Innovation and Commercialisation: A Study of Online Grocery Retail

This report examines innovation and commercialisation strategies within the online grocery retail sector, focusing on Sainsbury and John Lewis. It defines how innovation is sourced and fostered, differentiating between incremental and disruptive innovation. The report analyses the application of innovation in these companies, considering both successes and challenges, particularly during the pandemic. It recommends innovative products and processes for a new online grocery retailer, including a healthy food column and voice-activated ordering, alongside a risk-benefit analysis. The study also explores funding channels and intellectual property protection tools, culminating in an action plan for new innovations. The conclusion highlights the critical role of innovation in business growth and adaptation to market changes.

Unit 8 Innovation and Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
P1 Defining how innovation is sourced and foster....................................................................3
P2 Different types of Innovation .................................................................................................4
M1 Presenting ways through which innovation can be sourced..................................................5
M2................................................................................................................................................6
D1.................................................................................................................................................6
PART B............................................................................................................................................7
P 3Recommending innovative products/processes for a new online grocery retailer.................7
Suggestion of funding channels for the recommended innovation..............................................8
P 4 Different tools which are mainly used for protecting the intellectual property right............9
Recommendation and action plan for new action......................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation is one that would help the business to continue its operations in different
markets so that maximum revenues are generated. Also, the present report is based on Sainbury
that is best known online grocery retailer specialized in selling variety of products in the market.
Furthermore, study will analyse how the innovation is applied in big retailer companies Tesco
and John lewis while selling its products via online medium. Moreover, types and processes of
innovation will also be discussed in detail under this report. Also, success (or failure) of the
innovation of each retailer will also be analysed under this report. Furthermore, the study will
recommend innovative products/processes through conducting the proper risk and benefits
analysis. Also, proper funding channels will also be suggested under this study. Lastly, Explicit
action plan(s) for the innovation will also be presented under this report.
PART 1
P1 Defining how innovation is sourced and foster
Innovation is known as method of implementing new ideas that results in the developing
innovative goods and services and it improve offering of products. Along with this, UK
department store John Lewis has tried various and multiple innovation strategy in order to meet
the needs of the customer through Omni channel environment and it gained international kudos
as output. Despite of facing issues during last year due to pandemic it was very challenging for
the company to maintained their position and be the number one brand in the UK. During the
time of pandemic John Lewis partnership rapidly digitalized services that were previously only
in form of store. The company have partnership and it has confirmed that developing new
customer for successful future of the business. Thus, partnership of Johan and Lewis believes in
innovation to stay ahead in the competition (Hemphill, 2018). Moreover, during the time of
pandemic consumer has shifted towards digital shopping channels as lockdown has restricted
opening of physical store. John Lewis was quick to react to the development of the pandemic and
made use of every opportunity in order to pay off operational charges. The company has made
use customer payment preferences as their preferences has shifted towards more contactless and
card payments. The company has made use of cashless payments and it has implemented mobile
point of sales capabilities in its store. In addition to this, one innovative ideas company has
made use of head design for the new home in Oxford street in London. The physical head

contained an app that used psychometric testing to analyse what interior home style customer
would like. In addition to this, company has compress the whole shopping experience into 3-
minute design tool and that is why organization ask their customer to take test and afterward as
well as they can check their design style.
Sainsbury is increasing the speed of innovation and plans to introduce additional price cuts
as part of its commitment to enhance the value for customer. Along with this, in order to fulfil
the mission of company to provide distinctive product to customer Sainsbury has launched Taste
Of The Future in 69 store. There good market name has allowed organization to launch their
innovative products and services (Harvey, 2019). The company has introduced plants based
protein product as it has been famous all across the world and one of the hot bed for innovation.
Sainsbury already stock fish and meats as well as giving innovation in dairy products too like
vegan cupcakes eggs. Meal replacement drinks and bars are very interesting new category which
has led to great success as direct to consumer model has been used in our taste of the future trial.
Moreover, Sainsbury wants to collaborate with brands that are looking forward to get the grocery
market in the UK and would like to be partner with Sainsbury.
P2 Different types of Innovation
Incremental innovation is used by Johan Lewi and it is one of the most common form of
innovation in which existing technology has been used to increase values to the customer within
existing market. Moreover, it is one of the most common type of innovation used by companies.
for example, adding new feature into exiting products or changing features as well as changing
version of customer value system (Rosdi and et.al., 2021). Johan Lewi has taken advantage of
innovative technology like social media in order to increase the brand name and to create
awareness regarding company in the competitive market area. Moreover, organization has
launched an application of head design which allow customer to design their own home. Johan
Lewis have Waitrose supermarket and in order to increase their sales in online market company
have launched contact less payment as most of the customer not wanted to do cashless payments.
In addition to this, it also bring changes in the products it sells such gluten free products and
sugar free in order to increases their sales. Thus, company believes in innovation and come up
with innovative ideas to deal with challenges of market.
Sainsbury has made use of disruptive innovation in which new business model, products,
services or concept is used to create new market segment and value drivers. The major focus of

