Innovation and Commercialization Report: Tesco and Unilever

This report examines innovation and commercialization strategies within the context of two major companies: Unilever and Tesco. Part 1 delves into the sourcing of innovation, analyzing the approaches of both companies, comparing their innovation types (sustaining vs. disruptive), and evaluating the success or failure of their innovation initiatives. Part 2 provides recommendations for a new online grocery store, including differentiated product suggestions, risk assessments, and cost-benefit analyses. Furthermore, the report suggests suitable funding channels and routes, supported by business value analysis for potential investment, and provides recommendations for knowledge and intellectual property tools. Finally, an action plan is drafted to secure and protect innovation within the online grocery business. The report covers various aspects of innovation, from idea generation to commercialization, and offers valuable insights into the strategies and processes that drive successful innovation in the retail sector.

UNIT 8 INNOVATION AND
COMMERCIALIZATION

TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................3
MAIN BODY.......................................................................................................................................4
PART 1..................................................................................................................................................4
1. Comprehension, analysis and discussion of innovation sourcing................................................4
2. Analyses of the types and the processes of innovation.................................................................4
3. Evaluation of success or failure of innovation within the organizations......................................5
PART 2..................................................................................................................................................6
1. Recommendation of differentiated products for new online grocery shops with innovation risk
plus cost-benefit analysis..................................................................................................................6
2. Suggestion of funding channels/routes for recommending innovation supported by business
value analysis for potential investment............................................................................................7
3. Recommendations regarding knowledge and intellectual property tool (IP)...............................8
4. Drafting of action plan regarding secured/protected innovation................................................10
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................12

INTRODUCTION
The company in particular always anticipates that the business should grow and develop
through the duration with a good pace in accordance to the changes occurring in the market. In this
case the marketers alter the product that they are selling through observing the present situation that
is demanded by the market they are working in and then work accordingly. The innovation manager
plays a relevant role in such situation (Richtnér. and et.al., 201). Here, the manager is responsible
for the commercialization of the products and the services. The process of commercialization
mainly refers to generation of new as well as an improvised product within the market that the
company is already working in.
This report in particular gives description regarding the ways through which the retailing
companies that are particularly selected in the report are sourcing innovation and analysis and
comparison regarding different aspects used by either of the companies. The report also describes
the types of the procedures used by the retailers. And further the report evaluates the success or the
failure of that particular innovation. In the next part the report gives description regarding the
innovative processes used by the new online grocery retail store and the funding channels that could
be the most suitable ones. Also, the tools for retaining the knowledge and the intellectual properties

are recommended below. And lastly an action plan is developed in the report.
MAIN BODY
PART 1
1. Comprehension, analysis and discussion of innovation sourcing.
Innovation basically is a process that focuses on developing idea or inventions of the
products and the services of the company for the purpose of creation of value and increase in the
profits of the company. Innovation is an important or relevant aspect for the survival of the
company in a market (Davids. and Frenken., 2018). Through this the companies are particularly
able to attain the attraction of the target audience of the company and also enhance the inclination of
other individuals in the market. Unilever is a very big company that is located in London, UK. The
company offers products as well as services of different sectors. Which basically means the
company offers products in the sectors of beauty and well- being, food and beverages, personal
care, cleaning agents, etc. The major mission or the aim of the company is to add the vitality to life.
And the core values upon which the company particularly works are integrity, pioneering, respect as
well as responsibility towards the practices performed by the company. The company focuses on
implementation of innovation towards the people or the customers as well as the plant. The research
and the development department of the company has a staff of around 5000 employees who are
professionals and support in the process of globally building the brand through the innovation.
Whereas, Tesco is also a company that works all through the UK and also operates in
various countries internationally and the genre of the products and the services that it provides to its
customers is also related to consumer goods (Are., 2017). The company basically focuses on
directing and further organizing the employees of the company in a manner that is strategic and
mainly is build for the purpose of innovation. This strategy implemented by the company mainly
includes the transformation of knowledge mainly for the purpose of overviewing that the growth of
the new products and the innovation techniques implemented is in accordance to the plans. The
innovation has particularly created a huge impact over the company. The company has an effective
method of communication among the employees which also enhances the levels of innovation. This
allows the employees of the company to give ideas to the managers regarding the innovation
implementation in the new products.
2. Analyses of the types and the processes of innovation.
There are different ways or procedures through which innovation can be implemented within

