This report defines the innovation and new product launching system of an organisation. It defines the product strategy and designed a new product according to the market requirements and competitor's aspect. For this task Unilever PLC has been taken for the research. It is an FMCG manufacturer company and in this industry, lots of competition is available so that innovation is mostly required in this industry. In a competitive market, innovation is always required to make a successful business. This report also discussed the invention and along with that describes the innovation. The 4 P's of the innovation will define in the report. With the p's this report explains how Unilever is capable of the innovation and the product strategy. This report briefly explains the innovation funnel and also describes the frugal innovation technology. The innovation should be profitable according to the business are explained in this report. New product processing and development frameworks are discussed in the report. Innovation protection is more important so that organization can run their business successfully. In this report, innovative protection is described and defines how Unilever Ltd protected innovation.
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For this report, Unilever PLC is chosen for innovation and its products. It is a British and Dutch company. This company was founded in 1929 and dealing with FMCG products. This company has various subsidiaries companies and HUL is one of them. The Unilever run their business across the 190 countries and the company has various products like personal care products, ice creams, food products, and beauty products, etc. It is an international company and also a successful organization. The organization has some competitors which are affected to the Unilever business like PepsiCo, Johnson & Johnson, P&G, and Nestle, etc. are some competitors. The Unilever is providing the best products to their customers on high quality. The organization applies innovations and launch new products for the customer. Bazinga drinks is one of the innovative products. It is a drinking product that is made by natural ingredients. The company has R&D centers and has highly qualified professionals which help to provide new products. It is always worked for the new developments, for the development, the company runs the innovation programs. In these programs, bachelor does the internship in the different-different sectors and helps in the new product segment? The company has excellent laboratories and world-class research centers where are all kinds of facilities are available.
About the product:
The company is planning to launch a new range of product that is called ‘Bazinga Drinks’. This product is made of natural ingredients. The range of drinks with different flavors is manufactured for old people who are 60+. This product is helpful to enhance the immunity system of the person, meet their multivitamins requirement and it will be offered at a reasonable price.
Product Benefits for the customer:
Product benefits for the company:
Invention and innovation are two different things. There are describing both of them they are:
Invention: It is defined as the product and services which is introduced the first time in the market. It is defined as the creation stage of the product and services. On the other hand, it is defined as the first time process of product and services (Mihai Liviu, 2014).
Innovation: It describes the improvement and makes some changes in the old product and services. On the other hand, innovation is a technique which is providing the batter results by some changes in the old technology. Example: Apple iPod is the biggest example of innovation. This iPod device can storage so many mp3 songs and it was a portable music device but the iPod was not the first music device before that don't have the portable device. Apple innovates the new and attractive iPod which is mostly used by various customers.
Somewhere they both are interconnected which means an invention is not completed without the innovation. Example: microprocessor was an invention but without any innovation, it is just a board circuit. To make useful this microprocessor many other processors and hardware are required to make use of the invention (Mihai Liviu, 2014).
In the Unilever products, many companies manufacturing the beauty products and other daily usage products but the Unilever make some improvement in the products and provide the best quality products. The quality of living innovations is required.
The invention is important for society and the nation. It is also helpful in the economic growth of the country. The invention defines as a new change and they create the new living standard. In terms of the business, the invention helps to develop a new product and technology which helpful for the customer and the financial growth of the company will grow independently. There are some important factors of the invention which is defined that how the invention is important for the Unilever and other companies:
Develop the imagination skills: An invention is all about depends upon the image. In starting an invention is known as the imagination. The invention helps to increase the imaginary skills and helps to develop new products for Unilever Ltd. The invention is defined as a rough idea of the product and it helps to make this idea become a successful invention (Grafström & Lindman, 2017).
Helps to create the special innovation:
Invention is defined as a new product that is prepared first time in the organization. The invention provides new ideas to the company so that the organizations can create something special for the customer aspect.
Become strong and avoid the barriers: Invention helps to reduce the barriers. It helps to produce new and innovative things. With the help of the invention, Unilever Ltd will make a strong base and produce innovative products. In innovative products, more opportunities are available which is attracts the customer (Autio et al, 2014).
The invention generates more revenue: Invention creates its market which has lots of potentials. The invention provides new technology and fresh product in the market so it's true that invented company can earn more revenue than the others. Example: Henry Ford invented the car, Wright brothers invented the airplane.
