Innovation and Commercialization Assignment - Essence drinks UK

Innovation and
commercialization

INTRODUCTION
Innovation and commercialisation is an important element in the organisation. It
involves creating new ideas and it also involves creation of new and unique products in the
marketplace. Innovation comprises of process which involves identification of new ideas and
thoughts that can be in the from of device and different methods. Where as commercialisation
involves launching new goods and services that an organisation will be producing in the market .
Under this report the organisation taken is Essence drinks which is situated in the United
Kingdom. The owner started selling only one drink which is healthy mango lassi in the market
place. After some period of time the business started facing decrease in their sales. Which needs
be addressed with the launch of new and innovative products. The report will highlight 4p's of
innovation and it will also examine the usage of innovation funnel which is required to form the
ideas. Later part of the report deals with various tools that an organization uses in order to retain
and protect knowledge and intellectual property (Ajagbe and et. al., 2015).
P1.Defining innovation and it's comparison with invention.
Innovation is an complex procedure that involves translating of ideas or invention in the
from of good and services that focusses on creating value. In order to innovative an idea needs to
be replicable in terms of economic cost and it must be focusses on satisfying different need and
wants of consumers. The entire process is aimed at generating higher amount of value from
customers by application of collected imagination, initiative and information by individuals.
Essence drink is currently proving a healthy mango lassi drink the UK market for the past two
years and now due to factors such as changes in customer preference, market demand and other
factors. The organisation needs to use innovative ideas in there products in order to facilitates
market in better way and this will also assist them to enhance the number of their sales. In order
to do so they need to launch new and different variant in their current product which is mango
lassi (Brown, 2016). They will introduce new variants such orange, salted and strawberry. It will
help the business in different ways such as-
Assists in competing in the market- As there are various other competitors in the
market that are offering healthy drinks and using different promotional tools to increase their
market share. Introduction of new product variants will help the business to compete with the
rivalry and they will be capable to grab the attention of the huge consumers thus it they will be
competent to maximise their sales and market share in the economy.

Able to attract bigger audience- As the business have been selling a single product for
the past two years in the market. This have resulted in decrease in their customer base and have
also effected their sales. By adopting innovation in the business they will be able to attract their
larger number of audience and it will help them to convert potential customers into customer and
will also help to retain them as loyal customers (Chun, Chung and Bang, 2015).
Assists in increasing sales- By enabling innovative products and processes in the
business the organisation will be capable to grab the attention of the audience as well as by
adoption of various promotional tools they can generate interest among customers for their
products so that customers add new products in their purchase list and thus the business can
increase their sales.
Therefore, innovation plays an crucial role in the business it assists businesses in
attracting larger number of audience and also assists in retaining their market position. The
process of innovation is complex it involves improving the current range of product or making
changes. Essence drink is making changes in the business by launching new flavour in health
drinks. Where as innovation includes creating new product or process which are offered by
businesses for the first time in the market (De Prato, Nepelski and Piroli, 2015).
Difference between innovation and inventions:-
Bases of comparison Innovation Invention
Meaning It involves enabling
development in the current
product.
Includes creation of new
product or process in the
business.
Required skills Technical, marketing and
strategic are required under
this.
Only scientific skills is
required under this.
Concept The process involves practical
execution of new ideas.
It includes working with the
existing ideas.
Activities It is spread across the overall
business.
Only research and
development department is