the company is to meet up with consumer demand in ways that no other company has ever
done. Disruptive innovation usually creates new market or shift in interaction of consumer with
the current market after the disruptive product has been introduced. Sainsbury has created new
type of market which offer frill experience to the customer. In this type of market consumer has
to bring their own bags or purchase them and place their food in that bag though self-service
(Harryson, 2020). This type of model has cut down the expenses for Sainsbury without reducing
the quality of the products. Along with this, Sainsbury now a digital first business according to
analysts and it is trying to compete in the competition. During the time of pandemic company
has converted into digital first business and now it has collaborated with smaller digital native
stores as the owner of firm believes that innovation is way to build new home ground. In the
pandemic Sainsbury has accelerated the growth through chop chop deliveries from superstores
and some of the investment has been done in the FCC transformation. Along with this, Sainsbury
centrepiece innovation is Smartphones which is personalised digital app that speeds shoppers
journey in all the transaction (Hemphill, 2018). Thus, it can be concluded that innovation has
helped both the companies in growing their business in positive and effective manner. However,
during the time of pandemic both the organization has made use of digital technology like cash
less payments and social media in order to increase their market awareness and to increase their
sales.
M1 Presenting ways through which innovation can be sourced.
Innovation so combination of internal and external factors and it helps in developing
strategy for the company. The organization has introduced changes to existing paradigm, process
and position. Sainsbury has done alteration in the products and services such as it has
introduced vegan and diabetic free product. Along with this, during the time of pandemic
company has made use of organization processes regarding products creation and delivery like
online marketing in order to increase their sales and overall growth (Aziz, Harris and Norhashim,
2018). Sainsbury has presents a mix of feminine and masculine approaches to its business and it
has also developed empowerment initiative in order to show that it contribute towards
community development and environment. In addition to this, it has established wellness
program that deals with people’s healthy life scores and advises people to eat healthy and learn
about other aspect. However, one can assume that feminine code has been used to fulfil its
masculine focus so that it can become best and the most profitable business in the market sector

(Dincer, 2018). The company has collaborated with ASDA so that it can bring positive results
and allow organization to offer greater services in various other regions. Along with this,
Sainsbury has also focused on improving its delivery and additional sustainable project. The
company has also improved its delivery services and combine with initiatives likes using
recyclable products and options for returning customs. Thus, it may attract a growing community
of customers who are interested in eco-friendly consumptions.
M2
During the time of pandemic Sainsbury and Johan Lewis has shifted to digital technology
like social media sites in order to promote their product and services. Along with this, it makes
use of social sites like Instagram and Facebook in order to continue sales of the company as
stores were shut down due to lockdown policy (Abdul Razak, Murray and Roberts, 2018). It has
introduced Chop- Chop delivery services in UK from their superstore to client door steps and
this initiative has increased the growth of the organization in positive way during the time
pandemic. Moreover, Sainsbury has also made use of cashless payment as consumer has shifted
on it during COVID and this initiative was also successful as it has increased the sales of
organization and also keep their customer satisfy. In addition to this, Sainsbury has also taken
an innovative initiative to collaborate with ASDA so that it can improve their services and
attract more consumer. Moreover, Johan Lewis has partnered with Thought works to create
‘cook well’ for Waitrose for producing cook at home food choices delivered directly to the
customer at their door.
D1
Sainsbury is one of the first retailer in Europe to make use of self-service checkouts in all
retail market of giving customer their choice. Along with this, brand match is one the great
instance of technology as it allows customer to check over price of brands (Technology use by
Sainsbury, 2022). It mainly consists of offers like promotion and offers as well as vouchers in
order to attract customer. Sainsbury has recently made use of initiative called mobile scan and
Go which let customer scans items as they shop using their mobile device. It is one of the most
continent for customer to track their expenses and improves their shopping experience.

