Innovation and Commercialization in Essence Drinks

This report discusses the importance of innovation and commercialization in Essence Drinks, the role of frugal innovation, and how to apply the innovation funnel. It also covers the 4P's of innovation and the sources of innovation. The report emphasizes the significance of organisational vision, culture, teamwork, and leadership in shaping innovation and commercialization.

Innovation and
Commercialization

Table of Contents
INTRODUCTION ..........................................................................................................................4
Part-1................................................................................................................................................4
Concept of innovation and how it is different from invention...............................................4
Organisational vision, culture, teamwork and leadership can shape the innovation and
commercialization..................................................................................................................5
Organisation can foster and develop a culture and environment of innovation while analysing
different sources of innovation...............................................................................................6
Analyse innovation is developed, embedded and measured in the context of Essence Drinks.. 7
4P's of innovation and use of innovation funnel to analyse and shape the innovative ideas. 7
Analyse and apply innovation funnel in the context of Essence Drinks................................9
Development in frugal innovation with suitable examples in the context of Essence Drinks.10
Appraise the role of frugal innovation..................................................................................10
Build financial reports..........................................................................................................10
Part-2..............................................................................................................................................11
Importance of commercial funnel and the application of NPD............................................11
Build an innovation business case........................................................................................14
Innovation business case which includes how to measure its overall effectiveness with
suitable techniques................................................................................................................15
Different tools that can be used in developing, retaining and protecting knowledge and
intellectual property..............................................................................................................15
Evaluate different tools in the organisational context..........................................................17
Evaluate the nature of innovation while providing evidence-based judgements on how
companies can overcome challenges....................................................................................17
CONCLUSION .............................................................................................................................17

REFERNCES:................................................................................................................................19
Books and Journals:..............................................................................................................19

INTRODUCTION
Business environment is consist with complexities and competitions which are
challenging for the companies. This makes organisations to survive in the challenging
environment so they need to find methods for survival in every possible way. For the purpose of
being part of the business competition, innovation is the best method for the business in which
they build new ideas in their current products and services. This assists them to stay competitive
in the business world. Innovation can be viewed as a process of renewing current product,
service or domain and brought up against advanced technologies so that new idea development
can realize its worth. While commercialization can be termed as a process of introducing and
launching new product in the marketplace and making it available for the consumption purpose.
Both innovation and commercialization terms are interrelate with each other where
commercialization helps business to gain profits from the innovative product or services. It also
provides additional improvements and effectiveness to the current process, product and service
(Abass and Et.al., 2018). The following report is based on the case study of Essence Drinks in
which company launched one drink i.e. mango lassi in the market of UK and achieved a
outstanding sales in the first year but in the later years they found a decrease in the sales due to
heavy number of competitors in the market. Akshay Kumar who is the founder of the business
wants to innovate their current product and services while go simultaneously with lassi. As a
business consultant, it has been suggested some innovation techniques to the founder that can
enhance their current sales and profits.
Part-1
Concept of innovation and how it is different from invention.
Innovation in the business means bringing new ideas and thoughts of doing things. It
involves a process of establishing new and creative products and services for taking competitive
advantage in the marketplace. Innovation is defined as a process of building new ideas in order
to execute it into realities, This will help companies to gain customer attention in the new
product or service (Anandajayasekaram, 2019). In context of Essence Drinks, they are looking
forward to adopt new and creative ideas in their current products and services as their current
sales slows down. Akshay Kumar wants to bring new ideas to diversify the current flavour of
lassi with additional taste so it will help to boost the sales of lassi as their current customers are

bored with the mango flavour. As a business consultant, it has been suggested to innovate their
current product and recognize the importance of innovation.
Significance of innovation-
 Innovation helps to gain competitive benefits which is very important for the business.
 Through innovation, Essence Drinks can effectively differentiate their products and
services while adding extra benefits to them (Arora and Et.al., 2020).
 Innovation is the significant source of economic growth as it will reduce the production
costs and boosts the profits for the business.
While understanding the importance of innovation, it is also necessary to acknowledge
that innovation is not similar to invention. With the help of following table, Akshay Kumar can
better understand the differences between innovation and invention:
Basis Invention Innovation
Definition Invention is all about creating
new and fresh ideas to make
product and services that never
exists before.
Innovation means upgrade
those ideas that adds extra
value to the existing product
and service.
Concept It refers to original and unique
idea.
It refers to the existing idea.
Skills It needs scientific skills. It needs creative, marketing,
and strategic skills.
What is it? It is the creation of new
product.
It adds value and advancement
of the created idea.
Activities They are limited to the
research and development
department.
It is spread all over the
organisation.

