement in the food products which can
done through innovation. Vision is helpful for shaping innovation and commercialisation in their
food products. The vision provide direction to Employees of Unilever in order to do innovation
and commercialisation in food products on continuing basis. The vision encourages employees to
bringing new, creative and innovative ideas in the Organisation for achieving the desired
objectives of Unilever food solutions (Hohenberg and Homburg, 2019.). To accomplish the
vision the Unilever needs to generate innovative thinking and need to bring innovation in their
existing products like they are doing by offering a new flavour “Chocolate shake with
Marshmallows” to their potential customers.
Leadership – Leadership is an important function in Unilever food solutions for conducting
proper management and to achieve organisational goals and objectives. The leaders in Unilever
food solutions adopts different leadership styles like Autocratic, Democratic, Transformational
and Situational for getting things done by the team members in more efficient manner and within
the targeted time duration.
Leadership style can shape innovation and commercialisation
Leadership is helpful for doing innovation and commercialisation in Unilever food solutions in
more efficient manner. The leader helps to lead their team for doing innovation. The leader can
manage its team to do innovation by using different leadership style in Unilever food solutions
like Autocratic, Democratic, transformational and situational. The leaders use democratic
leadership style most of the time for bringing out innovative ideas from the team members. The
leaders provide directions for commercialisation that what the employees need to do to bring
innovation in Unilever food products like what ingredients to be add on to make their newly
innovative product which is “Chocolate shake with Marshmallows” more delicious and tasty
(Henttonen and Lehtimäki, 2017). The leaders provide training to their team members in order to
make correct “Chocolate shake with Marshmallows”. The leader encourage and motivate the
team member to perform in efficient way while going through innovation processing.
Organisational culture – The Adhocracy Organisational culture is followed in Unilever Food
Solutions. There is dynamic and creative working environment in Unilever. The employees are
high risk takers and innovators. Experiments and innovation is done on timely basis. The long
term goal of Unilever food solutions is to grow and create innovations in their Organisation.
Culture can shape innovation and commercialisation
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The Adhocracy culture in Unilever is helpful for shaping innovation and commercialisation in
Unilever food products. The Adhocracy culture promotes the employees to take initiate in
generating creative and innovate ideas. The Adhocracy culture promotes and encourages the
employees to take initiatives for doing innovation in Unilever food solutions (Lim, Darley and
Marion, 2017). The Organisational culture of Unilever believes in continuous improvement in
their existing products. The Unilever food solutions do innovation for cutting off the
competition. Innovation seems as the key to success in the organisation. Management determines
both the mission and vision of the organization and sets a groundwork for the values that
employees are expected to align with. Determining these factors and communicating them
effectively are absolutely critical to successfully instilling organizational culture which helps
them in shaping the new innovation.
Teamwork – The teamwork in Unilever Food solutions is helpful for creating the best food
experience for their customers. The teamwork helps to manage the work in Unilever food
solutions on time. The Team work promotes the co-ordination among the employees. The
employees work more effectively and efficently by supporting teamwork in Unilever food
solutions.
Teamwork can shape innovation and commercialisation
Teamwork can shape innovation and commercialisation in Unilever food solutions. At the time
of introducing a new product it is essential to make coordination among the employees in order
to innovate the product and commercialised it in right manner (Mollick and Robb, 2016).
Teamwork allows the team members to accomplish the given task on time which is to innovate
their new product ''Chocolate shake with marshmallows''. The teamwork is helpful for
maintaining coordination among the different departments like production, marketing, sales and
research & development in order to do innovation in synchronized way in Unilever food
solutions.
TASK 2
P3 4Ps of innovation and the use of innovation funnel.
The 4Ps of innovation model was developed by John Bessant and Joe Tidd. The model includes
4 innovation mixes namely, Paradigm, Product, Position and Process. This model helps to
discover what the innovation process can improve and bring into the business of Unilever food
solutions.
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Paradigm – The paradigm refers to the change which is faced by the organisation at the time of
innovation process like change in job roles of employees, assigning various duties and
responsibilities in order to conduct innovation (Rasmussen and Eliason, 2017). It involves
adapting the change of business model or method. The Managers and employees need to adopt
the change of technology and resources for the sake of doing innovation. The Unilever Food
Solutions will develop the new business model for operating the changing environment.