PART B
P 3Recommending innovative products/processes for a new online grocery retailer
 It is been recommended to Sainsbury that it should focus on bringing the innovative
product in the market through enabling healthy food column on the online website that
will only show the list of those products that are-newly launched within the company.
Furthermore, such kind of processes within the company would help the firm in capture
large market areas within the short time frame. Also, it is been suggested to the firm that
voice recording would help the customers to order certain product or services online
easily without putting many efforts (Bocken and et.al., 2019). Moreover, in the context of
risk and benefit analysis it can be said that this option would be riskier than enabling such
different section within the website and having the voice order option would involve lot
of funds of the company. However, if this process is successfully launched within the
firm than it would result in maximum revenues for the firm for the future purposes. Also,
these processes would be useful for all those people that find difficulties in searching the
required products on the websites that is very large and diverse.
 Also, it is been suggested to firm that there should be option of online and offline
shopping history track so that customers would be able to identify whether the product
is actually in stock or not (Reim, Åström and Eriksson, 2020). Furthermore, in the current
era most of the customers check out whether the product is available within the stock or
not when they are in some kind of urgent need so that more time might be saved. Thus,
through implementing such kind of processes the customers of Sainsbury would receive
the notifications through the app or email. Also, it would help in driving further sales or
services of the firm in the in due course of time. Moreover, in the context of risk benefit
analysis this new process would help the firm in achieving the set targets as it would
require minimum efforts (Madsen, 2020). Although this process would not assure good
returns to the future as most of the business are already using such kind of the processes
within the workplace but it would be beneficial in providing much ease to target
customers while they are interested in purchasing certain goods of the company.

Suggestion of funding channels for the recommended innovation.
There are various funding channels that are available to the Sainsbury while bringing
such kind of innovation within the market. Also, to bring such kind of innovative processes
within the workplace some funding channels are been described as follows:
Bank loans: It is the best way through which the organization would be able to gather the
required sources of funds through using various channels. Also, it can be said that bank loans
are the easiest and most convenient way through which large amount of funds could be
acquired in much ease without putting many offers. Furthermore, loans would help the firm to
achieve the set objectives in timely and in well-defined manner. Also, being the big company it
would be able to easily repay the loan amount and achieve the new objectives of setting various
processes within the workplace (Sarasini and Langeland, 2021). Also, the bank usually provide
the higher amount of loans to those business that have future reliability and well-established
brand image in the market. Further, in the current times government also supports those business
that are focused on practising and promoting innovation at the workplace .
Equity financing : This is another one of the most important and easier way through
which the company would be able to acquire required finance amount to achieve some kind of
predefined objectives. Furthermore, through providing equity shares the company would be able
to have the best and easier way of getting the required finance amount in return of providing
certain amount of share profits to the investors in the future. Also, there are several ways
through which the equity financing options could be opted such as angel investors, venture
capitalists, equity crowdfunding and much more (Pichlak and Szromek, 2021). Also, this option
well suited for Sainsbury because it is well suited for high growth business that are aimed at
achieving some unexpected targets within the specified time-frame. However, choosing such
kind of option the company needs to have the strong personal network that is ready to
understand the future process of the business and is assured that its investment would help in
earning higher amount of revenues in the future.
Thus, from the above it can be said that these two options are best suited for business like
Sainsbury as the innovative process like updating the website and using the new online and
offline tracking would be only possible when the business is having timely availability of funds
in systematic manner. Also, having proper channels of funds would allow the business to
remain motivated and maintain the efficiency level so that predefined objectives are

