Report on Innovation and Commercialisation for Essence Drinks UK

This report delves into innovation and commercialisation strategies for Essence Drinks, a UK-based company facing challenges in product innovation. It differentiates between invention and innovation, highlights the value of innovation, and explores various forms of innovation including architectural, radical, incremental, and disruptive approaches. The report also examines the 4 Ps of innovation (Product, Paradigm, Process, and Position) and advises Essence Drinks to adopt incremental innovation. Furthermore, it discusses approaches like the funnel and frugal innovation, providing examples of other organisations. The report also addresses how Essence Drinks can use the commercial funnel to provide solutions, highlighting strategic capabilities, innovative business cases, and tools for knowledge and intellectual property development. This assignment is available on Desklib, a platform offering study tools and resources for students.

Innovation and Commercialisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1) Difference between invention and innovation.........................................................................3
2) Description about value and importance of innovation to company & how it is embedded
within organizations leadership along with its culture................................................................3
3) Different forms and directions of innovation in organization along with 4 Ps and advise to
Essence drinks company about which form they should engage in.............................................4
4) Discussing the approaches Essence Drinks can take to process innovative ideas including
funnel and frugal with providing examples of other approaches used by other organizations. .7
5) Recommendation to Essence Drinks to derive new and innovative drinks.............................8
PART 2............................................................................................................................................8
Background of company and the problem...................................................................................8
Description about importance of using commercial funnel to provide solution by highlighting
strategic capabilities.....................................................................................................................9
Innovative business case for the company.................................................................................10
The different tools that organization can use to develop, retain and protect knowledge and
intellectual property-..................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation leads to growth and development of company by bringing new product in the
market or making changes in existing products. Whereas, commercialization is a process which
brings existing product to market. The project report is of Essence Drinks, a company in UK
market who is facing trouble with innovating their products. So, report will include the
difference between invention and innovation along with its different types and changes that
organization can take. Further, it will describe about 4 Ps of innovation & different approaches
they can use. Moreover, the report would also include commercial funnel to provide solution for
problems company is facing, how organization can come up with new ideas, what are the
techniques and resources required.
PART 1
1) Difference between invention and innovation.
Invention is done during the company's introduction in a new market where they come
with new, creative products and services. Moreover, this process requires skills to identify
customers needs and wants so that company can bring product according to their specifications
which can lead to improve their standard of living (Vakili and Kaplan, 2021). Along with this
organizations value in the market will also increase as company is fulfilling and meeting the
demand of customers by introducing goods on basis of their wants.
Whereas, on other hand innovation means implementation of new and innovative ideas to
an existing product or services. Through this process the company's productivity is also
increased with enhanced in its business value. Therefore, for making entity successful it will
require person with different mindset who is more creative and has ability to take risk &
implement it to typical projects in regard to flourish organizations growth.
2) Description about value and importance of innovation to company & how it is embedded
within organizations leadership along with its culture.
In any organization innovations value and importance can't be ignored & it is also crucial
because by doing this firms time, along with resources are saved which provide a competitive
advantage over other entities prevailing.
Value and importance of innovation :1. Promotes healthy competition: Innovation provide competitive edge to innovative firms
as competitive contention leads in adoption of new products and creating both local &

global demand of their products. Therefore, will aid Essence drinks to adopt change in
their existing products for promoting goods widely so that it will lead to increase of sales.2. Boost employees morale along with improving business performance: Innovation
lead to increase Essence drinks workers morale by taking advise from their employees to
bring changes in existing products, tools, process (Panfiluk, E, 2021). Therefore, by doing
this will help employees to gain extra incentives, perks and allowances with promotion
benefit which will encourage workers to generate more and more ideas for the benefit of
both individual & organization. Moreover, culture of doing monotonous routine work
will also be replaced by introducing new technologies, adapting learning for same.3. Help companies to grow through innovation: In organization there occur many issues
regarding products, culture, etc. thus, innovation in these acts as a vehicle to resolve them
by taking advise from their workforce only. Therefore, finding solution of a problem by
involving subordinates will create sense of belongingness and ultimately it will lead the
company to grow.
Importance of leadership and cultural role in promoting innovation:
 Leaders main aim is to direct their employees in such a way so that goal of the Essence
drinks can be achieved and this is only possible by bringing changes in existing products
or introducing new merchandises. Therefore, this will ultimately lead to customers
satisfaction which is very important in competitive world.
 Employee development is another crucial aim of Essence drinks leaders as their team
contribute to implementation of any actions. So, company should come up with such
innovation techniques that will maximize the wealth of organization along with their
workforce personal growth.
 Leaders should motivate their team in such a way so that they will come up with an
innovative idea to bring changes in the organization's product line by meeting their
customers demand. Therefore, by introducing the ideas of modification and imposing
such alternation in existing goods will aid Essence drinks to profit maximization & cost
minimization.
 Leadership plays important role in promoting cultural and innovative role as they
continuously try to satisfy their customers by bringing new creative idea in organization
so that the objective of customer satisfaction is fulfilled along with profit maximization.

