Innovation and Commercialisation in Essence Drinks

This report analyses the importance of innovation and commercialisation in Essence Drinks, a UK-based drink manufacturing company. It covers the 4Ps of innovation, innovation funnel, frugal innovation, and commercial funnel for new product development. It also discusses the role of organisational culture, vision, leadership, and teamwork in shaping innovation and commercialisation. The report concludes with an innovative business case and evaluation of intellectual property tools.

Innovation and
commercialisation

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK...............................................................................................................................................1
P1. Explain innovation and compare it with inventio..................................................................1
P2. Explanation of organisational culture, vision, leadership and team work that shape to
innovation as well as commercialisation.....................................................................................3
P3. Explanation of 4Ps of innovation and use of innovation funnel in order to examine and
shape innovate ideas....................................................................................................................4
P4. Explanation of development of frugal innovation along with example of its use in context
of company..................................................................................................................................6
P5. Explanation of importance of commercial funnel and its application related to new product
development processing for commercialisation of innovation....................................................6
P6. Building an innovation case for organisation and different ways to access funding............8
P7. Evaluation of different tools which can be used to develop, retain and protect intellectual
property......................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The report has main aim to analyse the significance of innovation and commercialisation in the
organisation. Innovation is all about developing new and creative strategies to enable new
product development which attain a unique position into market. In this modern world,
innovation is highly necessary to attract customers and take competitive advantage into market
as it fulfil new trends and market opportunities into business environment. This report is going to
focus on essence drinks, a drink manufactured company in UK (Mormina, 2019). The company
is famous for its Mango Lassie. Now they wanted to make product diversification without
compromising their basics product i.e. lassie by adding new flavours In it. for which, this report
will present areas of NPD. In addition to this, organisational culture to provide effective
leadership, training and best teamwork for commercialisation. Also, there will be implementation
of 4ps of innovation and development of innovation funnel. At last, the report will present an
innovative business case which describes their objectives, vision, mission and strategies to
expand their market by innovation. Also, the analysis of intellectual property knowledge is also
described in this report.
MAIN BODY
TASK
P1. Explain innovation and compare it with inventio
Innovation: in the current changing world and the era of fast growing opportunities. Innovation
is become the need of every business to grow and achieve high competitive advantage.
Innovation is about developing new products and services in the way of total new production or
by making changes in existing products and services (Skute, 2020). Therefore, innovation
require creative thinking and rare strategies to identify ineffective features in existing products.
Innovation is important because:
 It established a rare product quality into market.
 It is beneficial to boost sales and profitability by engaging customer retention.
 It gives a strong competencies and brand name to the company.
Invention: It defines a whole of new development which carry out a broad way to exists into
market. Invention is required when company wants to set a unique brand image which is not
easy to inimitable and no other firms could compete into market. Therefore, invention require
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deep research and proper market knowledge in order to be successful into market. Invention
require high investment as well as catch on modern technology.
Difference between innovation and invention:
Basis Innovation Invention
Purpose Innovation is about bringing
up new features, size, taste
and model into product and
services.
Invention is all about coming
with whole new concept of
product to bring changes and
unique development.
How its implement Innovation could implement
when company would not able
to fulfil customer needs
through desisting product. So
that, they decide to make
changes and innovation in
products so that it enhances
sales and customer attention.
Inventions are mainly drive
through earlier period and
require much time to analyse
market needs and available
technology.
What is the procedure? Innovation carries out by
taking feedbacks and customer
response through product
usage (Barrell and Hsu, 2019).
Therefore, managers of
company want to provide
something better and new to
customers in way of
innovation.
It derives the process of total
new concept to formulate a
unique image and copyright.
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P2. Explanation of organisational culture, vision, leadership and team work that shape to
innovation as well as commercialisation
Essence drinks is selling heathy as well as tasty drinks in market of UK which helps them to get
competitive advantage in market as they are different products and service (Chiladze, 2016).
They are entering in market with completely new concept like mango lassi which is new form
people of UK. Some of factors which is important for company that helps them to shape
innovation as well commercialisation in their organisation are as follows:
Leadership: Leadership is one of process of influencing others through external appearance and
motivate other in order to contribute in direction for organisational goals. Leaders provide
direction and guidance to their employees towards success and growth of business. They are
contributing in solving conflicts occurred in organisation and understand problems of employees
in order to provide them effective solution to improve their efficiency. Essence drinks has
introduced a new concept of drinks in market which helps them to compete in market. In order to
run their business effectively, they need to require good leaders which helps them to influence
employees and motivate them in order to contribute in success and growth of companies.
