Innovation and Commercialisation in Essence Drinks

This report discusses the importance of innovation and commercialisation in Essence Drinks, the difference between invention and innovation, 4 P's of innovation, frugal innovation, and more. It also includes a business case report on implementing product innovation and frugal innovation in the company. Course code, course name, and college/university are not mentioned.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART 1............................................................................................................................................3
Invention and innovation and their difference.............................................................................3
Importance of innovation and its implementation in Essence Drinks.........................................4
4 P’s of innovation.......................................................................................................................5
Innovation funnel and frugal innovation meaning and most suitable approach for Essence
Drinks..........................................................................................................................................6
Further steps for innovative drink derivation..............................................................................7
PART 2............................................................................................................................................8
Background of company and issue faced by it............................................................................8
Importance of using the commercial funnel for the problem faced.............................................8
Summary of new idea..................................................................................................................9
Techniques for testing the effectiveness of the newly launched drinks......................................9
Resources required.....................................................................................................................10
Tools to protect intellectual property rights...............................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Invention, innovation and commercialisation are very important as well as necessary aspects
to be considered within an organization. These are required to be present in the company for time
to time development of the company in accordance to the changes that take place in the market
in particular. This discussion in particular will provide a brief description about the topics of
invention as well as innovation within a company and the role they play in the overall growth of
the organization. Also, the impact of innovation and invention implementation or application
over the organizational culture and organizational leadership of the Essence Drinks in particular.
the marketing mix of the company is also mentioned in the discussion below and the
development of the frugal innovation in comparison to market driven innovation is also briefly
discussed in the report below. The steps regarding the future planning are also discussed below.
Lastly in the second part of the file the innovation business case report is prepared and presented.
MAIN BODY
PART 1
Invention and innovation and their difference
Invention basically refers to the physical creation of the new idea or the new concept
within a business, which is not yet implemented or existed within that particular business before
or prior than that (Confalonieri. and et.al., 2018). Hence, the basic meaning of invention majorly
states or focuses on the implementation of new and creative techniques, strategies, products or
services within the company in particular. invention is very necessary for any company. This is
not only important when the company has started its working or just begun, invention should be
applied or implemented in a particular duration of time within a particular company.
Innovation refers to the concept or the procedure in which the organization or an individual
particularly or specifically undertake the process of conceptualization of overall new products,
ideas and processes or innovation can also approach the ideas, processes and products in brand
new ways (Kahn., 2018). Innovation can be implemented within a business be recruiting
individuals or employees that are innovative thinkers and can bring the ability or skill of
innovativeness within the company. Innovation is not a single step or activities rather it is a set or
collection of activities or tasks and also resources that lead to development of new techniques or
products or innovativeness in the existing ones itself.

There are many differences between invention as well as innovation. Although these two
might sound pretty similar and at times they are confused to be totally same but they are not
(Chan. and Srivastava., 2019). The major difference between these two aspects is that, invention
in particular focuses on the concept of the occurrence of a particular idea regarding the process
or the product which has never been prepared or made before. Whereas, on the other hand
innovation mainly refers to implementation of the ideas for the process or the product for the first
ever time. Invention refers to creation of new product and innovation refers to adding value to a
idea, product or process that is already existing. The concept of invention particularly focuses on
the building of the original idea and the working of that idea in particular in the theory, on the
other hand the concept of innovation focuses on the practical implementation or application of
the new idea within the business or the company. Scientific skills are required or needed for the
purpose of doing invention in particular, but for innovation the skills that are required are the set
of strategic, technical as well as marketing skills within an individual or group of individuals.
Importance of innovation and its implementation in Essence Drinks
Invention in particular plays a very important role in the overall growth as well as
development of the organization in particular. invention is essential for a company because it
helps in building (Huntington., 2018). As invention helps in or totally focuses on creation of a
new product or service, this can lead to growth and enhancement of the company in particular
towards new markets too.
Innovation is very essential or necessary for the growth procedure of any company. This is
because there are consistent and continuous changes occurring within the market (Meissner. Polt.
and Vonortas., 2017). Innovation helps in implementation of new and interesting strategies,
ideas, products, services or procedures within the company in particular, which helps in
attracting more and more customers towards the company and the products that are provided by
the company in particular. This can also lead to increase in the customer base, which further
leads to higher profit or revenue generation by the company. Through this the company is able to
change according to the demands of the market and the target audience of the company and
provide them with the goods and the services that are actually desired by the people or the
customers present within the market.
In the company Essence drinks, innovation is one of the most important features whose
implementation is essential and relevant for the growth and development and efficient working

