Intellectual Property Protection and Innovation

This assignment provides a detailed analysis of intellectual property protection techniques used by Essence Drinks, a company that has developed a new product called 'Blueberry'. The assignment discusses the importance of innovation in business success and how intellectual property rights are protected through patents, trademarks, and trade secrets. It also highlights the advantages, disadvantages, strengths, and weaknesses of each technique.

Assignment Brief – BTEC (RQF)
Higher National Diploma in Business
Student Name ID
Unit Number and
Title
08:In
novati
Academic Year 2019-20 Cohort Sept 18 Block 2
Unit Leader AssessoAssignment Title Innov
ation
Issue Date 25.03
.2019
Submission Date
(Formative)
29.04
.2019
IV Name
Deadline for
assignment
13.05
.2019
(Sum
Learners Declaration:
I certify that the work submitted for this unit is my own and the research
sources are fully acknowledged.
Date: 20-05-19
1

TABLE OF CONTENTS
Assignment Brief – BTEC (RQF)........................................................................................................1
INTRODUCTION................................................................................................................................3
LO1.......................................................................................................................................................3
Impact of Vision, culture, leadership on innovation and commercialisation ..................................4
Types of teams are essence drinks?......................................................................................................5
LO 2......................................................................................................................................................5
4Ps of innovation:............................................................................................................................5
The 4Ps of Innovation are used by the Organizations in order to begin the innovation process,
generally they are termed as innovation mix for the process. ........................................................6
The 4Ps of innovation are- ..............................................................................................................6
Frugal Innovation :...........................................................................................................................7
LO 3......................................................................................................................................................9
Commercial funnel:.........................................................................................................................9
Consumer Funnel is the process of visual representation of company's activities to make the
product available to the consumers to the extent of consumers buying decisions and actions(Shiu,
2017)................................................................................................................................................9
It is also known as sales funnel and is very important to the business in following ways- ...........9
Innovation business case for Essence Drinks Company along sources to access of funds ..........11
LO 4....................................................................................................................................................12
Tools used by the organisation in order to protect its intellectual property and Knowledge:.......12
Trade mark:.........................................................................................................................................13
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................14
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INTRODUCTION
Innovation is the process of finding new ideas to develop existing
product with the intention to raise market profitability. Innovation is very
important in order to enhance interest of buyers and gaining competitive
advantage. Present report is based on Essence drink which offers various
kinds of lassi products to consumers. Now it is planning to make changes in
its product and offer something new to buyers. The report will highlight on the
difference between innovation and invention process. Study will also mention
the different ideas and techniques used to protect the rights of innovating a
new product.
LO1
Innovation is the process or activities consists of some unique ideas,
thoughts, methods, imaginations in order to discover new ways to do the
things.
Innovation aids in the development and coordination of the organisation, it is
the way of adopting useful thoughts and converts them into useful outcomes,
products or method of operation. Innovation is crucial for both new and
existing organisations in this dynamic environment (Donate and de Pablo,
2015.).
In this dynamic world where nothing is constant, new updations and
improvements are taking place on a day to day basis which leads to new
innovations and inventions in every one's life.
Invention refers to the process of constructing new product which was not in
the market earlier, it is used for the first time. whereas Innovation is the
process or activity done on the existing technology, process or product by
introducing new ideas or ways.
Invention is used for creating new product / services, whereas innovation
refers to addition of values to something that is already in existence.
Invention vs Innovation:
1. In invention scientific skills are required because it is used to develop
new product whereas innovation requires technical skill so that existing
products can be improved or modified.
2. Generally, inventions are used for single product or process and
innovation is applied for the combination of products and processes.
Invention can be done by R & D department and innovation can be
done by any individual in the organisation.
3. Invention can take place when the new idea strikes a scientist and
innovation takes place when a product or existing product needs an
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improvement. Innovation needs focus and knowledge of market so that
new idea can be implemented effectually.
Innovation and Essence Drinks:
Innovation plays an indispensable role in an organisation. In this dynamic
environment, where nothing is constant technologies and changes in
products are taking place day by day according to the trend of today's
scenario and the organisation who is not taking part in this innovative world is
lagging behind (Fraj, Matute and Melero, 2015).
Essence drinks found a significant decrease in the sales of their product as
no innovation had taken place from the past two years because the company
introduced mango Lassi and competitors arrived with new ideas in the
market. Essence drinks should introduce a new flavoured Lassi to the UK
market, named as Blueberry Lassi, can be a great steps towards the
innovation as its flavour is mostly liked by the people plus it has great health
benefits. It can lead the company to regain its position and increasing its
sales.
Impact of Vision, culture, leadership on innovation and
commercialisation
Commercialisation:
Introduction of new product in market for commercial benefit is known as
commercialisation. Selling product or service for making money can be called as
commercialisation.