Paradigm can support the company in breaking the complex procedure in simple one.
Product – The Unilever food solutions will introduce a new flavour in their shakes which is
“Chocolate shake with Marshmallows” that will add value to their existing products. This
product will satisfy the current demand of the customers as the people are more health conscious
adding marshmallows will improve their health. Marshmallows are helpful in improving
digestive system and shakes contains milk which is great source of protein and Vitamin D.
Consuming chocolate will provide antioxidants to the body (Schmitz and et.al., 2017). The
chocolate is also helpful for improving blood pressure. This will lead to increase the market
share of Unilever food solutions.
Position – The positioning refers to creating good image of newly introduced product in the
mind of consumers. The Unilever food solutions wants to achieve the objectives behind the
innovation of the new product which is “Chocolate shake with Marshmallows”. The reason
behind the positioning of the newly innovate product is increasing customer retention towards
the Unilever food products. This will be achieved by satisfying customer’s needs. Company will
position its product by using the cost positioning strategy in which they will lower the cost and
increase the quality.
Process – The process refers to the steps of innovation process which needs to be followed for
making availability of newly innovate product to the potential customers and to the already
existing ones. The process includes the training which is given to the employees of Unilever food
solutions for making tasty and delicious “Chocolate shake with Marshmallows”. The process
also includes hiring and recruiting of new employees in Unilever food solutions and amendment
of changes in supply chain in order to do production function.
Use of Innovation funnel
Wide of mouth- Innovation funnel refers to following the step by step process for
delivering the innovative product to the potential and desired customers The first step is Unilever
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food solutions will gather data by analysing the current market demand of the consumers. They
will analysis the consumers choice & preferences. The Unilever food solutions will do screening
of the idea they have generated. If they find up correct they will go to implement it in practical
form.
Narrowing segment of Funnel-They will gather resources and manage the manpower in the
organisation to produce the innovative product. Once the innovative product is been made it will
be tested, is it working in the market or not (Xiao, Li and Liu, 2016). Then the Unilever food
solutions will do promotion to introduced there newly innovated product to the potential
customers. After doing promotion the Unilever food solutions will launch the product in the
market. Lastly the Unilever will define the success story of their innovation by evaluating is it
working efficiently in the marketplace or not and does it meet the desired customers needs and
requirements.
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P4 Frugal innovation and examples of using
Fugal innovation
Frugal innovation is the process of innovation that discovers innovative product in business,
Frugal innovations is the process of minimize the cost of product and provide the quality product
to developing country in order to increasing sale, Redesign the product for customers who faces
the problem of high prices of product, so customer easily by the product on cheaper price, in
sustainable manner. Frugal innovation can be used by the Unilever Limited for increasing sale
by redesign the product.
 Unilever Limited can establish the different distribution channels such as direct selling
and indirect selling and provide the availability of milk in the different market of UK. So
customer attracted towards this flavor of 'chocolate milk with marshmallow' this flavor of
milk is gain attention of customer from other competitors of Unilever toward their new
product (Datta, Mukherjee, and Jessup, 2015). Unilever can provide this flavor on
different segment markets. Also, they sale the product to customer directly by the use of
own vehicles. In indirect selling, company sale the product to retailer, distributors, and
different intermediary.
 Unilever Limited can reduce their cost of production which reduce the price of product
as well, Customer who want this type of flavor on milk they easily buy this flavor of milk
name as 'chocolate milk with marshmallow products. Unilever Limited sale the product
to provide the best quality they distributing quantity of 'chocolate milk with
marshmallow' in different category like, Marshmallow Nutwhip 10oz, Chocolate Covered
Mini Pretzels 8oz Milk etc. These categories of milk has available in different
distribution channel for all type of customer who easily buy these products according to
their potential income. These products are available for the students, children, sales
personnel, any person who like milk of these flavor (Hossain, and Kauranen, 2016).
 Unilever Limited can also use new machinery for the production of “chocolate milk with
marshmallow” that will be more reliable or cost and time saving for the Unilever. This
procedure of production is directly impact on the quality of product which increase the
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sale. Also reduce the cost of production by the use the best machinery and efficient goods
and raw material in the production of the these flavored milk.
