Innovation and Commercialization in Essence Drinks

This report discusses the importance of innovation and commercialization in the context of Essence Drinks. It explains the difference between invention and innovation, and how organisational vision, leadership, culture, and teamwork can shape innovation and commercialisation. It also covers the 4Ps of innovation, the innovation funnel, frugal innovation, and the commercial funnel. Additionally, it builds an innovation business case for Essence Drinks and evaluates the tools for developing, retaining, and protecting knowledge and intellectual property.

Innovation and
commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Explanation of innovation with determining its importance in comparison of invention :........4
Explaining how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation in the context of Essence drinks :..........................................................6
Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas :..............................................................................................................7
Explain developments in frugal innovation and provide examples of how it is used in an
organisational context :...............................................................................................................9
Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation :....................................10
Build an innovation business case for Essence Drinks including ways to access funding:......12
Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property:........................................................................................12
CONCLUSION .............................................................................................................................14
REFERENCES:.............................................................................................................................15
Books and Journals:..................................................................................................................15

INTRODUCTION
Innovation is the process of making of ideas into real through introducing new goods and
services that do not exist in the market or the improvement of some type of already existed goods
and services in to more effective and efficient form. Commercialization is the process that
defines about the bringing of new goods to services in a market. It involves various types of
different activities such as marketing the product, distributing them, taking customer assurance
and feedback, selling into the market and some other important functions that comes in the
process of achieving success in the commercial market with new commodities (Cai and Li,
2018). The company which is chosen for this report is Essence drink, a healthy drinks providing
brand which has been providing Mango lassi.The following report mainly covers on a more
thorough version of the aforementioned themes in the respect of company, in examine unique
ideas that it may use to grow. It begins by distinguishing between two phrases that are sometimes
confused — innovation and invention. It then examines the various types of innovation by
analysing the 4ps of innovation, as well as the associated sales funnel and developments in the
frugal innoation. It then goes on to discuss the necessity of commercial funnels and NPD (new
product development). A business case is created to provide a clear explanation of the many
methods for obtaining money to establish a company. The numerous types of tools that a person
can employ are discussed at the end of the report.
TASK
Explanation of innovation with determining its importance in comparison of invention :
Innovation are the implementation of practical ideas into actual goods and service that are
either new in the market or are the improvement in the already established and using product /
services of the market for providing better satisfaction level to the people. The development of
different processes, technologies and even art works are included in it. The people that brings the
innovation in the society are known as innovators.
Importance of innovation :
Certain importance of innovation as discussed in the following points :
 The main importance for which different companies practise it is to get a competitive
advantage over other firms in the market due to the availability of different and better
type of products and services (Wong and Ngai, 2019).

 Works in providing a better connection to developing markets through penetrating them
faster.
 Build a proactive nature of the innovator through the involvence of risks as this involve
investment of money, time and nature that can confidently make the market informed
about the innvation.
 It develop the culture and creativity of both, the innovator and the business organisation.
 It provides with the huge opportunity as the tried and tested methods that are used by
other competitors may by reliable, but new ways and products are the attraction points of
the consumers.
Difference between invention and innovation :
Invention is the term, that is defined as the process of making, finding or designing a
way, service or commodity that was not available and existed in the market before and has been
newly identified (Timeus and Gascó, 2018). These are also patented by several legal rights to
provide the innovator with the security and any other person can not claim and use the invested
product as his / her own. There can be different related types of rights and rules for the related
term in different countries which are costly to be obtained and require the invention to be novel
and non obvious. Following is the detailed differentiation of two terms – invention and
innovation, that are different but considered as same by some. The differentiation is based on
some particular basis in a tabular form :
Basis Innovation Invention
Meaning An idea is implemented for the
first time that leads to changes
for a product or process
The invention refers to the
occurrence of making of a
product or process that ha
never been thought or made
before by anyone.
Concept It is the actual implementation
of a new idea
Its work is based on theories
and learnings that leads to a
idea
What it provides with It helps in adding more value
to a already existing product or
This leads to creation of a
whole new type of commodity