an organization. The innovation that is adopted by the company Unilever is sustaining innovation
and on the other hand the innovation implemented by the company Tesco is disruptive innovation in
particular. In the case of Unilever the sustaining innovation mainly focuses on the concept of getting
better at the things or the aspects that the company is already working on. Therefore, in this case the
major focus is on improvement in the existing capabilities of the company. Also, the company is
required to evaluate the issues or the challenges that are to be solved and then further work towards
solving them (Mayer., 2016). For such issues the conventional strategies are implemented within the
company like using acquisitions, strategic roadmapping, etc. for the major purpose of bringing the
new skills and resources within the company that are considered to be more effective. This
innovation basically occurs when the organization creates products that are better performing and
also provide the company with higher profits from their best customers. This strategy is used by the
companies that are successful already in the industry that they are working within. And the major
advantage for Unilever is that this strategy allows the company in sustaining its position and further
growing too.
Tesco on the other hand follows the disruptive innovation strategy (Si. and Chen., 2020).
This is a very well- known innovation type. In this the use of effective technology is done and the
results are also highly impactful. It is also flashy and allows in grabbing headlines but also comes
with many challenges. Tesco is following this strategy because the company wants to target the
overlooked sectors of the society.
The procedure of innovation:
1. Generating ideas- In this step mainly the ideas are generated. And then mobilization occurs
if it is required for the idea to move to a different physical or logical location (Dziallas. and
Blind., 2019).
2. Screening and advocacy- This basically supports in evaluation of the feasibility of the idea
of the company with the potential benefits and problems of the ideas.
3. Experimenting- This stage mainly tests the sustainability of the ideas selected by the
company at a certain time. This step mainly generates the new ideas with the precise
information which is collected normally on the result as well as the feasibility of the idea.
4. Commercialization- This step supports developing market value for the idea.
5. Implementation and the diffusion- This step in particular mainly allows the organization in
identification of next set of the requirements for the consumers of the company.

3. Evaluation of success or failure of innovation within the organizations.
The company Unilever mainly offers different variety as well as new variety of the products.
Which further helps in creation of good impact of the company in the market that it is particularly
working within. The major focus of the company is on the problems and the demands of the
customers in the market and innovate the product in accordance to it. This particularly fulfils the
requirements of the consumers. The company also does huge investment in the field of research as
well as development for getting the benefits of that. Through this the company gets to understand
and evaluate the demands of the customers. And further the company can plan its innovation
accordingly. Through this the company also achieves competitive advantage and then the market
share of the company also increases. This also enhances the image of the company in the market
due to which is the levels of customer satisfaction is low too, the rate of market share will not
decline at a fast pace. The company also has a good leadership strategy and the motivation skills of
the leaders towards encouraging the employees of the company is also good.
Tesco on the other hand is also an organization that has achieved the appropriate amount or
rate of success through the implementation of the innovation processes in their company. Due to
innovation the company has attained a good and increased level of sales in the recent times.
Effective communication is a major aspect that has impacted the success of the company. Also,
effective communication has allowed the employees in understanding better and also performing in
a manner that is more efficient. Tesco particularly offers products and services that are of good
quality which impacts the brand image of the company positively. Through the implementation of
innovation that is required and in accordance to the demands of the customers of the company, it
has gained enhancement in the levels of sales of the company. The pricing strategies used by Tesco
has also impacted the image of the company in the market. The major reason behind inclination of
the customers towards the company is because Tesco provides good quality goods at a low price
that is affordable for the customers in mostly all the sectors of the society. The company also uses
social media platforms for effective marketing and to reach more customers all across the world.
PART 2
1. Recommendation of differentiated products for new online grocery shops with innovation risk
plus cost-benefit analysis
Unique goods generally give companies a competitive edge over other rivals. The central
aim regarding the manufacturing of various goods is particular for attract the customers to new

