Table of Contents INTRODUCTION...........................................................................................................................1 PART A...........................................................................................................................................1 Innovation and how it is different from invention..................................................................1 Value and importance of innovation......................................................................................2 Different type of innovation along with their pros and corns...............................................3 4 Pās of innovation mix..........................................................................................................4 New product development process and innovation funnel used by YOYO drink.................5 Frugal Innovation..................................................................................................................7 PART B............................................................................................................................................8 Company background and problem........................................................................................8 How group use commercial funnel for providing solution to problem..................................8 Innovative new drink product proposed.................................................................................9 Marketing opportunity of innovative new drink and how it will meet stakeholders needs. . .9 Overview of industry and competition...................................................................................9 Financial project.....................................................................................................................9 Sources of funding available to YOYO drinks.......................................................................9 Funds that are required to be raised......................................................................................10 Techniques for testing the effectiveness of new drinks produce..........................................10 Different tools of YOYO drink use for protecting intellectual property rights of new drink10 CONCLUSION..............................................................................................................................11 REFRENCES.................................................................................................................................12
INTRODUCTION Innovation is the procedure through which an business firm implement something new within their existing product or process. Simply it create value for the amount paid by customer for any goods and services as well company implement innovation with the motive of satisfying need and wants of potential customers(Paraszkiewicz, DÅugoÅski and Trzmielak, 2016). As per given information YOYO Drink offering Mango lassi within market of United Kingdom and its founder is Sameer. Respective organisation generate revenue in three year from its foundation after that in fourth sale of YOYO drink decrease due to entrance of several competitors. So to overcome with this issue respective business firm decide to bring some innovation within their product or process which help in increasing sales again. This report will going to discuss several aspects of innovation along with its value and importance as well how innovation is different from invention. In addition to this, different type of innovation and its 4P's as well as new product development process and frugal innovation. Apart from this, business case of YOYO drink will be discuss along with intellectual properties which utilise for protecting innovative product. PART A Innovation and how it is different from invention Innovation is the procedure through which an organisation bring new as well as creative product and services within market area for long term sustainability. YOYO Drink is offering mango lassi as well this is small scale business firm in United Kingdom. As large number of competitor enter in market sales of respective organisation which result in decreasing sale within fourth year. Thus, Sameer who is founder of YOYO Drink bring some innovative lassi for increasing sale again i.e., different flavour preservative lassi such as banana, saffron and strawberry(Hunadyand Orviska, 2016). Bringing innovative product have its several importance for respective business firm such as :- ļ·New product will result in building brand image of YoYo drink which is essential for attracting large number of customers from market area. Along with this, innovation also result in increasing sale and accomplishing goals as well as objective in appropriate manner. 1
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ļ·Moreover, innovation within lassi result in satisfying customers needs and wants in more effective manner. Invention is considered as development of new idea for products or procedures that have never been created before. Moreover, this is a process into whole product development process or engineering as well as an improvement on product, system or machine for making an object or outcomes.Apart from this innovation and invention both are different from each other in several manner. Explanation of these are as follows :- BasisInnovationInvention MeaningInnovation is the idea which implementedwithinany productorprocessforvery first time. Inventionisrelatedto occurrenceofnewideafor particular product as well as processwhichhavenever made before. What is itInnovation is the procedure in which value Invention is simply creation of new product. Concerned withCombinationofseveral procedure as well as products. Related to single product and procedure. ActivitiesActivities of innovation spread across organisation. Limited towards Research and development division. Skills requiredManyskillsareneededlike technical, marketing etc. Forthisscientificskillsis needed. Occurs whenThis requires when they feel to developproductorincrease the existent one. This occurs when new ideas is developed. ConceptNewideasisexecutedin practical manner. Originalideasandtheir operations into theory. 2
