Innovation and Commercialisation in Essence Drinks: Analysing the Value and Importance of Innovation

This report discusses the importance of innovation in Essence Drinks, including the difference between invention and innovation, 4Ps of innovation, and approaches related to the process of innovative ideas such as funnel and frugal innovation. It also covers the idea of the new drink 'kiwi lassie', its effectiveness, and resources required for proceedings.

Innovation and
commercialisation

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part — 1...........................................................................................................................................3
The difference between the invention and innovation:................................................................3
Analysation of the value and importance of innovation and how it is integrated in the
organization:................................................................................................................................5
Analysation of the 4p's of innovation for the organization “Essence drinks”:............................5
Analysation of the approaches related to the process of the innovative ideas of the firm
including the funnel and frugal innovation in the organization:..................................................6
The next step that the firm “Essene drink” should come with the new and innovative ways out
in to the market:...........................................................................................................................8
PART — 2.......................................................................................................................................8
Background of company as well as problem...............................................................................8
Importance of using commercial funnel to offer solution of the problem:..................................9
Value analysis by using the frugal innovating in the context of the “Essence drink” and the
product formed by the company “Kiwi flavoured lassie”:........................................................10
Summarizing the new idea for a new drinks product and how it would meet stakeholder needs:
....................................................................................................................................................11
Analysation of the techniques that can be used by the firm for testing effectiveness of the new
drink formed:.............................................................................................................................11
Resources required by the firm for the further proceedings of the innovative business of the
“KIWI lassie” in the firm Essence drink:..................................................................................12
Evaluation of the tools Essence Drinks can use to protect the intellectual property rights of a
new drink...................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation is one of the most common and the important term related to the businesses, firm that
have the innovative products and provides with the fast pace of services to their customer that
organization become eligible in becoming the market leader of the particular segment (Bodlaj,
and Čater, 2019). Innovating business idea provides with the growth and success to the
businesses and boom it on another level, firm by taking the innovation important takes up the
higher chance of getting successful. This study is based on Essence Drinks, this company was
started in UK with the aim to deliver healthy drinks and lassie to the consumers. This report will
discuss difference between invention and innovation and will focus on importance of innovation.
Later this report will discuss 4Ps of innovation and innovation funnel including key
recommendation to business. Later this report has discussed commercial funnel and range of
methods that protect innovative idea. The report will also be covering about the problems faced
by the firm and about the idea of the new drink “kiwi lassie”. Further, in the report the
effectiveness of the new drink and the resources required for proceedings will be evaluated and
different tools required for the protection of the intellectual property rights.
MAIN BODY
Part — 1
The difference between the invention and innovation:
Key differences
Basis Invention Innovation
Meaning Invention refers to the
occurrence of idea which was
not developed before and
invention is process of
creation of something new in
the market. Company invent
those products which was
Innovation is process of
creating new idea in different
way related to something
which already exist or the
concept is known in the
market. For example: car is
common but having an

never introduced in the
market, these products are
completely new and consumer
requires time to accept the
invented products as per their
capabilities.
electric car is innovative
product in the market. Firm
creates the innovative ideas
and this helps in adding
value to existing product and
creating something different.
Impact on businesses Invention is creation of new
idea that is based on new
theory and it impacts the
organization that helps the
firm in creating there brand
name with something
different.
Innovation in terms of
gaining the attention of the
new customers put the
constructive impact, who are
in favour to purchase the
products and services,
offered by the company, as
per target market.
Purpose of the term The main purpose of the
invention is to solve a
particular issue that arises out
because of the absence of the
things required and by
introducing a new idea that
help to reach desired
outcomes.
The purpose of the
innovation is to add value
within the existing goods or
ideas by contributing fore
raising the customer's
satisfaction level. As it
becomes challenging for an
organization to do so under
the innovative ideas, because
of the requirements of time
and proper resources.
Action undertaken In order to invent something
new, manager may put effort
to take action to invent
something new in products
and services.
To get or make something
innovative the management
authorities and the research
and development department
focus on the ideas that makes
the proper sense in bringing