of the company in particular. it is necessary to implement the innovative techniques and
strategies within the company and within the culture and leadership of the organization or the
company in particular. There are many ways through which innovation can be embedded in the
organizational culture as well as the organizational leadership of Essence Drinks in particular.
Some of the ways in particular are by embracing a multi- faceted approach towards innovation in
the organization or company, by empowering the employees of the company so that they are able
to provide value and be productive in the new ways that are implemented and also give new
ideas to enhance the quality of work and increase the customer base and competitive advantage
of the company in particular, by understanding that failing in a certain aspect or project is totally
ok and fine, by choosing innovation metrics approach in a wise manner and very precisely and
lastly, by not being afraid to take actions towards implementation or application of innovation
and without wasting any time take efficient as well as proficient actions in that direction
particularly.
4 P’s of innovation
There are specifically four major P’s of innovation in particular. These are namely,
paradigm, position, product and process (Gruszka. and Tang., 2017). These in particular are
implemented or identified at the time when the business is required to implement or apply
innovation within it.
Product innovation- Product innovation in particular refer to the type of innovation in which the
innovative changes are made in the products or the services that the organization or the company
in particular is offering to its customers or to the market in particular (Kuncoro. and Suriani.,
2018). this can involve change in design or change in overall product that is existing.
Process innovation- Process innovation in particular focuses on helping or supporting the
companies or organizations to align the procedures of the company in a manner that is customer-
oriented for the purpose of ensuring that the business or the organization in particular is
successful in long run (Von Krogh. Netland. and Wörter., 2018).
Paradigm innovation- Paradigm innovation specifically means shifting in underlying mental
model through changing the status quo of the business in particular. many brands faced a
paradigm innovative shift in their businesses as the businesses shifted to cater the markets that
are newly developed (Chen. Yin. and Mei., 2018).

Position innovation- Position innovations basically refer to the innovations that happen in
accordance to how a specific or precise product or service is perceived by the customers or used
by them. For an example, the pants were manufactured or designed particularly as a clothing
material only but now after a bunch of innovations they have become a fashion statement
(Prange. and Schlegelmilch., 2018).
For the Essence Drinks in particular, the issue is not in the product, when it was first
launched in the market it was at a boom, but after a while the competitors saw the product
earning a lot of revenue which made them attracted towards the product and as a result a lot of
similar products were launched in the market, which resulted in reduction in the demands of the
product that was particularly or specifically sold by Essence Drinks only. Hence, it is majorly
and necessarily required for the company in particular to make changes in the product which can
not be particularly copied by the competitors it has in the UK market. Therefore, the company
should opt for product innovation. This innovation will help or support the company to enhance
the product of the company and bring innovative changes in it. Also, that is what is required by
the company at present.
Innovation funnel and frugal innovation meaning and most suitable approach for Essence Drinks
Innovation funnel specifically refer to a mechanism which refers to a continuous and
consistent stream of the innovative prototypes and ideas which can be screened for the viability
enhancement (Wang., 2017). This is also often known as the funnel management process or
procedure. This approach is particularly used by a huge number of companies for the purpose of
evaluating and concluding that what are the ideas that are particularly realistic for the company
and which of them are not. This leads to saving the resources and the time that could have been
wasted on the overall tasks and activities or process if the idea was unrealistic and inapplicable.
There are many organizations all over the world that use the techniques of innovation
funnel within their organizations in particular. it is not done by a single activity or task it is rather
a whole procedure or process that needs to be conducted by the organization or the company in
particular for the purpose of bring or developing innovativeness within their organizations in
particular.
Frugal innovation basically refers to the procedure which focuses on the reduction of the
complexity as well as the cost of a particular product or good and also its production (Hossain.,
2018). This innovation specifically focuses on removal of the nonessential features from a

