Business Innovation and Commercialization: Assignment 2 - Commercial Funnel and NPD for Essence Drinks

Business Innovation and Commercialization
Assignment 2

Table of Contents
1. Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation.......................................2
2. Build an innovation business case for an organisation, including ways to access funding.. .4
References..................................................................................................................................8
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1. Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation
In the present century it is imperative that one understands the business policies and methods
before engaging themselves in an entrepreneurship. Knowledge about the commercial funnel
and New Product Development (NPD) are the basics to understanding market and evaluating
the business and development of it (Akgun et al., 2017). Let us discuss what these terms
really mean and signify in the present scenario.
Company Background: The Company Essence Drinks was founded by Mr. Akshay Kumar a
couple of years back as a back. It was a solution to the problem of lack of health drinks
available in the market, which taste good. Mr. Akshay Kumar introduced the Mango Lassi, a
healthy drink that also tastes good. The product was introduced on a very small scale but it
received a rapid response from the market. For two years, the sale went on going high. In the
third year, many companies came up with similar solutions to cater to the customers, this
made the competition go up, and the business of Mr. Akshay Kumar started to face a
downward curve.
Commercial funnel: commercial funnel is a combination of four steps.
1. Awareness: This particular term refers to a process where the sale or the idea starts with
identifying a large number of potential customers by recognizing a problem that he customers
have realized and have started a search for its solution.
2. Interest: the company starts to think about finalizing an innovative project that can
serve as a solution to the problem that has surfaced in the market. This results in a lot
customers asking for more relevant information on the project that that the company is
planning. A certain number of formerly prospective buyers are going to back out on. But the
possibility of sales goes up (Bianchi et al., 2014).
3. Decision: once the company has successfully registered themselves in the market, they can
finally think about the production and come to a decision about what they can offer. This
needs proper market evaluation. Even in this process a minor fall in the customer density can
be noted.
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