Superdrug's Innovation and Commercialization Strategies Report

This report provides a comprehensive analysis of Superdrug's innovation and commercialization strategies. It begins with an introduction to the concepts of innovation and commercialization, contrasting innovation with invention, and then delves into the organizational vision, leadership, culture, and teamwork that shape innovation within the company. The report explores the 4 Ps of innovation (Paradigm, Product, Process, and Position) and the use of the innovation funnel. It also examines the development of frugal innovation, the importance of the commercial funnel, and the application of New Product Development (NPD). Furthermore, the report details how to build an innovation business case and evaluates tools for organizations to retain product knowledge and intellectual property. The Superdrug case study is used to illustrate these concepts, focusing on their organic skin tone cream, its strengths, weaknesses, opportunities, and threats (SWOT analysis). The report concludes with recommendations and references, offering valuable insights into Superdrug's approach to innovation and commercialization within the health and beauty industry.

Innovation and
commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Concept of innovation and its comparison with invention....................................................3
P2 Organisational vision, leadership, culture and teamwork that shape innovation and
commercialisation.......................................................................................................................5
M1...............................................................................................................................................7
D1................................................................................................................................................7
LO 2.................................................................................................................................................7
P3 Explaining the 4 P's of innovation and uses of innovation funnel.........................................7
P4 Explaining development in the frugal innovation..................................................................9
M2.............................................................................................................................................10
M3.............................................................................................................................................11
LO 3...............................................................................................................................................11
P5 The importance of commercial funnel and application of NPD..........................................11
P6 Build innovation business case............................................................................................14
M4.............................................................................................................................................15
LO 4...............................................................................................................................................16
P7 Evaluating different tools that organisation by retaining product knowledge and
intellectual property..................................................................................................................16
M5.............................................................................................................................................18
D2..............................................................................................................................................18
CONCLUSION..............................................................................................................................18
RECOMMENDATIONS...............................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Innovation refers to process of innovating any new ideas, thoughts and expression
through which it represent the identify of the company. In perspective of business, innovation is
mainly conducted with the helps of employees by bringing new ideas in their work premise and
also they give new identity to the products and services (Innovation, 2019). Innovation is
committed on any bases of satisfying the needs and wants of the customer through providing the
new identity in the products and services. Commercialisation refers to bringing the products in
market and also attract customer through their innovative ideas and concepts in the new
products. Present report is based upon the Superdrug which is founded by Ronald Goldstein and
Peter Goldstein in 1964. Superdrug deal in health and beauty care products and also engages in
its own pharmacies business. They are considered to be the second largest retailer store after
Boots company and engaged with around 14,000 employee which are carrying the business at
large scale.
Superdrug is located at around 796 places and also they traded their business at around
900 shops across UK and many more countries. Through their innovative products and concept
behind promoting their products, they are considered to be one of the fastest growing companies
in UK. By dealing in Health and beauty care products, they also deal in pharmacies business and
through their aspects, they opened 19 clinic through which they are considered to be the fourth
largest chemist shop in UK. This report will includes the background of the concept innovation
and also its difference between the invention and innovation. It further elaborate with the
identifying different types of innovation. It also includes the process which is required in
commercialising innovation. Lastly the report ends up with various methods which is considered
in respect of protecting the ideas and also examining its advantages and disadvantage regarding
the appropriate innovation.
MAIN BODY
LO1
P1 Concept of innovation and its comparison with invention
Innovation means new ideas and thoughts which differentiate from existing products or
other company products and also through such innovation, it results in occurring huge demand in
market. Innovation can be done on the base of employees capability and skills to innovate new
ideas and this can be undertaken in respective of getting adequate technology and facilitate, so