Moreover, with aim of users gratification they also focus on smooth working in entity by
creating conflict free environment amongst their employees, management and
stakeholder by reducing a miss-communication.
3) Different forms and directions of innovation in organization along with 4 Ps and advise to
Essence drinks company about which form they should engage in.
Four forms of innovation:
 Architectural: They simply mean taking lessons, skills along with overall technology
knowledge and then applying them within different market. The innovation leads to
create customer base & it is beneficial as long as market is receptive. Therefore, risk
involved in this are low most of the time due to reintroduction of full proved technology
in market.
 Radical: This form of innovation is an invention that destroys or supersede an existing
business model to generate momentous improvements. Therefore, if change is
successfully achieved than it results in high level of result but generally firms hesitate to
adopt this method of its disruptive nature.
 Incremental: It is one of the most common form of innovation in which customer base
and their value is increased just by making alterations like design change, features etc. to
an existing product. The company can use this form in retention of their customers by
staying applicative and balancing their innovation portfolio.
 Disruptive: Stealth innovation is another name for disruptive innovation which involves
applying new technology to the companies current market. However, as it is stealthy in
nature so newer tech will often be inferior by comparing it with existing market
technology. Therefore, newer tech will surpass the old one and disrupts all existing
companies along with this it may also make difficult for them to compete.
Four directions of organization change in innovation:
1. Strategic transformational change: Modification made in the existing tools or policies
to keep a constant pace with change of missions & introduction of new technologies
according to the needs of their customers or training and development is provided for
coping up with such changes made.

2. People centric organizational change: Innovation can be done in people centric
organizational structure by hiring new work force to lighten the workload of their
existing employees so that without burden they can put their full efforts.
3. Structural change: This change denotes to the alterations either made internally or
externally to the organizational structure like merger, acquisition, etc. done. Therefore, by
such innovation roles and responsibilities of management modifies which will demand
training and development.
4. Remedial change: These are reactionary and occurs when a problem is identified and
their arises a need to implement the solution. As these changes are designed to resolve an
issue, so they demand for immediate action and can be solved through innovative
approach.
4 Ps of innovation:
 Product: Essence drinks will focus on a product innovation as merchandise is the
ultimate thing that will be delivered to their customers. Therefore, company would
always try to make incremental changes so that they can make their existing product
more appealing. However, with this type of innovation organization is ultimately
increasing its business value by providing their users what they want through making
changes according to the market trend.
 Paradigm: It is also an important part in innovation process because by applying this
Essence drinks will try to find the reasons behind carrying such operations in their
business (Lopes and et.al, 2021). Moreover, for improving ways of carried activities,
management would continuously try to identify the changes that can be inculcated and
easily used by related parties.
 Process: After product and paradigm next P of innovation is process which includes
goods supply, hiring of workforce, workflow, etc. to maximize companies profit and
minimize its cost. Therefore, Essence drinks will become more profitable when it
incorporates better process and reduces the existing one. Position: The Essence drinks will always try to deliver the best products and services so
that it can create positive perception of goods they are offering their customers. Company
knows this fact very well that without having best image of product, firm can't attract
customer base.

