Innovation and Commercialization Assignment : Essence Drink

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 ...........................................................................................................................................1
P2 ...........................................................................................................................................3
TASK 2............................................................................................................................................4
P3 ...........................................................................................................................................4
P4 ...........................................................................................................................................6
TASK 3............................................................................................................................................7
P5 ...........................................................................................................................................7
P6 ...........................................................................................................................................9
TASK 4..........................................................................................................................................10
P7 .........................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Innovation is the procedure by which organisation can translate something new in the
offering which valued for amount paid by customers (Boruah and Das, 2017). An innovative idea
should have to fulfil need and wants of customers. In the assignment Essence Drink is selected
which is serving Mango lassi in the market area of UK. This company was established two years
ago by its founder who is Akshay kumar. But after three years sale of Essence Drink get decrease
within market of UK. Thus, founder of Essence Drink thinking to come up with some innovative
offering within market place.
This assignment will discuss several aspect of innovation which will be use for doing
innovation in lassi. Like innovation value for respective business firm as well as comparing
innovation and invention. In addition to this, it will going to highlight that how culture, vision,
leadership as well as teamwork will help in shaping innovation of lassi. Most essential is 4P's of
innovation as well as innovation funnel which will be explain for examining innovative ideas.
Moreover, in last part of report development of frugal innovation as well as commercial funnel
will explain along with there implementation on 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 procedure which focus on bringing latest as well as innovative thing in
the marketplace with the motive of business long term success. Essence Drink is selling healthy
mango lassi and it is small scale organisation of UK. Due to no innovation and single range
product after 3 years’ sale of mango lassi get decrease. Thus, Akshay Kumar who is the founder
of Essence Drink some within preservative different flavour lassi (safforn, strawberry and
banana) in the market area. Bringing this innovation have several value for company which are
mention below:-
 Innovation in lassi attract large number of customers as well as increase sales of essence
Drink. Along with this, it will satisfy need and wants of customers in better manner.
 Bringing something new in the market area assist in building good will of Essence Drink
it is important to gain there customer attention (Easter, 2019). Moreover, it will enhance
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sales as well as accomplishment of company goals and objectives within required time
duration.
Moreover, innovation play crucial role for overall association along with employees also
because it act as an growth and development tool for Essence Drink. Thus, respective
organisation is introducing preservative flavour lassi (saffron, strawberry and Banana) within
marketplace for making there customers satisfied as well as for enhancing sales. In addition to
this, innovation and invention there are two term which is totally different from each other. For
respective organisation lassi is there USP this is the major reason that owner apply innovation in
there present offering rather then replacing it from other another invention. This is the main
reason that Essence drink is not using invention because if they leave there USP I.e, lassi there
sales will automatically get decrease (Difference Between Invention and Innovation, 2019).
Explanation of this are as follows:-
Basis Innovation Invention
Meaning Innovation is related to the
implementation of thoughts as
well as ideas within the present
product on first time (Ferasso,
2018). Essence drink in doing
innovation by bringing
preservative flavour lassi.
Invention is related to bringing
something new in the market
which has been never before.
Lassi is USP of Essence drink
this is the main reason that
they don't want to move from it
and doing innovation within.
What is it Innovation add value to the
goods that are already in the
market.
By doing invention new
product will be introduced in
market.
Skills required Within Innovation there is
need of various skills like
marketing, technical and
strategic.
Invention need only Scientific
skills.
Concern with It is Combination of various
goods and procedure.
Invention is related to the
specific procedure or goods.
Activities Innovation Spread in the Invention is limited within
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overall organisation. research & development
department.
P2
It is important for company to have their vision, objectives as well as pre-determined
goals and objectives. Along with this, it is necessary to convey vision, mission and objective of
Essence Drink to each and every staff members' because it will assist in doing work within
effective manner and gaining better position within market area (Knoke, Missikoff and Thoben,
2017). Along with this, it is necessary to have clear long term vision because it will be needed
for smooth and easy flow of business. Therefore, vision, leadership, culture and group work play
a crucial role within shaping innovation and commercialisation in several manner because of
their broad concept. Explanation of these in relation to Essence drink are mention below:- Vision :- Vision of Essence Drink vision is to offer preservative flavour lassi (saffron,
strawberry and Banana) to the population of United Kingdom. Moreover, respective
organisation want to enrich live of human beings by the availability of healthy balanced
choices of lassi. Through innovative product i.e., preservative flavour lassi firm want to
become leader of that particular market and by fulfilling customers needs for business
growth. Culture :- Organisation culture is important term within the procedure of innovation
because it includes norms, values, beliefs, rules and regulation. These are implemented
by higher authority in company for better working of Essence Drink. If culture is friendly
as well as easy adopting, then innovation related to preservative flavour lassi will be
implement in better manner. In addition to this, organisation culture should be healthy
and positive which is necessary for satisfy staff members who are working in Essence
Drink as well as for bringing innovation within market area. Teamwork :- In organisation there are several type of team such as cross functional,
problem solving, virtual and so on. It is necessary to have team because this will assist in
doing work in effective manner without any workload on individual. In addition to this,
through teamwork Essence Drink can achieve their pre-determined goals as well as
objectives in effective manner. Thus, for implementing innovation it is necessary to
frame team in proper manner so that work can do in better manner and preservative
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flavour lassi gain success. Apart from this, team work is essential for doing work without
burden on individual and on time.