process. (Varadarajan, 2018)
Needed skills Some of the skills required in
this are – marketing skill,
strategy building skill and
technical advancement skill
Scientific related skills plays a
major role in the requirements
of this.
Reason of occurrence A way of change and
improvement of the existing
product or service is identified
or worked on to gain market
share and competitive edge
(Guerrero‐Villegas, Sierra‐
García and Palacios‐Florencio,
2018)
An area that needs new type of
services and commodities is
identified and studied or
simple an idea is striked in the
mind of a scientist which is
implemented by him / her.
Concerned The set of combination of
various types of commodities
and methods are concerned
A single type of commodity or
methods is included in the
consideration
Included activities The different functions of
organisation are concerned and
work in playing their role in
different activities of this.
Research and development
function of a company is
mainly responsible for praising
these activities
M1 Ways in which the innovates sourced and supported within different organisation
environment and culture
Innovation has become buzzword of business industry. Various emerging enterprise have
proved that the innovation can be way to the top. There are various sources of the innovation
including the unexpected, process changes, demographic, change in perception, incongruities,
industry and market structure. These source of innovation provide a purposeful way for
searching the opportunities and also mitigate the risk. Some of sources are the symptoms of
something that has already occurred. While some sources of the innovation are not clear.
Therefore they pose a greater risk of the failure, however the promises greater rewards.

Explaining how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation in the context of Essence drinks :
Organisational vision is a statement that consists several types of the purposes that the
business entity is striving for and wants to achieve in the near future. These promote the growth
of the organisation. These also include with the strategies that can be used to achieve the
provided vision (Töbelmann and Wendler, 2020). The vision of Essence drinks is to capture the
most share of the market of UK by providing the consumers with some unique type of drinks that
consider the health factor of the people with providing them different tasty flavours that are
different from other sellers. This vision of the company can help in practising innovative process
and commercialising new products in the society.
Organisational leadership is an approach of managing and leading the business firm.
This is based on the strategies of the firm and an approach which can lead to completion of the
objectives by using the strategies is used. Different types of leadership styles and theories are
involved in this approach that can help in motivating the employees in the best way. This leads to
communicating the mission, visions and strategic plan to the employees by bringing out their
best productivity. Essence drinks company uses participative leadership style in its management
that can also be said as democratic leadership style. Though this, all the members involved in it,
work together for making the decisions. Due to the involvement of all the individuals of the
organisation and making of management more effective, it promotes the commercialisation and
innovatory factor.
Organisational culture is the way and collection of different behaviour, values and
expectations that are practised and used in the surrounding of a business entity. For not harming
the values and beliefs of the spectators and employees, the Essence drinks considers and follows
the cultural behaviour in its enterprise according to the people of UK. An efficient way of
organisational culture promotes the activities that leads to new and different commercialisation
of the company (Keisalo, 2018).

Organisational teamwork is the preference of the people of an business entity to work
together with helping each other and accomplishing the group objectives and goals of the entity
as whole and not the goals of individuals. Through the ideas of different people with teamwork,
the process of identifying different new ways and process becomes easy and help in the
commercing activities.
M2 How different types of the innovation are successfully processed within different
organisation setting
Innovations defined as introduction of new quality og good. There are various types of
the innovation such as market and branding, technology, ideation, social innovation, co creation
and many more. All these technologies are processed in business by maintain data flow, tarck
process, maintain employees’ record and manage the contacts. Technology makes it easy for the
business to operate effectively and efficiently within a minimal manpower and also help to
minimize cost of doing a business. Through technology, business operation keep them connect to
the suppliers, sales force and customers.
Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas :
The four Ps of innovation is a model that helps in making the process of innovation easy to
deeply understand and implement in the commercial activities of a business enterprise. It clarify
the innovates by focusing on 4 related categories broadly. The following is the detail analysation
and explanation of these four areas :
 Product – It is the product or service that an organisation offers to market for selling or
using and earning profits. The finding of new types of products and services is the first
thing and activity that comes in the process of innovation in an company's offerings. For
this, Essence Drinks can come up with the making of new type of beverages. It can make
some new flavoured drink such as KesarPistaLassi but with the consideration of making
it healthy as health is an important factor and the company has earned a respect for
maintaining it. The KesarPista flavour will be new for the UK market that can help in
attracting the customers by providing them an Indian taste (Herrmann and Skyrms,
2021). The Indians in the UK society will also enjoy their native flavour greatly if it
meets with their demand.