something innovative.
Analysation of the value and importance of innovation and how it is integrated in the
organization:
The term innovation is the process of using the new concept in the mind and by conceptualizing
it bringing in a new product, idea, or processes in to the reality. It includes the approach related
to the existing products, ideas and process to be bought in with innovative ways. Implementation
of innovation in the business for its success is shown by the following ways:
 Creative development: quality in the innovative nature in the business of Essence drink
is essential. By creating the development related to the products of the business can help
the business of the firm in achieving the growth in creative ways.
 Continuous improvement in the business: innovation gives the organizational
sustainability to the business when it makes continuous improvement by re-branding and
using different packaging design of the products.
 Reinforcement of the brand: development of the brand by having something new is
tough task in the organizational leadership. This process provides with the collection of
different resources that helps the leader in growing the business by launching different
products.
 Availability of the things: the firm sometimes by not developing another product, can
generate the income and profits, and this helps in cutting down the disposable financial
gain by using the strategy by developing the existing products.
 Keeping up with trends: creating innovative product will help the firm to look about
existing strategies by developing the new plans and working as per the opportunities that
will be coming for the business related to the trends of the future.
 Using digital platforms for promotions: using the digital platforms and social media by
having the unique selling point by adding the value to the products and using the digital
media campaigns for the promotion and marketing of their new commodities by using
different mediums to run them in the markets. This helps the business by attracting more
of customers and keep them focused on the business with the help of social media by
giving variety of services over there.

Analysation of the 4p's of innovation for the organization “Essence drinks”:
Product innovation: the product innovation concern with the challenges that the firm will be
facing while launching or doing marketing of its new product and services offered by the firm.
The product works as the main aspect for the organization that will be situated for the purchase
of the customers in the market by demonstrating that it will be adding the value to organization
and creates multiple value for its revenue generation. The way that the business can use to
improve the product by lowering down the risk of challenges, that is by they can use the
incremental change method like the product is made up from the scratch and this process is also
illustrated as the revolutionary change.
Paradigm innovation: the business of the organization can enter the paradigm sector, when it
finds the profitability and good revenue generation in other industries. This refers to the shift of
the firm in the physically and practical manner for the business activities. This shows that how
the company will be taking the changes in progressive ways and this process works regard in
which way the firm will be picking the tasks assigned, by facing the challenges for their roles. In
this process of paradigm innovation it also consists of the adoption of the new technology in the
adoption cycle of the innovation (Sukanta, and Muis, 2022).
Process innovation: the innovation of process helps the company to line up their process in
customer conjugated ways and this confirms about operations of the organization for the future
business functions. This process will help the company in delivering of the various elements of
the innovative process like process deliverables, process management, process flow and new
advance technologies. The firm's change in the process of the innovation is redesigned as per the
requirements of the markets and the technological changes in the markets.
Position innovation: positioning of the firm's new products like the “kiwi lassie” will be related
to the representation way of the firm in to the market. This will lead the dealings of the firm in
the psychological collection of the product line. Positioning of the new product of the firm is
mainly related to the repositioning of the company's product. Under this, the business of the
organization will be looking for the existing customers but lately the firm will be shifting to the
another targeted market and to expand the business of the company. This works on by how the
position innovation is taken and relate with the process to change that how specifically the
product is taken in to the consideration by the target market audience.

Analysation of the approaches related to the process of the innovative ideas of the firm including
the funnel and frugal innovation in the organization:
Funnel innovation: the innovation funnel is the mechanism made for the screening of the
innovative ideas and prototypes for the further viability. This is also known as the funnel
management process. The firm can use this approach to decide about the formation of the various
ideas to bring them in to the reality (Ruposov, and et.al., 2018). By using this approach the
organization can finalize the strategies and the plans for the further elaboration of the new
products and services in to the market. By working as per the innovation funnel the ultimate
brainstorming can be done and from the bottom of the things comes out the most profitable
ideas. The steps involved in the different stages of the innovation funnel are:
 Opportunity assessment: this involves the process of examining the customers and
market data and another information that is to analysed by looking for the opportunities
and there availability for the new product or the coming product line up in the market.
 Insight based ideation: the idea comes up in the workplace and then the research is done
for the capitalizing the ideas by including the overall research and development
department. In this stage of the innovation the company have to look of what the r&d
department open up with the idea of the production of the new product (Chiu 2022).
 Conceptualization: this is the stage where the ideas of the firm will be out for the testing
as the prototype. Company will have to perform many of the mock-ups for the products
and in this according to the results different types of the upgrades for the product and
alterations as per the public demands is made.
 Evaluation and benchmarking: at this stage of the innovation testing of the prototypes
at the different levels and for the targeted consumer groups are done. The further product
opportunities and the development of the product is done as per the feedbacks from the
consumer groups.
 Ploughing and cutting the things loose: at this step of the innovation the company has
to analyse the various things like investment and the other alterations that needed to be
made in the product as per the feedbacks derived from there in the out market. Launch: after the completion of all the process comes to end by launching out the final
product In to the market. At this moment the innovative idea of the firm comes in to the
reality.