 Leadership :- There is requirement of proper leadership while bringing innovation
related to preservative flavour lassi. Because leader is the one who give direction as well
as support staff member's to work on that direction. In addition to this, leaders play
crucial role in Essence Drinks for maintaining healthy relation within employees and
employers. Thus, it become easy to work on innovation and increase sale of organisation.
Although, leadership play important role in proper team management as well as also in
doing work effectively.
TASK 2
P3
Innovation mix is the framework which use for coming up with some innovation within
marketplace and it has been introduce by John Bessant as well as Joe Tidd. There are 4Ps of
innovation i.e., product, position, process and paradigm. All these are implemented in terms of
Essence drink innovation of preservative flavour lassi are explained below :-
 Product innovation: By performing innovation into products, firm will be capable to
deliver satisfactory products to its consumer according to their requirements (Meyer and
et.al., 2018). Essence Drink is launching flavoured lassi powder so that their existing and
new consumers can enjoy different flavour anytime at any place. It will outcomes in
enhancing the sales of the firm by satisfying the requirements of the consumers.
 Process: As Essence drink is a small scale company that offers flavoured as well as
healthy lassi to the UK people. For obtaining effective position into market place and
maximising their sales, it is essential for company to follow effective process that assists
them in bringing standard quality of offering into the market place. Simply, if working
procedure is effective in organisation then it will help in keeping their quality of product
that is lassi and also the employees’ performance that helps in decreasing or becoming
free from mistakes.
 Position: This is regarding exact position of the Essence Drinks products into market
place as well as for clients. Therefore, by examining recent position into market so due to
this respective firm can examine the current requirements of the consumers easily. Thus,
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innovation can be performed easily in effective way for satisfying consumers so that
company and clients can develop its good image into their minds and also in marketplace.
 Paradigm: This is considered as a last components of the innovation mix. It is related
with changing perceptive of viewing business. This includes seeing same thing but in
different manner (Moreddu, 2016). Also, this is the elements which states that current
dominant paradigm of Essence drink firm in proper manner.
Innovation funnel is the tool use for explaining steps that take place within development
of procedure or products. Although, objective as well as aim of innovation funnel is to gain
better position of product in the competitive business environment. For management proper
management of preservative flavour lassi, Essence drink have to implement innovation funnel in
their working (The Innovation Funnel: Bringing Ideas To Life, 2019). explanation of innovation
funnel in relation to Essence Drink are as follows :-
 Opportunity assessment – It is the primary stage in that Essence Drink examine market
data, knowledge of customer and several other information related to innovation. With
the motive of identifying opportunities available for new product line or line extension.
 Insights based ideation – In the second stage it will be examine that, what kind of
opportunity will be suitable for strategy of Essence drinks. The next step is to imagine
various type of products or offerings which could take advantage of this opportunity. For this
purpose, market research will be done by the way of surveys, focus groups, online
communities, crowdsourcing and so on.
 Conceptualization – Within respective stage, Junior innovation consultant who is hired
by Akshay Kumar will frame overall innovation idea that has been introduced in the stage
of ideation stage. Innovation done by Essence Drink company is offering range of
preservative flavoured lassi within the market of UK.
 Evaluation and benchmarking – In this stage, company will approach targeted
customers and test overall concept of innovation which include testing on actual
consumers. This is possible by offering them lassi first and after that take feedbacks.
 Go/No Go – After doing test and taking feedbacks of customers it will identify that
innovation concept is suitable or not. Thus, in respective stage junior innovation
consultant will make decision to go it for or not. As well as while taking decision there is
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requirement of considering several other points also like manufacturing margins, costs
and other items that are not related to customer preference.
