Innovation and Commercialisation Report: BTEC Unit 8, Heinz Analysis

This report delves into the concepts of innovation and commercialization, using Heinz as a case study to illustrate key principles. It begins by defining innovation and differentiating it from invention, emphasizing its significance for organizations. The report then explores the 4Ps of innovation (P...Read More

Innovation and
Commercialisation

INTRODUCTION
Innovation is the process under which new products or services are introduced into
potential market which is better than the older one and improvised in order to create better
value for customers and to attain competitive edge into the marketplace. Whereas
commercialisation is the process in which product and services are introduced in order to
receive high attention of customers (Azarmi, 2016). This involves distribution of goods along
with marketing channels so as to enhance sales by taking support of customers. In this report
Heinz is taken which was founded in 1869 by Henry J. Heinz. The company is dealing in food
products and now they are aiming at providing stylish and innovative packaging to their product
so that it doesn’t get dry when opened for use so as to provide competitive edge to the company
and provide ease to customer as well. This report includes innovation and its significance in
compare to invention, 4P’s associated with innovation, development of frugal innovation and
application of commercial funnel and its significance.
PART A
TASK 1
P1) Explain innovation and determine its importance to organisations in comparison with
invention.
Inventions: Invention is defined as the development of those ideas which are new and
creative in that products and services are rendered to the customers in order to provide them
something new by this new idea can be introduced in the marketplace.
For example: Heinz has introduced their new bottles of ketchups which are highly
convenient and stylish and are air tight which can keep the ketchup fresh and not dried when
opened for usage.
Importance of invention: Invention is helpful for the businesses in order to introduce
new and varied kind of products and services in the market by which their needs and demands

can be settled down in prominent manner (Arora, Cohen and Walsh, 2016). By this Heinz is
eliminating the major problem of their customer and providing them ease to use their product.
Innovation: Innovation is the procedure by which brand new product or services can be
come up into the marketplace with the main objective of meeting needs and demands of
customer. This process is having its emphasis on converting raw idea into product or service
and to add value to their customers as well. Similarly innovation play prominent role in
attracting customer and retain them for longer period in order to earn tremendous profits.
For example: Heinz is aiming to provide innovation in their products by introducing
such packaging in which ketchup doesn’t get dry when opening for usage by customers. This is
going to make their product high valued in perception of their customers.
Importance of innovation: Heinz is required to introduce some innovation in their
product so as to cope up with their competitors and to get distinct position at marketplace.
Innovation is helpful for them in enhancing their overall sales and some of the benefits are
enumerated as under:
Gaining competitive advantage: One of the major advantages of innovation is that
with the help of the same high competitive edge can be received by the business. In the current
market high competition is existed due to which new customer and new market segments can
be attained. In the context of Heinz they are introducing innovative product with apt packaging
by which high value can be added to their product.
Quick response to customer expectation: With the help of innovation customer can be
catered in a better way and their expectations can be met in effective manner. When
expectations of customer are increasing this is directly having impact on the company and by
this customer centric benefits can be attained. This is providing high edge success and
profitability in the business. The new product of Heinz is providing them high attention of their
customer and this is making prominent path of success.
Cost and time saving: Innovation is highly admissible by population and this is cost
saving in compared to invention. Within innovation modification and product development is
rendered by the company within existing product in order to enhance product value for