Advise to Essence drinks for adopting which form of innovation.
According to the situation company is facing its advisable for them to adopt Incremental
form of innovation by bringing changes in the existing merchandise or adding new goods in their
product line. Therefore, before taking decision of bringing new product Essence drinks must
analyse the internal and external environment first to know about recent market trends prevailing
in market. Hence, carrying changes by looking at future demand, entity can attract and make
more customer base.
4) Discussing the approaches Essence Drinks can take to process innovative ideas including
funnel and frugal with providing examples of other approaches used by other
organizations.
Two approaches used by Essence Drinks are:1. Funnel approach: Innovation funnel is a mechanism that enables a continual line of
ideas that can be screened for practicality and converting it into factual development
plans (Pynnönen, Hallikas and Immonen, 2019). Moreover, they are also referred to as
funnel management process, a popular approach used by many entities to create an
innovative and realistic action plan.
Innovation funnel process demands that each idea of Essence drinks are cautiously and
perpetually screened to several rules. However, this procedure is not only limited to generating
innovation but also includes constantly scrutinizing previously criteria to ensure that they work
properly.2. Frugal approach: This is another approach of innovation which need to be developed
and used by Essence Drinks for reforming their value chain and redesigning their
products (Albert, 2019). The main aim of this approach is to reduce cost and produce
large quantities of goods by using limited resources. Therefore, if we remove the non
important stages of the product, for example the Lassi company can reduce the costs of
production by opening a diary instead of purchasing the milk from other dairy farms or
cooperatives. This can reduce the cost of purchasing the raw materials. One more way
can be to train the employees so that they can utilize the resources optimally without
much wastage.
Importance of Frugal approach:

 United kingdom are in nascent and developing stage of economy so the demand of frugal
approach is high here. Therefore, Essence drinks can launch its product at low price.
 With introduction of new technologies, many opportunities are also opening so Essence
drinks can use this opportunity by bringing frugal innovative idea in process to create
customer base.
For example, Land Rover a UK company is a major example of fugal innovative approach. The
production method are selected and used in such a way so that they can see a reduction of cost in
their products, which will ultimately leads to set of low price. Moreover, customers are also
looking for a company who are fulfilling their needs by providing them a product at cheap price.
Therefore, the concept of using fugal innovative approach seems to be important for developing
countries to create customer base.
5) Recommendation to Essence Drinks to derive new and innovative drinks.
Essence drink is currently dealing in only healthy mango lassi, which has shown a
dramatic rise in sales during its initial year due to the innovative formula and distribution
proficiency. However, as company has entered its third financial year they have faced a dramatic
fall in sales as there comes new entrants in market.
Therefore, for increasing the sales and face competition Essence Drinks need to launch an
innovative product such as healthy drink like Coconut with ice cream lassi which will match
the current demand i.e., consumption of healthy commodities along with a good taste. Moreover,
it is also highly recommended that Essence drinks should expand its reach by entering into
emerging international market because previously Essence drink is only limited to United
kingdom market. Therefore, for entering into new distribution place company can adopt
alternative modes like franchise, licensing, partnership trade or through joint venture, etc.
Whereas, Essence drinks can also take help of online platforms by creating its own
websites or can outsource part of it to other entity who will handle all the necessary transactions
like taking and placing orders. Moreover, company can also do collaboration with various
shopping channels like amazon, flip kart, snap deal etc. to increase the Essence drinks sales and
achieve sustainability development.
Further, company may also bring changes in its promotional strategies like providing
certain percent of discount on purchasing three bottles of mango lassi, or they can provide

products to their customers with no delivery charge. Moreover, along this Essence drinks may
also use advertisement tools for promotional activity.
PART 2
Background of company and the problem.
Akshay Kumar, the founder of Essence Drinks, started company two years ago he could
not have seen any rapid early stage growth that took place. Therefore, due to this firm has come
up with one drink (a healthy mango lassi) into the United kingdom market and achieved
spectacular rise in sales during its first year due to innovative formula and distribution capability.
Whereas, after moving forward to further years as the Essence drinks entered its third year of
exchange there has seen a significant decrease in sales as new competitors have moved into the
market. Founder of company thinks that without moving away from lassis innovation can
become a solution to their problem i.e., they may introduce new range of drinks in existing
market.
Description about importance of using commercial funnel to provide solution by highlighting
strategic capabilities.
Commercial funnel means listing more about potential customers and then do the
marketing standard operating procedure so that company can achieve higher points of their usual
and retain customers. Therefore, commercialization funnel is very important to any entity
especially when it comes in context of healthy drink company which showing positive impact in
its third years of passage (Amponsah and Adams, 2017). Hence, the main aim of funnel
commercialization is to lead company as commercialization of modified products and services
aid company to attract more customers than usual. In short this opens & wide up the door for
dealing with maximum users by using single innovative commodity.
Moreover, this is also important for Essence drinks because through commercial funnel
process organization can easily identify the key areas that needs to be improved thus able to find
alternative strategies that can be used to overcome the same. So, it is the important and best
method that contribute in attracting range of customers in the firm so that they can enjoy huge
profitability & market share.
Therefore, by using commercial funnel Essence drinks can easily identify that where
organization is lacking behind, why the growth of the business is stagnant and sometimes facing
decreasing stage. Further, they also describe about the reason behind such problems and how we