 The Unilever Limited can open their stores in Supermarkets, Malls and schools, office
college canteens of UK, That can help to increase the sale as well increase the
profitability Also help to increase the market share which directly impart on increase
shareholder of the company. This will lead to increase the customer base. People can like
these flavor of “chocolate milk with marshmallow” and they purchase the product “ This
will also help to increase the volume of sales of their product and enhance the chance of
achieving the objectives of Unilever Limited by use the frugal innovation.
 Unilever Limited can use different pricing strategy when they launch the new product
with their different quantity of milk, This will increase the demand of the product
because the price of product is decided according to customer. So customer are satisfied
with the price of different quantity. Also, helps the consumers by providing them energy
when they can drink “chocolate milk with marshmallow” This will help to increase
profitability As well also increase the loyalty of customer and base of customer. So
customer did not shift to similar product because of high quality of product get by the
Unilever Limited.
Unilever Limited use the Frugal innovation. Company provide the “chocolate milk with
marshmallow” as an innovation. Company launch the product in different segmentation market
by the use of frugal innovation.
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TASK 3
P5 Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
Commercial Funnel
Commercial funnel is known as Sales funnel which describe the graphical representation of
product sale stages, Which describe the commercial and socialite success of the product when
customers are buying this product or not, describe the detail information of product and Also,
describe the customer buying decisions of customer (Hohenberg, and Homburg, 2019). It is the
important for the organization because it is provided the various benefits to the company.
Importance of Commercial funnel :
Helps to Increase the loyalty of costumers and increase the customer base to attract the
customer.
Commercial funnel helps Unilever Limited to increase the customer by provide the new product.
They can use the best promotional strategies for increase the demand of the product company
make sure that they applied properly (Datta, Mukherjee, and Jessup, 2015). Also, Unilever use
the best ingredients in the milk which provide the energy to customer when they doing work.
Then only Unilever Limited may able to gain new customers by attracting through different
promotional strategy.
Helps to increase market share
It helps to increase the market share of the company. By understanding the commercial funnel
when they launch the new product in the marker. It provides better help for understand the
customer, because Unilever Limited can use the different strategies for identify the customer
needs and satisfaction (Hossain, and Kauranen, 2016). And they provide the best product to the
customer which helps to increase the sale of the product. So Unilever Limited can identify the
different hazards whose affect their business. Company can attain profitability and increase
market share of the company.
Help to increase sale
Commercial funnel helps in increase sale in Unilever Limited. This help to set the sale according
to the commercial funnel helps to achieve the objective of company. Commercial funnel is
provide the brief market information that peoples likes this product of Unilever Limited it is
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“chocolate milk with marshmallow” product, or not and customer are interested or not when they
purchase the product.
Help to choose the right marketing strategy
The commercial funnel will help company like Unilever Limited in choosing the best marketing
strategy when they launch their product in the market. This helps to understand the organization
tool that will help in Unilever Limited to increase productivity and attaining the success.
Company launch their product according to the different segment and target market of the
company. This will help to company when they take action to target the potential customer who
really need for this type of product.
New product development process of Unilever Limited company.
 Idea generation
Idea generation is the first step of new product development The Unilever Limited Company
has launch the new product of flavoured milk with the innovative idea and provide on different
quantity of price which includes the taste of chocolate milk along with taste of marshmallows.
They launch their with flavoured milk which is the new idea to start and present their product in
the market (Hohenberg, and Homburg, 2019).
 Idea screening
Idea screening is the second stage of new product development. The Unilever Limited company
has launch the new product as “chocolate milk with marshmallow” this product is provided
energy to the consumers. Company launch this product as a energy drink and this attributes of
the drink is fulfilled (New product development process. 2018.). Also, most peoples likes the
chocolate flavour. So, this flavour of milk is suitable for the consumers and this also the best
choice of the company when they launch the new flavoured of milk. Therefore, Unilever
Limited launch the product of flavoured milk this should be executed as it has been passed by the
customer.
 Concept definition
This is the third stage of new product development, On this stage company will do make all the
plan of launching the product such as price, packaging, quantity and check the product on lab
then they launch the product. And design the product (Hohenberg, and Homburg, 2019).
 Strategic Analysis
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Strategic analysis means company use the different strategy to make sure that product is good for
customer. Also, use strategy for identify the different cost such as direct an indirect cost.