Team work: Team working is working with different employees which have different thoughts
and thinking, skills, capabilities in order to attain goals of organisation (Emami and Radfar,
2016). Team working is important for attainment of survival and success of essence drinks as
they are new companies which are offering innovative products and in order get success in
market, organisation needs contribution of whole team of company. There are different
employees working for different department like finance, marketing, production, purchase and
many more but ultimate goals of all these members is to attain goals objectives of company
which helps them to increase their market share and ensure long term survival of company.
Culture: Culture refers to sum of expectation, values, practices which guide as well as inform
about all action related to team members. Organisational culture of essence drinks is new as they
are providing culture in which employees are more engaged with their work. Culture of
enterprise is working well as it creates understanding among employees and make them capable
to accept changes. They are creating friendly environment in their organisation which helps all
employees to be involve each others and allow them to work with mutual understanding and
trust. Success of any organisation is largely depending on their employees and working culture
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of company. Aim of essence drinks is to provide their healthy and tasty drinks to different parts
of world and they need to hire employees from different countries. In order to motivate these
employees and increase their commitment towards organisation, managers of company needs to
build effective organisational culture for company.
Vision: Vision refers to capability of a person to view things for future which helps a person in
taking effective decisions (Fedosova and Babikova, 2016). Vision of an entrepreneur should be
long term as it helps them to view things in different ways. Any business is established with
goals of expansion which helps to earn more and more profit. They also want to expand their
business in different country which helps to convert their business in international business.
Essence drinks has vision to expand their business in different countries as they have big
organisation for their products which is Mango lassi. Company is also planning for introducing
new flavours of fruits with lassi which make their products healthier and tastier. This also helps
them to overcome from competition and satisfying requirement of customers effectively.
P3. Explanation of 4Ps of innovation and use of innovation funnel in order to examine and shape
innovate ideas
Product: Innovative products refers to an idea which includes new methods or advanced
existing things (Ashford, 2017). Innovation cab be also occurred with changes or improvement
in existing products or process. This innovation can also take place with invention of new
products and service. These changes can be occurred with advancement of technology and
improvement of material. Concepts of essence drink is innovative as they are providing unique
products with different taste and flavours in market of UK. This is also different from existing
unhealthy drinks in market. These efforts of company to develop something new and innovative
helps them to getting successful in market place.
Process: Process refers to steps which is to be followed by companies in order to creating
values. Innovative process refers to identification of new ways by firm in order to make process
of products and service better. Focus of this innovative process is on developing more efficient
ways to develop products which helps to saves their cost of production. Companies are
identifying innovative process as it helps them to earn higher level of profitability. Essence
drinks are using innovative process in order to develop their products like mango lassi.
Organisation is not only focusing on changing process of developing procedure but they have
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also made changes in their packaging which helps to give new and different looks for their
products.
Position: Position refers to market segment to which company is presently targeting. Innovative
positioning allow company to focus on new segments of market (Botte, 2016). It includes
identification of new ways which helps in identifying interested person for products a service and
have not used those products before. Essence drinks are entering in market with completely new
concept a they are providing healthy and tasty drinks to their customers. Company is advertising
these drinks by explaining its benefits and unique approach which allow company to develop
new position for their products as well as for organisation.
Paradigm: Paradigm refers to changes occur in reason, ways and place to use these products.
This paradigm refers to principle, belief, theories and values. Paradigm are business models
which includes understanding of work of world, ways in which market operates as well as good
things in development process. Essence drinks is based on innovative concepts and using
innovative technology in order to improve their process and quality of their products.
Innovation Funnel:
Innovation funnel refers to mechanism that allow stream of new ideas which can be screened on
basis of viability (Cheung, 2016). Innovation funnel which can be also known as funnel
management process is one of approach of innovation. This can be used by various companies in
order to create realistic as well as innovative action plan. Core of this funnel is to idea generation
at large portion that can be converted by company in development plans. This innovation funnel
has various use in process of innovation which are as follows:
 Innovation funnel is important for business as it contribute for company in generating of
various ideas and practices which provide various benefits for company and provide them
opportunity to earn more profits.
 There are various ideas are given by employees for innovation which can be examined by
company to ensure whether they are applicable in situation of company or not.
 Essence drinks are providing unique products and service to their customers which is new
in market of UK and provide solution to requirement of healthy drinks for customers. In
this situation, along ideas is not sufficient for company to implement innovation but also
shaping those ideas in proper manners is also important.
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P4. Explanation of development of frugal innovation along with example of its use in context of
company
Frugal Innovation: Frugal innovation refers to new product development for less cost and helps
to increase productivity (Filippov, and Soloviev, 2018). They also help to increase profit as it
helps company to reduce cost of their products. This frugal innovation helps company to produce
different products within affordable products and also helps to reduce purchase cost of
consumers. This concept is increasing with use of innovative technologies which helps to
decrease cost of company and provide competitive advantage to company. Some of example of
frugal innovation in cost of company:
There is various raw material required by company in order to produce their products of mango
lassi. These raw materials include milk and fruits which should be purchase by companies from
local suppliers as it saves their cost. If company import this material from different countries,
than it may increase cost of company. New products can be developed with use of local
resources as it allows company to saves cost of their products and allow them to offer these
products to provide to their customers at cheaper rate.