Frugal innovation:this process of the innovation refers to the working in the low cost innovative
products, designs and methods that the firm will be launching in the market for their targeted
customers. The process of the frugal innovation operates by cutting down the complexity of the
products and the cost involved in it and the production process. The analysation of the innovation
in the frugal way is called as the development of the solutions of the resources in the constrained
environment with proper quality and in the type that it will be affordable by the low income
consumers of the market (Albert 2019).
Frugal innovation plays an important role as its motive is related to the concept of
business to move as per the limited use of resources like financial resources, institutional,
material, and this turns the constraints in to the modern ideas and also in to the functional
solutions. Firm can use the frugal innovation by keeping the commodities simple and without
recreating the products and the services involved in the overall process. The frugal innovation is
developed in the firm using the following factors:
 Designing the product at level.
 Improvement of the thinking at large level.
 Forward-looking ways of product development.
 Investing in the technologies to be delivered at low cost solution.
The next step that the firm “Essene drink” should come with the new and innovative ways out in
to the market:
The company by adopting the frugal innovation process can bring in the new product of the
organization as the new “kiwi lassie” in to the market by keeping the things in mind about the
performed innovative marketing mix and after conducting the market research in the local
boundaries of the country and after sensing the fulfilment of the desires and needs of the
customers within the market, the company have decided to launch the new product. This will
help the company in developing a product and giving the first appearance within the market as
per the product analysation (Gbadegeshin, 2019). The firm comes to know that the customers
want a product that is made specifically of the fruits and healthy products. So, the Essence drink
decided to launch a lassie in the market which is filled with the fruitfulness of kiwi, i.e., KIWI
flavoured lassie.

PART — 2
Background of company as well as problem
Essence Drinks is an organization which started two years ago in the market place. The
Essence Drinks is owned by Mr. Akshay Kumar, he started company and launched organization
with one product that is mango lassie as drink into the market with motive of cove whole market.
Such idea will enhance their profits year after year but when the company enters into its third
years they saw decrease in their sales because many competitors are come into the market place.
So there is need of innovation to make or improve profits (Hossain, 2020.). So the main problem
is that the company is they not provide good range as compare to their competitors. And the
another problem is there is entry of many competitors so the company have to innovate their
product as well as offer more range of products. Company USP is they offer good quality
product so it helps company to retain their existing customers.
Importance of using commercial funnel to offer solution of the problem:
The commercial funnel is a tools by which any organization find, trade and qualify its
merchandize to the customers. Generally it breaks down customer journey from the awareness
part to purchase stage. Generally, it is a process which helps in attracting the consumers towards
the company products and also convincing them to make final purchases from the customers.
There are some importance of commercial product is important because it is useful model for
company as it will help to figure out the customer journey. There are some importance of
commercial funnel are as follows:
Increased productivity:
The phase of commercial funnel allows company to measure effectiveness of their strategies as
well as it also work to activity organization productivity. The commercial funnel also helps
organization to enhance their way of doing business as well as helps in determine the best ways
under which the company can prove to work effective and achieve more growth in upcoming
years.
Helps in increasing sales:
The commercial funnel also helps to increase sales of an organization. As problem known with
the Essence Drinks company that is lower sales in third year so by the using the commercial
funnel the company can easily improve the pattern of their sales team and come up with new

effective plans such as they offer new range of variety such as kiwi lassie. Which will be acted as
innovation idea which will attract more customers easily.
Helps in finding different ways to relate with target customers:
This commercial funnel also helps brands to improve customers relationships and their goal or
objective of the company is to increase their sales. The company can use this funnel here and
determine the best ways of developing great relationships with the customers and then can enjoy
the benefit of good number of sales.
Management optimization:
The commercial funnel is worked to standardized and segment the sales cycle, as well as making
analysis of each stage of process more agile and objective. This practice helps the business of the
firm to increase the efficiency in the process.
Assessment of risk
Risks Alleviation plan
Financial risk Need to proceed with proper budget plan and
management of all transactions
Risk of Improper market research Marketing operations and planning and
designing proper budget for activities
Operational risk in the work place Managing the equipment’s, risk assessments
and monitoring processes
Strategic risk Developing Key Performance Indicators to
measure success of strategy and different
techniques
Value analysis by using the frugal innovating in the context of the “Essence drink” and the
product formed by the company “Kiwi flavoured lassie”:
In the frugal innovation the firm needs to make the mindset of working with simplicity and to
make the products at reasonable cost without sacrificing with the quality of the product. This
innovation will help the firm to create the new customer base by contributing towards
sustainability. Frugal innovation will provide the help to the company by generating more