Value and importance of innovation Innovation is related to creating product, process as well as ideas more effective. For YOYO drinks innovation simply means implementing new ideas, creating dynamic product or enhancing services. Innovation act as an catalyst which help in growth of business as well as in adapting within market area(Ma and et.al., 2018). There are several value and importance of implementing innovation within YOYO drinks explanation of these are as follows :-ļ·Beat competitorsā Innovation help in beating competitors within effective manner and help in gaining competitive advantages. As market sale of YOYO Drink decrease because of high level competition. Thus, they bring innovative Lassi of different flavour and preservative which help in beating competitors and again increasing sales. ļ·IncreasesproductivityāNewproductorprocessbecomemoreeffectiveforan organisation as it result in increasing productivity. Same as YOYO Drink also increases their productivity by doing innovation in their product i.e., preservative different flavour lassi such as Banana, strawberry and Saffron. ļ·Meet consumer requirements:Consumers requirements are changing constantly. One daytheyrequiredsomethingelseanotherdaydifferent.So,innovatorsassumes modification into market area as well as facilitates solution to before individuals realize that required that. Therefore, any company can not meet the consumers requirements for long term unlessthey keep on doing innovation in their products. In case the respective company stay stagnant its business will yet flounder. So, they has to come up with new concepts or thoughts which excite their consumers as well as accomplish its needs. Thus, innovation result in creating values for YOYO Drinks and also play important role in again increasing their sales within market area of United Kingdom. Different type of innovation along with their pros and corns There are mainly several type of innovation which can be use by an organisation for doing something new within their product or process. Explanation of these are as follows ;- ļ·Incremental innovation ā It is most common type of innovation as well in this existing technology will utilise and result in increasing value for customers within present market area.This is aids YOYO Drink to perform changes into their existing products and also develop its functionality as well as costs. Its cons is this enhance the cost of the product. Its main pros that it proved helpful to remain always competitive in marketplace by 3
bringing best products in market. The main cons of that it is only possible to implement to limited people. ļ·Disruptive innovation ā This innovation is also known as stealth innovation which involve implementation of new process as well as technology within organisation (Purchase,Kum and Olaru, 2016). YOYO drink is using disruptive innovation as they are bringing new range of flavour lassi.Also, its drawbacks is, it have high risk factors as well as lengthy procedures. Here, they do not have to compete for market share, it can develop its own. The main pros of that concept that it requires separate strategy to implement in proper manner. The main cons of that innovation is to that it proved beneficial for organisation as well as individual to remain always competitive. ļ·Radical Innovation: This is considered as an invention which destroy the existent business model. It also blows up the existent procedures or methods as well as replace this with new one.. ļ·ArchitecturalInnovation:Thisisconsideredasthedestructingtheusefulnessof organisationalarchitecturalknowledgebutprotectingtheknowledgeeffectiveness regrading company's products elements. 4 Pās of innovation mix Innovation mix is developed by John Bessant and Joe Tidd. It is generally adopted by an organization when they are planning to adopting innovation at a market area so that they can attract more and more customers. In this there are 4 Pās of Innovation which help an organization in adopting innovation in proper way i.e. product, position, process and paradigm. Explanations of this in order to conduct innovation of preservation flavoured lassi offer by YOYO Drinks are mentioned below:- Product innovation:By conducting innovation in products and service a company able to attract more and more customers which help them in attaining their objective in effective manner. In respect of YOYO drinks, they are going to introducing new flavoured lassi which help them in attracting new customers and retaining old customers. Through this respective company able attract customers and satisfying their needs. Process:At this stage an organization develop or innovate its procedure so that they can develop products and services in effective manner. The YOYO drinks is a small company which offer healthy as well as flavoured lassi which help in attracting customers and encourage them to 4
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purchaseit.Throughthisprocess respectivecompany able to adoptprocedurewhich is appropriate for them and help them in developing lassi without mistake Position:It refers to technique of how effective company positions their products at market so that customers get attracted and purchase it so that they can attain huge profit. For this YOYO Drink conduct market evaluation so that they know about market and its trends that help them in positioning their flavoured lassi in market in proper manner. Paradigm:It is a last stage of innovation mix which is related to transforming perspective of business so that customer and other related to company understand effective of products and service(Saebiand Foss, 2015). Along with this YOYO Drinks able to analysis things but with diverse prospective and it will also help them in maintaining effectiveness of particular drink. Through innovation mix YOYO drink able to introduce new lassi in effective manner at potential target place as well as this will also help them in developing products and selling it in market properly and effectively. New product development process and innovation funnel used by YOYO drink Innovation funnel is a tool which is adopted by a firm in order to develop proper position at market place by offering attractive products and services to customers. In or order to introduce flavoured lassi YOYO drinks develop and adopt funnel innovation, which is given below:- ļ·Assessment of opportunities:At this management of YOYO drink conduct market research which help them in identifying need and requirement of customers. Through this they can develop lassi in effective manner. ļ·Insights based ideation:At this stage respective company will identify which type of idea or strategy is more appropriate for them which lead to attracting customers in effective manner(Mohammed, Haswell and Gibson, 2015). For this they conduct analysis through various methods such as survey, online analysis, focus group and many more. ļ·Conceptualization:It is the third stage and at this YOYO Drink will hire consultant so that they can develop proper strategy which help them in developing strategy related to introducing flavored lassi. 5
