P5 Importance of commercial funnel and application of new product development

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 3............................................................................................................................................3
P5 Importance of commercial funnel and application of new product development of
innovation ..............................................................................................................................3
P6 Innovation Business Case for organisation.......................................................................5
TASK 4 ...........................................................................................................................................5
P7 Different tools use to develop, retain and protect knowledge and intellectual property...5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation has become necessary for every organisation to enhance their market
operation & profitability at the larger context. Along with innovation, commercialization of
product is also significant through marketing, promotion etc. This report will be carried on
Essence drink, which is the leading drink beverage company, which deals in sector of drinks
such as Healthy mango Lassi. Apart from this, they are looking for new innovative product to
counter their slow down of business operations. This assessment will cover importance of
commercial funnel along with summary of new product idea. Also, assessment will cover
different intellectual property tools to protect identity of the product.
Problem identified: In the initial period, Essence drink has resulted into dramatic sales of their
healthy mango Lassi, but after entering into the third year, Essence business has shown slow
down, because of single product into the market.
TASK 3
P5 Importance of commercial funnel and application of new product development of innovation
Commercial funnel is the functional funnel that takes matter the innovation to achieve the
desired outcomes of the business. Basically, it is designed to reflect the journey that buyers go
on. In this case, where Essence drinks are suffering with an slow-down of the business, might be
because of similar taste or flavour of Lassi. Hence, in that case, developing of new flavour
drinks are required along with existing product processing. Here, commercial funnel is necessary
to make buyers pre-informed about product and enables to make search about product, which is
under-development stage. This enables company to get traffic of the buyers at the websites, who
are looking for buying this product just after the launch. The importance of a commercial funnel
are as follows:
Adoption of advance technology: Herein, a respective company are adopting advance
tools and techniques in innovating their product that is Kiwi Kofe in competitive marketplace.
As they are coming up with mixture of fruit and Lassi both are good for health.
Implement investigation program: For an investigation process it is essential for a
company to conduct proper research so that they can gather information of their customers need
and requirement as well as market place condition.

Matching goals to resources and capabilities: This is necessary for Essence drink to
make strategic planning to manage resources, so as to gather suitable or perfect results into a
given point of time. In this, Essence drink is necessary to complete decision making on
management of capabilities to accomplish defined goals or targets.
Assessment of risk: This will be important for Essence drink to do analysis of a risk and
also required to check out what are some major risk which can impact business functioning of a
Essence drink at a longer stage. This is important in case in innovation to measure risk in a
process.
As, Essence drink is suffering with an issue of short down of sales as because of only one
product offering. The strategic capability of Essence drinks is high, as they are looking new
flavour of Kiwi. The goal of launching new drink is suitable, as United Kingdom have resources
such as Kiwi and technology to pursue production process. Assessment of risk is important, as it
would be threat for Essence drink to launch new flavour over an existing flavour of Lassi. Hence,
it is an innovation, so complete analysis will be helpful. NPD stand for New product
development, which is a process which comprises of developing a new product from stage of an
idea generation to final product launch in the definite period of time. This is complete process, in
which business firm generates an idea of product, then undertaken checking and testing till it the
final launch in an effective stage of time duration.
The nature of this innovation is complex, as it deals with product development to counter
slow down of the business. It provides the situation, where firm can add more product to their
portfolio and nature of innovation is food beverages. It needs evaluation of quality such as
involvement of fat, calorie and any acidic reaction. It also requires strategic action planning to
design an effective product with good quality and amount. Organisation can overcome
challenges through generating knowledge/information regarding current trend going into the
market. All these valuable information over trends/growing innovation can leads to Essence
drink to develop several other innovative and tasty drinks products.
Essence drinks, company which was launched its new product as healthy mango Lassi
have gained dramatic sales in its first year, because of their innovative formula and distribution
capability. But, when entering into the third year, Essence drinks has slow down of the sales,
may be of covering the full market or lack of consumer's interest. This is a critical issue, as this
can be solve through new product development. To overcome this slow down, Essence drinks

has found an idea of new product, which is the Kiwi Kofe. This product is made of Kiwi, which
is easily available in United kingdom and New Zealand. As, this is a part of product innovation,
as a result, it will counter the slow down of sales. As an innovation consultant, this is the
suggestion for Essence drink to continue their mango lassi product, because this has gained
business effectiveness and operations at the greater context. This innovation will try to impress
the stakeholders and investors to invest more and more money for maintaining the business. As,
Kiwi is one of the favourite fruit, so conversion of it in drinks product will create profitable
valuation to attract major stakeholders. The major stakeholders of the Essence drink are owner,
investor, customer and staff who has straight impact's on operation of Essence drinks.
For testing the effectiveness of this Kiwi Kofe drink, Essence drinks will use Hygiene
and GMP audits as one of the major technique to test and measure the effectiveness of this Kiwi
Kofe product. GMP stands for Good manufacturing practices. This audit will help to know the
exact content of fat, high calorie, any acid reaction etc. from Kiwi Kofe. This techniques would
fit in sample making process, when sample of the kiwi Kofe will be prepared and test regarding
the fat, high calorie, acidic reaction will conduct through food auditor assistance. Through
sample stage, auditor would able to find any negative effect on the human health, its suitability
after the packaging for longer period of time and also its taste management at different
temperature level. Also, testing will be done for checking the market suitability as well as
business growth of Essence drink. Test will also be done for product differentiation on the basis
of colour, taste, liquid validity, content suitableness etc. Evaluation of this technique will
consists of regular examination or checking its suitableness for making the product effective and
suitable to drink. Also, packaging safety test, which will be conduct during the packaging
process, to check Is product will survive with available packaging system.
P6 Innovation Business Case for organisation
For doing the complete innovation of business case for new product launch, It is
necessary to do brief marketing research for getting the appropriate knowledge over taste,
consumer preference and durability of Kiwi fruits. As, this is one of the popular fruit, hence, it is
required for Essence drinks to generate the funding for doing accurate analysis of market
potential to survive with this products for the longer period of time. Sources of funding will be
angel investor, who are able to invest for doing the market research along with Kiwi Kofe
innovation. Investors will invest approx 2000 pounds for conducting the desk based research to