that they can bring original ideas in organisation (Bertoni and Tykvová, 2015). Innovation
mainly focused on original ideas and concepts but it can also be done on existing products and its
availability depends upon bringing new thoughts. In such perspective, they can attract the
interest of customer towards such products and services for longer time period. The importances
of innovation refer to the following aspects such as:
 They provides opportunities to the companies to build the strong connectivity in the
developing market.
 Through the innovation, they directly linked up with community and also supporting
through financial and various cost benefits to the country.
 By choosing the concept of innovation, it results in enhancing the productivity in the
company at low cost aspects (Muls and et.al., 2015).
 Innovation results in getting more retention of employees in organisation and also they
are motivated to bring new ideas in work premises and implement them to present better
productivity.
Invention refers to the act of bringing new ideas or thoughts which does not exit before or
not undertaken by any other person regarding preferring the existing products. Invention mainly
covers under the complete unique project and also some invention are patent as they are unique
from others (Antony, Setijono and Dahlgaard, 2016). Inventions carry certain rights and also
laws are implemented in case of infringement of any inventions. The importance of invention
are resulting as:
 It extends the capability of person to think beyond their imagination and also provides
chances to improve their life.
 To implement the visualisation into reality by choosing more opportunists to bring new
ideas and interpret them to get better results (Arora, Athreye and Huang, 2016).
 Invention play the role of magic as it automatically motivated or advances man life to
think for future perspective.
Difference between Invention and Innovation
Factors Invention Innovation
Creation of ideas It is mainly covered under the
creation of new ideas and
thoughts which is original and
Innovation can also be done on
the bases of existing products
by designing and giving

not discovered before
(Difference between
Innovation and Invention,
2016).
integrity to attract large
customer base.
Skills required Invention mainly covers under
the scientific skills through
which they can bring novel
products and services.
It carries marketing skills
which distract the customer
towards the products, technical
skills so that they can enjoy
economic benefits (Hall and
Sena, 2017).
Limitation Invention are limited or
invented with single products.
They are innovated in
combination with various
products and services.
Patent Few invention are patent
(Archibald and Archibald,
2016)
Innovation in existing products
are not patent.
Examples Telephone, electricity are one
of the major invention.
iPhone is one of the major
innovation.
In case of Superdrug company, the innovation they bring is in perspective of organic skin
tone cream which is specially designed under the ingredient of herbal coffee items. This is one
the major innovation which is done by company so that they can fulfil the needs of all age
ground people and also available for all types of skin. The main concept of choosing this product
is that usually companies focus on marketing the products to all age group, they not focus on
particular person needs (Bertoni and Tykvová, 2015). In such perspective to innovate this
product in market, helps Superdrug to satisfy the needs and wants of the customer and build
personal relationship with them.
P2 Organisational vision, leadership, culture and teamwork that shape innovation and
commercialisation
In respect of innovating new ideas and products in market, there are major aspects which
determines the stability of the products in market and also it stands company reputation through

interpreting its vision regarding promoting the new products in market (Naqshbandi and
Jasimuddin, 2018). Organisation vision regarding the introducing the organic skin tone cream is
related to targeting every colour of people and also motivating them to use their cream for 1
week to get excellent results. The vision of the company is to increase its sales by 20% and also
reach to large customer base.
In the concept of introducing this product, leaders role are important and also they play
vital role in respect of motivating employees to continue maintaining the productivity in
company (Mierke, 2016). In fulfilling their innovation, they implied participative leadership
theory to involve every team members in their innovation and discussion regarding producing
the products. Through this theory, they can take the decision and judgement of every team
member and also implement them to bring any changes in the products. The matter relating to
culture is identified in respecting of producing the organic skin tone cream fro every culture
people. As this cream is specially innovated for all types of skin and also it can be easily
affordable. The innovation is accomplished by the group of team and through their support and
innovative ideas they came up with the new concept regarding the organic team (Mierke, 2016).
Team work is accomplished on the bases of motivation which can be done through proper
guidance and also their ideas are appreciated and provide adequate facilities which results in
getting better productive results.
SWOT analysis of organic skin tone cream of Superdrug company is resulting in :
Strength
 Through their products it helps to
understand the customer in better
manner (Dodge and et.al., 2017).
 Superdrug carry the renowned brand
image in market and also deal in
pharmacies thus they are more familiar
with the use of products.
Weakness
 Cannot beat the competitors advertising
strategy to reach to large customer
base.
 Lack of communication between the
employees regarding carrying their
ideas which they initiate into the
products.
Opportunities
 Increasing customer demand regarding
innovating the new products which is
made with coffee (Mohd Adnan and
Threats
By putting the low prices in product resulting
in facing threats of not getting quality products.