 Launch – In the end, innovative concept related to preservative flavour lassi will
launched within the market area of UK.
P4
Frugal innovation is an process that come up with new model of business, recognise
value, Redesign products, recognise value chain and many more to serve consumers who are
going through extreme affordability constraints within suitable manner (Olaniyi and Prause,
2016). Several organisation are adopting innovation funnel with the motive of developing extra
elements in present offerings. Although, essence drink is coming up with new innovation of
preservative flavour lassi within competitive market area.
New market opportunities: It is important for an organisation to examine market in
appropriate way for analysing available opportunities as well as competition in proper manner.
Exploring market will assist Essence Drink in coming up with there innovative offering within
market area as well as also in frugal innovation. Thus, it is important to do innovation within
existing product so that an company can gain more market share.
Resources: It is assets of business firm and for Essence Drink it is essential that they
have to do optimum utilisation of available resources. So they can remain within market area for
long term. For doing frugal development there is requirement of resources.
Innovation funnel: It is related to the development of new product within competitive
market. For doing this there is requirement of frugal development because it assist in developing
new business model. Essence drink is coming in market with innovative product i.e.,
preservative flavour lassi. So, alteration in frugal development has an huge impact on it.
Frugal innovation can comprise of two segments explanation of these are as follows:-
Problem: Business environment is full of competition so it is not easy to bring
innovative product in market. There are several problems which need to be resolve in effective
way for better development of product.
Related to product: Within Innovation process of Essence Drink major issue is related to
marketing. There is requirement of proper communication medium so that information related to
innovation will reach customers as well as aims and objectives will be fulfilled.
Apart from this some of the steps related to frugal innovation are as follows:
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Generating idea of innovation: In relation to innovation it is important for essence drink
to analyse market area in appropriate way for gaining effective outcomes according to the
requirement. Thus, manager of essence Drink have to conduct market research for identifying
needs and wants of customers.
Screening new idea: New idea generated from market research should be screen
properly for identifying that need of customers will fulfil or not.
Idea screening: Innovative idea of preservative flavour lassi will be screened.
Testing: It is necessary to do testing for examine that product is up to the mark or not.
Internal analysis: This procedure is identified with administration of assets and utilised
as best part or the best way.
Review marketplace: After bringing product in market it is necessary to identify
customer review about Preservative flavour lassi.
TASK 3
P5
In a business commercial funnel is a framework that consist of three phase that help in
utilising or reforming present goods by implementing several beneficial plans and policies (Páez-
Avilés and et.al., 2015). Herein, it is important for preservative essence drink success to adopt
such funnel which is described below:
Pricing policy: Herein, essence drink is offering preservative flavour lassi in an
moderate price which can be affordable by everyone easily. With the help of funnel a respective
organisation can set prices by identifying customer's need and preference as well as their buying
behaviour.
Improving ways of growing business: In such process commercial funnel have a
indispensable concept for business growth and development. Initially, it has been identified that
funnel help a particular organisation to satisfy customer's needs and wants as per their
requirement in an effective manner. If an organisation is able to satisfy customer's then it will
result in creasing sales and productivity in competitive marketplace.
Emergence of advance technology: Within this, respective business firm is
implementing funnel for bringing there innovative product within market area (Pfotenhauer and
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Jasanoff, 2017). In addition to this, Essence Drink is coming up innovative product I.e.,
preservative flavour lassi that person can use while travelling.
Implement investigation programmes: Before coming into competitive marketplace an
organisation need to conduct proper research so that they can gather information about the need
and preference of customer's. Eventually, in this process funnel play's an important role which is
necessary for bringing innovation product in competitive marketplace as well as gain success
from it.
Process of NPD
Moreover, developing a project and implementing preservative flavour lassi into
competitive marketplace is along process which consist of certain step which are determined
below:
Idea generation: Idea generation is the first step in order to bring preservative lassi in
competitive marketplace by conducting proper research. Herein, it is necessary to collect proper
information about the customer's taste and preference so that product can be developed
effectively (Schmidt and et.al., 2018). Idea related to preservative flavour lassi has been
generated.
Idea evaluation: This is the second step, generated idea for preservative flavour lassi
will be evaluated for removing obstacles from idea which are not related with it.
Concept definition: Herein, after evaluation of idea on a particular concept of
preservative lassi. Concept will be define, different flavour of preservative lassi that can be used
while travelling for making it popular within market area.
Strategies analysis: In the step of strategic analysis the manager of Essence Drink have
to make sure their idea of preservative flavour lassi is attractive in competitive marketplace.