know the potential of this product in their pre-stage. Also, they will invest in product
development process for carry out the production, promotion or supply & logistics. Money will
generated in two quarters as marketing research will cover entire one month and rest one month
product design & development. In this business innovation case, other resources such as advance
technology, manpower, tools & techniques will be used to complete this research for getting the
scope & suitability for this products. Also, Essence drinks are required to structure strategy as
valuable resource to accomplish their desired goals & objectives.
Mission & vision: The vision of the Essence drink is to “Customer favourite taste” and
mission is to raise increase sales or revenue by 10 percent in the coming three quarters to fulfil
business requirements at a greater extent.
Planning innovation: This innovation of the Kiwi kofe has undertaken just after
overviewing a market of the Essence drink along with building strategies how planning or
controlling can be taken to innovation in an effective manner. For planning, this will necessary to
identify market and customer regulation to plan this innovation.
Funding for market research: This will be important to do market research before
implementation of an idea in reality, as it bears in reality lots of risks, threats for business of an
Essence drinks. Th funding sources will be private investors etc.
Desk based research: In this research, secondary data such as market share of Essence
drink, UK market structure will be taken into consideration to design product of Kiwi kofe in
accordance to that.
Product development: In this, product development will be started from an idea into a
final product after going through NPD. Funds and resources will have to be centric to new
product development.
Funding sources: In case of Essence drink, funding is a necessary process to get funds to
apply innovation and carry out in an strong functioning of a business operation. In context of the
Essence drinks, angel investor's, bank loan and retained earning will required to apply innovation
in the Essence drink. Essence drinks requires funds to perform activities such as marketing,
person, supply or distribution to make this innovation a success.
Also, Essence drinks is in need of an office space to make an adequate setup to apply
innovation or commercialisation with expectancy of increased business potential. Also, storage
is also a need.

In this innovation of the Kiwi Kofe, technology such as computerised software and data
testing will be used to measure data & information taken during the process of the market
research on matter of doing a new kind of an innovation. Pilot testing will be utilised to make
test and develops proper outcomes or results out of the market research.
In this business case, this is suitable to mention that social media and multimedia
platform will be useful to promote the Kiwi Kofe along with creating channels to make easy
distribution of the Kiwi Kofe drinks.
TASK 4
P7 Different tools use to develop, retain and protect knowledge and intellectual property
Definition of a Intellectual property: IP is a category of property that includes
intangible creations of a human intellect. This is happening with new innovated products.
Because, innovation attracts the people rather than old ideas. In response to this, Patent will be
one most suitable technique to protect intellectual property right of this Kiwi Kofe to protect it
being copied by others companies.
This tools will help Essence drinks to save their actual existence of this Kiwi Kofe along
with its importance for success into the market. Also, patent has been initiated to save product
portfolio of this drink company in order to maintain the brand value & physical existence of this
drink product. This tools will help Essence drink to enables the working environment as well as
business both. There are different tools follows to develop, protect and retain knowledge and
intellectual property which are determined as under:
Patents: Manager of an organically can follow patents, so as to keep their innovative
product which is Kiwi Kofe from being traced by other organically. This will be taken to assist
taste as well as flavour of this Kiwi Kofe Lassi to continue their operation for approaching longer
duration.
Advantages Disadvantages
Patents offers superior rights, when wilful
infringement which occurs. Also, it protects a
design of something functional or utilised.
Patents are expensive to acquire and prosecute.
Also, it provides statutory time of 20 years as
compared to other IP tools or techniques.

Copyrights: It is a another important type of an intellectual property which grants Divine
of the first originative work to provide an exclusive precise to identify or use any type of the
product. In case of an organisation, they have different right in order to assist what they have
developed or makes. Along with this, such type of tool will assist an organically to do their
business operation in more effective and efficient manner.
Advantages Disadvantages
Copyright allows a holder of a copyrights
objects to uses of a work that they find morally
objectionable.
Copyright doest not allow one to openly permit
others to use your work or led its distribution.
Role of branding in protecting innovation: As, it was previously discussed that Essence
drink will comes up with their new drink named as Kiwi Kofe, which will be made up of Kiwi
Syrup and hard milk and sugar. This is an innovation with new concept and idea to utilize kiwi
fruits at the larger context. This would be threat for Essence drink that, many unknown business
re trying to copy the existing business or its products.

CONCLUSION
From the above assessment, it is concluded that innovation has become important for
every business to design and innovate new product to overcome slow down of their business. In
response, product differentiation is necessary and required to make identity of product more
viable and flexible. Patent has been used as helpful to protect product from being copied by other
business companies.

REFERENCES
Books & Journals
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