customers and to intensify profit as well. This is helpful in making more profits so as to achieve
high market sustainability. Similarly invention is time consuming as high amount of interest are
needed which consumes high time and cost as well.
P2) Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Commercialization is the process through which every company carry out its activity of
presentation and introduction of new product or offering in the market. It is a wide term, which
includes launching of the product in the market and communicating to the consumer of
fulfilling their needs and requirement (Tidd and Bessant, 2018). It allows companies to present
desired product and service in desired manner through proper mode of commerce. This
essential innovation and commercialization will be used by organization within their new
variety of ketchup product and provide a new growth to the business. The main factors for these
are described below - Vision: The new packed Ketchup bottle by Heinz is being thought by the company with
the motive and vision to provide better product quality and experience to customers and
longer sustainability of their product and with that, it have the existence of innovation
and commercialization. In this continuous innovation and research is carried on by
Heinz to achieve their visions. Leadership: The new product-offering intended by Heinz is going to be developed
under effective leadership of Mr. Akshay Kumar. He is possessed with autocratic style
of leadership, which will help him to take different decisions comfortably. The
innovational and commercialized product would assert his democratic leadership and
effective collaboration skills. It will develop with implementation and existence of more
ideas and continuous research process. Culture: The various factors associated with culture i.e. attitude, belief and norms of
Heinz can be altered or initiated in such a manner that would bring easiness for an
employee in carrying business activities. In this current innovation, new innovatively
packed product will bring positive impact and culture in the organization by providing
flexibility and unique platforms to new ideas.

 Teamwork: The new product will be an outcome of various activities carried on by
various persons of the organization altogether. All the persons in team have worked with
all innovation and collaboration to develop the new innovative product with the
brainstorm ideas and suggestions.
 Participative management: Participative management is defined as including people
of organisation in decision making so by this they may feel valued and overall efficacy
may be improvised. This concept is very much essential in intensifying innovation in
business as number of ideas can be obtained and high end benefits can be provided to
business.
Various other sources and trends that are used within the organization and which gives them
opportunity to improvise to create a well sound environment are defined as below: - Manufacturing Structure Change: It is the vital source of improvisation as it includes
new product development process, technology advancements and infrastructure
development in terms of innovation that are going to be used in development of the new
product and it can be improvised by making the relevant and concerned changed in the
process. Demographics: It is also the factor of innovation as the newly developed product might
have its own range of customers, market, population, age etc. and all those
demographics are innovatively researched and suitable amendments are made in their
demographic research technique to conclude the most suitable applicable demographics.
 Perception: Perception here refers to the mindset and thinking of the customers of the
Product. If we will talk about UK, public is more concerned and aware of their health
while choosing any product (Baloyi, 2019). So Heinz’s new product should be
completely made after taking that perception into account otherwise it might cause a
loss of sales expected.
 Quality circles: This is defined as the area in which products are innovated and are
improvised so as to provide high benefits to the customers. This is helpful in developing
the product due to which customer base and profit can be enhanced. In the context of

Heinz’s this is providing them high edge of competitive within market and this is
helping them in meeting needs and demands of customer in prominent manner.
 Two way communication: This is defined as process in which both the parties to
communication are associated in transmitting information. This is called interpersonal
communication in which information are shared with both the ends. In the context of
Heinz’s the company is keeping two way communication so that to involve people in
order to attain business benefits through which innovation can be shaped.
TASK 2
P3) Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
The 4P’s of innovation is required by Heinz in order to provide framework which is
creating high understanding of innovation for their employees and other person. These aspects
are defined below: Person: This is highly associated with an entrepreneur such as for Heinz this can be a
renowned celebrity by whom high creativity and pioneering skills can be shown up in
order to induce customer to buy the product in easy manner. Within this managers of
Heinz’s are requisite to focus on creativity in their product so that new ideas can be
catered in prominent manner. Process: This includes the whole process by which development and improvisation of
the product is taking place which is related to the process of thinking and functioning. In
this aspect problem is being solved by the business so as to provide business
development (Bali and et. al., 2016). Within this managers of Heinz’s are required to
focus on those business processes which are leading to innovation adaption in order to
achieve predefined objective in prominent manner. Product: Heinz is making high end changes in their product and services in which high
en innovation can be introduced. In the context of Heinz as they have introduced such