organization. There exists some external aspects such as preference of consumer, season-based
factors along with price that usually is kept in consideration while presenting the unique products in
associated markets (Baron, 2021). Here's a list of a few unique products regarding the newly
established online grocery store of retail organization:
Diet beverages
The sugarless drinks along with differentiated beverages specifically gives hygienic life to
consumers. Selling these new diet drinks would give companies like Tesco and Unilever a
competitive advantage. The calorie-reduced beverages in bottles added additionally with uniqueness
to varied products of retail grocery stores. Obesity or even diabetes has increasingly become a
common issue within United Kingdom plus addressing this health issue in market eould also
become a reason for success regarding the business. Such diet drinks in conjunction with beverages
need to be added within grocery stores. Even its increasing awareness within the environment issue
further could also give a competitive market edge. Aforementioned grocery business must avoid
plastics in its food products and with this it can emphasize on bringing few eco-friendly items
during packaging (Garcés‐Ayerbe and et.al., 2019).
Organic items-
These are generally recommended that established grocery businesses must focus upon the
organic products in retail markets of United Kingdom. Generally organic goods are more preferred
by majority of customers. They might feel like shifting to the organic goods in near future, so with
utilization of this opportunity mentioned businesses would get competitive advantage (Chenu and
et.al., 2019). The rising apprehensions concerning health of customers will provide main advantage
for the grocery stores for becoming successful. So all goods such as cakes, candies, cookies, baked
snakcs must contain various healthy ingredients. However, this is also challenging at times to make
these organic food products with particular appealing tastes along with using flavours although a
good investment within the technology which generally might bring innovation in present
marketplaces could also provide grocery shops high revenues.
2. Suggestion of funding channels/routes for recommending innovation supported by business value
analysis for potential investment
There are various sources from where businesses can gather funding and similar sources are
accessible for starting a grocery store in the retail market of UK. Further, This also can be said that
enhancing the financial resources of the organizations offers productivity in the organization
(Doussineau and Bachtrögler-Unger, 2021). The options of funding channel available for making
innovations in business are as follows:

Banking and loans
For the provision of innovations within grocery stores, the newly established online stores
should emphasize on increasing funds and this can be applied through varied sources regarding
bank loan. These bank loans simply means providing finances to firms (in this case retail firms) in
proper exchange of relative interest rates. Such bank loans do not take their equity shares of
organization. In exchange to it or for loan which implies that there exists no way in which the bank
could manage and make decisions for the company. The singular disadvantage while borrowing
loans from banks is that banking institutions requires collateral which is required to be submitted by
the business organization. Still such loans act as compliant funding channels that in turn could help
grocery stores for properly starting businesses and earning solid amount regarding revenues within
the market (Nugroho and et.al., 2021).
Venture-based capital
The concept of venture capital seems another kind of funding, where the venture capitalists
funding organizations holds a strong belief in the clear and precise exchange of its equities. This
funding assists organizations to expand in market since equity shareholders handles company for
purpose of raising funds as doing so from such means or channels proves to be quite difficult
because this seems to be already seen that such venture capitalists invest in the organization which
possesses high potential for achieving success in marketplaces and is already on rise with
significant growth. These venture capitalist provides good performance within the firms. It is even
known as the company's capital since it acts as a good source regarding funding (Zane and
DeCarolis, 2021).
Grants and subsidies
One another mode is the subsidized grants which are provided by the UK government and
such act seems a good sourcing channel of financing. This has been accurately seen that each
country is superficiously focused on making their manufacturing sectors as their wealth oriented
giving funds for the prupose of gaining competitive edge over countries would benefit their own
nation. The central government of the UK is even acting as reasonable source regarding funding for
its new start-ups or enterprises. Several donations are also done concerning those who have growth
and development potential/prospect within the market. This seems the simplest way using which
organizations could reach the government for financial assistance (Hottenrott and Richstein, 2020).
3. Recommendations regarding knowledge and intellectual property tool (IP)
The conceptual tool regarding intellectual property can be considered as highly important

concerning the assurance which is the organic products that are offered through the company
towards its buyers. Some of the main ingredients they uses and guidance with regard to preparing
diet-efficient products could be easily copied by their competitors. Thereby, for the protection of its
differentiated product-related tactics concerning business, following are given tools concerning
intellectual property that seem available for firms:
Patenting
The method of patent falls under fiscally provided monopoly with help of which these
businesses could protect their goods including processes in conjunction with utilizing their
individually crafted innovative ideas. The related benefits regarding these patent IP techniques are
that the overall exclusive rights concerning various patent formats make up on of the key benefits
along with the assistance of which businesses could make, utilize, exchange and import products.
Another advantage is that it is also best regarding the protection of sparks-based innovation.
Coming to its disadvantages, these comprise the easy commercialization of the products that get
offered where it is a bit difficult to compile and is costly too. Moreover, confined time inlcuding
managing mediators is also harmful (Van Roy and et.al., 2018).
Trademarking
The method of trademarking could be effectively applied regarding manufactured goods,
unique selling products or services which can be considered as words, non-verbal, phrasal or an
amalgamation of all these that assists the purchasing audience in the identification of and
relativeness with the client’s business organization. The concept of trademark seems to be more
cost-effective in practice rather than patenting and is also considered as valid for upto ten years. It
even protects certain companies like the mentioned retail ones against prejudiced or immoral
competitions. Several classes in the business organization spectrum regarding trademarking could
not be altered. Then there is also the risk of getting generalized as a disadvantage.
Copyright tool
This is again another one of the important IP tools that could safeguard the authentic or
original work structure including the expression regarding company business owners. It is not
concerned with the task of protecting business ideas. Its affiliated public record with regard to
ownership is also an advantage regarding copyright registration. This even safeguards against the
import-export of meddled goods. Restructed time-duration and dissemination also becomes a main
disadvantage pertaining copyright. Its expenses in taking control of copyrights is also greater which
conjures monetary challenges regarding business concerning established online grocery shops
(Shmatkov, 2020, September).