Importance of innovation & invention for the Unilever ltd
Innovations are defined as the new ideas which help to improve the new technology and development in the product is that determines the battered product. There are lots of importance is defined in the business:
Provide the problem solution: Innovation is helpful in the amendments. With the help of innovation, companies create more utilize products. Innovations create new technology and new opportunities in the business. It helps to resolve the drawbacks problem which is already available in the product and create new opportunities (Grafström & Lindman, 2017).
Increase productivity: Innovations enhance the productivity of the company. Innovations Focused on customer requirements and provide the alternate. Example: Unilever produces the shampoo and now the company analyzed those other companies attract to the customer by their products so that Unilever innovative new other shampoo products and increase the sale.
The market of the business: Innovation creates more opportunities in the market and increases the market size of the company. Innovative ideas create new products and free products so that company can enhance its business in the market. Sometimes a particular product enhances the brand value of the company (Autio et al, 2014).
Beat the competitors: Innovations defined as the development of the available products. It provides the updated version of the product. Example: Nestle manufacturing the food and beverage products and Unilever is also working in that segment but people like that product which provides the best quality. Bazinga segment is a new innovative product for the Unilever ltd (Surie & Groen, 2017).
Innovation is not an easy task for the business there are some kind factors effected to the innovation that is a perfect vision, effective leadership, organizations and the external culture where the product will perform, and a managed teamwork. They all factors are required for the innovation. All factors try to find out the market demand and determine that requirement which is required in the innovation. Talking about the Unilever, this company is manufacturing the new innovative products which make the leading innovative company. These factors influence innovation positively. There are some factors are described:
Vision: Every organization has a vision. Vision is defined as the future growth and requirements of the company. Unilever has a vision that is "provide a sustainable living for the commonplace". The Unilever works for the sustainable product that gives the high quality to the customers. A vision defines how the company will perform in the future and what their target market is. The company produce the innovative the products according to the vision (Surie & Groen, 2017).
Leadership: Good leadership helps to enhance innovation. Innovation is a deadly decision that is taken by the higher authority. Innovation has a positive and negative side of the business so risk factors are available in the innovation. A good leader can decide to apply innovation and do effective management.
Culture: An innovation is performed according to culture and society. Different- Different people have third individual thought and every product not accepted by every society. Example: In the Indian Market low segment product is required but in the UK market, the quality of the product will come on the Sales. They have a different-different culture so their requirements also changed. Unilever manufactures the product according to the culture. Innovation will become successful when the organizations produce the product according to the culture.
Teamwork: Every business and Organization can become successful by the teamwork. Teamwork has a lot of potentials to make a successful event. Innovative decision and their amendment is the basic process of the innovation but for the effective innovation, teamwork is more important. Teamwork is helpful to manage every activity and provide effective solutions so that problems can solve easily (Surie & Groen, 2017).
There are various sources are available which is helpful in the innovation there are some points of source these are:
Unexpected events: Innovation is defined as the unexpected events. In the organization, some of the innovation rises accidentally. In the business terms sometimes it happened in the organization. New technology and research centers are developed by the Unilever ltd. The unexpected events have some drawbacks also their results can show positive and negative (Ganter & Hecker, 2013).
The process needs: The innovation has required a process. A process will define that innovation will grow effectively. For the little projects and long term durability products, a process is required. The process-based innovation is the part of Unilever Ltd. It has various products that are used for the long term aspect and innovate by a certain process (Kinch & Raffo, 2015).
Change in the industry and market: Innovations is required when the industry wants to change in their products. In the changing environment, it is required. Example: In the cellphone industry, normal phones were in the market and suddenly a change come and smartphones came in the market. In that particular thing industry want a change so that it can provide a better lifestyle (Ganter & Hecker, 2013).
Demographic changes: This Innovation is based on the place. In the different-different countries, different-different products are needed. The companies innovate their products according to the demographic field. Example: The Japanese market is based on technology and robotics. In Japan robotics products and technology-based products mostly invented.
There are 4 types of Innovations are available they are
Incremental innovation: It is defined as that innovation where is the company enhancing the technology and other some factors like design and features of the product. Example: Unilever ltd has personal care products and they all are from the different-different segment. Their product pricing will different by their quality (Tavassoli & Karlsson, 2015).