packaging by which the problem of drying ketchup can be solved. By this huge
customer can be attracted and this way value can be added to the company and customer
as well. This aspect is necessarily handled by Heinz’s as this may lead them to earn
market image and profit as well.
 Press: This is defined as the environment by which entrepreneur is working co as to
induce customer in order to provide innovation which is conductive and prohibitive. In
the context of Heinz these practices are inculcated in the business and for this these are
used by their employees and their renowned celebrity. By this high market competency
can be retrieved by Heinz’s in order to sustain and eliminating complexities of business
in effective manner.
This is the model in which more efficacies can be attained by Heinz which is helpful so as
to promote their product so as to create high end ideologies and to offer more prominent
products to end users.
Innovation Funnel:
Innovation funnel is the process in which more effectives in the product and services
offering can be introduced by the business in order to fulfil the major objective of meeting
needs and demands of customer in prominent manner. Within this concept the major focus is to
upkeep demands and needs of customer and to enhance their product offering so that high
customer satisfaction can be drawn out. In the context of Heinz as they are developing such a
product packaging in which problem of dryness can be solved and this is embedded with high
innovation which is elaborated as under:

Illustration : Innovation Funnel
(Source: Innovation Funnel, 2019) Assessment of Opportunity: This is known as the preliminary stage in which Heinz is
going to initiate market research in order to gather relevant information form
marketplace. Being an initial stage within this companies are performing various
marketing research activities so as to recognise market opportunities in which new idea
can be approached. With the help of questionnaire and various surveys more
opportunities can be looked out which are available within marketplace for Heinz. Ideation Process: In this stage various ideas are taken in order to capitalise
opportunities which are available in the market and in this brainstorming is performed
by employee in order to reach out to their customer in direct manner. Under this process
out of many ideas one idea is selected in order to address feasibility and to initiate
concept testing. This is an essential process for the business as within this most critical
decision are taken by Heinz. Conceptualisation: Within this stage concepts are emerged and with the help of mock
ups and various advertisements awareness related to the product are inculcated and this
is the process of overall involvement. In the context of Heinz they are performing
conceptual study so as to reach out to maximum customer in order to advertise and
market the new product. Benchmarking: In this stage Heinz is going to examine their ideas and concepts on the
basis of their objectives so as to improvise their product and services in a better manner.
By this they will be able to test their performance and profitability as well (Akgun and

et. al., 2017). Further by taking help of profitability ratios overall business position can
be examined by them in prominent manner. This is helpful in enhancing standards for
the business so that within market competencies product can be aligned in order to meet
overall objectives.
 Go or No go and launching: In this after examining overall dimensions the most
appropriate idea will be selective so as to meet up objective of Heinz in order to get
distinct market position and to provide high end benefits to their consumers. This is the
final stage in which innovation of Heinz is ready for launching within marketplace.
P4) Explain developments in frugal innovation and provide examples of how it is used in an
organizational context.
Frugal innovation is a term used to define those types of improvisations in business
processes, technological advancements and technical innovations where company is
implementing those services or processes that are highly economic and affordable. Some of the
external factors are associated with this such as political, legal, economic and environmental
factors which act as driving force of the innovation. The main objective of frugal innovation is
to offer economic and affordable cost to the business so as to enhance customer base at
prominent manner (Knorringa and et. al., 2016).
This is highly commendable for Heinz so as to earn high profits and to render their
product to their customer at economic and affordable prices along with marinating high quality
in their products. The innovation for Heinz is making them utilising their resources to optimum
level in which tasty and well maintained sauce is being served to their customers (Hossain,
2018).
Do more with less- This is the aspect in which with the help of limited resources high
outputs can be attained. For example Tata motors is highly concerned about using their
procured resources in optimal manner in order to develop their market segment for Nano.
Keep it simple: This means business processes are required to be simple and easy to
understand so that this can be easily understood by employee by which quality of the product
can be consistently maintained. For example Mitticool is using simple business processes in
their functions.