Moreover, need to ensure that they are using moderate pricing strategy so that lassi will be
affordable for everyone and result in profit generation for company.
Product development and testing: In this stage, it is necessary for an organisation to test
is preservative flavour lassi before launching it in competitive marketplace. For checking it
quality and taste.
Commercialisation: It is important for an business firm to have a commercialisation in
its goods so they will come up with new product in suitable marketing planning.
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Product launch: This is the last step in which preservative flavour lassi will launch
within competitive marketplace.
P6
Business case is the written or verbal both type of document in that organisation gather
all the necessary things which are needed for achieving goals and objectives of Essence Drink. It
is essential to involve all items so that daily basis operations can be done in effective manner. In
simple term, it involves all the relevant information that are required for working of company.
Executive Summary: This is business case of Essence drink which are introducing
preservative flavour lassi (saffron, strawberry and Banana) within the market of United
Kingdom. It is necessary to design marketing strategy in proper manner before bringing product
within market area as well this involve SWOT, PESTEL and porter's five force model. Thus,
implementation related to innovation can help in growth and success of business.
Mission statement: Mission of Essence Drink is to make healthy preservative lassi
because company believe in offering great taste, real and healthy drink that will result in healthy
and happy people. Statement purpose of Essence Drink comprises are as follows :-
 Fulfilling customer need and make them satisfy by offering products beyond the
expectation of customers.
 Ensure high quality raw material uses for manufacturing of preservative flavour lassi. Set up trademark in the market of UK by doing innovative marketing.
Resources: There is requirement of several resources for gaining success in the market
area through preservative flavour lassi such as funds, raw material and so on (Ustyuzhantseva,
2015). All these are required for fulfilling day to day requirement of Essence Drink in
appropriate manner.
Market analysis: Essence Drink is conducting market analysis because they are bringing
or coming up with some innovative product in market.
Financial projection: To coming up in market with some innovative product there is
requirement of funds i.e., £20,000.
Source of fund generation: For an organisation funds are there back bone without them
it is impossible to conduct daily basis activity in effective manner. Respective organisation have
to generate funds for coming up with Preservative flavour lassi in the market and there are
numerous ways of the same some of them are mention below :-
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 Bank and Financial institution: This is most suitable source of fund generation for
respective organisation so they can take assistance from bank as well as other financial
institutions. Due to it is safe method by which respective organisation can take funds.
There is requirement of some security for taking loan because against it bank give loan.
Along with the principle amount some interest also paid by the individual who had taken
loan.
 By friends or family members – Organisation can generate funds by take money from
their family members or friends. There are few advantages of this source because there is
no requirement of security and any interest have to pay.
Thus, most suitable source of fund generation for essence drink is bank as well as other
financial institution. Because there is no such risk involved with them.
TASK 4
P7
Innovation require protection for providing safety to specific innovative product bringing
in the market area so no other will copy it. Essence drink also have to use tool which are
introduced by governmental bodies for protection innovation which is named as Intellectual
properties (Servajean-Hilst and Calvi, 2018). Thus, there are various intellectual properties
which can be use by Essence Drink for protecting innovation of preservative flavour lassi.
Explanation of these are as follows:- Patent – This is an intellectual tool which gives right to owner of product to prevent their
product by exploring from others. If owner give right to other than it can be possible for
other individual to sell their innovation as well as can use it or import also. Thus, Akshay
Kumar can take patent of their preservative flavour lassi so no other can sale it without
their permission. Trade secrets: - This term is related to properties or secret information about commercial
values. Moreover, there are several aspects which not going to be covered within trade
secrets like employment, contract and several other laws. In addition to this, it is not
suitable for respective business firm because they will not able to protect there flavour
lassi through trade secrets.
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 Copyrights: - This term simply provide authority as well as rights which will be given to
innovators legally for protecting goods, literary, any type of innovation and several other
artistic kind of work.
So, essence Drink will take patent as well as copy right of their innovation for protecting
preservative flavour lassi from any harm.
CONCLUSION
As per the above mention discussion it has been analysed that, for an organisation
innovation is essential and also in product or services running within the market. Because with
the same offering after sometime customer get bore and result in decreasing sales same as
Essence Drink. In the context of company, creativity helps in increasing sales, profit
maximisation, as well as customer satisfaction. Apart from this innovation also need protection
so that no other can copy it which can be possible through copy rights, patent and trademarks. In
addition to this, innovation funnel is the best tool which assist in coming with innovative offering
within market area. It helped Essence Drink in converting their idea from concept to reality
which has been aids in satisfying needs and wants of customers.
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