Disruptive innovation: It is known as guile products. They are defined as that product which is new for the market. For these products, more research and patience is required. It is built by the new technology and new features based products. To make these products lots of capital is required. They are dangerous for the organization.
Architectural innovation: It is defined as that innovation which is new and target to the different audience. These kinds of innovative products are not sold in the normal market. New customers and new markets accept that Innovation (Ganter & Hecker, 2013).
Radical innovation: This is defined as that Innovation which mostly thinking in the current world and it is an innovation that is innovated by the new technology. For commercial purposes, it is most useful. Example: Airplane was not the first transformer mode but now it is the most commercialized innovation.
4p's of Innovations
Innovation is based on the 4 elements they define as the 4p's of the Innovation.
Paradigm: In this step, Unilever Ltd can determine a framework of innovation. In this step find out that what has required development, needs of the customer, and what new changes are required for the business. All new changes may show the positive and negative side but its importance (Chor et al, 2015).
Product: This segment defines what product the company made for the customers. In this step, Unilever Ltd decides internally that what kind of product should company produces and determine its competitors so that it attracts the most customers easily. It is an internal process.
Process: In this step, Unilever defines a process of product manufacturing and along with that training, supply-chain of the product, hiring of people are included in the process. This process is helpful to increase the profitability and productivity of the company.
Position: It is a part of the planning which is described the target customers. In this step, mentioned that who is targeted customers and at which place the Unilever Ltd launch this particular product. It is the most important factor in Innovation. Success and failure of the innovation are based on this posting (Chor et al, 2015).
An innovational funnel has some kind of steps which help to produce a creative innovation.
This funnel is divided into 4 parts and one additional part is also available
Idea: It is the basic needs of innovation without idea an innovation cannot be imagined. When Unilever Ltd innovates something new an idea comes in mind.
Assessment of the idea: In this funnel an idea run by the process. In the first step, Unilever Ltd determined the requirements of the Innovation, prepare a framework, target market, new technology, and what new things will be added in this Innovation are prepared. If you have more than one idea then you can choose the best options (Hakkarainen & Talonen, 2014).
Development stage: It is defined as the development stage where the Unilever will develop this idea and try to prepare the product. New techniques are used in this step. In this step, various kinds of problems will come like financial, management related, and also planning based. By the solution of all problems the product will produce.
Testing: It is a testing stage where is the company taking a trail of the finished product. This testing is done by two types internal and external. If Unilever produces any beauty product, so testing internal defines that product doesn't harmful for the public and after that provide the free sample for testing.
Launch: It is defined as the final stage of the Innovation. In this step, the organizations finally launch the product in the market. After the all Problems, it provides solutions and testing of the product. Launch the product in the real market. The market decides that the innovation is successful or not (Hakkarainen & Talonen, 2014).
In this step of the Innovation funnel marketing factors are involved. At that time the Unilever Ltd launch their innovative product in the market so that the marketing of the product is compulsory and requirements for the business. It is also affected by the economic and profits of the company.
The innovation funnel has some benefits for Unilever Ltd
Innovation funnel is a time taking process because it is a step by step process.
Competitors can launch a new product in the market when Unilever Ltd working in the innovation funnel
Frugal innovation is defined as low-cost innovative techniques. In this process, the cost will reduce and provided the product at a nominal price. By this strategy, the organization can reduce the additional and unnecessary expenditure from the product and provides quality products. It is used for the smartphones and automobile sectors mostly because there are price and features can change quickly and customer choice will also change frequently. This innovation has the six principals to innovate the product at a low cost (Radziwill, 2015). These principles are
Unilever Ltd also adopts a prudent innovation technique. By the use of this technique, the Unilever ltd produces various products. The frugal products are necessary for the FMCG industry. There are lots of competition are available so that the profit margin is also less than the other industries (Radziwill, 2015). Unilever Ltd innovates a frugal innovation in Africa. Unilever Ltd launches the washing powder in the African Market. It was not a big experiment and nothing a big innovation but for a developing country, it was the milestone of Unilever Ltd. This innovation can create approx. 1billon dollar market. It was the cheapest innovation but was a profitable business product.
The frugal innovation is good for the organization. Unilever Ltd adopts this approach and has some benefits:
There is a five-step model that is explained for the commercializing innovation. There are some factors:
Determine the business potential and findings: It is the first step of the innovation where is Unilever finds out the capability of the organization. The determination of the resources is explained in this step. The organization is collected the data through the research and evaluates the income and expenses ratio of the company (Ceserani, 2012).