Valliappan, 2019).
 Social media platform is increasing the
market demand for cosmetic products.
M1
Innovation is mainly covered under various sources such as :
 Process, as innovation cannot be done by thinking any thoughts and implementing it. As
it varies from examining the needs of changes in products or demand of customer
regarding the particular products and than accordingly proper process is executed.
 Changes in industry and market structure can be examined in respect of changes in
company polices and also strategies to target customer (Coleman and MacNicol, 2016).
In such perspective the mangers duty is to examines the market condition and than
interpret the innovation.
In respect of culture the, effective innovation is done on the bases of motivating the team
members to work together and also engaged in each other activity to reduce risk at the time of
committing work. This reflect the more productive work environment and also getting creative
ideas and thoughts to bring innovation in new products and services.
D1
Innovation is developed through the ideas given by team members and further it can be
embedded by conducting the market research. Through this activity, the capability of the
products is determined and also its ratio of getting success among the customers. It is measured
by determining the factors through ISR (Innovation Sales Rate)methods in which the success of
innovation is examined through the factors of sales of Superdrug company.
LO 2
P3 Explaining the 4 P's of innovation and uses of innovation funnel.
Innovation is the important aspect for company in order to increase profit and
productivity by introducing new product at marketplace. The innovation is deals with the process
by which Superdrug is able to create new product, think, idea and services. There 4 p's of
innovation which are help to Superdrug to analysis needs of innovation and mistakes in existing

products. 4 P's of innovation includes Paradigm, product, process and position. Its description are
as follows: Paradigm: It is the planned process by which Superdrug manager is able to think about
new product and services for creating new products. In this, manager is faces the changes
of being taken innovative ideas and thinking or the process which will use by company in
order innovate new product (Costello, 2015). Product: Product is the main item and element of 4 P's of innovation which is help to
attract more customers towards company. This will generate by after thinking about new
products and services. Process: It is ways which is used by company in order to create new product and deliver
to customers safely, this is very important issues which is faced by Superdrug company.
The deliver process is so long then it create possibility of success is reduced in case of
delaying in delivery products.
 Position: Is the goal of company with specific innovation and commercialisation process,
in other words by which an organisation wants to achieve the position by supply of
products.
Innovation funnel
The innovation funnel is the process of developing new ideas and thinking by describing
the various steps from which the ideas could be generated best with effective result of work at
market place. It is the popular approach for innovation which is used by many companies in
order to create an innovation and realistic action plan in proper manner (Tidd and Bessant,
2018). This is effective and valuable for Superdrug and its growth factor.

Application of innovation funnel in Superdrug
In the context of Superdrug company, application of innovation funnel are as follows: Firstly, throughout the collect information of customers about product and services or try
to know about their requirements as per products. After, that process analysis and evaluate and screening those ideas which is generated by
collecting information (Application of innovation funnel Superdrug, 2018). This is help to
achieve goals of company by using idea of products like organic skin tone cream
products.
 At the end of process, idea will be implemented and production department ready to
produce this product in effective manner.
P4 Explaining development in the frugal innovation.
Frugal innovation is the effective process which is help to reducing complexity and cost
of a goods and products in proper manner. This refers to removing non-essential features from a
Illustration 1: Innovation funnel
(Source: Application of innovation funnel Superdrug, 2018)

