Innovation and Commercialisation

This document discusses the importance of commercial funnel and the procedure involved in new product development. It also explores the innovative business case and tools that protect intellectual property and knowledge. The document provides insights into the background of Innocent Drinks and its commercial potential.

Innovation and
Commercialisation
(TASK 1)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Background to the company and its commercial potential..........................................................1
Importance of commercial funnel and procedure involved in New Product Development........1
Innovative business case:.............................................................................................................3
Tools that protects intellectual property and knowledge.............................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Innovation is a method of involving new ideas and technique to invent new product
which is yet not developed (Balmer, Bulpin and Molyneux-Hodgson, 2016.). In other way, it can
be explained as a process in which multiple activity are discovered by the help of new
technology. On other hand commercialisation can be defined as introducing new product and
service with more feature to encounter the competition present in business environment. It comes
with various features such as sales, production, distribution and promotional tools which are
important part before launching new product in market.
TASK 1
Background to the company and its commercial potential.
Innocent Drinks was established in 1998 by three entrepreneurs who were Jon Wright,
Richard Reed addition to Adam Balon. The headquarters of such firm are located at London,
United Kingdom. The business concern executes operations to make various types of juices and
smoothies so that they can increase their sales (Cheah, Ho and Lim, 2016). The products of the
entity are sold at coffee shops, mega stores and super markets across the nation. The company
has diverse portfolio of products like juices, shakes, smoothies and many more. All these
products helped in generating revenues more than £250 million last year and also increased its
market share to 25%.
Importance of commercial funnel and procedure involved in New Product Development
Commercial funnel is characterised to representing visually the journey of customers at
the time they are buying commodities. It is among the strategic framework with which entities
executes numerous plans and policies. Using the approach, Innocent Drink managers analyses
buying behaviours of key customers and targetted audiences. Commercial funnel is important for
the entity as it helps administrators to devise marketing strategies that can analyse properly
audiences behaviours, converts unmapped people into prospective clients and increase sales
volume of new product.
Importance of Commercial Funnel in innovation are as follows:
Conversion of new users to potential customers: Commercial funnels is important at
Innocent Drinks as it helps in translating number of new users into key potential clients through
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understanding their purchase journey and accordingly innovations through various attractive
schemes that helps in such conversion (Mazzaro and Reboud, 2017).
Increasing customer value: Commercial funnel also plays important function of
changing as well as improving customer values by offering demanded products rather than
alternatives that customer considers.
New product development is one of effective process that helps in bringing new
invention in market. The procedures involves in such development are as follows:
Stage 1: Idea generation: Product can be developed if requirement is identified by
company. For this organisation have to emphasis on research and figure out taste and preferences
of changing environment (Meyer and et.al., 2018). Company must adopt new ideas for selling
the product because it is difficult for a company to make product according the taste and choice
of customers. In the case of innocent Drinks, the manager is planning to come up with new
flavours in smoothie to attract customers of UK . Company have verified their product range and
introduced Salted Caramel Smoothie for attract more customers.
Stage 2: Idea evaluation: This stage company try to develop various alternatives and
ideas which are best suitable for company. In regards of Innocent Drinks managers have to do
proper market research and prefer the best alternative as per requirement of consumers of UK.
Stage 3: Concept definition: In this process concept is used when idea implementation
is being successful. The concept means which factor may consider effective for a company. For
Innocent Drinks, Salted Caramel may the core flavour which can be concept on which company
can make profit.
Stage 4: Analysis of strategies: As per the analysis company have to focus on their
goals and make strategies for making effective moves to make company successful (Scholz,
2015). In the case of Innocent Drinks, managers have figure out the right strategies where it can
make drinks which can be accepted by consumers of UK. Marketing manager can make use of
social media and use as strategies which can be beneficial in company context.
Stage 5: Product development and testing: In this stage company have to develop a
product so that it may create a positive impact on the minds of customers. And company have to
do proper research on every aspect on which company can make changes as per the necessity.
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For Innocent Drinks is the responsibility of quality team to choice every batch which is
processed before delivering the product in market.
Stage 6: Commercialisation: This is known for introducing new product market. For
innocent Drinks, it is important to ensure that product which is launched market may meet the
requirement of customer and guarantee satisfaction.
Stage 7: Product Launch: After clearing all these steps last stage is product launch
where company introduce new product in market. Innocent Drinks have to launch new drinks in
the market of UK.
Importance of New Product development in innovation:
Provide clear roadmap: New Development plays importance in providing roadmaps to
attain successful innovation (Servajean-Hilst and Calvi, 2018). While following procedures of
new product development, Innocent Drinks has gained various guidances that acts as roadmap to
achieve success in launching Salted Caramel Smoothie.