Value chain management of the company: It is a segment where Unilever Ltd evaluates the value of the innovation. In the value chain, the raw material to finished goods and also products will reach the end-users are involved in this process like (raw material, labor, customer, stakeholders, investment holders, suppliers, and the customers). New technology and new opportunities are described in this segment.
Explain the roles and responsibilities: To make an innovation in commercialized roles and responsibilities distribution is more important. It can be happened by the teamwork. Every team member understands their responsibility and provides effective results. Roles and responsibilities are important for the business aspects (Ceserani, 2012).
Risk management: Every innovation has the risk because the innovation depends upon the future response. The future is uncertain so that the risk factor is involved in the innovation. A commercial Innovation tries to hedging the risk factor and provides the standard product. Unilever Ltd uses new technology and produces a fresh product so that risk is also available in the innovation (Andrew, 2012).
Commercialization: It is the final step of the innovation where are all steps done. It is defined as the action time where the organizations flow commercial aspects. In this step target audience and place will decide where Unilever wants to sell its product. In this step, Unilever Ltd wants to try to increase the profits so that it can help in the economy. Commercial Innovation is good for the business and also for the country. It signs of growth (Andrew, 2012).
Commercial funnel and its importance for the Unilever
Commercial funnel is diriment from the innovation funnel. It is divided into three parts they are:
It is defined as a commercial funnel.
Commercial funnel is more important for business purposes. In this funnel sales related work will be done which is increase the profit and revenue. Every business runs to earn the profit and enhance its revenue but it can happen by the effective use of the sales. This funnel provides the sales increment process. Commercial funnel is defined as the raising of the profit and economic growth of the company.
There are some steps involved in the new product planning they are:
Idea generation: It is the first step of the NPD process where Unilever has only one idea of the innovation. This process understands by the example of the Bazinga drink. In this step, Unilever defines to make k product which is based on natural food & drinking products (Genç & Benedetto, 2015).
Screening of the idea: This step is defined as the research methodology step. In this process, Unilever finds out the market of the product. Available competitor's products and details along with that company find out that what new things should be add on in the product so that they can make the battered product.
Development of the concept and testing: It is the planning stage of the Bazinga. A framework will be prepared by the company and this framework decided the making process to the distribution process. In the core an effective work in product development.
Marketing strategy: Marketing is a required tool to establish a product into the market. In this step, Unilever determined what kind of way should be used for product marketing. This process depends on the product's nature. For the Bazinga drinks, Unilever will use print media and commercial ads promotion marketing tricks (Genç & Benedetto, 2015).
Business analysis process: This step involves the analysis of the business. The benefits and limitations of the product are determined in the process. Determine the cause of the problem and also help to provide the solution to the problem. It defines that Bazinga drinks is best or not for the business (Griffith & Macartney 2014).
Product development: It is the development stage where are the organizations will produce the product. In the development stage, the Bazinga drinks will be prepared and also analyzed that making quality is good or not.
Test marketing: Testing is an important part of the manufacturing units. Every manufacturing product has to go through this process. Bazinga drink is a food and beverage related item so that it has a different type of testing process like the taste of the product, ensure that product is not harmful to the customer, ingredients which are used in this product are good or not and also compared the product with the competitor’s product.
Commercialization: It is the final stage of product development. In this step, the product comes in the market and do perform. The profit and revenue situation will start in this step. The reaction of the people towards the product and the increase in sales is part of this step. It determines that the product becomes successful or failure. Bazinga drinks will become a successful product for Unilever Ltd (Griffith & Macartney 2014).
The company raises the funds for this product:
Unilever launch an innovative product that is known as Bazinga drinks. For this production company will raise the funds with the help of equity shareholders. Unilever can take a 2% profit from every stakeholder with their permission and can raise the funds. This organization is in a good financial condition so that shareholders can accept this deal.
Develop a detailed Innovation
It is defined as the strategic Innovation planning where some kind of factors is involved these are:
Innovation is defined as per the innovation sources and the NPD process: According to this innovation strategy the Unilever Ltd should innovate the products by the innovation sources and apply the NPD strategy. Both factors are helpful in the batter Innovation. NPD and innovation resources determined the analyzed Innovation (Griffith & Macartney 2014).