durable good, such as Pharmacies and beauty products. This depends on the economic, social
and political factors of customers demand in which company will established in proper manner.
This will effectively help to make new product and services for company. Those factors are
responsible for innovation process. The frugal innovation is includes new product with the lower
price of product at market place in order to satisfy needs of customers. Superdrug manager can
use this innovation process in their company in order to make new product positively.
For example:
The Superdrug company deals in health and beauty products in the United Kingdom and
its is the second largest company in the UK. The company is produce high tech skincare product
which generally has high price, that are not affordable by all people. This is generally used and
purchased by those people who are able to understand advantages of organic product. Whereas,
people of town are not capable to understand advantages of organic products as well as they are
not rich to purchase the higher rate and organic products (CORTIMIGLIA and et.al., 2015).
Meanwhile, now company is decide to make new organic skin tone cream at lower prices for
people who are easily purchase this product in effective manner.
Application of Frugal innovation in Superdrug
By analysing market and customers needs, manager of Superdrug is decide to introduce
organic skin tane cream which can be the frugal innovation as it is similar to the existing product
of company but little use of different ingredients with lower prices. There are various people and
customers are like to purchase organic product because they are knowing the main advantage of
herbs for skin. The main raw material in preparing organic skin tone cream is coffee. The
manager purchase coffee beans from wholesaler which is provide advantage of lower cost. The
company is use best and better techniques and machines for creating products.
M2
It is essential that company is generally is not generate new product process and
innovation. It is the ongoing projects which is constantly ruined of previously developed criteria
for assuring that they work optimally. Innovation funnel management process needed for idea
generating and carefully compared against ample numbers of rules (Knorringa and et.al., 2016).
There are including three stages of innovation development are as follows:

 Mouth of funnel is increase the knowledge and information which is related to innovative
product and services. Here is manager need to collect proper information for creating new
product and services.
 Narrowing funnel is help to manager in order to assures about chosen product is help to
achieve objectives.
 Narrowed part funnel is help to give shape to product and its services.
M3
The innovation frugal is plays an important role in organisation in order to achieve goals
and objectives of company in effective manner by introducing new products. This refers the to
low cost, good enough products and services which are often initially designed and for
developed for emerging market customers. Their role is provide the good and effective thinking
platform, along with frugal innovation in Superdrug. This help to gain effective competitive
advantages and offers their product at global level.
LO 3
P5 The importance of commercial funnel and application of NPD
The commercial funnel is the process by which customers are purchase products and
services. This is also known as sales funnel. The company is uses this in order to filter the
product which is highly productive and their sales can be helpful for the company. The
importance of commercial funnel are as follows:
 Shorting and ranking of the sales: The commercial funnel is help to short and rank to
priority of customers regarding products and services in effective manner.
 Focusing on right sales: This help to pick right marketing strategy in order to aware
customers about new and existing products. This is effective for make focus on the sales
of relevant goods which are actually beneficial for company and its growth factors
(Leliveld and Knorringa, 2018). This include the communication and interaction between
customers regarding quality of product.
 Effective monitoring and accountability: It is very important to make focus and control
on sales of products and services of Superdrug company. This help to make effective and
valuable growth of company by monitoring sales of products and services in effective
manner.

There are different stages of innovating new product for Superdrug company which are shows
below:
Step1: Idea generation:
It is the first step of new product development is generation of idea. The new idea is
generated by analysis of market as per customers need and wants. By analysing market, here is
manager of Superdrug is inventing of the new organic skin tone cream which is contain the
coffee beans.
Step2: Idea screening:
Screening and evaluation of idea is important think which is help to create innovative
product by evaluation of products like it is necessary to introduce and it can be exist in market.
Step3: Concept testing and product design:
Test of concept after evaluation of idea which is help to understand the needs of
customers as per product and services in proper manner (Weyrauch and Herstatt, 2017). The
product design includes product shape and structure in effective manner.
Step4: Product analysis:
Product analysis is important part and step in new product development. Here, manager
of Superdrug is detailed analysis is done in proper manner. Like product is commercially
profitable or not, what will the cost of new product, how the total sales of new product at market
place.
Step5: Production development:
After designing and structure of product, it is important to implement this design and
structure in real world by involving production department in it. Here, is all the department of
company is included like what is the production process and marketing department is make plan
to distribute the product as well as increase awareness of product in customers.
Step6: Test marketing:
Test of market is refers to introduce new product at very small market by providing
sample of product to customers (Neumann and et.al., 2017). In that case, manager of Superdrug
is provide test sample to various customers for use it and provide feedbacks.
Step7: Commercialization: