Innovation and Commercialisation Assignment : Essence Drink

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 ...........................................................................................................................................3
P2 ...........................................................................................................................................5
TASK 2............................................................................................................................................6
P3 ...........................................................................................................................................6
P4 ...........................................................................................................................................7
TASK 3 ...........................................................................................................................................8
P5 ...........................................................................................................................................8
New Product Development (NPD) processing for commercialisation of innovation............9
P6 .........................................................................................................................................10
TASK 4..........................................................................................................................................11
P7 .........................................................................................................................................11
CONCLUSION..............................................................................................................................12
.......................................................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
To maintain success and growth in competitive dynamic environment, there is
requirement for organisation to provide innovative offerings to the customers to gain
competitive advantage. Innovation is concerned to making changes in the exiting products by
converting ideas into action and satisfies the needs and the requirements of customers. This
report is based on Essence Drinks which provides lassi with a mango flavour into the UK
market, but company is facing the issue of decreasing sales as because of large number of
competitors entered the market and attracting customers towards their product. Akshay Kumar is
the founder of Essence Drinks. The company has not speedy development in market from last 2
years. Therefore, he decided to use its innovative idea to produce new range of drinks. This
analysed the need of organisation to provide innovative offerings to the customers and planned
to provide Chocolate banana lassi toasted with dry-fruit in the UK market so as to enhance its
sales and profitability and therefore maintains its sustainability.
` The following report will throw lights on value of innovation for business as well as how
organisational, vision, leadership and culture shapes invention and commercialization. It also
explains 4 p's of innovation and explains how frugal innovation is used within organisation.
Apart from this it discusses effective steps and methods to innovate and commercialise product
and evaluates different ideas to retain and protect knowledge.
TASK 1
P1
Innovation , it is the way or method of making changes in the present good of the
respective organization to fulfil the requirements of existing market and maintains the
sustainability in the competitive market place. Invention is the method of processing or
inventing a new product which is not available or existing in the market. Invention is done by the
company by adopting new practices and process to provide totally new product to the customers.
Innovation and invention has relationship with commercialization as it is concerned with
providing new or innovative products in the market with proper manufacturing, merchandising,
sales and consumer help, as way to achieve growth of success of goods. (Ahn, Minshall and
Mortara, 2017).

As Essence Drink is facing the problem of declining sales for the company products, here
innovation to Chocolate banana lassi toasted with dry fruits will be effective solution to the
problem and aid the organization to attract customers and increase competitor benefit and
therefore invention of totally new product would be costly for the company and there will be
high risk associated with inventing a new product.
Importance of Innovation for Essence Drinks
As the customers within UK were satisfied with the healthy mango lassi product, but
because with the entry of many competitors within the same sector led Essence Drinks to provide
innovative offerings and maintains success and growth of business. Benefit of innovation for
Essence Drinks includes-
 It aids the organisation to provide differentiated products in the market and enhance their
profitability and productivity in the UK market, instead of providing a totally fresh
product which carries high risk compared to innovation of the existing product (Reasons
Why Innovation Is Critical To Businesses, 2019).
 It will lead to increase Essence Drinks brand recognition and make the employees feel
valuable towards working with company and improves partnership and relationship
towards various employees, also reduces employee turnover problem and will resolve the
problem associated with declining sales and therefore is a better option than invention of
a new product.
Comparison of Innovation an Invention
Basis Innovation Invention
Concept It is concerned with adding
value to the existing product
and solve the problem of
declining sales of Essence
Drinks and is a better option
than inventing a new product
(The Difference Between
Invention and Innovation,
2016).
It is concerned with
implementation of new idea
and concept towards
developing new product.

Activities Innovation activities are spread
all across the organisation and
boost morale of the employees
at Essence Drink to work
effectively (Ajagbe and et. al.,
2015).
Invention activities are related
to only research and
development all the employees
within Essence Drink are not
involved in inventing new
product.
P2
Vision, culture, leading and cooperation associated with respective company helps to
provide innovative offerings to the customer. In order to effectively innovate its offerings, these
factors should be applied effectively towards maintaining growth and success of business. These
factors are discussed as follows-
 Vision- Essence Drink vision is to supply superior and healthy lassi in the market so as to
give them a delighted and a enriching experience. When employees are clear with vision
of the respective business it motivates them to work dedicatedly and develop more ideas
to bring innovation and modification in their product. This shapes innovation within the
products of the respective company (Azarmi, 2016). The supply of lassi can capture the
large market as it is a healthy drink which can make easy for essence drink to offer their
new product.
 Leadership- Leaders within Essence Drink should provide proper guidance and support
to the employees to work collaboratively and generates more ideas and suggestion for the
growth and development of their business. Democratic style of leadership should be
adopted so that employees are free to share their ideas and opinions and effectively
commercialize their products in market. A good leader can bring best innovative ideas
from their team which helps them to use a effective production , distribution techniques
which leads to success of new offerings.
 Team work- Employees within Essence Drink should work in team so that all the
employee can give their view points and share their ideas, towards realising common
targets within specific time period. This leads the company to provide innovative lassi
products in the UK market (Dodourova and Bevis, 2014). The sharing of ideas in team

provide employees more authority and ownership over the activities which motivates
them to work effectively to come up with new product.
 Culture- It determines the standardised behaviour and the norms which assist the
behaviour of the employees to work accordingly. Their are various kind of culture such
as task, power, role and person culture and among this task culture assist employees
within Essence Drinks to perform their task related responsibilities in a appropriate way.
If employees follows the set pattern and ethics of Essence Drink then it can help them to
effectively come up in market with their new offerings.
For illustration- As Essence Drinks has tried a innovative and a new flavour in the UK market
which sounds with an Indian name, is itself a differentiated product. This makes the drink highly
differentiated and innovative in the UK market and this major point which will assist the
company to make it differentiate from the other available in UK market. Along with this
effective culture and leadership adopted helps the employees within company to provide
innovative goods in market.
TASK 2
P3
Innovation space is developed by John Bessant which aims to improve and innovate
products of organisation in order to bring forward growth and development in the business. It
provides a clear direction to the company regarding bringing proper innovation in products.
These 4 p's are represented as follows-
 Product- Essence Drink company should determine their product ranges and analyse the
demands of the client (Fuertes-Callen and Cuéllar-Fernández, 2014). This will help in
bringing innovation in company's existing products according to the demands of the
market and will maintain competitiveness of business in complex environment.
 Process- This 'p' is in context with innovating healthy mango lassi to chocolate banana
dry fruit fruit lassi, it takes into consideration qualified employees needed for conducting
business activities as well as training facilities to them and determines adequate
requirement of finance to properly commercialise their Chocolate banana lassi toasted
with dry fruits in the market.

 Paradigm- Changes occurred within the business and outside the environment have
different perceptions within the individuals. Therefore it is essential for Essence Drink
manager to take effective decision and perceive the positive outcomes associated with
changes (Katzy and et. al., 2013.).
 Position- It refers to the place that the Essence Drink products occupies in the minds of
the customers, employee and how it could be distinguished from those of competitors. As
there are large number of competitors within UK market Essence drink should adopt
differentiate promotional, pricing Strategy and should make continuous improvements in
their products so as to remain competitive.
Innovation Funnel
It is a framework or a model used by various companies to screen and evaluate various ideas and
conceptualize the product effectively. This mechanism is used by various companies to create a
innovative and a realistic plan. Following stages in Innovation funnel aid Essence Drink to create
new content and innovate the product effectively-
 Opportunity Assessment- Manager at Essence Drink should effectively conducts the
market research and grabs the identified opportunities in the market so as to modify
product from mango lassi to banana chocolate lassi with toasted dry fruits
 Screening of various ideas- Under this step screening of various ideas are done on the
basis of data collected through customer survey, feedbacks and from secondary sources.
From this data content are developed and the top-quality one is chosen determining the
needs of existing market (Khan and et. al., 2014.).
 Conceptualisation- At this stage employees work within the team to design the whole
concept of the idea selected which consist of determining the packaging of the banana
chocolate lassi with toasted dry fruits as well as analyses the advertising strategies.
 Evaluation- Evaluation of the innovative product is done by the test marketing so as to
know the consumer behaviour towards the product as well as certain modifications can be
done according to their demand.
 Go/No Go- After conducting test marketing it provides analysis to Essence Drink to take
decision regarding starting manufacturing or not in respect the new good. This step also
determines manufacturing cost and profit margins for the innovative lassi (Kutvonen,
Savitskaya and Salmi, 2014).

 Launch- This step leads to the launch of banana chocolate lassi in the market.
Apart from this there are different types of innovation such as-
 Incremental Innovation- This type of creation is done by bringing modifications in the
existing product by the use of existing technology. Essence Drink has adopted
Incremental innovation by bringing change in their mango lassi to banana chocolate lassi
toasted with dry fruits by the use of their existing technology.
 Radical Innovation- It is completely a new innovation and leads towards developing the
new product and company new and advanced technologies for developing the products.
P4
Frugal Innovation is the method or an approach of minimising complexity and
minimising the cost of production and products. It is an effective approach of removing the non
essential features and products from the production process.
It is an effective model which assist Essence Drinks to provide innovative , faster and a
cheaper goods so as to fulfil the requirement emerging needs of the market. Hence Frugal
innovation is widely used within Essence Drinks. It is described as follows-
 Innovate more with less- As Essence Drink is a small business, for them invention is
difficult. Respective company should bring innovation in business by using its existing
resources and technology and increase the production and sales of the company
(Mazzarol, 2013). For example Frugal Innovation has helped Essence drink to modify its
mango lassi into a innovative form by adding banana and chocolate flavours by using its
existing technology by way of competing effectively in complex market.
 Provide products that provides value for money- With the help of Frugal innovation
respective company has effectively innovated its products and has eliminated the extra
process and starts a cost effectuive production process, in such case customers get
products at an appropraite price providing value for money (Mazzarol and et. al., 2014).
 Healthy competition between the rivals- As because of the increasing competition
among the Essence Drink and its competitor, respective company has adopted frugal
innovation to reduce the complexity in the production process and provides cost effective
products so as to atrget larger customers. For this company has started providing small
tetra packs which are easily affordable for the consumers to buy and allows Essence
Drink to gain competitive advantage.

TASK 3
P5
Commercial Funnel is a systematic framework or a mechanism that depicts the overall
journey of the product from creating product awareness to the final sales to the ultimate
consumers. It also act as a revenue or sales funnel by bringing together the customers and
promoting the Essence Drinks company's products to target larger customer base and turns their
potential customers into long term customers.
Need/ Importance of Commercial Funnel
 It enhances and improves the way of growing business as it helps in analysing the needs
of the customer and then providing goods to fulfil demands of customer enahnces profit
margins for Essence Drinks.
 With more use of commercial funnel it led the company to adopt effective technology
and promote their products online, assist in targeting larger customer base and sustain
effectively in competitive market place (Pellikka and Malinen, 2014).
 It act as revenue or sales funnel for the company by bringing together the customers and
promoting the products, therby turninmg their potential customers into long term
customers.
New Product Development (NPD) processing for commercialisation of innovation.
For innovation and Commercialisation of new product respective company should
follows a effective process which is described as follows-
 Idea Generation- For innovating its lassi product, manager at Essence Drink should
conduct effective research by analysing information reated to consumer behaviour and
demands. This leads to the effective generation of various ideas regarding innovating its
products.
 Idea Screening- This step is concerned with when the respective company has developed
various ideas, there is a need to screen the best one. Ideas are screened to evalauate the
best one out of it, here respective company decided to innovate a chocolate banana
dryfruit lassi in the market.
 Concept Development- This step specifies that idea selected of making chocolate
banana lassi toasted with dry fruits defines that how the specific product will be made

what will be faetures and the technologies used during production(Plewa and et. al.,
2012).
 Marketing Stratgey- When the concept of banana lassi have been developed and tested,
Essence Drink should frame a effective strategy regarding introducing the product in the
outside place. Respective company can adopt to online marketing stratgies as a way to
increased customer awareness and improves sales for the company.
 Business Analysis- This step is concerned with analysing the attractiveness of the
business in context to its new products which consist of monitoring of sales and profit
associated with innovative offering so as to depict the competitive advantage of product
(Razak, Murray and Roberts, 2014).
 Test Marketing- Before Commercialisation of product, test marketing is conducted so as
with a group of consumers to know their valuable feedback regarding their product and
certain modification should be done according to their requirements.
 Commerciaisation- Essence Drink should develop a effective marketing plan regarding
commercialisation of chocolate banana lassi which consist of introduction timing and
introduction place regarding its new product.
 Product Launch- It is the last way where Chocolate banana lassi has been introduced in
market.
P6
Business Case
Executive Summary- To gain competitive advantage in busines environment it is
mandatory for the respective company to provide innovative offerings in market and gain
competitive advantage. Here, Essence Drink has decided to innovate its products from mango
lassi to chocolate banana lassi with toasted dryfruits.
Resources- In order to come up with their innovative products, Essenece Drink requires
adequate finance for purchasing raw materials such as banana, mcurd, sugar, dryfruitsc and
chocolates and also requires additional work worforce to conduct business and marketing
activities in a proper manner.
Market Analysis- Essence Drink has properly conducted market analysis by taking into
consideration big data related to consumer behaviour and therefore decided to provide innovative
offerings in the market.

 Segmentation- Essence Drink has specifically segmented the customers according to
their income level, age group. In context to this Essence Drink provided small tetra packs
and big packs so that customer can buy accordinjg to their requirement and income level.
 Targeting- Chocolate baanana lassi with dry fruits is targeting childrens, adults and
youths as it contain all types of ingrideints which provides healthy life style of the
individuals.
 Positioning- Essence Drink has valuable superior position in market due to its
innovative offerings in the UK market.
Marketing Strategies- As a way o introduce and promote its inniovative goods Essence Drink
should adopt to online marketing strategies and use social media as a platform as a way to create
product knowledge and target larger customer base.
Financial Projection- For effctively marketing and conducting business activities, respective
company requires £30,000 to introduce new lassi in market
Diifferent ways of getting finanace - Their are different ways through which respective
company can raise funds and effectively manages the sales and productiuon of their business
activities.
 Through Banks and Financial Institutions- It is the easiest method of getting finance
at an appropraite rate of interest which needs to paid within specific duration of time.
This will allow Essenece drink to perform their business activities in a proper manner.
 Personally through family - It is the personal way of getting amount from relatives
friends, without any rate of interest as well as there is no fixed time for repayment.
TASK 4
P7
Intellectual Property is concerned to to the ownership of the specific knowledge or
design of the company so as top prevent other companies to copy it. From preventing thye
information from being copied and effective strategies it necessary for Essence Drinks to adopt
various tools to prevent other comapnies or individuals to reuse or copy their information. This
tools are explained as follws-
 Trade Marks- These are the recognizable sign or the symbol which helps in the
identification of the specific product or the service. These are usually the service marks

and has he symbol TM and restricts other company to use or copy their information or
strategies (Robertson, 2014).
 Copy Rights- It gives the owner a legal right regarding protection of its intellectual
property. Apart from this owners can give authority to different individuals with an
exclusive right to copy their work for a specific period of time.
 Patents- It is an intellectual property tool that gives owner the legal right to prevent
others from using, selling and inventing its products.
 Trade Secrets – A trade secret is protected through employment contracts. It consists of
idea, pattern, device or compilation of information that gives competitive advantages to
the company.
From these intellectual property tools, Essence Drink should patent its products as it will
give them an exclusive right to prevent innovation of lassi products and helps them to capture
strong market position. Moreover this provides an opportunity to the small business to sell their
invention or innovation and earn huge profits.
CONCLUSION
From the information collected it is determined that it is necessary for the organisation to
innovate its easiting products so as to meet the existing market needs and wants. Company has
adopted to Incrememntal innovation by modifying its products with the existing resources and
technology. Frugal innovation has also allowed organisation to reduce and eliminate unnecessary
processes and elements from production process so that cost efefctive products can be provided
to ultimate customers. Company should also potect their knowledge and information by adopting
IP as a patent tool to protect its information from being copied by others.

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