can improve this & come out from this problem (Information support for trade with the use of a
conversion funnel, 2021). Hence, helps company to access its risk by applying various strategies
like analysing it which is already done with a help of commercial funnel. Moreover, this
technique will also aid in further strategies which involves evaluation, assembling of various
alternatives, choosing the best option from them and monitoring it.
Along with this they also aid in exploiting internal resources and capabilities & meeting
the exigent standards of global competition, firms create value for customers. Value is measured
by a product’s performance characteristics and by its attributes for which customers are willing
to pay. Core competencies are resources and capabilities that serve as a source of a firm’s
competitive advantage over rivals. Therefore, funnel commercialization process helps the
Essence drinks to meet with goals and resources in comparison to competitors through which
firm adds unique value to its goods or services over a long period.
Fugal innovation is the process of reducing the cost of goods by removing the not
important features from the particular product. Many firms use fugal innovation to reduce the
production cost. If we remove the non important stages of the product, for example the Lassi
company can reduce the costs of production by opening a diary instead of purchasing the milk
from other dairy farms or cooperatives. This can reduce the cost of purchasing the raw materials.
One more way can be to train the employees so that they can utilize the resources optimally
without much wastage.
Innovative business case for the company
Overview-
Currently the company launched by Akshay Kumar is selling Mango Lassi into the UK
market. The company has achieved rapid sales in the first year of launch. As the company's sales
started to decline, an innovation is planned. In order to maximize sales and profitability, the
company has decided to launch a new flavour in lassi that is Coconut with Ice cream lassi.
Mission-
To provide customers with ultimate lassi experience along with promoting
Entrepreneurial spirit.
Vision-
To become a leading manufacturer and supplier of Lassi in UK and abroad.
Need-

As people are very health conscious nowdays, the need for coconut with ice cream lassi
proves to be very helpful. Coconut lassi is light for stomach and can be consumed by people if
they are suffering from various stomach aches, gastrointestinal problems, diseases etc. It proves
to be healthy and has much benefits than other flavour lassis.
Competitive Advantage-
Coconut with ice cream lassi has proved to be unique among its competitors as it is
providing both sweet and a bit sour in taste and at the same time beneficial for diabetic patients.
No different process is involved in preparation of sugar free lassi as it is prepared catering the
needs of all types of people. People can even have option to choose between coconut with ice
cream or without ice cream lassi. People who are on weight loss can also prefer this lassi by
substituting the afternoon meals with it.
Market Opportunities-
The company can diversify its product that is coconut lassi to other types of shakes and
faludas and by adding more flavours to it like strawberry with ice cream, etc. The company can
diversify in terms of market such as it has more growth opportunities in the hottest and most dry
regions such as East Anglia, the most driest region of UK (Landes and et.al., 2017).
Target Market-
The target market includes kids, adults including college students and office workers. The
old age people are specially targeted as it proves to meed their needs and demands.
Whether young or old, it is a drink enjoyed by all age groups.
Marketing Strategy-
It refers to series of actions that the organization uses to promote its products or brands in
the market (Thabit and Raewf, 2018).
Product Coconut with ice cram lassi is a popular
traditional dahi based drink. It is a blend of
yogurt, coconut water and pulp and ice cream
added to it. This is both sweet and sour in taste.
100 grams of coconut lassi will have 246 k
calories which is beneficial than other flavours
of lassi.

Place The source of liquid milk used in preparation is
farmer based organizations at both village level
and cooperatives. The company sells through
40 retail outlets and 100 supermarkets. It is
also available by ordering through the
company's website.
Price It has adopted penetration pricing policy as the
organization wants to sell the lassis through
every nook and corner. It has kept very
reasonable price for its products that seem to be
quite affordable for the consumers.
Promotion The company has adopted very smart and
effective plans to promote the products.
Several ad campaigns are created that are
displayed through television channels,
newspapers, billboards, sides of vehicles and
hoardings. The lassis are also promoted
through YouTube and Twitter.
Budget-
Particulars Amount
Salaries 6000
Marketing 2000
Production 5000
Selling and Distribution 1000
Total 14000
Sources of funding-4. Self financing- The company's savings and resources can prove to be a prime and quick
source of funding own business.