Innovation and Commercialisation Part 2 for Essence Drinks

This report covers the importance of commercial funnel and new product development for commercialisation of innovation in Essence Drinks. It also includes building an innovation business case and evaluating tools for knowledge and intellectual property protection.

Innovation and
Commercialisation
Part 2

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Background of the company:......................................................................................................4
TASK 1............................................................................................................................................4
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation:- ...................................4
P6 Build an Innovation Business Case for an organisation, including ways to access funding. 6
M4 Build a detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve:- ..................8
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property...........................................................................................8
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment........................................................................................................9
D2 Critically evaluate the nature of innovation and the context in which it isdeveloped,
providing evidence-based judgements on how organisations can overcome challenges to
develop successful innovations. .................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation may be defines as the process of implementation of an idea for a product or
process for the first time. In simple terms innovation is basically means adding value within a
product which is already exist(Ali, Leman and Sunar, 2018) . Invention may be define as an
occurrence of a idea for new product which had never made before or not exist in the market.
This is basically creation of the new product within the market. The following report is based on
Essence Drinks which a well known brand of United Kingdom. This report cover the background
of the company and the problem which are faced by them and along with this, this report also
cover the importance of commercial funnel for commercialization of innovation. This report also
cover a business case for the respective organisation which comprises the various ways of raising
fund from the market. Afterwords this report cover the tools which are used by the organisation
to develop, retain and protect the knowledge and intellectual property.
TASK
Background of the company:
The Essence Drinks company was founded by Akshay Kumar. The company was started
two year ago and they don't see any growth in the early stage. A product name “Healthy Mango
Lassi: was launched by the company in the market of United Kingdom. Due to the innovative
formula of the product and distribution capability of the company, this product has developed a
goods image in the hearts and mind of the customer and dramatic rise in the sales of the
respective product has been seen in the first year.
TASK 1
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation:-
The commercial funnel is also known as sales funnel. This is basically consumer focus
marketing model in which the journey of the potential customer towards the purchasing of goods
and services of an organisation has been theoretically illustrates(Amadi-Echendu, 2021) . This
model was developed by E. St. Elmo Lewis in 1898. Top, middle and bottom is being considered

as the steps of this model. With the help of this model company can effectively understand the
thinking of the customer. Importance of the sales funnel has been discussed below:-
 The first and the foremost importance of this model is, this helps the company in making
and picking up an effective marketing strategy.
 With the help of this model company can relate their customers and operates their
business in their own language.
 This model help the company in increasing the sales and pull themselves systematically
towards the desired outcomes(Amboala, 2019) .
 Competitive advantage over newbie entrepreneurs in the niche market has been enjoyed
by the company and execution of the marketing strategies in a very effective manner.
Steps which included in this model:
 Awareness:- in this portion the people of the society get aware about the company's
offering by different methods of marketing like advertising, social media, word of mouth
and many more. In context to the Essence Drinks, the company can promote their product
and spreads the benefits of the product in the market by social media method and
advertising. Due to this their offerings can be advertise(van, Doren and et. al., 2021).
 Interest:- after promotion the brand or product in the market, the next step is to develop
the interest of the consumer in their products. In this portion the organisation identify the
problems of the customer and their solution by doing the market research. At this stage
organisation focus on the various content like email campaigns, blog spot and many
more.
 Decision:- this step is closely related to the sales. In this stage the people start taking
interest in the company's product. This portion focus on the pricing option and the
packaging. For Essence Drinks, to make decision for purchase the prospect can undergo
sales page, calls etc.
 Action: in this this portion the purchase of the product has been done. The customers of
the Essence Drinks will visit the store and make its purchase.
New product development process:
The new product development process is a systematic process which guide the business
and entrepreneurs to came up in the market with customer orientation and excellent quality
product. In context to the Essence company the process has been discussed below:-