Think and act flexibly: The business processes within organisation are required to be
flexible so that market demand can easily be dealt so that high profit and consistency can be
maintained. For example GE's Vscan is using this methodology in their business.
Seek opportunity in adversity: This aspect is associated with critical thinking of
business in which market opportunities are studied in commendable manner so that within
adverse situation a positive sight can be measured by the business. For example Heinz is
making their employees and managers to think in creative manner so that market opportunities
can be adopted within adverse condition.
PART B
TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation
The commercialisation funnel is described as the journey in which customers and their
purchasing capacity is being examined in order to set the path of innovation as well. This is
highly required by Heinz that they may analyse market condition in such a manner that high
number of customer can be induced by them for their product offerings by using various
strategy. The commercial funnel includes various stages such as awareness, opinion,
consideration in which preference of customer is being examined which is having high
implications on decision making of customers (Fernández-López, Calvo and Rodeiro-Pazos,
2019). The new product development (NPD) for Heinz is defined as the manner in which their
new product is being commercialised in the market by following various stages in order to
solve face problem of their customer and meet their level of expectations as well. Within this
the company is trying to introduce new product which is going to solve their problem of drying
ketchup when opened for usage by this high value can be added to the company and customer
as well. Stages of NPD are explained as under in context of Heinz:
Idea Generation: This is the elementary stage in which NPD is initiated so as to gather new
ideas which are highly required by Heinz along with this high amount of research and

development is required within this stage. Furthermore all the external sources such as supplier,
competitor and various stakeholders are examined by which new idea of product can be
germinated by Heinz.
Screening: Within this various ideas are screened and filtered according to need, suitability and
feasibility and the most suitable idea is going to be selected so as to initiate their process of
innovation.
Development of Concept: Within this adequate idea is taken and implemented in order to
provide additional market edge to the company (Rubera, Chandrasekaran and Ordanini, 2016).
Within this stage feedbacks and responses is taken from applicant in order to examine
effectiveness and feasibility.
Marketing Strategy: Within this Heinz is going to make prominent marketing strategy in which
marketing mix is to be analysed by them in order to serve their customer in diversified and
profitable manner. In promotional tool social media platform is used by them as these platforms
are having high customer coverage.
Business Analysis: After marketing strategy Heinz is now required to analyse range of their
product so as to inculcate its benefits which is to be rendered to their customer. Within this
concept price, sales and profit ratio is to be decided by them in order to attain specific business
objectives.
Development: Within this stage product development is initialised by Heinz in which they are
introducing stylish and beneficial packaging to their product in order to solve problem which
was faced by their customers which is of drying up of ketchup. Within this performance
feasibility is to be tested by the company by adopting internal testing.
Test Marketing: Within this stage Heinz is going to perform test marketing within that in a
certain market their product is tested by some consumers and feedbacks are gathered in order to
eradicate any error and solving them by modifying their innovation.
Commercialisation: This is the final stage under which Heinz is going to commercialise their
new product into the marketplace for their potential customers.

P6 Build an Innovation Business Case for an organisation, including ways to access funding
Innovation is one of the most essential and crucial part of the business under which
Heinz prepares most effective strategy for their business and to provide innovation to their
business by which high business benefits can be received and distinct competitive edge can be
received. This is highly significant to surpass their competitors with their new product in which
customers are taken on priority (França and et. al., 2017). The business case in this regard is
elaborated as under:
SUMMARY: Heinz is one of the top liked brands of UK and they are providing
superior quality ketchup and covering high market. The company was propounded in the year
of 1969 and soon this became trusted and most desirable brand within global periphery. In
recent time decline in sale has been examined by the company so they are inclined towards
innovating their product and capture high market share as well. For this purpose the company is
making aware to their managers so as to think in innovative manner by which market
opportunities can be accepted in prominent manner.
OBJECTIVES: The major objective of them is to meet their customer demand and
meeting their expectations level so as to acquire high market share and to sustain their
customer.
SOLUTION: In order to achieve their objective of enhancing their sales the company
is planning to introduce stylish packaging to their product by which the problem of drying
ketchup while opening for usage can be eliminated.