 Paradigm – This can be said as the business model of the company which consists of all
the planning and strategies that form the reason for which the company is dealing in the
market and to whom they target for buying and consuming their providing. The Essence
Drinks must consider its social responsibility in the market. It can use the campaigns and
advertisements according to the beliefs and values of the society. The plastic packages
that used by it, for preserving and making the drinks available to consumers can be
changed in a healthy manner that do not harm the environment and health of people.
 Position – In this factor, the customers to which a company is selling its commodities
are concluded with the work and value that these commodities provide and do for them.
For strongly positioning the new flavoured drink in the industry it can use different
positioning strategies (Ramcharitar, 2020). It can use advertisements that involve some
cartoon characters. It can greatly help in gaining the market share by targeting a whole
new group of consumers that are young children and kids. For maintaining the adult base
of customers, it can also show the preference of adults in its packets, advertisements and
involvement of healthy elements. It can help in targeting the group of customers that did
not like the previous flavour of mango or are attracted towards diversified range of
flavours. The drinks must be available to the customers easily.
 Process – This tells about the way in which the product / service provided by the
company is made and delivered to the consumers. For providing the new and different
product, a company must identify the different processes needed for making and
delivering the commodity. Considering the new flavour, the Essence drink must use the
real and qualified flavours through analysing the processes of other Indian companies
that deals in the same category and making a innovative move in it that keeps it on a
competitive advantage by giving less threat of new entrants that can gain the market
share (Pereira, Ferreira and Lopes, 2020).
The innovation funnel is basically the process though which the innovations move, to
finally get to practise them in real. It is the continuous stream of ideas used for managing the
different ideas provided or achieved by a company. It is also called as 'funnel management
process'. Through this approach, the ability of the ideas are checked that tells about the realistic
practise of them. It is a simple concept which helps in providing with the best present ideas of an
enterprise (Lambrou, Samson and Ota, 2018). The Essence Drink can use this strategy for

evaluating the best ideas in the marketplace. For understanding the topic in detail, the three steps
of funnel innovation are explained in the following points :
 Investigation – This is said as the wide mouth of the funnel. With the aim of getting as
many ideas as possible, the knowledge and information base of the company is increased.
The different modes for gathering the information for ideas are used such as –
competitors, marketing studies, researches and through some institutions. For collecting
the ideas, a strong objective must be there for the organisation.
 Developing – Though this stage, the wide mouth of the funnel gets small. The various
ideas that were generated form the first step go through screening. The screening of these
ideas are based on many different activities such as matching the ideas with the goals,
evaluating the efficiency of them and several risks and returns related to the ideas are
studied (Pereira, Wimmer and Ronzhyn, 2020). Then the resources are allocated
according to the return power of the ideas as the resources of a company are scarce.
 Shipping – This is the last stage of the process of funnel. This is the narrow segment of
it. From the vast number of ideas, some particular small amount are selected according to
the ability of them for completion of the objectives of the firm. A new product or service
is released though this stage in the industry.
M3 Produced evidence based business case analysis for the innovation that emphasises the
business value for the potential investment building an innovations case offer oa unique
approaches for tackling one of area issues areas in innovation.
The toughest aspect in innovation is to make a business case as it need to depict an area of
the clear discussions. Knowing the problem, reducing frequently to distraction and noise and
making a professional case si what business need to do in order to attract commitment to their
project they are working upon. Business evaluation obtained provides consistency of the
approaches to all the cases irrespective entire the organisation to build compelling
comprehensive case building techniques that offer all stakeholders their important information
through a transparent process.

Explain developments in frugal innovation and provide examples of how it is used in an
organisational context :
Frugal innovation is the process of making the activity of innovation as efficient without
decreasing its effectiveness much though finding the ways that can help in reducing the cost,
complexity of the product and process involved and increasing in the quantity of production.
Through this process, the non essential activities and elements are removed from that of the
original and ideal process to lowering the costs (Fischer and Scholz-Böttcher, 2019). This can
help the company in tow ways, by increasing the profit margins of the commodities or by
providing the goods and services at relatively less prices to gain more amount of market share.
Some of its principle are concluded in the following points :
 Engage and literate – In place of the old and rigorous activities, the research and
development department has established some innovative methods. Essence drinks can
do market research with less expense, time, and effort by using an online platform that
includes social media and its website.
 Flex your assets – The assets used in the operations such as tools and machineries are
upgraded or changed with the replacements that can lead to less cost usage or more
efficient production.
 Create sustainable solutions – The Essence Drinks must consider the diminishing
availability of resources that are used in different process of the organisation. It can used
recyclable type of material in its packagings.
 Shape customer behaviour-Customers' attitudes regarding the company and its offerings
must be good in order to retain them. Through numerous campaigns and the use of
healthy situations, Essence drinks can aim to build a strong and loyal relationship with
its customers.
 Make innovative friends – For this factor, the company can build its relationship with all
the related community that involves stakeholders, government and suppliers.
M4 Evaluate different tool that organisation uses to develop,. Protect and retain knowledge n
intellectual property of business
There are various tool which are used by business organisation in order to protect, retain
and develop the intellectual property. These tools include the trademarks, copyrights and patents