ļ·Analysis and benchmark:At this stage respective company will offer product to customers in order to conduct testing. Through which they able to know effectiveness of respective lassi which is developed by company for attracting customers. ļ·Go/ No Go:This step will conduct after collecting feedback from customers. Through this YOYO drink able to determine effectiveness of their flavored lassi according to customers. In this respect if customers like respective product they will continue and serve it in large market area. On the other hand if customers not like it they will close the procedure and develop new one which is more effective.Herein, if customer likes to purchase the respective company products then it is refers as go where as if do not then no go. In that stage the testing should be accomplished in proper way by gather important knowledge and information from various sources to test the feasibility of the project in better way. ļ·Launch or introduce:After knowing effectiveness respective company will launch their flavored lassi at their target and potential market place. NEW PRODUCT DEVELOPMENT New product development is considered as the whole procedures of firm, concept generation, strategy, commercialization and many more. Idea generation: with help of brain storming new ideas and concepts comes in mind. With help of it organization can always remain competitive in marketplace. Idea evaluation: From various ideas best idea should be evaluated. In context of Yoyo lassi they select to bring new flavor in their product. Concept definition: In that stage specializations such as technical feasibility of the product should be judged in proper manner. Productdevelopmentandtesting:Inthatstagepropertestingoftheprojectshouldbe implemented in proper manner by evaluating major deliverable. Commercialization: After testing the viability of the project organization begins test marketing of it before implementing it. 6
Launch or introduce:After knowing effectiveness respective company will launch their flavored lassi at their target and potential market place. Frugal Innovation Frugal innovation refers to a process which is adopted by a company in order to identify new business model, conduct redesign of product, know value chain and many more through which company attain objective effectively(Eftekhari and Bogers, 2015). along with this, it is adopted by various companies in order to develop extra element for presenting offerings at market place. In respect of YOYO drink they are introducing their new innovation in lassis at competitive market place, frugal innovation of which is explained below:- ļ·New market opportunities:For a company it is necessary that they conduct market innovation so that they can develop their products and services in effective manner. in respect of YOYO drink they need to conduct market evaluation through which they their understand need and requirement of customers properly. ļ·Resource:It refers to stage which is related to optimum utilization of resource so that product will develop in effective manner. In respect of YOYO drink they conduct use each and every resources in effective manner so that they can develop product with minimum wastage. ļ·Frugal innovation:At this stage company introduce new product at market place so that they can gain competitive advancement at market. In respect of respective company they adopt frugal development strategy because through it they able to introduce new product properly. Frugal innovation is generally comprised of major two segments which are explained below:- ļ·Problem: -According to this there are several problems which are face by a company when they are introducing new product and service at marketplace. In respect of YOYO drinks when they are introducing new lassi they also face issues related to time, funds, customers preference and so on. 7
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ļ·Relatedtoproducts:-Itreferstoissueswhicharerelatedtomarketingand communication. It is necessary for respective company to conduct proper communication so that customer know about new lassi and encouraged to purchase it. RECOMMENDATION: It has been recommended that organization have to evaluate each and every attributes in proper way while launching a new project into marketplace by finding various opportunities. In that marketers find out the new flavor of lassi to remain always competitive in marketplace. PART B Company background and problem YOYO drink is small scale organisation who deals in mango flavour lassi within United Kingdom. It was started three years ago and has been rapid growth in three years as well as achieve rapid gradual rise in sale. Because of their innovative formula and organisation distribution capabilities. But when YOYO drink enter in fourth year of trading they face significant decrease in their sales. As number of competitors enter within market which become problem for respective organisation. How group use commercial funnel for providing solution to problem In an organisation commercial funnel is the framework which have three phase that assist in reforming present product by implementing various beneficial plans as well as policies(Birch, 2016). Commercial funnel is essential for YOYO drink in bringing preservative lassi within market area. Explanation of these are as follows :- ļ·Pricing policy ā YOYO drink is offering flavoured preservative lassi at moderate price that can be affordable by every type of people easily. With the assistance of respective funnel business firm can set price by analysing buying behaviour of customers as well as their taste and preferences. ļ·Improving way of growing business ā Within this process respective funnel hae indispensable concept for growth as well as development of company. At initial stage it has been identified that commercial funnel will assist particular company in making their customer satisfied within effective manner. If YOYO drink will 8
