Report on Innovation and Commercialization of Sainsbury's New Bottles

This report analyzes Sainsbury's launch of biodegradable water bottles, detailing the company's background, commercial funnel, and new product development (NPD) process. It examines the innovation case, outlining marketing strategies, objectives, and a PEST analysis. The report further explores funding resources, potential risks, and key performance indicators (KPIs) such as customer conversion ratio and website traffic. It also addresses intellectual property protection through copyright and trademarks. The report concludes by emphasizing the importance of innovation in gaining a competitive advantage and establishing market position. References include academic journals and books that support the analysis of Sainsbury's new product launch.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of company.............................................................................................................3
Commercial funnel and NPD process.........................................................................................3
Innovation case............................................................................................................................3
Funding resources.......................................................................................................................5
Risks............................................................................................................................................5
Key performance indicators........................................................................................................5
Protection of intellectual property...............................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation is basically the process of creating new idea, thoughts, products, method or
device. The main aim of this report is to promote the new product being launched by Sainsbury
which is biodegradable water bottles and assess its effectiveness in market.
This report gives overview of background of company, commercial funnel and NPD
process, innovation case, funding resources, risks, key performance indicators, protection of
intellectual property.
MAIN BODY
Background of company
Sainsbury is basically the largest and renowned retail organization being established in
1869 by John James Sainsbury and headquartered in London, United Kingdom. This is basically
one of the renowned organization in groceries which have made its position in the market from
past few years. It mainly deals in groceries, banks, fuel, cafe, clothing sector etc. Talking of the
commercial potential of the company, it has a great market share of around 15.3% and has a high
revenue and profit ratio (Purchase, Kum and Olaru, 2017). In the year 2019, the average profit of
Sainsbury was recorded to be around 239 million British pounds. It has a great market value due
to its high brand awareness and brand recognition.
Commercial funnel and NPD process
Commercial funnel is basically the various stages of buying which a customer goes
through while purchasing the particular product or service. The major importance of this funnel
is that it helps Sainsbury to find the motivational and interest factors of consumers which leads
them to the purchasing and thus helps to generate a desire and awareness within them regarding
their products (Libaers, Hicks and Porter, 2016).
New product development process is predominately the process through which
organizations develop a new product or brings major modifications in the existing one. The main
importance as well as befit of this process is that it allows Sainsbury to develop a new product or
service in the sequential manner and assists in their organic growth.
Innovation case
Mission
To provide a healthier environment to the people and work towards their health benefits
by delivering the high quality product as well as services at the most competitive cost.

Vision
To become the market leader and highly trusted retailer by capturing a great market share
and working towards the interest of stakeholders.
Objectives
 To increase the sale of biodegradable water bottles by 23% in next two months
 To increase the market capture by 54% in the upcoming two years.
Marketing strategies
Product
The major and innovative product which company has decided to launch is biodegradable
water bottles (Rubera, Chandrasekaran and Ordanini, 2016).
Price
Company will follow competitive pricing strategy for its biodegradable water bottles
where the prices will be set after considering price of competitor's products.
Place
This biodegradable water bottle will mainly targets the urban areas as well as rural areas.
Besides this, the distribution network will be available in all the major cities.
Promotion
Biodegradable water bottles will be promoted and advertised with the help of online and
offline media. In online, social media and website will be used while in offline free sample and
charitable events will be targeted for promoting it.
PEST analysis
Political factors
The major political factor which will affect success of biodegradable water bottles
Political instability
High tax rate
Economic factors
Various factors which will impact promotion of new product are
High employment
High interest rates
Social factors
The various social factors which will affect success of biodegradable water bottles are

Increasing lifestyle
Cultural barriers
Technological factors
The various technological factors which will affect its success are
Increasing online power of customers
Privacy errors
Funding resources
There are mainly two types of the resources which organizations uses while developing
its new product which are short-term and long-term sources. Here, within the short-term
resources Sainsbury will use lease as the major source of its funding. In this, company will
receive the funds from the another party by keeping something as collateral. Within the long-
term, Sainsbury will seek the help of bank loans as well as term loans. Company will fond the
bank which will provide them the loans for long period of time and will fiance the new product
by charging low interest rates. Along with this, term loans will help Sainsbury to gave secured
borrowings for a specified period of time and will help to bear all the expenses of its new product
(Sutopo and et.al.,2019).
Risks
High competition
Sainsbury might face a brunt due to the strong presence of competitors like TESCO,
Asda and their market position might result in failure of this innovation. The loyal customers of
competitors would not switch to products of Sainsbury.
Substitute product
The threat of substitute product is the another risk which company might face that will
hinder successful implementation of new product. Many small companies and other competitors
might produce substitute product of biodegradable water bottles and sell at low price (Meng,
2017).
Key performance indicators
Customer conversion ratio
This is one of the most effective key performance indicator which will help Sainsbury to
assess the effectiveness of its new biodegradable bottles. Customer conversion ratio is basically
the ratio at which customers have been converted into consumers. That means that how many

customers have purchased the product and have become consumer of this new product. More the
consumer conversion ratio, high will be efficiency of new product (Purchase, Kum and Olaru,
2017).
Website traffic
This is the another highly significant as well as important performance indicator which
can be used by Sainsbury to analyze success of its new product. Website traffic is basically how
many customers have visited their website for searching the information about new product or
any other product. When website traffic will be high then this reveals that product is being liked
by product and a desire has been generated within them for searching features of the new
product.
Protection of intellectual property
Intellectual property rights are basically rights given to person or organization and enable
them to protect their ideas, products, creativity etc.
Copyright
Sainsbury can gain copyright of its new biodegradable bottles that will protect their
creative work. For example- Sainsbury can gain the copyright of its bottles as well as process
through which these bottles have been produced (Rubera, Chandrasekaran and Ordanini, 2016).
Trademark
This is the another way through which Sainsbury can protect its new product as well as
its design. As Sainsbury has developed a new logo as well as symbol and design for its
biodegradable bottles then this trademark will protect company and its new logo and design as
competitors cannot imitate this.
CONCLUSION
It has been summarized that innovation plays an important role within organization and
thus helps them to gain competitive advantage as well as establish position in market. While
developing new product, an organization considers various aspects like funding sources,
marketing strategies, situational analysis, commercial funnel etc which helps them to effectively
develop new product.

REFERENCES
Books & Journals
Libaers, D., Hicks, D. and Porter, A.L., 2016. A taxonomy of small firm technology
commercialization. Industrial and Corporate Change.25(3). pp.371-405.
Meng, Z., 2017. The International Experience of Promoting Innovation Commercialization under
the Background of Open Innovation. Economic Review.(1). p.23.
Purchase, S., Kum, C. and Olaru, D., 2017. An analysis of technical and commercialization paths
for an innovation trajectory. Journal of Business & Industrial Marketing.
Rubera, G., Chandrasekaran, D. and Ordanini, A., 2016. Open innovation, product portfolio
innovativeness and firm performance: the dual role of new product development
capabilities. Journal of the Academy of Marketing Science.44(2). pp.166-184.
Sutopo, W and et.al.,2019. Accelerating a Technology Commercialization; with a Discussion on
the Relation between Technology Transfer Efficiency and Open Innovation. Journal of
Open Innovation: Technology, Market, and Complexity.5(4). p.95.