Packaging of lassi is done by organisation within plastic bottles but it incurs cost on organisation.
Company can use these recycle bottles instead of these plastic bottles as it helps them to saves
cost of enterprise. These helps enterprise to make packaging of company effective and also helps
to protect environment that results in building good reputation of organisation.
P5. Explanation of importance of commercial funnel and its application related to new product
development processing for commercialisation of innovation
Commercial funnel: Commercial funnel refers to a marketing with which organisation can find,
trade and quantify their merchandises along with their consumers (Ge, Yin and Yan, 2018). This
funnel helps to convert awareness stages of consumer buying process into purchasing stage.
Through this process, organisation can attract more customers towards their products and helps
to convince customers to buying the products.
 Commercial funnel helps organisation in visualise every step to be taken by prosect in
order to conversion. All steps of conversion help to optimise in order to increase
conversion at last step. One can analyse wrong things and make improvement if any steps
of this process show more than expected rate of drop off.
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 Funnel tools includes various tools including google analytics helps in order to visualise
customer flow across spot pages, websites and also display exit of visitors in funnel.
 It allows firm to earn more revenue as it helps to identify organisation about wants of
customers and encouragement which motivate customers to buy products. In this way, it
helps firm to increase their sales of products and provide opportunity to earn more
profits.
New product development:
Idea generation: For development is new products, different ideas are required by a person and
it is a systematic process in which organisation is searching for new ideas for new products
(Klosok-Bazan and Machnik-Slomka, 2017). Company is involved in identifying more and more
ideas and there are two sources for these ideas including internal source and external source.
Internal source includes employees, research and development whereas external source includes
customers.
Idea screening: Idea screening refers to pa process in which ideas are filtered in order to identify
best ideas suitable for requirement of company. In process of ideas generation, company is
increasing in numbers of ideas whereas in idea screening process, focus should be on eliminating
maximum ideas in order to select one best possible idea for enterprise.
Concept development and testing: In order to develop new products, organisation is involved
in identifying best attractive ideas. Products concept includes various details about idea of
products which includes meaningful term of customers. Concept development includes products
ideas for possible products. It also includes detail of concepts of products in order to state of
ideas in meaningful terms of consumers.
Marketing strategy development: Another step in products development process is marketing
strategy development as after development as well as testing of concept of products, firm needs
to design various marketing strategy which helps in introducing their products in market place
(Kossukhina, 2016). This strategy includes various elements including description of new
market, value proposition, market share, sales, profits for initial strategies for launch of products.
It also includes outline of planned prices of products, marketing budget and distribution. It also
includes profit goals, long term sales and marketing strategy.
Business analysis: After development of market strategy of new products, firm needs to
evaluate management attractiveness of new products. This process includes review of cost,
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profit, sales of products in order to find out various factors which satisfy objectives of
organisation. For estimations of sales of products, company needs to analyse their sales history
and also conduct survey. This helps business to analyse maximum as well as minimum sales of
company in order to assess risk in enterprise.
Product development: Product development process is on of stage of new product development
ibn which actual product development take place (Luo and Liang, 2016). All these steps
mentioned above includes only description of new products but in this stage, actual development
of product take place. This step take place after passing of products from business test. In this
steps, cost of production of new products also take place.
Test marketing: This stage includes testing of karting programme and products in setting of
realistic market. This test marketing helps to provide experience to marketer in marketing of
products. This includes testing of both products as well as marketing programme which includes
packaging, distribution strategy, positioning and advertising strategy.
Commercialisation: After completion of test marketing, a person get clarity related to success
of products in market or not. After than they are engagement in commercialisation which
includes introduction of new products in market place. This step includes various cost on
organisation required to manufacturing of products. Firm also needs to spend money on sales
promotion, advertising and other efforts of marketing.
P6. Building an innovation case for organisation and different ways to access funding
There are different problems occur in business which carry out their operation in market place.
Essence drinks is also one of organisation which are facing problems related to decrease in sales,
profit as well as market share due to various reason (Meskanen, 2021). These reasons include
increase in competition, innovation and many mother factors. In order to overcome of these
problems, business needs to build new business plan which helps them to increase their market
share. In this plan, firm is planning to introduce new flavours of lassi along with mango lassi.
Company is also providing lassi with less sugar which make it healthier for diet conscious
people.
Vision: Vision includes long term view of company towards their business and for this essence
drinks are focusing more on personalisation in taste as well as preferences of customers and
providing healthy products.