as these three tools are most common instrument used by business. The copyright applies to a
protection of the tangible and intangible creative works. Through this, it will be easier to validate
company’s ownership in any legal dispute. Trademarks are defined as design, logo and symbol
of business a part of their any marketing strategy. Therefore these are need to be protected fro
any possible commercial saboteurs. Patents carry a legal protection that exclude the other from
making or distributing business inventions unless they have given them to licence.
Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation :
The commercial funnel is a process that provides with the best ideas that can greatly help
in the growth process of a company. It also tells about the needs and wants of the customers
through analysing their purchasing journey. The Essence Drinks company can consider the
different four stages of commercial funnel which are discussed in the following points :
 Awareness – It emphasises the importance of raising a company's market recognition.
Essence Drinks can engage with customers and boost brand recognition by utilising a
variety of online platforms. It can release information on social media or on its website
before launching a new product. Customers' preferences can also be taken into account by
it.
 Interest – This factor can be taken into account by determining people's interest in the
Essence drinks' products and services. The corporation can do this by looking at the
number of visitors to its websites and social media platforms. This will assist it in
reaching a larger audience.
 Decision – This is where the decision to help those who are interested is made. The
company can take advantage of this by sending them messages, informing them,
providing updates, and offering them further discounts. Action – This is a list of the people who really make the purchases. Essence Drinks must
ensure that consumers' demands are met and that they are informed about stock changes
through notifications and updates.
New product development process :
This process is mainly utilised in building new products or modifying the existing made
commodities which may be sold in the market. The Essence Drinks company is innovating a

novalflavoured beverage in the UK market, following points consists of the process that is
should follow :
 Idea generation-The process of building a new commodity starts witha idea. Essence
drinks can consider the idea though practising several researches though its R&D
department (Altman, 2019). Idea screening – This idea works in identifying the practical process of the idea found
and chooses the idea which is best out the list of ideas. Concept development- The idea chosen for implementing is given full focus and the
concept to make it practise in the organisation is identified. Marketing strategy- Through this factor, Essence drinks can identify the want and
capability of the customers to spend on the new established commodity and the cost and
margins used in sale are analysed. Product development- This step tells about the implementation of idea nad all the factors
considered and mentioned above. Market test- This step tells Essence drinks to finally test the established commodity in the
market though using any new type of marketing strategy.
 Commercialisation- Though this, the product is launched in the marketplace and ready to
be dealt.
Build an innovation business case for Essence Drinks including ways to access funding:
The innovative idea identified for Essence Drinks according to the wants of the
corresponding UK market, is the making and selling of KesarPista flavoured lassi. It is an
innovative idea because the beverage dealers in UK does not provide this flavour. It will provide
a new taste to the people that is loved in some other countries such as India.
Steps Description
Summary This business case is show the identification and providing of new
innovative product by the company in different elements accordingly to
have a deep understanding.
Objectives To capture the most share of the related market through satisfying the
customers with the tasty and healthy drink
Mission The mission of Essence drinks is to maintain the health considering factor

in all of its future products
Vision The vision is to provide the customers with new, tasty and healthy types of
beverages that they have not thought of
Innovation in
product
The innovation is the making and selling of new type of beverage that the
UK people are not aware of (Smith-Apeldoorn, Veraart and Schoevers,
2019)
Funding It can use bank loans and investors for funding in its new project. The bank
loan involves some interest rates and investor are the people that invest
their money in a company for gaining the authority and dividends.
Benefits It is a perfect combination of taste and health
Monitoring and
controlling
Essence Drinks can use key performer indicator for this process
Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property:
 Patents – These are some set of rights grated by the legal bodies to an inventor. The
details related to the innovation are enclosed and some related activities that can be
followed and used by any other person are provided. Copyrights- This provide with the security of both tangible and intangible creative
works. These are owned at the moment a person creates something new even if the
copyrights is not registered.
 Licensing contracts –These are the contracts that are needed for the employees to sign
before working in an organisation. This include the condition and regulations of the
related firm, Essence drinks can mention the non-disclosing principle in its contract.

CONCLUSION
From the above rep[rot it has been concluded that, innovation is creative process that can
provide with a huge competitive edge to a company through availability of new types of goods,
methods, techniques or services that are not used by the market. Many different factor affect the
process of innovation and commercialisation. The modal of 4Ps of innovation involves product,
position, paradigm and process. Commercial funnel is a process that greatly helps in identifying
the best ideas from the marketplace. There are different types of tolls that provides protection to
business firm or a person towards the innovatory idea such as – patents, copyrights and licensing
contracts.

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