Essence Drink Business Plan

This assignment delves into the innovative aspects of launching 'Essence Drink', a new lassi brand in the United Kingdom. It explores various funding sources like bank loans, family investments, and benchmarking strategies. The document emphasizes protecting intellectual property through copyrights, patents, and trade secrets. Furthermore, it utilizes the innovation funnel model to guide the development and launch of this novel product.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 ...........................................................................................................................................3
P2............................................................................................................................................4
TASK 2............................................................................................................................................5
P3............................................................................................................................................5
P4 ...........................................................................................................................................7
TASK 3............................................................................................................................................9
P5 ...........................................................................................................................................9
P6 .........................................................................................................................................10
TASK 4..........................................................................................................................................11
P7 .........................................................................................................................................11
CONCLUSION..............................................................................................................................13
........................................................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
Innovation is the process of translating something new within products as well as services
which creates values for customer amount paid (Ahmadi and O'Cass, 2016). To be known as
innovation it is necessary that idea should satisfy needs of existing and potential customers. This
assignment is based on Essence Drinks which was founded two years ago and the founder of
firm is Akshay Kumar. The company is serving healthy mango lassi in the market of United
Kingdom but after three years, the sales starts to decrease. So, Akshar Kumar thing to bring
something innovative in the market of United Kingdom within the range of Lassi. Thus,
respective report will going to discuss various aspects of innovation which utilise for bringing
new range of lassi in market of United Kingdom. Such as importance of innovation for Essence
Drink and comparison of innovation with invention. Along with this, vision, leadership, culture
and teamwork how will shape innovation of lassi. Most important is 4P's of innovation and
innovation funnel will be discussed for examine innovative ideas. In the end development of
frugal innovation highlighted as well as commercial funnel and implementation of new product
development for innovation in market. Apart from this, business case of company and
intellectual properties for protecting innovative product.
TASK 1
P1
Innovation is the process that mainly focus on emerging something new or creative in the
market for long term success of business. Essence Drink is small scale organisation offering
healthy mango lassi in the market of United Kingdom (Amponsah and Adams, 2017). But after
some time, its sales has been significantly decrease so founder Akshay Kumar think to come up
with some innovation in the same lassi. So brand strategy innovator suggest them to bring lassi
powder which can be use by individual while travelling. Respective innovation have various
importance for organisation are as follows :-
 Innovation result in increasing sale of Essence Drink as well as also help in generating
revenue. Along with this, new range of offering as per customers need as well as demand
result in their increasing satisfaction and loyalty.

 It also support in building goodwill within market area which is necessary for grabbing
attention of large number of customers. Along with this, innovation assist in
accomplishing goals and objectives of Essence Drink within required time duration.
Apart from this, innovation is important for entire organisation including staff members
also because it act as an developmental as well as growth tool for business. Thus, Essence Drink
is coming with lassi powder in the market for satisfying customers needs and wants also for
enhancing sales. Moreover, innovation and invention both are different from each other
(Difference Between Invention and Innovation, 2019). For Essence Drink, lassi is their USP
therefore the owner of the organisation wants to implement innovation in their existing products
rather than its replacement from another invention. Through this they can invention is not
applying by Essence Drink because if they will move from their USP lassi then sales will
automatically decrease. Explanation of this are as follows :-
Basis of comparison Innovation Invention
Meaning Innovation is related to the
applying of thoughts or ideas
for existing goods as well as
process for very first time.
Invention is related occurrence
of any idea for goods or
process which has been never
made before.
What is it Adding value to the product or
process which already exist.
Entirely new product will be
created
Concept New ideas are implemented
practically.
An original idea as well as its
working in theory.
Skills required Several skills are required such
as marketing, technical and
strategic.
Scientific skills are required
Occurs when When requirement is feel for a
product or enhancement in the
existing.
Invention occurs when New
idea strikes
Concern with Combination of several
products as well as procedure.
Invention is concern with
particular process or process.