Company set the objective of profit margin as launch the single unit of milk.
 Development of the product
According to the strategy analysis company implement the plan such as packaging of milk
product that help to attract the customer. Different pricing, promotion strategy help to develop
the new product.
 Test marketing
Unilever Limited test the market by the use of different research methods. Also, company
identify their customer needs with the help of research and then Unilever Limited launch their
product in target market (Dutta, and Folta, 2016).
 Commercialization
In this stage includes pricing strategy and promotional strategy to be establish for the chocolate
flavoured milk. For increasing the sales in market and generate customer base.
 Introduction to the market
This is the final stage of new product development. The Unilever Limited launch their
“Chocolate flavoured milk with marshmallows” as a new product in the market of UK. These
products are available for the students, children, sales personnel, any person who like milk of
these flavor.
P6 An innovation business case for Unilever and includes ways to access funding
Executive summary- The Unilever is consumer goods company which is UK based and known
for their variety of product. Now Unilever launch the new product that is “chocolate milk with
marshmallow” This is the different flavour of milk including taste of chocolate in their milk and
also it will give some taste of Marshmallows. Although, company launch this product by the use
promotional pricing strategy which means the price is same as their competitors (Henttonen, and
Lehtimäki 2017).
Situational analysis
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Strength
High brand image
Opportunities
Increase product diversification
Weakness
Less product diversification
Threat
Competitors
For example
Uniliver provide benefits to their customer such as discount on the product in starting
months which helps to increase the sales. The Unilever will target different class of customers
such as students, children, sales personnel, and specially target the children and adult who
concentrate on your study. Also, company launch new product of Chocolate milk Unilever
choose the different distribution channel for sale their product. Company sale their product
through direct and indirect distribution channels. So the product will be available on different
stores of Uk. such as malls, supermarket, Unilever launch the new product with the aim of attract
the different consumer on the milk product of Unilever. Also, this flavour will increase the
demand of product and achieve the objective of the company The main aim behind the launch of
Chocolate milk is increase sales and growth of the company. Also, launch this flavour Unilever
will enhance the competitive advantage as well increase the market share (Dutta, and Folta,
2016).
Various sources of fund will be determined that can be accessed by the Unilever.
Uniliver uses this funds in their business to full fill their requirements of funds such as
own capital, Borrowings from public, Borrowings from banks and financial institutions
Own capital
Unilever is the consumer goods company. This is the popular company which provides the
variates of products in Foods, beverages, and company has huge capital they can invest in their
new product by their own funds.
Borrowings from public
Unilever borrow funds with the help of public. They offer the equity share and bonds to public
for fulfil their financial requirements. This is the best way to borrow the fund by public. So
interested investor buy the shares of company. With exchange the shares and call money.
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Borrowings from banks and financial institutions
Unilever company takes loans from banking industries for launch the new product and execute
their plan of flavoured milk in the market (Datta, Mukherjee, and Jessup, 2015).
TASK 4
P7 Different tools used by Essence Drinks to protect knowledge and intellectual property
Patent of the product
Patent is the tool which help to Unilever Limited which providing rights of product that no other
company can copy their product. Unilever Limited can patent their new product that define that
this product is launch by the company and no other company can copy this product. Patent is
create a different image of the product. (Chun, 2015).
Trademark
Trade mark is recognized sign, it is design that company use this design in their business to
identify the product and services. It is a logo which expressed the identity of products or services
of a particular source from those of others, although trademarks used to identify services are
usually called logo. Uniliver use the trademark in their firm to identify the product and services.
Copy right
Copy right is the legal tool every company use this tool in their business to protect their
business. Uni liver limited use this tool to protect their business they can copy right their product,
which means no other rival company can copy their new product. Only Uniliver limited have
authority to make this product.
CONCLUSION
The conclusion is being drawn from the above project report that the innovation is the key to
success. By improving the existing product in the market, this helps the company to increase
their customer satisfaction and lead Company towards the profitability. It is been concluded that
innovation refers to bringing new and creative ideas for developing and improving existing
products while invention refers to discovering new product for the first time in the market place.
The innovation is helpful for taking competitive advantage. It is been concluded that the vision,
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leadership, culture and teamwork of an organisation is helpful for shaping innovation and
commercialisation in the organisation.
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