 Idea generation :- this step is totally related to the ideas which is collected from the
personnels of the company, so that innovative product can be developed. On relation to
the Essence Drinks, the idea for an innovative product has been collected from their
employee as well as from stakeholders.
 Idea evaluation :- in this stage the best idea has been selected from the pool of different
ideas and other will filtered out which are of no use.
 Concept definition :- In this stage different types of factors has been comprises like
technical feasibility, product design, target market and many more.
 Strategic analysis :- The idea which have been selected by the company has been taken
into consideration and identified that whether this ides is fit to the business plan or
not(Dincer, 2017). The management of the Essence Drinks effectively determine the
cost, price, demand etc. of the Mango Lassi in order to convert the innovative idea into
reality.
 Product development and testing :- in this stage the product has been developed so
that testing can be done in a very effective manner.
 Market testing :- in this stage the testing of the product and the testing of the suggested
market has been done. For Essence Drinks, this included the best timing and best
methods of advertising.
 Commercialisation :- the price of the product and marketing plan has been developed to
promote the Mango Lassi in the target market.
 Product launch :- after applying all the marketing techniques, in this stage the product
which have been developed by the Essence Drinks company has launched in the market.
P6 Build an Innovation Business Case for an organisation, including ways to access
funding.
Business case is being considered as a blueprint for the company which help them in
developing a excellent business plan in relation to development of the new concept and new
offerings. It also help the company in determining the expenditure, potential risk and perks
which is associated with the development with appropriate reason and explanation. In context to
the Essence Drinks following are the necessary elements which incorporated in the business case
has been discussed below:-

 Executive Summary:- the Essence Drinks is going to launch a new product in the
market which name as Mango Lassi. This drink is with full of nutrients and energies the
customer.
 Problem:- Maintain the level of nutrients within the drink and along with this reduce the
level of sugar which is highly appealing to the customers.
 Solution:- the Best solution in front of the company is the replacement of sugar with
other healthy sweetener(Majava and et. al., 2017).
 Innovation:- the company is going to use the fresh mangos so that the real taste of the
Mango Lassi has been maintain and along with this add some other nutrients within the
product, which ultimately help the company in increasing the sales and fulfilling the
demand.
 Market Research:- The company should target all the segment which available in the
market. So that the drink which is offer by the respective company should be consumed
by all age of individual and generations.
 Funding: The funding is being considered as one of the most important part of the
business case which help the company in raising funds from the various institutions
which are available in the market and also provide the financial assistance to them. As the
Essence Drinks is a private firm, so many types of funding options has been available in
front of the company. These are mainly two types the first one is external which
comprises the investors and shareholders and the second one is internal where business
raise the funds inside its organisation. The types of funding has been discussed below:-
◦ Loan from family and friends:- in this source the fund can be raised from the family
members, friends and along with this personal savings has also being used when there
is urgent need of fund. The money which is raised came in the small proportions and
flexible in nature(Odame and Alemu, 2018).
◦ Bank Loans:- this is being considered as one of the most preferable source for the
organisation to raise the fund from the market. Business organisation have to show
their profits, revenues and their business plan so that loan can be financed. The
repayment of the loan can be done on monthly basis and yearly basis at a fixed rate of
interest.
In context to the Essence Drinks, the company is going to opt bank loans to raise the
funds. As the banks provides loans to the company at average rate of interest and they also enjoy
the flexibility in relation to the repayment of the loan.

M4 Build a detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve:-
From the above business case it has been analyse that to measure the process and
progression of the business case it is very necessary to facilitate extreme assertiveness in relation
to the same. Different types of techniques need to be developed by the firm and along with this
various skills is being required in order to identify the impact of the business case on the various
operations. Different types of tools and techniques has been utilized by the Essence Drinks
company to identify the various elements which can be improvised by the respective firm over a
period of time.
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
Intellectual property basically are the rights which ate intangible in nature. These rights
are used by those individual who create the offerings through their innovative and creative mind.
In context to the Essence Drinks, different types of tools has been opted by the company so that
they can develop, retain and protect the idea and knowledge of the product. The tools has been
discussed below:-
 Trademark: These are basically sign, expression and designs which defines the product
and different offerings of the company. The main aim of opting the trademark is to
effectively identify and distinguished their product source from their competitor product.
Company basically protect their logo so that no other company can copy and design the
same(Pustovrh and et. al., 2017).
 Patents: These are basically the rights which are given to those individual who invent the
new product. The main aim of opting the trademark is to protect the interest of the owner
who invent the product, so that original work and formulas which have been used by the
organisation cannot be copies by others.
 Copyright: these are the rights which are provided to those individual who creates the
product with intellect creations like artistic work, inventions, symbols, designs, literacy
work, images and many more. The main aim of opting the copyright is to provide the
legal authorization to the owner of the business. By having the copyright of the product,
only they have the exclusive copy right to produce it.