product in particular to make the product more durable and affordable and also provide
competitive advantage to the product in particular within the market. This is mainly used by the
companies for the purpose of delivering more value to the customers at a lower cost and to a
larger customer base. This also mainly used by organizations or companies which want to
develop or sustain their recognition and goodwill within the market and at the same time enhance
their revenue generation and customer base.
The big companies that follow frugal innovation in particular are, Unilever, Siemens and
Renault- Nissan, these companies in particular are the pioneers of the business strategy of frugal
innovation in particular. These companies focus on reduction of the costs of the product they are
selling in particular, so that the price of the product is also reduced and in turn the product is
more durable and affordable for the customers that are purchasing the product. And this also
makes the product more attractive in the market and supports in attracting more and more
customers towards it and also provides competitive advantage to the company in particular.
Essence Drinks should particularly follow or opt for the techniques or strategy of frugal
innovation for better and enhanced development, growth and revenue generation.
Further steps for innovative drink derivation
The company has to do a lot of working in order to implement the innovativeness within
the company or the organization in particular. for the implementation or the application of the
innovativeness within the company in particular the company is required to identify or recognize
and then evaluate the area in which innovation is required. As per the information provided, the
product of the company in particular was providing the company with good amount of revenue
generation at the beginning, but after a while a lot of competitors entered the market with similar
products with more affordable rates and durable products in comparison. Hence, for getting the
position the company had in the market when it was first launched which was around two years
ago, the company in particular will have to implement innovation to its product in particular.
therefore, the company needs to implement the product innovation strategy to enhance the
demand of the product, this can be done through a bunch of ways, these ways in particular will
be discussed in part two of this report in particular.
By implementing the product innovation technique or strategy in the company, the
organization, business or company will be able to enhance the innovation in the existing product,
which is a healthy mango lassi in particular, this will support the company to attract the customer

base it has lost to his competitors during the period of a year and also attract the customers who
were not the consumers of the product earlier. This will support the company to enhance its
customer base which will help in increase in the profit generation of the company in particular.
the company should also implement the frugal innovation technique so that Essence Drinks is
able to provide quality products at affordable rates, this will grab the attention of more customers
too. Also, this will help the company in long term growth as well as development.
PART 2
Background of company and issue faced by it
Essence Drinks is a company which started around two years ago by Akshay Kumar who
is basically an Indian actor and businessman. He started this company with a vision of providing
Indian beverage which is extremely famous in India to spread all over the world, and provide
that taste to the people who are not yet able to taste it. The growth of the company was very
rapid, in the beginning it was not even planned that the company will grow this much and that
too with such a fast pace and so less time in the market and also with a product that is not
authentically from the United Kingdom in particular. in the first year itself the company had an
amazing sale in the overall United Kingdom markets. Also, this was something that was never
brought in UK on a huge level, and the company did so.
But the issue started occurring when the company started to face the issues and challenges
when it entered into its third year of sales. By selling only a single kind of product people were
switching to other companies which were selling different products with a variety from which
one could choose too. Therefore, this led to a significant reduction in the sales of the company in
particular. There are a bunch of competitors who have entered the market, hence it is required for
the company to implement strategies or techniques that are applicable and also make the product
affordable and durable for the customers, which will help the company in gaining competitive
advantage and regain the customer base the company in particular has lost and also enhance the
customer base of the company all over the United Kingdom.
Importance of using the commercial funnel for the problem faced
Commercial funnel in particular refers to the tool of marketing which helps or supports the
company in finding, qualifying and then trading the merchandise or the product in particular to
the customers of the company (Harmsen., 2019). It basically breaks down the journey of the
customer from the awareness stage to the purchase stage.