Activities Spread in the entire company. Limited to research &
development department.
P2
It is essential for an organisation to have clear objectives, vision related to pre-determined
goals and objectives (Chun, Chung and Bang, 2015). Along with this, for effective working of
Essence Drink as well as gaining better position in the market it is important to convey vision,
mission and objective of business to every staff members very clearly. Respective organisation
should have clear long term vision which is required for smooth flow of business for long term
duration by building image as well as goodwill within the market area. Therefore, vision,
leadership, culture and group work play a vital role in shaping the innovation as well as
commercialisation in various manner due to their broad concept. These in relation of
organisation are as follows :- Vision :- Essence Drink's vision is to offer delicious and healthy powder lassi to people
across the United Kingdom. Moreover, they want to enrich livings of people by healthy
balanced available choices. Through powder lassi company want to leader of that
particular market as well as by satisfying customers needs which result in business
growth. Leadership :- In the innovation process leader of the company play vital role in
implementing powder lassi idea because it is their duty to work for development of
company (Dezi and et.al., 2018). Along with this, leader play important role in respective
business for maintaining healthy relation within employer and employees so with the
assistance of this implementing innovation became easy. Leadership play vital role in the
company because manager and leader are the one who manage as well as control overall
working in effectual manner. Culture :- Organisation culture play important role in the process of innovation because
it involve beliefs, values, norms, rules as well as regulation which are implemented by
higher authority for better working of Essence Drink. If organisation's culture is friendly
and easily adopting innovation then it will became easy to implement new range of lassi.
Moreover, culture of organisation must be healthy as well as positive so that it will satisfy
staff members who are working their.

 Teamwork :- It is important to have team in company for different activities so that
things can be managed in easy manner without burden on individual. In simple term,
through teamwork Essence Drink can easily accomplish its pre-determined goals and
objectives (Dincer, 2017). While implementing innovation company have to design
proper team who can work on it and gain success. Although, team work is important for
doing work on time and also in effective manner.
TASK 2
P3
Innovation mix is the model developed by John Bessant and Joe Tidd. The 4Ps of
innovation involve product, position, process and paradigm (Kedron and Bagchi-Sen, 2017).
Implementation of these in relation of Essence Drink company innovation of powder lassi are as
follows :- Product innovation – By doing innovation in product, company will be able to supply
satisfactory products to their customer as per their needs and wants. Essence Drink is
introducing lassi power which can be use while travelling for their existing and potential
customers. This will result in again increasing sale of the company by satisfying
customers needs and wants. Process - Essence Drink is small scale organisation and offering healthy and flavoured
lassi to population of United Kingdom. For taking better position in market and
increasing its sales, it is very necessary for firm to consider appropriate process which
help them in bringing fine quality of offerings in the market area. In simple term,
effective working procedure assist in maintaining the quality of lassi as well as
performance of staff member's which assist in getting rid of any mistakes. Position – It is related to actual position of Essence Drink offering in the market area and
for customer's (Lau and Lee, 2017). Thus, by analysing current position within market it
became easy for respective organisation to analyse the present needs and wants of
customers. So that, easily modifications can be done in proper manner for satisfying them
customers and firm can make their better image within market.
 Paradigm – It is last element of 4P's of innovation mix that explain present dominant
paradigm of Essence Drink company in an effective as well as appropriate way.

Innovation funnel is that which utilise for describing steps which take place within the
development of a process or product. The most important objective and aim of innovation funnel
is to get better the actual position of products within the competitive business environment.
Although, for managing new product development process, company in today's world employ
the model of an innovation funnel (The Innovation Funnel: Bringing Ideas To Life, 2019). Below
mention are the part of typical innovation funnel explanation are as follows :-
 Opportunity assessment – In the first step in which Essence Drink company analyse
market data, customer knowledge as well as other information sources. For identifying
opportunity available for new product line or line extension.
 Insights based ideation – In this, it will be identified what type of opportunity properly
fit for strategy of Essence Drink (Lawton Smith,Bagchi-Sen,and Edmunds, 2018). The
next step is to imagine various type of products or offerings which could take advantage on
this opportunity. For this purpose, market research will be done by the way of surveys, focus
groups, online communities, crowdsourcing and so on.
 Conceptualization – At this stage, Junior innovation consultant hired by Akshay Kumar
will design actual concept from all the ideas which came out in the ideation stage.
Product innovation of Essence Drink company is to offer range of flavoured lassi to
population of United Kingdom.
 Evaluation and benchmarking – Now it is the time to go back targeted customers and
test the innovation concept. This involve testing actual user which is based on taking
feedbacks after offering them flavoured lassi.
 Go/No Go – After completing test and collecting feedbacks from customers, analysis
reveals that concept is best for success. In this stage innovation consultant make decision
to go on it or not. But decision should consider other points also such as manufacturing
margins, costs, as well as other items which are not related to customer preference.
 Launch – In this process concept of flavoured lassi will be launched in the Market area
of United Kingdom.
Above mention innovation funnel help Essence Drink Company in bringing its range of
flavoured lassi in the market area of United Kingdom. It is suitable because through innovation
funnel product is first tested within market and then after launched.