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Mission: Mission includes various goals of company towards which all efforts of organisation
are made. Essence drinks are focusing towards building strong relationship with customers,
suppliers as well as other business associates in order to build strong chain of supplies.
Culture: Working culture refers to environment in which employees of company are working
(Namdarian and Naimi-Sadigh, 2018). Essence drinks is focusing to develop good working
environment of company which helps in increasing engagement of employees towards goals of
business.
Leadership: Leadership refers to process of influencing others for attainment of goals of
company. Essence drinks is one of enterprise which is focusing on providing leadership to
employees which direct their efforts towards goals and objectives of company.
Source of funds: There are various source of funds which helps an organisation in order to carry
out their operation in an effective manner. Some of these sources of funds from which essence
drinks can raise funds are as follows:
Bank loan: Bank loan are one of source of funds which provide loan to companies and
organisation on easy return and conditions. These helps to provide on easy term and condition
and on low rate. A person does not need to do much documentation and efforts in order to rase
funds from bank loan as banks are providing various facilities to business loan. But at same time,
it creates burden on organisation of repayment of interest and also reduce creditworthiness of
companies.
Angel investors: Angel investors are those persons which has high income and providing
financial support to any enterprise in exchange of ownership of company (Qiao, Yaoni and
Dongsheng, 2020). These angel investors an be any person including family, friends or any other
person. These not only providing funds to business but also their valuable advice of company.
Essence enterprise is one of company which can raise funds from angel investor as it helps them
in raising funds for business and also get valuable advice from these investors. These angel
investors also provide their contacts to Essence drinks which helps them to expand their
business.
Crowd funding: Crowd funding is one of method of raising funds in small amount from many
investors in order to get funds for business. These crowd funding can be raised through various
people from social media. Essence drinks is one of organisation which can raise funds from these
crowd funds as with these, they can raise funds from large numbers of people in small amounts.
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P7. Evaluation of different tools which can be used to develop, retain and protect intellectual
property
Patent: Patent refers to a right which is granted for any invention, it is one of product or any
process that provide new ways for doing anything and aims at providing solution to a technical
problem (Siota, 2018). For patent right, it is important for a person to disclose technical
information to public.
Advantage of patent:
 It provides exclusive right to a person which helps to prevent others to use invention.
 It helps in protecting rights to an innovation and helps to sparks innovation as no one can
use this innovation without permission of investor.
 It is easily commercialised as one can buy and sell these rights easily without much
efforts.
Disadvantage of patent:
 It is difficult to acquire these patent rights as it requires various documentation.
 This patent right provide protection to an invention for limited period of time.
Copyright: Copyright refers to a legal term which is used in describing rights for creator for
their artistic and literary work (Tobiassen and Pettersen, 2018). This right is provided to owner
for music, films, books, sculpture, advertisement, maps, database, technical drawing and many
more.
Advantage of copyright:
 Copyrights provide right to investor in order to protect invention from used and copied
from unauthorised user.
 This right allow a person to give authorise rights to use to third person.
Disadvantage of copyright:
 Copyrights allow a person to grants their rights to another person instead of ownership.
 This helps a person to prevents others to use their creative work.
Trademark: Trademark refers to an intellectual property provided to a person which includes
recognisable design, expression, sign related to products or service. Owners of these trademark
are any organisation, legal entity or individual person. These trademarks can be placed on
packaging of products and voucher as well as label.
Advantage of trademark:
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 Trademark provide exclusive rights to users which helps them to prevents others to use
their work (Van Lancker, Wauters and Van Huylenbroeck, 2016).
 This trademark is done through licensing and registers which helps to provide rights to
licensee.
Disadvantage of trademark:
 Trademark provide weak protection to products as well as service in compare to
copyrights and patent rights.
 This incur cost on organisation as for registration of trade some fees is charged.
CONCLUSION
From above mentioned project report, it can be concluded that innovation refers to introduction
of new products, services, ideas and technology in market as it helps in satisfying requirement of
customers and gain competitive advantage. These innovation helps to saves cost of company and
improve sales which results in increase profit of company. There is difference between in
innovation as well as invention which is based on research and development. In order to shape
innovation of organisation, company needs to analyse leadership, vision, mission and team work.
Vison provide long term view of company and mission includes various goals on which
company is focused with. Leadership is influencing others in order to attainment of goals of
company and team work helps in making mutual efforts. There are four Ps of innovation
including product innovation, process innovation, position as well as paradigm innovation.
Innovation funnel is one of process which helps to identify different ways in order to develop
new products. Frugal innovation refers to new product development in less cost. New product
development includes various steps in idea generation, screening, concept development as well
as testing. It also includes marketing strategy, business analysis and products testing. There are
different source of funds bank loan, crowd funding, angel funding. There are different rights
which provide protection of invention and innovative ideas of a person and these includes patent,
copyrights as well as trademark.
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