Report on Innovation and Commercialisation for Essence Drinks, UK

This report provides a comprehensive analysis of innovation and commercialisation strategies for Essence Drinks, a UK-based beverage company. The report begins by defining innovation and its importance to organizations, emphasizing the role of organizational vision, leadership, culture, and teamwork in shaping innovation. It then delves into the 4Ps of innovation (product, process, people, and press), the application of the innovation funnel, and frugal innovation. The report also examines the importance of the commercial funnel and the new product development process, presenting a business case for innovation within Essence Drinks. Finally, it explores tools for developing, retaining, and protecting knowledge and intellectual property, concluding with key findings and recommendations for the company's innovation strategy, particularly regarding the introduction of a Kiwi fruit Lassi product.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain innovation and determine its importance to organisations..................................3
P2 Organisational vision, leadership, culture and teamwork to shape innovation.................5
TASK 2............................................................................................................................................6
P3 Explain 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas............................................................................................................6
P4) Frugal Innovation.............................................................................................................7
TASK 3 ...........................................................................................................................................8
P5 Importance of commercial funnel and application of new product development of
innovation ..............................................................................................................................8
P6 Innovation Business Case for organisation ....................................................................10
TASK 4 .........................................................................................................................................11
P7 Different tools use to develop, retain and protect knowledge and intellectual property. 11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation and commercialisation is on necessary process which has led an initiative to
develop products or services at a higher proportionate. In current business process, innovation
has brought an effective change in products or services of a business firm by looking at trends or
increased scenario of other firm's products or services in an effective or productive manner
(Minshall and Mortara, 2017). In addition to this, innovation is important to pump oxygen to
existing product to rise its life expectancy for longer period of time. This report will be carried
on Essence drinks, which is a leading drink based selling firm operated in region of an entire UK
and also with dramatic rise in sales into their first year. To overcome this, innovation will be
done in bringing Kiwi fruit Lassi into a product line. Apart from this, report will cover concept
of innovation and importance of it in relationship to invention over a longer period of time. Also,
concept of 4P's of innovation, funnels and importance of commercial funnel will also be
undertaken. Lastly, a business case will be prepared to check out vision, mission, strategic
objectives and then carry out research & development over innovation.
TASK 1
P1 Explain innovation and determine its importance to organisations
Innovation is a process of translation of an idea or kind of an invention into a particular
goods or service that actually creates values for customers will their pays. In current product
development, innovation has major role in understanding a requirement of a change which can
be either creative or innovative to bring in any product at a productive proportion (Ajagbe and et.
al ., 2015). Innovation is applicable to every product, but to some limited extent of time. It can
also be taken from any new or previous idea which has ruled. Moreover, this is highly different
from invention, in which idea or product knowledge even not exists before. Level of innovation
can be measured with situation of how well it can be survived in UK market and what are major
response of customer over this. A situation can be termed as innovation when it can be highly
replicable by economic cost and must specify a need or purpose out of it. In context of Essence
drink, this brand is in instant need of innovation into Lassi drinks, as their products such as
Mango lassi or others are showing decreasing of profits or sales at a given point of time. In
context of Essence drinks, innovation here will be bring

This was also realised that mango lassi has been failed, because of lack of market
viability and product planning to continue growth of product for profitable stage (Azarmi, 2016).
Hence, in that situation, innovation is highly pro-active and thus in response, it may be future
growth for any upcoming products. First, it is important to do brief comparison between
innovation and invention to know what in reality it actually means. For this Akshay Kumar
brand, it will be productive to discuss certain importance of an innovation at a greater point of
time. The importance of innovation is as follows:
Increase in brand image & value: Innovation is the process, in which existing product is
used to get new style, process of attracting customer's and led an effective regulation of product
brand image development for longer period of time (Dodourova and Bevis, 2014). For Essence
drinks, innovation will help to increase the level of profits at an optimised period of time.
Development of sales or profits: Innovation is a necessary concept which is important to
rise product image at a greater or optimised level. In that situation, innovation will led boost to
sales or revenue of this essence drinks. This importance is highly prominent for Essence drinks
to enhance their profit generation or also led innovation in their product at a greater ratio.
Basis Innovation Invention
Meaning
Innovation is an occurrence of a
productive idea for product or in
any process to make it efficient
to save cost and time. In this,
idea's are existed or presents in
current period of time.
Invention is an occurrence of an idea
for any new products or services which
is not presented or prepared before this.
Implementation
In innovation, any new idea is
majorly required on existed
product or deals with relevant
changes.
Practical implementation of new idea or
product. Either, an product or part of it
uses to be invent into business part.

P2 Organisational vision, leadership, culture and teamwork to shape innovation
Vision & mission: Essence is one leading drinks or beverage based business entity which
used to be process for selling products such as Mango Lassi and other related drinks products at
an affordable prices. The vision of the Essence drinks is to “create customer taste connects to
us”. This is highly innovative vision, in which Essence drink are majorly connects to their
customer and people, to whom they are looking to sell into the UK market. With the help of an
organisation vision, Essence drinks have opportunity to building their drinks product with
support of innovation in taste or preferences and also brings down price of these drinks product
in given stage of business process (Fuertes-Callen and Cuéllar-Fernández, 2014). In reality,
vision and mission assist idea into a reality production by aligning that visionary innovation to
Essence drinks goals or target point of time.
Leadership: For process of an innovation, Essence drink management has an opportunity
to uses democratic leadership, in which their team member's are free to tell about their idea or
opinion on new product development and its process. This is highly necessary for Essence drink
to get utilise efforts or values of their team member's, so that their efforts must be resulted into
clear and complete development of new drinks of this leading drink based brand. For bringing
level of innovation, Essence drink has major opportunities to use collaborative culture, in which
visions, values, mission or core ethics can be use to generate common working or level of an
effective team working with increased productivity. In this, Essence drink can give training or
motivation to their employee's and make them aware about what level of innovation to be bring
or take place to enhances product visibility for longer period of time. As, Essence drinks is
looking for innovative into Lassi, by bringing Kiwi fruits into this domain to overcome decline
sales or revenue to given it a boost.
Teamwork: Role of increased teamwork efforts are highly responsive for Essence drink
in order to get productive efforts of the team member's while in process of an innovation. In this
leading drink based firm, this is highly prominent to utilise role of vision, mission or core values
of a team working or process. Team groups of an Essence drinks have major innovative idea to
comes up with new and creative idea of bringing any flavour, which in reality suits customer's
preferences at a bigger and optimised stage (Katzy and et.al., 2013). Here, product category
which is of lassi will remain same along with increased source of using resources at a bigger and
also at optimised level.

These three factor's are highly necessary to lead product innovation in Lassi, which is
made up of Kiwi fruits to increase business suitability for Essence drinks to lead and increase
sales and revenue at a greater proportionate along with product value for customer's in UK.
TASK 2
P3 Explain 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas
Product: Essence Drink is coming up with the new product that is Kiwi drink (lassi)in
the UK market. This new flavour is added to the lassi so that customers can be attracted at a large
scale. New flavoured in lassi will attract customers from the all the age group as well it is health
for body. This will indirectly raise the sales volume of the lassi which will lead to profitability in
the global market.
Process: Essence drink is initially launching the Kiwi lassi at a small scale and when the
demand of the product will be there process will be raised accordingly (Khan and et.al ., 2014).
The expansion of the lassi production process will there when the demand for it is raised. As it
incur heavy funding the process is done at a small level and later on it will be expanded. Kiwi
drink is launched at small process to see the reaction of the customers towards this with this new
flavour.
People: People are the business associates who use their skills, capabilities, creative
abilities to develop a innovative product say Kiwi drink (Lassi) in the global market. One's
preferences are measured in the cut throat market from adaptor to an innovator which help the
business to grow at a large scale.
Press: It represents that climate or environment in which employee operates to design or
frame a product. Here, press includes resources and firm culture. Additionally it refers to the
conducive for creativity. Kiwi drink (Lassi) is designed for health conscious people as due to
hectic schedule the health of the people are degrading day by day. So, firm is coming up with
quality and healthy lassi drink in the global market. Which will help the business to bind
customers with their product and profits can be gained.
Innovation funnel: It is a mechanism through which it enables a constant stream of
creative thoughts or idea which can be screened out for validity in the market. It is a common

model used by most of the business associates worldwide to examine conceptualize product.
Innovation funnel is important as it is a strategic thinking which helps the business to boost
productivity and examine quality of product which indirectly help the organization to capture
market ratio a large scale. Kiwi drink (lassi) is a creative drink and is ready to launch in the UK
market. It is through innovation funnel new idea has been generated as well as smooth working
of it took place. It helped the Essence drink to attract loyal and potential customers towards their
drink. Which raised brand value in the eyes of the customers.
P4) Frugal Innovation
Frugal Innovation is the way by which complexity of cost of goods and it's production
can be reduced in the cut throat market and smooth functioning of business can be carried out. It
includes removing unnecessary features or characteristics from durable goods like, auto mobiles,
household goods, sports equipments etc. The new product of Essence drink is Kiwi drink (Lassi)
so it helps the firm to design affordable price so that every se3ction of the customers can
purchase it. For functioning of the business, frugal innovation plays a vital role as it helps them
to reduces complexities of cost in production. It is considered as one of the best invention
process which helps in minimizing the complexities while designing or framing a new creative
thought in the global market (Mazzarol, 2013). The principles of innovation are explained as
follows:
Find opportunity in adversity: Experimenting with lassi is a big challenge for the
company as well convening people about the Kiwi drink (lassi) is like searching water in desert.
By doing research and development in the market Essence drink firm evaluated that people are
more conscious about health and prefer healthy drink. So they come up with Kiwi drink which is
full of proteins and minerals which be beneficial for the customers as well as sales volume can
be raised. Example: Essence Drink search out the opportunity of health drink and came up with
kiwi drink (lassi) which is full of nutrients and healthy as well.
Do more with less: Use the existing resources to find a better solutions to meet the
emerging needs of the customers. Use the available resources in the effective manner with less
wastage so that best outcome can be seen. Example: Essence drink used the natural fruit Kiwi
and added in lassi to change the flavour which helped the firm to attrac6t customers at a large
scale. They used their existing product lassi with natural fruit and positive sign of customers
towards lassi can be seen.

Think and act flexibility: To invent new product in the market researcher should be
flexible in it's thinking so that overall scenario can be analysed and product can be designed
accordingly. Rigidity in thinking creates complexity and problems in the global market and many
times it is unsuccessful. Example: Essence drink is more improvisational rather than rigid in it's
product which helped the firm to raise sales volume at a huge level. Flexibility helped the firm to
come up with new flavoured drink in the market.
Keep it simple: Distinguished variations in product make it complex to understand and
customer avoid it to purchase it. Many times customers get confused about the product features,
characteristics etc. and it creates a negative impact on the brand. Example: Essence drink came
up with simple new product which is kiwi drink (lassi) for the customer. It is easy to attract
customers for the product and to expand business in the global market. It s better to come with
one unique change in the goods rather than many changes.
Include the margin: Search out the target customers for the product and take feedback
from them to which help the company to set margin for the product. Have conversation with the
customers to solve the problem regarding the product so, that revenue can be generated.
Follow your heart: To run the business successfully in the global market the zeal and
passion for new product should be there to attract customers so, that growth can be done. Passion
for the product will help the company top flourish in the market globally. Example: Akshay
Kumar passion was to open a lassi drink in the UK market and is successful business across
globe. And the zeal has helped the company to come up with kiwi drink (lassi) to capture market
ratio.
TASK 3
P5 Importance of commercial funnel and application of new product development of innovation
In relation to business, commercial funnel is considered as an effective way which enable
the company to make use of available resources in order to bring out an impressive strategies.
Commercial funnel signifies that it is a process of buying and selling which firm take by their
purchasing power of their products. However, it is an effective element as it is connected with
multiple channels that help customers to know about their product. Therefore, commercial funnel
plays a vital role for the success of essence drink i.e. kiwi fruit lassi in order to sustain high
profitability in market.

Pricing Policy: This element is an important tool for every product in order to obtain
high productivity. However, Essence drink acquire an impressive pricing strategy as they keep
moderate pricing policy which is affordable by every group of people. Hence, commercial funnel
enable the company to set an effective and fair price for the product which allow them to attain
high productivity an profitability (Pellikka and Malinen, 2014).
Enhance the ways of growing and enriching business: Commercial funnel is an integral
factor for every organisation as it helps them to enlarge their business in effective and efficient
manner. However, it has been analysed from funnel that it ensure the business to produce
product as per the taste and preference of customer which generate high satisfaction and
improves their morale. By this company can expand their business activities in new market of
UK with new product.
Acquiring innovative technology: In this stage, company is adopting innovative and
creative technology for their new product i.e. kiwi fruit lassi in order to attain high proficiency
and can gain competitive advantage.
Execute investigation program: In order to implement an effective investigation activity,
company should conduct proper research work for collecting accurate information regarding
customer demand as well as market condition. However, commercial funnel helps firm to adapt
innovative technology and strategies in order to accomplish high productivity among industry.
Moreover, new product development is regarded as longest process as it contains several
steps which is essential for every firm to acquire is described below:
Idea generation: For introducing new product i.e. kiwi fruit lassi in market, generating
innovative and creative ideas in order to sustain within an industry for longer period of time. For
this, essence drink have to conduct research to gain information about marketplace (Plewa and
et.al ., 2012).
Idea evaluation: In this stage, Essence drink have to select best and suitable ideas from
various alternatives for enhancing their new business i.e. kiwi fruit drink. By this, they will be
able to attain high productivity effectively and efficiently.
Concept definition: After selecting best idea, then essence drink need to define their aim
or thought regarding kiwi fruit lassi in marketplace.

Strategic analysis: In this stage, essence drink develops an impressive and productive
strategy for new product in order to satisfy customer needs and enrich business operation.
Product development and testing: After developing strategy, essence drink provide their
product for testing in order to check whether it is meeting up the company's standards. This will
help them attain high productivity.
Market testing: Under this stage, essence drink test their kiwi fruit lassi by collecting
feedback from customer and from marketplace so that they can take corrective course of action
for better business growth.
Commercialisation: In this, essence drink implement affordable and fair price for
product.
Product launch: Finally, essence drink launch their kiwi fruit lassi in a competitive
market.
P6 Innovation Business Case for organisation
Business case plays a vital role in enhancement and enrichment of company in order to
attain organisation goal in an effective and efficient manner. However, business case is a
process which enable the company to bring together all necessaries and required things for
achieving higher level of efficiency and proficiency. It contains several strategies which is
essential for company to accomplish their business objectives are as follows:
Mission: Essence drink mission is to produce healthy and organic kiwi lassi in order to
keep customer safe and fit.
Objective: The key objective of Essence drink is improve customer satisfaction through
the good quality of products and attain goof position in target market.
Targeted customer: Essence drink mainly target all children and young adults in order to
keep them healthy and energetic in all season.
Development and design of plan: Essence drink introduced mango lassi into the UK
market and they attain efficient rise in first year. But in the third year of trading they faced a
significant decease in sales as the number of competitors entered into market which became a
threat for them. Thus, they decided to introduce new product among market i.e. kiwi fruit drink
in an affordable and best quality in order to attain higher level of efficiency.
Market analysis: This strategy plays a crucial role in an organisation as it is an
assessment which allows the company to determine how suitable a particular market is for

industry (Razak, Murray and Roberts, 2014). In other words, this analysis evaluate current
market or identify new market. In context to Essence drinks, this strategy is very essential as they
analyse or examine the market in order to gain proper identification for improving the morale of
customer.
Cost and benefit analysis: After analysing market scenario, Essence drinks set price or
cost for kiwi fruit drink. During this process, they mainly focus on implementing fair and
affordable price for product which enable them to achieve high productivity and can increase
customer satisfaction level.
Financial projection: Once they examine cost and benefit of product then this stage
occur i.e. setting the cost for introducing the kiwi fruit drink in a competitive market. However,
the estimation cost for this innovative product is £35,000 and its research cost is around £40,000.
By figuring the financial projection, Essence drink can easily accomplish their target position
among market.
Executive Summary
Innovation is the exploitation of new ideas and thoughts which lead to the development
of new products, process and services. Most importantly, one of the main purpose of innovation
and commercialisation is that to bring ideas to a productive position which help the company to
generate profit, increase market share and edge out competitors. Along with this, deep
understanding of 4Ps of innovation enable Essence drink to attain maximisation of profit in an
effective manner. In order to decrease complexities in inventing new product into market, frugal
innovation and commercial funnel plays a vital role in helping company for optimum utilisation
of resources to attain maximisation of profit. Moreover, there are various tools like copyright,
patent right that enable Essence drink to achieve their organisational goal efficiently.
Ways of funding: In every organisation, to meet up all the daily requirements of business
operation and function they need an enough or strong fund. As this stage, is regarded as
backbone for company in order to sustain in an industry for a longer period of time. However,
Essence drink applies different ways to raise fund for new product i.e. kiwi fruit drink which is
described below:
 Business loan from bank: Essence drink acquires fund from several sources such as
collecting money from bank, financial institution, public etc. for raising fund sufficiently

for business. Friends and family financing: Essence drink can also raise fund from
family, friends which create more convenience to Essence drinks to pay them back. By
this, company can achieve their goal in an effective and proficient manner.
From the above mentioned business case, it help Essence drinks to obtain maximum of
profit with the optimum utilisation of resources.
TASK 4
P7 Different tools use to develop, retain and protect knowledge and intellectual property.
Every company main aim is to sustain higher profitability in order to gain competitive
advantage. For attaining the same, they adopt several techniques and tools in order to accomplish
business objective in an effective and efficient manner. However, company's foremost and initial
step is that they should have copy right, patent right and trade mark for achieving task smoothly.
 Copyright: It is a legal document which provide protection to intellectual property and an
individual can gain right to publish, sell their original work of authorship and it also help
them in maintaining their subsequent utilisation. Therefore, an organisation can adopt this
process for safeguarding their rights in order to improve company's brand image
(Robertson, 2014). There are several tools which help Essence drink to develop, retain
and protect knowledge of kiwi fruit drink which is described below. Some of the
advantages and disadvantages as well as strength and weakness of copyright are as
follows:
Advantages
 Copyright gives the owner of
intellectual property the right to
produce and reproduce copyrighted
material without any approval by law
or by any legal enforcement. By this,
they can authorise anyone at anytime
and anywhere which means owner has
absolute rights.
Disadvantages
 It is granted to owner for a limited
amount of time. As soon as the timer
lapses, copyrights are taken way from
owner and anyone can now produce or
reproduce works. Due to this, owner
has limited control over protection of
intellectual property and it does not
allow them for modification.
Strength
 Copyright is relatively inexpensive and
Weakness
 It limits dissemination as copyright