business and contribute more social values in the society by doing reduction in the use of the
resources. The company can develop the frugal innovation by following steps:
 Finding the opportunities in the adverse environment.
 By doing more with the less by providing with the quality.
 Thinking before doing and working with flexibly.
 Keeping the things simple in the work place.
 Including the margin.
 Following the heart.
Summarizing the new idea for a new drinks product and how it would meet stakeholder needs:
The organization “Essence Drink” has generated a new idea of launching a new KIWI flavoured
Lassie from which they can attract and approach new customer at their organization and can
increase their product sale and generate the revenue. The new product of the Essence drink is
Kiwi flavoured Lassie which needs to be promoted in order to meet the stakeholders needs. This
idea is developed by the company for the fulfilment of all the needs of the stakeholders whereas
the new taste is required for the new product kiwi Lassie by fulfilling the needs of the customers
in impressive manner. The pricing of the product is also done in affordable means so that the
customers do not feel the cost of items from the store is high and divert their mind from purchase
(Jenkins,and et.al., 2020). Along with this, the innovative product also fulfil the need of
managers and board of directors as with the increased sales by boosting the productivity level of
the company by making them the market leader again with the innovative product.
Analysation of the techniques that can be used by the firm for testing effectiveness of the new
drink formed:
Introducing a product in a business line is an essential factor to keep the business going
but checking its effectiveness is another important factor which every business should consider
in order get a good response and secure a bright future ahead. Here the company Essence Drink
introduced a new product of Kiwi lassie which is expected to give good results to the company
by increasing its sales. But the company should also plan on testing its effectiveness in the
market. Here are various methods by which the company can its new product effectiveness.

Getting feedbacks from family and friends- This is a very first step that a business should take
after introducing a new product in its portfolio. The company should make the family members
and friends taste the new drink and should count on them for their honest feedback. Here, the
Essence Drinks should also plan on collecting feedbacks from its friends and family in order to
ascertain the right future of the company (Kahn 2018).
Quantitative market research- This research will help the company to determine how may of
the people actually like the product and how many of the people didn't like the product. This
quantitative analysis will help the company to ascertain its future responses. If the company gets
a good result and the number of people liking the drink is more than the number of people not
liking the product, the company is gonna get good sales in the future.
Online surveys- This way of doing online survey will help the company in collecting honest
reviews as the people tend to be more honest when there is an indirect mode of interaction.
Targeting new customers in new markets- Essence Drinks can target a new market in order to
gain a hint of new customers tastes and preferences. This will give the company a chance to
understand the taste of new people and mend the product recipe accordingly. The company
through targeting a new area can enhance its customer base of the new area as well.
Effective listening- Listening effectively can help the company to avail a right understanding of
the reviews. This way the company can listen to all bad and good reviews. The company should
take about all the good reviews and the bad reviews in the best positive way to bring the best in
its drinks.
Resources required by the firm for the further proceedings of the innovative business of the
“KIWI lassie” in the firm Essence drink:
The company essence drink can take the funds from different sources which includes venture
capital, angel investors, bank loans, etc. The further elaboration of the sources of the funds are as
under:
Market Research: Market research is important in a business area because it will help the
company to understand the needs and requirements of the public from which they can innovate a
product in definite manner and can obtain the profitable outcome.
Desk-based: The company can use the published materials which can help the company to get
information and perform the organized research for the further proceedings of the business
operations (Xuyen, Huong, and et.al., 2020).

Product development: For the product development, Essence Drink needs a funding where they
can take the help from the banks, privately owned financial institution, angel investor, etc.
Evaluation of the tools Essence Drinks can use to protect the intellectual property rights of a new
drink
Copyrights: The company Essence Drink can protect their intellectual property with the help of
original artistic expressions where the copyright may get the licence in form of text, art,
drawings or for the combination of the products where another individual don't have right to use
that particular object without permission (Chandra, and Liaqat, 2019).
Trademarks: Trademarks simply means symbols and logos that are used to extinguish the
company's products and services. The Essence Drink company also can trademark their brand
with their unique signature and symbol which will indicate the brand which cannot be utilized by
any other business brand and firm.
Patents: Patents are exclusive rights granted to the organization for the invention they made
related to the solution of their product or services accordance problem. The firm can patent their
new KIWI Flavoured Lassie where another company or firm will not be able to manufacture the
similar product.
CONCLUSION
The report based on the innovation and commercialization of the organization have concluded
about the innovation and invention. The importance of the innovation in the organization has
been shown in the report and 4ps of innovation have been included in the report by assessing the
launch of the new product of the organization “Kiwi lassie” and the approaches for the funnel
and the frugal innovation for the organization have been shown in the report. Further, in the
report the next steps for launching the new product in the market by the organization to
overcome the problem have been shown in the report. The report have also concluded about
assessment of the risks involved and value analysation have been done by using the frugal
innovation. The report also shows about the new idea of the new drink of the company and how
it will be meeting the needs of the stakeholders in the market run. Report also concluded about
the techniques used by the firm in producing the new drink and how it will be fitting in the
process. The report also showed about the resources of funding required by the firm in the

process of innovation and lastly the report shows about the different tools that the firm can use to
protect their intellectual rights of the new product.

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