P4
Frugal innovation is a process of reducing complexity and cost of goods and its
production. It is one of the important activity in invention and innovation process. Eventually, it
is adopted may many organisation in order to develop extra element in the present production
services. Herein, essence drink are coming up with new innovation of powder lassi in the
competitive marketplace.
New market opportunities: In today's context market exploration and investigation
needs to be done appropriately so that an organisation can know its competitive market and its
offering (Lin, 2018). Moreover, it will help essence drink to have accessible outcomes while
expanding its new business in competitive marketplace. Thus, it is essential to create innovation
in product and services so that an organisation can attain more market share.
Resources: It is mandatory for an organisation to utilise their assets so that they can
become successful in competitive marketplace. Herein, essences drink need to ensure that they
are optimising maximum utilization of resources so that they can attain sustainability for longer
period of time. As frugal innovation can be conceivable with any portion and resources are built
with its ability.
Innovation funnel: Innovation funnel is related with developing new product in
competitive marketplace. Herein, Essence drink are coming up with new product that is
innovation of powder lassi which can be use while travelling in competitive marketplace. Thus,
alteration in frugal development has an immense effect over it.
Frugal innovation can comprise of two segments which are determined below:
Problem: It is not so essay to come up with innovation in competitive marketplace. Their
are many problems that are need to be tackle out so that a respective company can develop its
product in an effective manner.
Related to product: In innovation, this problem is linked with marketing such as
marketer need to raised out possible existing sources. Moreover, essence drink need to
recognised a good medium of communication so that its business can fulfil its aims and
objectives in an attractive manner.
Apart from this some of the steps related in context of frugal innovation are determined below:
Generating idea of innovation: For innovation purpose, a market need to be monitored
keenly so that an appropriate result can be attain in a desired manner (Quimba, Albert and

Llanto, 2017). Herein, for such purpose manager of essence drink need to conduct research so
that they can know about the need and want of marketplace.
Screening new idea: In this stage, an organisation need to do proper planning of product
and services as per the need and wants of its potential customer's.
Idea screening: In this process innovative idea of powder lassi will be screened.
Testing: Testing is essential so that appropriate result can de developed weather the
product is up to the mark or not.
Internal analysis: This process is identified with administration of assets and utilised
as best part or the best way.
Review marketplace: It is important for an organisation to check weather their product is
up to the mark or not in marketplace.
TASK 3
P5
Commercial funnel is the path in three phases which utilise for reforming present goods
by implementing several beneficial strategies as well as policies. Therefore this funnel is much
important for success of Essence Drink. Description of this is mentioned below :-
 Pricing policy:- Essence Drink is offering their lassi in moderate price which can be
affordable by every type of customers. Because there is no such customer within market
area who want to pay extra for offerings. Through commercial funnel company can set
pricing policy through identifying customers behaviour towards different pricing. It helps in improving the way of growing business – Commercial funnel is the
indispensable concept in business growth. Because through this, it has been identified
each customer level in the funnel and then satisfy customers needs as well as wants. This
process result in increasing sales level as well as profit generation. Emergence of advanced technology:- Essence Drink can utilise this funnel for launching
their innovative in the market area i.e., powder lassi which can be use while travelling.
 Implement investigation programmes :- Conduct research is necessary for Essence Drink
so they can gather information related to customers needs and wants as well as market
condition. In this process commercial funnel play important role which is necessary for
bringing innovative product within market as well as for gaining success.