Trade secrets
This is one other type of intellectual-property pertaining confidential information. It is the
procedure concerning a business organization that is usually never known outside firm's internal
atmosphere. The buyer with appropriate help from trade secrets would be able of offering them
competitive advantage against market rivals. It gives indefinite securement regarding certain
confidential knowledge of the organization which is its single most advantage. This is permissible
to offer security over a confinement of 25 years. In such case if company owner appears with the
idea that is his/her own, then here the trade secrets could no longer remain secured by law. This
doesn't provide security from reciprocal engineering through the public and/or a competitor.
Recommended suggestion
On aforementioned basis of complete analysis of varied intellectual-property methodology,
it is advised that client must adopt patent regarding its unique business proposition. This is because
patenting is one very efficient intellectual property tool for protection and sparking innovation. This
business proposition of selling diet drinks including organic items seems highly secured from
transgressing, manufacturing, exchanging and misuse by the rival firms without client authorization.
However, this is expensive but along with help of such technique the firm will be able of protecting
its new plus differentiated business ideas from competition over specific duration of time. Thus, it's
highly recommended for client business for acquire patenting as its intellectual property for
safeguarding their innovative idea.
4. Drafting of action plan regarding secured/protected innovation
The purpose of establishing the aforementioned online grocery stores can be properly
implemented with a clearly defind action plan set in motion (Norrving and et.al., 2018). This can
help in launching the new, unique and innovative products concerning the diet and beverages goods.
A 5-phase action plan
Phase 1 – Setting up SMART objectives
Specific: To raise sales pertaining United Kingdom's online grocery shops by 20% and buyer
retention level within business by 25%.
Measurable: In order to measure success plus aims with intrinsic trend evaluation including
customer increase rate on every social media base.
Achievable: To accomplish desired goals, organizations would enter UK's non-physical grocery
branches with unique including innovative goods like diet beverages plus organic products.

Relevance: For augmenting overall brand-image concerning firms with differentiated goods.
Time limitation: To increase sales in 1st phase and buyer retention levels in the 1st year within
product innovation segment.
Phase 2 – Drafting list of actions
Striking relations with sustainable suppliers: This is the main action that requires to be executed or
initiated through the client regarding making innovative products successful. Within particular
method, company along with its relative suppliers can coordinate buying organic goods that could
be applied.
Solar panel utility: This is another stage where client will incorporate needed solar panels within
the business concerning perserving electrical resources. This phase proves productive for offering
diet beverages through automated machines.
Just-in-Time inventory: This is inventory recording system that could be pursued through the client
business pertaining ordering uninitiated materials from supply-managers at those times whenever
it's required. This is done regarding saving transformation expenses and eliminates resource
wastage.
Gathering bank loans: Mentioned firms could take loans from nationalized banks for selling their
innovative products within UK online grocery shops.
Intellectual-property tool use: In conjunction with help pertaining patented IP mechanisms, firms
would secure their transactions from external business aspects and rivals.
Phase 3 – Creating a timeline
The desired goal would be accomplished through this client company within the duration of yearly
basis with proper assistance regarding sales level including tracking of consumer retention level.
Phase 4 – Resource designation
Resources that would be used through mentioned businesses pertaining innovative
commercialization motives consist of physical, technical and monetary resources. Affiliated loan of
around £60000 could be acquired through business.
Phase 5 – Monitoring development
For the purpose of monitoring progress regarding actions taken through firms for successful
provisio of innovative products pertaining online groceries' stores sround UK, the level of sales and
buyer retention rates upon social-media and offline platforms would be regulated within specific
time period.

CONCLUSION
From the abovementioned report it can be clearly assessed that report has critically
evaluated 2 specific present cases regarding innovation within their organizational scenarios of UK-
based retail companies of Tesco and Unilever. It has even presented an accurately oriented action-
plan in its second part. The above report has also analytically investigated that how this innovation
process plus its pathways can be sourced and backed differently within various company contexts or
organizational types. Report has even explored the transparent processing of different kinds of
innovative processes in the provided contexts. The 2nd part of above report has implemented the
process that was required regarding commercializing innovation in firms and lastly it has analyzed
an array of methods concerning the protection for innovation within firms.
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