Customer analysis: Within this manager of Heinz are required to analyse their
customer and their needs so which can be subjected in their innovation in order to meet
expectation of their customer in easy manner.
INNOVATION IN SERVICES: Heinz is enhancing their production and distribution
system in order to manufacture high quality products and to retain their customer and improvise
overall profitability.
RESEARCH: Heinz is managing their external and internal sources so as to gather
information regarding their new innovation in product and to satisfy expectation and needs of
their customer.
FUNDING: In the market there are so many ways in which business may get assistance
in receiving innovation opportunities so as to initiate process of innovation. Heinz is collecting
their funds form bank loan and various stakeholders and financial institutions so as to meet their
plan of action for innovation. This could help the company in making high profits and meeting
up customer needs in prominent manner.
BENEFITS: By this wastage in product usage can be eliminated and useful life can be
enhanced due to which real income can be saved by customers (Komatsu and et. al., 2016).
Within this Heinz is managing their business case in such a manner that they are making
various improvements in their product so as to induce huge customers thereon. By this
innovation problem of customer can be solved and product life can be improvised.
Resources: In order to exhibit high opportunities for innovation Heinz the foremost
requirement is to arrange resources so as to intensify process of strategic innovation. The major
resources are enumerated as under:
 Financial resources: This is the crucial resource which is to be required by Heinz in
order to instigate innovation process. For their innovation in bottles Heinz is in the
requirement of €35000 so as to meet up major requirement of innovation.
 Human resources: The proficiency of employees are highly required by business in
order to receive business advantages from innovations. For the innovation of Heinz the

company is recruiting 50 new employees in order to bring efficacy Iin production
function.
Production schedule: A production schedule is to be created by the business in order to
manage business efficacy within production process. This schedule is explained as under:
Planning: This is necessary for the business to plan for their function so as to solve any
prominent problem in innovation process.
Routing: This is the process in which appropriate path is adopted by the business in
order to get production efficacy.
Scheduling: This is the process in which all the procedures are provided a fix schedule
so as to get high efficacy.
Dispatching: Companies are required to put high emphasis on dispatching products to
customer in effective manner so that customer satisfaction can be received.
Financial Analysis-

TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
The intellectual property is known as intangible property by which Heinz is using
various tools so as to develop, retain and protect their product and here are some tools which
can be used by them:
Patent: This is defining the right over the property by which the company is taking right so
their right over the product cannot be used by some other party. In this context Heinz can
protect their business operation and product so that cannot be copied by some other
manufacturer in the marketplace. Patent remains active for 20 years after one time application
filling (Peng and et. al., 2017). with the help of this innovation can be protected in effective
manner but on the other side this is highly time consuming.
Trademark: This is a symbol in which description regarding packaging; ingredient and brand
information is being provided which is associated with the company. This is related to the brand
logo which is used by Heinz and their distinct tagline by which high efficacy is created in the
marketplace. This is helpful in spreading awareness into marketplace and in the context of
Heinz this used by them in order to create distinctiveness form other brand. This provides
distinct and identifiable logo to the product but this consumes high cost and time.
Copyright: Within this Heinz is keeping their brand safe from infringements so as to protect
their product. This is the tool in which owner provides right and permission to use their
business practices and process in other businesses (Brem, Nylund and Hitchen, 2017). In the
context of Heinz this is providing them additional coverage over marketplace so as to maintain
their distinctiveness. This provide safeguard to the innovation so that it cannot be used by other
person but on contrary the process of issuing copyright is very typical.
CONCLUSION
From the above report this can be concluded that innovation and commercialization are
two different but related concepts by which customers are induced in order to attain high end
business benefits (Dincer, 2017). This is highly essential for the business that high efficient

product is to be given to their customer so that huge profit is earned by the business. This is
required by the business in order to survive in aggressive market various dimensions are to be
taken such as culture, teamwork, mission, vision and many more by which shape can be
received by the business and innovation can be introduced. Furthermore 4P’s of innovation is
helpful by which better way of innovation can be prepared in order to provide guidance and
direction to the business for long term sustainability and growth achievement.

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