Access to funds: Funds and capital is required for innovation. Innovation depends upon the future and it is uncertain so that liquid and long term cash should have the company in their hands. In the innovation financial management is more important and the product should prepare at a low cost.
Market development: In this step, Unilever Ltd tries to capture the market by the marketing and branding of the company. An innovative product like Bazinga drink is new for the customers so customers don't believe in the product firstly they believe in the brand value of the company. The existing company has benefited from this stage (Genç & Benedetto, 2015).
Evaluation: It defines as cheating all processes and also evaluate the activities which are required for the business aspects. Evaluation is an important step; with the help of this step, Unilever Ltd determined the Innovation problems and also supervision of the activities of the Innovation.
Improvement strategy: Improvement factor is always available in the product aspect. There is not the perfect product because the price, quality, coating, and profit margin affected the product so that improvement options are always available. In this step, Unilever improves product quality in the future (Genç & Benedetto, 2015).
Protection is more important in the innovation otherwise other companies can follow your Successful product and capture your market. In the real market, lots of competition is available so that Innovation protection is more important (Park & Panagopoulos, 2019).
There is various kinds of protection of the Innovation are available but some types of protection techniques are available in the market. If talking about the Unilever products of the Bazinga drink. It is a food and beverage product and for this product mostly trademarks are used. There are other different-different protection techniques are available which are:
Keep your idea yourself
It is the basic and common technique of Business Innovation. Innovation can be protected when the Unilever keep their idea with yourself. Unilever manufacturers the Bazinga drink and this product come in the food segment. So the first technique of protection is keeping safe your Innovation with yourself (Park & Panagopoulos, 2019).
Patents are defined as the protection technique which is used to protect the Innovation and technology of the company. It is taken by the companies when only the company invents this technology so that company doesn't want that to share this technology with the other. Patents are providing in any field and industry but in the automobile, the smartphone and pharmaceutical industry mostly used the patent. Example: Apple Company has iOS parents so that only Apple Company uses this technology. Taking about the Bazinga drink, Unilever doesn't make the patent for the Bazinga drink because it is a food product and anyone can make this product as well (da Silva Lopes et al, 2019).
Trademark is defined as the symbol, word, and phrase. A trademark legally protected the name and logo of the company. To convert a company into a brand trademark is important. After the trademark, no one can use the particular symbol of the company. Example: Unilever Ltd.’s logo is unique and the company has a trademark of the logo. Any other company can't use this logo and design of the logo. Customers can understand by the logo that is Unilever's product (da Silva Lopes et al, 2019).
It is a legal process and protection of the products which is provided for the intellectual property. This helps to avoid the duplicate of the product and avoid the pirated products. In the US, copyright law is working for 70 years after death. It is mostly used for lyrics, songs, software, and novels, etc. In the Unilever product, for the Bazinga drink, Unilever takes the copyright so that no one can produce the same product (da Silva Lopes et al, 2019).
Mostly these three protections are used for innovation protection. In this section, Unilever Ltd protected from unauthorized copying. It is performed under the legal system and conducted by the law. It is helping out from the competitive market and reduces the competition. For the Bazinga drink, lots of competition are available this protection helps to reduce the unwanted threats.
Secrets of the trade are the best technique of protection. In this protection segment, Unilever Ltd keeps the safety of every formula of the products. The biggest example of this segment is the Coca-Cola formula secret which is safe by the 100 years. It is the Rivalry Company of Unilever Ltd. Unilever has also some product secrets. Every business formula is important as secreted for the company.
This report is based on the innovation and concept of Innovation. Unilever Ltd is taken as a company for innovation related. In this report defines that Unilever Ltd always admires the Innovation and try to innovate various products. Bazinga drink is an example of Unilever's Ltd. In this report describes the Innovation and also explain the Unilever Ltd which increases the market with the help of Innovations. Along with the innovation, the invention is also explained in the report and also described how it is different from the innovation. Benefits band limitations of the Innovation are defined in the report. Types of Innovations and the 4 P's model of the Innovation are explained. In the report mentioned the Innovation funnel that is defined for the Innovation processing. A concept of frugal innovation is explained in the report which is exploring how Unilever will innovate the product at the cheapest cost. Commercial Innovation and its importance for the Unilever are described. The most important thing is the new product development strategy is exposed in the report. Unilever PLC launch of new product development is explained. Innovation protection is more important for Innovation. In this report, innovation protection is explained briefly.
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