Identifying drivers: New Product development steps helps the selected entity to identify
various drivers that can result in success of failures. With this, they can effectively analyse and
eliminate failures that is very important for achieving success in innovation.
Innovative business case:
Innovative business case is said to plan that guides in devising documentation forms. It is
mandatory of busienss concerns to prepare effective plan so that they can achieve success in
launching new product. For Salted Caramel Smoothie, business case is as follows:
Executive Summary: Innocent Drinks is among those businesses that manufactures
juices addition to smoothies for selling purposes and serving market across nation (Trifilova,
2017). The firm is at present introducing new product with the purpose to capture wide market
shares.
Vision: Innocent Drinks has vision to make healthy, tasty and nutritious drinking
products.
Objective:
To capture 40% market shares till 2022.
To increase annual sales of product by 15000 £ till 2021.
Situational analysis: Innocent Drinks marketers have used SWOT analysis in order to
analyse pertaining market situations.
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Strength Weakness Opportunity Threat
Diversified product
portfolio.
Strong marketing
strategies.
Limited market
coverage.
Limited resource
available.
Expanding globally.
Delivering products of
good quality at
reasonable rates.
Unidentified obstacles.
Fluctuations in
economic conditions
(Uppenberg and
Strauss, 2010).
Evaluation of Resources: Innocent Drinks has productive resources like human
resources, monetary resources technological resources and many more that performs their
activities as per directed. But various time, with changes in market, the resources like technology
and machines becomes obsolete.
Financial projection:
Access to funding: Financial analysts of Innocent Drinks makes funding assessments
from various sources so that they can introduce and provide Salted Caramel Smoothie to market
without any issues or disturbances. They funds sources from angel finance, business profit
reserves, financial institutions and financial institutions.
Key risks: In the dynamic environment, various risks are associated with successfully
implementing innovation and they impacts in negative manner. These risks are inherent schedule
flaws, reputation risks, compliance risk and operational risk that strongly impacts on launching
innovative in successful manner.
Key Performance Indicators: To control or monitor success on new product
implementation, Innocent Drinks can use Financial as well as non financial KPI. Financial
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indicators will monitor all the aspects of hurdles related to finance where as non financial
indicators will manage systems like customer relationship as well as supply management.
Tools that protects intellectual property and knowledge
Patent- Patent acts as a tool with the help of which organisation can effectively able to
provide rights and authority and licence to the owner as to prevent their product from exploring.
Innocent Drinks by considering this tool of patent of their flavoured Salted Caramel Smoothie
can effectively able to prevent their production of product by any other competitive rival. A
patent gives authority to litigate against other party whom company believe that they have copied
their product (Tsai, 2015). Company can move to court and file a complain to protect patent. This
provide security to the company to keep their secret secure and cannot be cheated by other.
Copyright- It is termed as a legal terms, that effectively protects originality product for
number of years. This tools can be effectively consider by Innocent Drinks, while utilizing
copyrights within their all flavour of Salted Caramel Smoothie to protect and secure product
from any harm. It give authority for company and provide legal support form governance.
CONCLUSION
As per the above mentioned discussion, it has been concluded that innovations acts as an
one of the most important segment within each and every business organisational sector. As it
effectively aid organisations to gain maximum amount of profitability while satisfying customers
with best. In addition with this while considering innovation organisations can further able to
gain large amount of market share that in turn allow companies to increase their overall rate of
profitability along with market share. The tools which protect intellectual property are patent and
copyrights.
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REFERENCES
Books and Journals:
Balmer, A., Bulpin, K. and Molyneux-Hodgson, S., 2016. Synthetic Biology: A sociology of
changing practices. Springer.
Cheah, S., Ho, Y. P. and Lim, P., 2016. Role of public science in fostering the innovation and
startup ecosystem in Singapore. Asian Research Policy. 7(1). pp.78-93.
Mazzarol, T. W. and Reboud, S., 2017. Entrepreneurship and innovation. Tilde Publishing and
Distribution.
Meyer, M. and et.al., 2018. Towards new Triple Helix organisations? A comparative study of
competence centres as knowledge, consensus and innovation spaces. R&D
Management.
Scholz, N., 2015. The relevance of crowdfunding: the impact on the innovation process of small
entrepreneurial firms. Springer.
Servajean-Hilst, R. and Calvi, R., 2018. Shades Of The Innovation-Purchasing Function—The
Missing Link Of Open Innovation. International Journal of Innovation Management.
22(01), p.1850008.
Trifilova, A., 2017. The Future of Innovation. Routledge.
Tsai, S. P., 2015. Dynamic marketing capabilities and radical innovation commercialisation.
International journal of technology management. 67(2-4). pp.174-195.
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