For the problem that is faced by the company Essence Drinks in particular commercial
funnel will play a major role in spreading awareness about the new launch of the company. And
then attract the existing, old as well as new customers of the company in particular.
The goals of the company are mainly to achieve the customer base that it had in the year of
its launch in particular and also enhance the customer base, and to increase the sales of the
company which has tend to decline in the duration of a year. The company needs resources
which are necessary such as human and financial resources for the achievement of the objective
or the goal of the company in particular. There will be risk of the competitors copying the
techniques again and also risk of exceeding the budget of the company for the marketing of the
product in particular.
Frugal innovation is the most suitable and appropriate technique or strategy that should be
used in the case of the issue that is faced by the company in particular (Weyrauch. and Herstatt.,
2017). This will help in creation of the product in a durable and affordable manner which will
attract more and more customers which is the major requirement of the company after the launch
of new drinks in particular. this will also help or support in the process of creation of new
markets for the company and will also make contribution towards sustainability.
Summary of new idea
The new idea that the company should implement is to launch the lassis only but in
different and diverse flavours. These flavours can be in accordance to the demand of the people
living in the place that the company is working in. The company should keep on with the mango
lassi and also keep it healthy, but should also expand to the favours which are strawberry,
blueberry, watermelon, pineapple and apple lassi, this will attract the customers with different
taste buds too. And also, the packaging of the drinks should be done in paper bottles, which are
better for the environment and also cheaper than glass bottles.
Techniques for testing the effectiveness of the newly launched drinks
For testing if the newly launched drinks are effective within the market or not, the
company should conduct a campaign in which the employees of the company should stand on
the major streets of UK with a little stall of the drinks in little glasses and then ask the customers
to record their reviews and upload it on the social media page of the company. Also, by
conduction of polls on the social media page of the company they will be able to know the
requirements of the customers too.

Resources required
The resources that are particularly required for the implementation of the innovative
techniques within the organization for a particular product are mainly the proficient and efficient
human resource for evaluation and implementation of the strategy in particular (Marler. and
Parry., 2016). Then the financial resources are also very important and relevant for the purpose
of implementing marketing and also bearing the cost of the launch and the employees that will be
recruited for research. The technological resources are also essential for marketing on digital
platforms such as the social media page of the company in particular and also to cope up with
current demands of the market.
Tools to protect intellectual property rights
The tools that are precisely and specifically required for the purpose of protecting the
intellectual property rights of the company in particular are mainly the separation of the teams
that are working on different strategies, not to stop the innovation in the product, processes or the
strategies to keep the customers attracted and mainly to apply for the copyrights, trademarks or
the patents so that the competitors of the company do not become a huge or enormous harm for
the company in particular (Rozek., 2019). Or also a hindrance in the growth and the development
of the company and its products.
CONCLUSION
This report in particular discusses regarding the innovation procedure by implementation of
new and innovative product line in the company named, Essence Drinks, which is owned by
Akshay Kumar and was started around two years ago. The report mainly discusses the concept or
the detailed meaning of the approaches of invention and also of innovation respectively. It also
provides with information regarding the role these two aspects play in the overall growth and
development of the company in the market or in the industry in particular. the report also
describes about the four marketing P’s of the company and also provides difference between
frugal innovation and market driven innovation and evaluates which is comparatively better

option for the company to opt. The second part of the report in particular discusses regarding the
issue that is faced by the company in particular and the importance of using the commercial
funnel within the company for the purpose of providing or identifying solution for the problem
that is being faced by the company. And also, other aspects regarding the innovation in the
overall business are present in this part of the report in particular.

REFERENCES
Books and Journals
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commercial implementation. Elsevier.
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