Analysis of how these innovations have been successful for Betty’s:
Innovation 1- Differentiation (cookery school)
This will benefit Betty’s as their service will appeal to a larger target market from customers
of all ages this will increase the brand recognition for their classes around the local
community which will increase the amount of daily customers. As this service is unique to
Betty’s tea room, the demand for their classes
will increase which will allow them to raise
prices which will allow Betty’s to receive a
larger amount of profit which will show success
of their innovative service. Betty’s success in
this service is shown through good reviews
from their customers online, as well as gaining
the ranking of being the second best class/
workshop in Harrogate, despite this feature not
being what Betty’s is most famous for. There
were risks to this innovation due to the
increased spending in order to purchase the
new machinery and multiple cooking
workshops and cooking tools. Therefore,
installing the cookery school was a risk as, the
company would’ve relied on the profit from the
new service to pay, in this case, in the unlikely event of the cookery school being
unsuccessful and unappealing to customers, this would cause Betty’s to change their
approach and lower prices which will reduce the amount of profit they would receive which
will cause the business to possibly go in to debt, which will cause them to cut down on
expenditure, by letting employees go for example.
Innovation 2- Exploiting new ideas (fat rascals)
This innovation benefits Betty’s as it allows for a development of a new or niche market of
scones with this special recipe. As this product is only available and is unique to Betty’s, this
increase the demand for their product as it cannot be purchased elsewhere which gives
Betty’s the opportunity to increase
prices in order to receive a larger profit
margin. This product being the only of
its kind allows Betty’s to have an
advantage over their competitors, as
well as receiving potential success in a
similar market such has baked goods for
example. A risk, of this innovation,
would be the possibility of not achieving
a return on their investment in raw
materials and baking equipment needed
to produce the fat rascals such has a larger quantity of baking trays and ovens. In the
possible scenario of fat rascals not selling well, this would be a loss for Betty’s and the
amount they invested in producing the new scone. The insider media has stated that Betty’s
plan on taking advantage of the growing demand of their products and invest their profit
into expanding their tea and coffee manufacturing site, located in Harrogate.
Innovation 1- Differentiation (cookery school)
This will benefit Betty’s as their service will appeal to a larger target market from customers
of all ages this will increase the brand recognition for their classes around the local
community which will increase the amount of daily customers. As this service is unique to
Betty’s tea room, the demand for their classes
will increase which will allow them to raise
prices which will allow Betty’s to receive a
larger amount of profit which will show success
of their innovative service. Betty’s success in
this service is shown through good reviews
from their customers online, as well as gaining
the ranking of being the second best class/
workshop in Harrogate, despite this feature not
being what Betty’s is most famous for. There
were risks to this innovation due to the
increased spending in order to purchase the
new machinery and multiple cooking
workshops and cooking tools. Therefore,
installing the cookery school was a risk as, the
company would’ve relied on the profit from the
new service to pay, in this case, in the unlikely event of the cookery school being
unsuccessful and unappealing to customers, this would cause Betty’s to change their
approach and lower prices which will reduce the amount of profit they would receive which
will cause the business to possibly go in to debt, which will cause them to cut down on
expenditure, by letting employees go for example.
Innovation 2- Exploiting new ideas (fat rascals)
This innovation benefits Betty’s as it allows for a development of a new or niche market of
scones with this special recipe. As this product is only available and is unique to Betty’s, this
increase the demand for their product as it cannot be purchased elsewhere which gives
Betty’s the opportunity to increase
prices in order to receive a larger profit
margin. This product being the only of
its kind allows Betty’s to have an
advantage over their competitors, as
well as receiving potential success in a
similar market such has baked goods for
example. A risk, of this innovation,
would be the possibility of not achieving
a return on their investment in raw
materials and baking equipment needed
to produce the fat rascals such has a larger quantity of baking trays and ovens. In the
possible scenario of fat rascals not selling well, this would be a loss for Betty’s and the
amount they invested in producing the new scone. The insider media has stated that Betty’s
plan on taking advantage of the growing demand of their products and invest their profit
into expanding their tea and coffee manufacturing site, located in Harrogate.