accomplished in the best possible manner. Moreover, using the innovative practices on timely
basis within workplace would assure business that it is remaining competitive in the market
and has the capability to serve the customers in best of manner in the future.
P 4 Different tools which are mainly used for protecting the intellectual property right
There are different types of tools that are help for mainly aim in specifying and applying
laws which are help for protecting creativeness an invention of others so that other can not
misuse the information (Cripps, Mejtoft and Salo, 2020). On the basis of intellectual property
right it has been analysed that there are serving and protecting company goals so that it help for
using different tools which areas follows:
Patents- patents right are mainly use for protecting the products and innovating new
concepts as well as it help for created for innovating and exclusively granted to individual in
order to achieve new ways for processing the product in market. This rights can be mainly
applied for 20 years in order to fill all the date as well as it is help for inventing the new products
and service in market.
Copyrights- this is refers the legal rights that help for protecting creativity as well as it is
use for innovation for products that help in protecting from being copied by others. Also, this
right help for maintaining good image in market (Bouncken, Kraus and Roig-Tierno, 2021).
Trademarks- This is the tool which help for designing and making products in order to
identified from particular other brands in nature. In business companies help by providing
specific logo which help for design and establish tag line in order to consider the business which
taking the trademark. In order to obtain the rights it is help for specifying the organization need
to be unique so that it help to give identity to consumers ins order tos connecting the products to
company (Zhu, Dong and Gu, 2019).
Further, this is using tools and policy that help company in order to focus on business in
order to protect data which is based on knowledge by following steps on the basis of providing
training programs in company so that it help for using personal data ins order to provide legal
knowledge. Also, it is necessary to taking the encryption of all devices such as electronic means
securing by data. Further, in order to designing policy it is makings guidelines that help for
protecting there data in order to focus more important information (Ortiz-Villajos and Sotoca,
2018).

Recommendation and action plan for new action
Using all the rules and process which help for protecting data and maintaining
intellectuals property right by securing the business in order to help in increasing the sales by
setting profit. There are different types of tools which can be use fors further innovation
techniques in order to focus more on protecting data and knowledge as well as it help for taking
care of action taken by company (Shakeel, Goni and Klemeš, 2020). In order to conduct
training programs in company so that it help for giving information related to employees that
help for protecting personal data which help for legal information that resulted in market. All the
electronic devices help for ensure and securing data which help for protecting data of
organisation to be more competitive in market. In order to implement the security it was
necessary to focus on storing taking backup for all data in order to make privacy. Further,
personal information and preserving it help for using strong lockers that help for access higher
authorities that help for employees in order use of finger print passcode (Christa and Kristinae,
2021).
With the help of designing policy it is help for making guidelines that help for protecting
data that help for preserving important information by attain set targets. Then, with the help of
collecting data of company in fair manner in order to access with complying rules and laws in
organisation which help by protecting information. This help for increasing the sale which is
help for attaining by set profit. All the result help for maintaining safety in order to keeping
information effectively.
In order to follow the action plan it can be said that there are some of the action which can be
take place in order to follow different types of techniques that can be fit into process. On the
basis of market research organization can be conducted in proper market research that help for
focus on proper commencement of new ideas which is necessary for new product launched and
become fruitful for company (Lüdeke‐Freund, 2020). Then , idea testing is another technique
which can be tested on the basis of competitive market as well as it can be strived up for come in
the market by testing new products. This is help for requiring by some funds in order to have
procurement of both human and financial resources which help for testing new ideas. In addition
to this, it can be said that it is necessary for company to hire specialist so that it help for testing
by get success by producing new flavoured drink. In contexts to chosen organisation it is
necessary to provide 10 flavoured drink which help for attracting customer by providing them

different types of taste. As well as with the help of that kind of taste with the help of proper
evaluation of all the aspects (Li, Msaad, Lu and Lau, 2020).
CONCLUSION
It has been concluded that innovation help for providing different type of ideas in orders
to make commercialisation. Also, this is help for presenting difference between innovation and
invention. Also, 4 ps were discussed which help for described the use of funnel in order to
examine and shaping new ideas and importance of commercial funnel. Then tool use for
identifying the application of new product development that is processed for commercialization
of innovation. At th end of the project it is work on the basis of different tools which are related
to the protect brand by using intellectual property.

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Online references
Technology use by Sainsbury, 2022. [Online]. Available through <
https://www.theguardian.com/media-network/media-network-blog/2012/nov/14/
sainsburys-technology-sales-customer-engagement>
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