satisfy their customers in effective manner then automatically it will result in increasing sale and gaining competitive advantages. ļ·Emergence of advance technology ā In this YOYO drink acquiring funnel for introducing their innovative offering within competitive market area. ļ·Implement investigation programmes ā For a organisation it is important to conduct proper market research for identifying taste, preferences and need of customers. Withinthisprocessfunnelplaycrucialrolethatisimportantforbringing preservative flavour lassi in market and increasing sale from it. Innovative new drink product proposed YOYO drink introducing preservative different flavour lassi such as Banana, Saffron and Strawberry. This will help in them in attracting large number of customers as well as increasing sale again. Marketing opportunity of innovative new drink and how it will meet stakeholders needs There are several market opportunity for YOYO drink to bring their innovative new drink in market. As respective organisation can collaborate with some famous company which help them in gaining market opportunities as well as increasing sales. Along with this, they can provide some discount offers which help in attracting customers. Overview of industry and competition YOYO drink is working in food industry as they are supply drinkable item named as healthy mango lassi. As within this industry level of competition is high due to which sale of respective organisation decreases. Financial project Their requirement of funds for bringing innovative product which is preservative flavour lassi such as banana, strawberry and saffron within market area of United Kingdom. Thus fund required will beĀ£ 20,000. Sources of funding available to YOYO drinks Funds are backbone of organisation without these it is not possible to conduct daily operations within effective manner. There are several source of funding available for YOYO 9
drink which help them in conducting their operations within effective manner. Explanation of these funds are as follows :- ļ·Bank and financial institutions ā This is suitable source for an organisation to rise funds as they can take help of bank and other financial institutions. Because it is safe source but YOYO drink have to pay interest amount along with principle. ļ·From family and friends ā YOYO drink can generate funds by borrowing money from friends and family member(Ono And et.al.,2017). There are several advantages which respective company will gain by generating funds from this source such as their will be no requirement of security as well as any interest amount also not require to paid. Thus, YOYO drink can rise their funds through family and friend because in this their will be no requirement of giving any extra amount. Funds that are required to be raised There are several funds that YOYO drink have to raise such as funds for production, marketing, technology and so on. That will help respective organisation is taking better place within competitive environment. Techniques for testing the effectiveness of new drinks produce For testing effectiveness of preservative flavour lassi it is important for YOYO drink to first test this product in market by providing free sample. Because this will help in identifying that respective product is like by customer or not. Different tools of YOYO drink use for protecting intellectual property rights of new drink It is important for YOYO drinks to protect their innovative product i.e., preservative flavour lassi through intellectual property rights. Because they help in saving product or process from any type of risk such as copying by others. There are several type of intellectual property rights that can be use by respective organisation for protecting their product. Explanation of these are as follows :- ļ·Patentā It is an intellectual property right which help in protecting any type of product or process by exploring through others. In patent, if owner give right to other people for selling their product or services then only they can sell that as well as can use for import purpose. Thus, Sameer can take patent as an intellectual property right for protecting their preservative flavour lassi within competitive business environment. 10
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ļ·Copyrightsā This is also type of intellectual property right which an innovator can use for protecting their product and services(vascu,Cirjaliu and Draghici, 2016). These are mainly utilise for music, original product, literary and many more as well as it help individual in controlling utilisation of these product. So, YOYO drink can use copyright also for protecting their innovative lassi. ļ·Trade secretsā This is intellectual property right which help in protecting secret or proprietary information of commercial values. Further more, there are several aspects which not get secure by taking trade secret an intellectual property right. These are employment law, contract law, company law and many more(Shengrong, Zhu and Jingzhong, 2016). So, respective intellectual property right is not suitable for YOYO drink because it will not help in protecting their preservative flavour lassi from any type of hazards. So, forYOYOdrinkpatentandcopyrightsbotharesuitablefor protecting their preservative flavour lassi from any type of harm and copying activity. CONCLUSION From the above discussion it has been summarised that, for an business firm innovation is important because it help them in gaining competitive advantages as well as in generating revenue. It is necessary to implement innovation because after some time customer get bored from same type of offering and they want something new. Thus, YOYO drink also doing innovation in their existing mango lassi by bringing preservative different flavour such as saffron, strawberry and banana. All this will result in enhancing sale, profit maximisation and also help in making customer satisfied. In addition to this, innovation in product and process need intellectual property for protection so that no other an copy it. Innovation Funnel is the tool which help YOYO drink in coming with some innovative product within market area. 11
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