M5 Present supported evidence-based evaluation of these different tools in the context of
the wider business environment.
It has been analysed that the most important tool which are use by company in order to
protect the innovative idea of the Mango Lassi is copyrights. This tool not only supports the
company development but also provide protection and retention to the knowledge and
intellectual property of the company by offering legal framework to them. The rights of the
product has been provided to the company for a specific period of time. Due to this they can
offer the product in the market without any risk(Razak and Murray, 2017).
D2 Critically evaluate the nature of innovation and the context in which it isdeveloped,
providing evidence-based judgements on how organisations can overcome challenges
to develop successful innovations.
The innovation which is made by the Essence Drinks is developed through keeping in
mind the current scenario i.e. risk of Covid 19. The respective company is decided to came up
with a booster which not only increases the immunity of the individual but also keep them
healthy and strong. In addition to this it has been analyses that high rate of competition and high
risk of copying has been considered as the main challenges and issues which are faced by the
Essence Drinks. To overcome from this issues and complexities necessary steps has been taken
by the company like coming with an innovative product with full of nutrients and improves
features (Temel and et. al., 2021) . Beside this, to overcome from the challenge of copying and
intellectual property, the company adopt the copyrights tool which provide legal security to the
company.

CONCLUSION
From the above report it has been concluded that innovation and invention both plays a
very important role for the development of the business and enhance the sustainability of the
business in the market. The Essence Drink is going to innovate the existing product which
comprises the new flavour of Lassi. This report concluded the importance of the commercial
funnel application of the NPD in respective to the Essence company which is going to launch a
new product the market. This report also concluded business case for the Essence Drink in
which the the company is going to raise the fund from bank loan. Afterwords this report
concluded the various tools like trademarks, patents, copyrights which are used by the
organisation in order to protect the knowledge and intellectual property of the company. Essence
Drinks opt the copyrights to overcome from this issues and complexities.

REFERENCES
Books and Journals
Ali, R., Leman, A.M. and Sunar, N.M., 2018. A Framework on the Relationship Between Mix
Marketing Factors and R&D Commercialisation: A Proposed Study. Advanced Science
Letters. 24(7). pp.5395-5397.
Amadi-Echendu, J., 2021. A Guideline for Technology Commercialisation in the 4IR Era.
In Entrepreneurship, Technology Commercialisation, and Innovation Policy in
Africa (pp. 153-168). Springer, Cham.
Amboala, T., 2019. Technological Entrepreneurship and Commercialisation of Artefacts:
Computing and Engineering Domains (Doctoral dissertation, RMIT University).
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation, 1(1),
pp.8-22.
Majava, J and et. al., 2017. Analysing innovation-driven enterprises' stakeholders in two spatial
ICT ecosystems. International Journal of Management and Enterprise
Development. 16(3). pp.207-220.
Odame, H. and Alemu, D., 2018. Partnerships, Platforms and Policies: Strengthening Farmer
Capacity to Harness Technological Innovation for Agricultural Commercialisation.
Pustovrh, A and et. al., 2017. Antecedents and determinants of high-tech SMEs’
commercialisation enablers: opening the black box of open innovation
practices. Economic research-Ekonomska istraživanja. 30(1). pp.1033-1056.
Razak, A.A. and Murray, P.A., 2017. Innovation strategies for successful commercialisation in
public universities. International Journal of Innovation Science.
Temel, S and et. al., 2021. Exploring the relationship between university innovation
intermediaries and patenting performance. Technology in Society, 66, p.101665.
van Doren, D and et. al., 2021. The external commercialisation of technology in emerging
domains–the antecedents, consequences, and dimensions of desorptive
capacity. Technology Analysis & Strategic Management, pp.1-16.