Apart from above discussion, new product development is longer process and there is
proper step in it. Explanation of these area as follows :- Idea generation :- First step for bringing innovative in lassi is to generate innovative
thoughts as well as ideas by conducting proper research. Thus, it is necessary to collect
information or data for reforming existing goods. Idea evaluation :- This is the second step, idea generated by the junior innovation
consultant will be filtered for removing the ideas which are not worth taking. Concept definition :- After idea evaluation, particular concept of bringing lassi powder
will be finalised. Strategic analysis :- In this step manager of Essence Drink have to make sure that idea
of powder lassi fit in the business strategy and determining demand, cost and profit
margin. Product development and testing :- In this stage powder lassi will be develop and testing
also take place. Market Testing – In this step, marketing testing of powder lassi will take place according
to customers, manufacturers as well as feedbacks. Along with this, it involve most
suitable timing of bringing innovative product in market. Commercialisation – Price of powder lassi will be determined along with its marketing
plan.
 Product launch – In the last step Essence Drink come in market with their powder lassi.
P6
Business case is that in which company assemble all the necessities thing required for
accomplishing goals as well as objectives of business (Polzin, Flotow and Klerkx, 2015). It is
important for an organisation to consider all the necessary items so they can persuade future
operation of Essence Drink company in effective manner. Moreover, business case can be in
both form written and verbal include all the relevant information related to business as well their
working.
Executive Summary: This business case is of Essence Drink Company which is
introducing powder lassi in the market of United Kingdom. For bringing this product company
have to design proper market strategy which involve SWOT, PESTEL and Porter's five force
model. So that, implementation of innovation result in growth and success of business.

Mission statement: Essence Drink's mission is to make healthy lassi because they
believe in supplying great taste, real and healthy drink which leads to healthy and happy people.
Statement of purpose of Essence Drink comprises of:-
 Create customer satisfaction by delivering products which exceeds customers
expectations.
 Make sure utilisation of high quality raw material for manufacturing of flavour lassi.
 Establish trademark through innovative marketing.
Resources: There are several assets which need to be consider by organisation in such
manner that they can manage innovation in successful manner. Along with this, proper
arrangement of resources is necessary which required for meeting day to day activity (Roos and
O'Connor, 2015).
Market analysis: It is necessary for Essence Drink to analyse market in proper manner
for identifying level of competition, customers perception towards lassi, taste and preference etc..
Cost and benefit analysis: Cost of powder lassi should be decide after doing analysis so
that customers preferences towards different price will be identified.
Financial projection: For bringing innovative product of powder lassi in the market of
United Kingdom there is requirement of £20,000.
Ways of funding: Fund is the back bone of business without this it is not possible to
meet daily basis requirement. For bringing innovative product in the market area there is
requirement of funds to Essence Drink company which can be generated through several sources
such as :-
 Bank and Financial institution: Essence Drink can take credit from bank as well as
through other financial institutions also (Plewa and et.al., 2016). It is secure method of
fund generation by company because there is requirement of giving any security in the
bank for taking loan. But against the amount given by bank and other financial institution
interest with be paid with principle amount.
 From family and friends – Essence Drink can take money from their friends and family
members. Its major benefit is their no requirement of paying interest amount as well as
only principle amount will be paid.

 Benchmarking: It is an strategy tool utilise for comparing the performance of business
process as well as products with the best performance of other organisation inside and
outside the industry.
For essence drink company loan from bank and other financial institution is best source
of generating revenue as well as it have proper security also.
TASK 4
P7
It is important for an organisation to protect their innovative product so that no other can
copy it. There are several laws and policies given by government bodies can be utilise by
Essence Drink company for protecting their products from any harmful effect (Pollitzer and
Schraudner, 2015). Thus, company can use intellectual properties for protection purpose :- Copyrights: - It is an legal term which describes authority or right given to an creators for
protecting their original product, musical, literary as well as other artistic work and it
allow individual to control their subsequent utilisation. Essence Drink can also take
copyright of their lassi because this is an innovative product for the market area of United
Kingdom which has been never launched before anyone. Trade secrets: - It concern with secret or proprietary information of commercial values.
There are several aspects which cannot be covered by trade secrets such as employment
law, contract law and so on. It is not suitable for Essence Drink to protect their innovative
product from any type of risk.
 Patent:- It provide right to owner of product for preventing others from exploiting the
innovation mention within the patent. If owner of the patent give right to others for
selling their innovation, making use of it as well as importing. Thus, Essence Drink can
take patent of their product so that no other can sale is without the permission of Akshay
Kumar.

CONCLUSION
From the above discussion is has been summarised that, innovation is necessary in every
product as well as services running in the market area. Because after sometime same thing will
not like by customers and they require something innovative. As per the organisation point of
view, creativity result in increasing sales, profit maximisation, customer satisfaction and so on.
Most important thing is, company have to protect their innovation with the assistance of copy
rights, patent and trademarks. Moreover, innovation funnel is the best tool for bringing
innovative product in the market area. It assists firm in converting an idea from concept to reality
that can help in satisfying needs of customers.