Vision and innovation:
For being successful, an organisation should have a clear vision or far
sightedness to see the future goals more clearly. A goal cannot be achieved
when the vision is blurred, Essence drinks should have clear vision which can
help the innovation and commercialisation to implement much easier and
faster as all the goals are specified clearly to the employees. Essence drink
should state its vision clearly to its employees in order to innovate a new
drink.
Leadership helps shape innovation and commercialisation:
Leadership can influence gaol achievement and team performance by
inspiring and motivating the team members. A successful leader should have
ability to enhance the skills of its team members, to create better vision
toward the goal, understand the organisational culture, develop the
performance and encourage innovation among the team members. A
successful leader can also influence its team members how they can
introduce a new flavoured drink to bring about innovation and
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commercialisation.
Culture:
Organisation culture refers to the behaviour, assumption and values
that contributes to a unique psychological and social environment, a healthy
organisation culture can helps in shaping the business towards innovation, if
culture of company is positive, employees gets motivated and focused
towards their work and can contribute to the organisation. A healthy
organisational culture can help in bringing the essence drinks to the new
heights and can lead to the success path and employees can share their
views and creative ideas to the leader.
Teamwork:
Organisations are more likely to perform well when they work collectively,
teamwork can help essence drinks to bring about innovation and
commercialisation as working in a team creates synergy, encourages team
members, create a sense of responsibility, foster flexibility, promotes a sense
of equity. Essence drinks can bring more innovation and commercialisation
when works in a team, teamwork can help to improve productivity and
efficiency (Naranjo-Valencia, Jiménez-Jiménez and Sanz-Valle,, 2016).
Types of teams are essence drinks?
There are various teams in Essence drink:
 Project team: this is the type of team in which all team members collectively work to
complete specific project.
 Functional team: Such type of team works on permanent bases; all people or team
members are allotted different responsibilities. Managers or leaders look upon the
progress of entire work so that transferring the work can be done effectively.
 Cross functional team: Managers pick the employees from different departments in
order to perform particular task, they have expertise and are able to perform their
job significantly.
 Virtual team: Team members work in different locations and communicate with each
other with various communication tools. Managers of leaders ensure all employees
make balance between their personal and professional life.
 Problem solving team Such kind of team is formed on temporary bases and team
members have knowledge about specific issues and they solve such issues so that
project can get completed on time.
LO 2
4Ps of innovation:
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The 4Ps of Innovation are used by the Organizations in order to begin the
innovation process, generally they are termed as innovation mix for the
process.
The 4Ps of innovation are-
Product- It is essential part of innovation, it is only thing that is modified and
innovated in order to offer the customer. The Essence Drinks wants to offer
new product of lassi to consumers for raising sales. Hence, it can be justified
that the innovation helps in improving quality of products.
Process- It consists of production which is being undertaken by company in
its innovation of a product. Production process involves use of the technology
in producing "Blueberry Lassi" and how the production process takes will take
place. Distribution process involves how the product will be available in
market such as in retail stores, departmental stores etc.
People- People are the ones to whom the product will be sold and is
considered essential element. Essence Drinks offers Blueberry Lassi as it is
liked by people the most, this will be offered based on their preference and
requirements regarding the drink.
Press- Press is the interrelationship between environment and human being.
The process involves offering unique product and will benefit more to the
customers on its utilisation. “Blueberry Lassi” establishes its uniqueness as it
is health oriented drink along with the unique flavour in its type of products
(Mahmoud and et.al., 2016) .
Innovation Funnel- Innovation funnel refers to the implementation of
the innovative ideas through a systematic process. The completion and
success of the innovation and commercialisation process depends on these
steps of innovation funnel.
 The initial step for Essence Drinks is to carry out research for knowing
more about consumer needs and then decide about whether the
prescribed idea will able to fulfil these needs and requirements or not.
 Second is the screening and evaluation. This helps in selecting the
right idea in order to meet with its innovation objective.
 Implementation and execution is the last phase. and finally introducing
new innovative product and launching it properly in market.
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Application of innovation funnels at Essence Drinks:
Essence Drinks has utilized this innovation funnel which involves identifying
the customer needs and requirements, as well as discovering the best idea
regarding the invention of new product or to modify already available product
which can meet these demands of customers. Lastly firm offers “Blueberry
Lassi” as a step towards innovation process (Ortiz-Villajos,and Sotoca, 2018).
Frugal Innovation :
The process is used to reduce production complexity and reduces the
production cost through innovative ideas is termed as Frugal innovation.
Frugal innovation is helpful in generating sales by implementing his
innovative product (Herrera,2016).
Frugal Innovation Principles are explained as below- Finding opportunity - It involves modification of the problem that
means converting the threats into opportunities through dealing with the
effective measures and ideas. Do more with less- This principle states that the companies instead of
expecting more requirements must concentrate on the existing
resources and think of improving it through the use of various new
ideas.
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 Think and act flexibly- This principle states that the companies must
behave more flexibly and improvisational. Keep it simple- tasks which are complex can cause different problems
and complications in performing them hence the company must keep its
tasks more simple. Include the margin- This principle refers to identification of customer's
problem by considering yourself at their position in order to understand
their actual needs.
 Follow your heart- This principle states that the companies must be
passionate towards discovering and implementing the innovative ideas
in their business(Prajogo, 2016).
Examples-
Coca-Cola used the concept of frugal innovation of using the solar powered
coolers which included a two valve fountains and ice boxes that remained
chilled for the hours even after power cut. This concept was used in India by
Coca-cola Plc and contributed its role towards energy saving process.
Tata motors have invented the low cost car which costed only $2000 USD
and has set a big symbol for the frugal innovation. These examples turn out
to be a mode of motivation to Essence Drinks company in adopting this frugal
innovation concept and claiming its different benefits to their business.
Essence Drinks can initiate Frugal innovation in various ways-
 The company can use the advance technology in production of
“Blueberry Lassi” so that it can reduce the labour costs and save time in
the production process. This aspect will reduce the complexity in the
production process and also the products will be readily available on
time than the previous old techniques.
 As due to low cost of production for “Blueberry Lassi”, the company can
adopt competitive pricing strategy by setting low prices for its product so
that the product will be sold more in the market due to its low prices and
the company will be able to face its competitors by establishing strong
customer base from by increasing its sales volume.
 The company can also establish its strong distribution channel so the
product will be available in all forms of market. This will turn the eyes of
customers on “Blueberry Lassi” as the product will be displayed in every
retail stores and accordingly make them buy it. This in turn will boost
the sales volume of “Blueberry Lassi' and ensure profitability to the
company as well as lead to the success of innovation and
commercialisation process.

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Thus, the above ways shows the adoption of frugal innovation by the
Essence Drinks and its benefits to the company in fulfilling its objectives.
LO 3
Commercial funnel:
Consumer Funnel term refers to the visual representation of company's
activities available the products to its customers to the extent of
consumers buying decisions and actions(Shiu, 2017).
It is generally known as sales funnel and it is very important to the firm in
following ways-
 Sort and Rank sales leads- it may enable Essence Drinks firm in
creating a organized and consistent process for prioritizing sorting and
evaluating the lead sales and the activities of the company.
 Focus on right sales leads- Initiating sales funnel always help the
Essence Drinks company to focusing on the targets of the sales and
correct components related to sales as well as allocate the particular
time for the right and true customers. This includes activities such as
communication and interaction with the customers to follow up their
commitments for the purchase of the new product, their required needs
for modifications and also their response towards the product.
 Helps to obtain them from internal and external project and also
reasonable goals and sales team- As the primary function of the sales
funnel is to conduct the systematic process of sales activities it can help
the Essence Drinks company to set up various short term sales
objectives so that the company can focus and implement the strategies
to achieve them, which will increase the sales of the company.
 Systematic accountability and monitoring- The only purpose of the
commercial funnel is to carry out systematic sales activities and
maintain the uniformity in them. This will in turn provide Essence Drink
a complete record of its sales data of their newly launched product and
accordingly help them to analyse and monitor the changes of facts and
figures of the data( Gassmann and et.al., 2016).
Application of commercial funnel at Essence Drinks:
It s process through which sales and production funnel in industry helps
in improving the business operations at the right state. However, it comprises
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with the stages which would attract buyers for purchasing the products of
company.
New product development process for Essence Drinks company-
New Product development is the process of taking product from
conception to the market. NPD process involves various steps in its process,
this are the steps that Essence Drinks need to follow for NPD-
1. Idea generation- The company has turned up with the new flavoured
Lassi containing one unique flavour in its Lassi product.
2. Idea Evaluation- The idea to invent the flavoured Lassi which will be
further evaluated by inventing a product named “Blueberry Lassi” which
will consist blue berry flavour in it.
3. Concept Definition- This stage will contain all the specifications and
product design which will be used for the “Blueberry Lassi” in its launch
in the market.
4. Strategic Analysis- At this stage the total cost of the new product
(Blueberry Lassi) will be determined according to the cost of
production, setting of profit margin as well as considering all the indirect
costs for the product.
5. Product Development- This stage will include the contents to be
placed at the packaging of the product to grab the attention of
consumers and also it will include the comparison of price and quality
with the different substitutes in market for facing the competition. This
stage also notes down various changes and modifications required in
the taste of “Blueberry Lassi”
6. Market Testing- This stage will include the research of the market and
identification of target groups of customers to whom the product will be
sold.
7. Commercialisation- This is the most important stage which will involve
fixing the final price of the product so it could cover up more amount of
customers in market.
8. Product Launch- It is the final stage where the product will be
launched in the market through the application of strategies mentioned
in above steps(Clauss, 2017).
New product range of Essence Drinks:
Image
Flavour
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Ingredients
sources to access of funds in the Innovation in the business case of
Essence Drinks Company along
Essence Drinks Innovation business case-
Executive summary- it is a UK based beverages and food company which
is popularly known for its “Mango Lassi” product and Currently rteh firms has
been declined the sales and revenue of “Mango Lassi” and so it comes up
with innovative launch of the product of its another Lassi product.
Requirement- The main requirements for the company will be automated
machines and advance technology to increase the Lassi production in order
to produce more of its new product availability in market.
Solution- “Blueberry Lassi” is the new launched of the product by the
Essence Drinks company as an outcome for its innovation process for the
product.
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Need of Innovation- Primary need behind this product launch is to increase
the sales volume of the company and accordingly create more customers in
the market for the survival of business.
Market Research- Essence Drinks will target all the demographics of
population and especially the youth as they are turning up more health
conscious.
Investment Required-
Particulars Amount (£)
Machinery and Direct Cost 10000
Market Research Expenses 2000
Indirect expenses 8000
Total 20000
Benefits expected-
1. To increase the overall sales growth of the Essence Drinks up to 30%
till 2nd quarter of 2020.
2. To achieve about 50% sales growth of “Blueberry Lassi” at the end of
2020.
Sources of funds which Essential Drinks can access
 Own Capital- In order to innovate a product the company must pay first
priority in investing its own funds out of the savings as well as profits.
Essence Drinks can utilize its bank balance and liquid assets for the
innovation process.
◦ Family and Friends- company's owner can obtain financial help
from their friends and families in exchange of paying them interest or
the equity of the company.
 Banks- Essence Drinks can avail finance from banks and other
financial bodies in the form of short term loans and finances in order to
initiate the budgeting of the innovation process.
 Others- Other sources include different sources of finance such as
venture capital, issue of shares and debentures etc(Saebi and
Foss,2015).
LO 4
the organisation using tools in order to protecting its Knowledge and
intellectual property:
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The following tools has been protected their innovation and intellectual
rights of the Essence Drinks such as;
 Patent the product making- Patent provide right to the Essence
Drinks for preventing others from manufacturing the same product and
sale it into market and thus, protect the company's intellectual right in
inventing and manufacturing the new product. Essence Drinks shall
use this tool as it has developed a new idea for the innovation process
and it protect this concept of the essence drink.
 Initiate Trade Secret for the component in the organization- Trade
secret is a tool where the regarding information and details according
to the company's functioning and other critical information has been
kept confidential for all the employees and it prevent the competitors to
access the information of the company. Essence Drink must use this
tool to maintaining the confidentiality of information regarding the
“Blueberry” production process(Donate and de Pablo,2015).
Trade mark:
Define
It is a protection provided against products and services in the organisation which
would be secured and manufactured by the policies and procedures which has been used
by the organisation in manufacturing procedure.
Advantage It created identity to the product and brand
of organisation.
Disadvantage It is complex process on which the owner
has to show proof of the differences in the
product as well as brand from others.
Strength It secures all the rights of organisation
Weakness It costs more to organisation.
Patent:
define
patent has been approached by the person which have invented something in
environment. It protects intellectual property to keep the competitors for effective
inventions.
Advantage It presents the right to stop copying,
manufacturing and selling or importing the
invention ion a specified permission
Disadvantage It is time consuming and complex as well
as a lengthy process.
Strength One cannot copy the same product which
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was patent by another person. Secures
rights of people or organisation.
Weakness It is very hard for one to make innovative
products, designs and process of activities.
Design protection:
Define
Creating differences in design of every product and service would be adequate and
effective in creating a unique identity in the market. Along with this, there can be use of
differences in design in the logo or brand symbol.
Advantage Bring uniqueness in the product design
would be effective in developing identity.
Disadvantage Charges higher costs, efforts, and time to
determine the unique design which is not
being existed in world.
Strength No fees will be charged and associated
with competitive edge.
Weakness Changes of having substitutes of pirates
regarding the designs.
CONCLUSION
From the above study it can be summarized that innovation plays an
indispensable role in the success of the company. In order to sustain in the
market, the company should keep introducing new ideas and methods to
attract its customers and make them loyal to the brand. The important of
innovation cannot be compromised.
Also, many factors such as organisational culture, teamwork, vision and
teamwork plays a crucial role in innovation and commercialisation.
Recommendations:
There must be use of effective intellectual property which in turn would be
adequate in making innovative development in the products and growth of
entity in market.
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REFERENCES
Books and Journals
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