Organisational vision, culture, teamwork and leadership can shape the innovation and
commercialization.
Organisation creates a culture in which employees perform and work accordingly. It can
be negative and positive culture which have a direct impact on the employee's performance and
productivity. It is also vital to shape the innovation. If the organisational culture is dynamic and
flexible then it can easily adopt the required changes and employees are ready to develop
creative ideas and solutions which are innovative and effective to attain business objectives. So
organisational vision, teamwork, culture and leadership plays an essential role in order to shape
the innovation in business (Bröring, Laibach and Wustmans, 2020). The discussion is given
below:
Vision:
It is important for any organisation to share clear vision to their employees as it help to
understand that what they are working for and what their managers want them to work. It helps
employees engaged in the activities and enhance their performance while putting value to the
business as well. The clear vision of Essence Drinks is to develop a certain innovative range of
products and services and keep their traditional flavour i.e. mango flavour along with it.
Culture:
Culture refers to the surrounding that decides how employees should behave and act in
the company. In context of Essence Drinks, they are required to create an innovative work
culture in which employees could easily adopt changes and think creative while working.
Teamwork:
Teamwork is very essential in any organisation. When employees work in team, it creates
effectiveness and promptness in the work. Teamwork means group of people who work for a
common motive. In context of Essence Drinks, the founder can ask their employees to build new
ideas through brainstorming sessions (Durán and Et.al.).
Leadership:
Leadership is a vital practice in the company that can encourage and motivate employees
to work with enthusiasm which will result in the growth of the business. Akshay Kumar can
influence and encourage their employees to adopt changes as it is necessary for the business.

Organisation can foster and develop a culture and environment of innovation while analysing
different sources of innovation.
Source of Innovation- The unexpected: Exploring market is important for the companies where manager or
leader can grab new opportunities that improve the current sales for the products. Process need: It contains where organisation can find their weak points in order to
correct and redesign them. In context of Essence Drinks, it can refer to a task oriented
solution which comes from the existing way of conducting business.
 The incongruity: It refers to the tricky process of what is doing and what should be done.
Essence Drinks can take this source of innovation as a key to develop successful
business. This source explains that a company should be not ignore the unmet wants and
complaints of customers that affects the success of the business (Gassmann, Bader and
Thompson, 2021).
It has been analysed that organisation need to develop a positive work surrounding and
dynamic work culture that helps to bring innovation. Organisational clear vision helps to bring
the clarity that what the company expecting from their employees. Effective teamwork and
leadership can bring effectiveness and increased productivity in the business.
Analyse innovation is developed, embedded and measured in the context of Essence Drinks.
It has been critically analysed from the above sections is that organisation must embed
the innovation with the company. Essence Drinks brings change only when they create a
dynamic work culture where employees ready to change. Employees bring innovative ideas
through brainstorming sessions and employer may choose the suitable ones that can fulfil the
purpose. Workers must understand the concern of innovation as it is the key element of success.
So, innovation can be developed, embedded and measured in the organisation.
4P's of innovation and use of innovation funnel to analyse and shape the innovative ideas.
The 4P's of innovation can be utilized by Akshay Kumar in shaping the innovative ideas,
which are given below:

 Product: The product i.e. mango lassi of the Essence Drinks must be unique as the
success of the organisation depends on the product and the methods through which they
represent their products in the market (Gretchenko and Et.al., 2018). Process: The process signifies the steps which are taken by the company. It includes
manufacturing, distributing and advertising a product in the market. Paradigm: It refers a step where a company can see the new aspect of the business. In
context of Essence Drinks, while producing lassies in the market, they can also offer
milkshakes to their customers through which customers can get options to consume
drinks. Position: It refers to the change in the target market of the company. Such process could
harshly impact the process of innovation. Akshay Kumar is not preferring any kind of
changes in the target market.
Use of innovation funnel-
It can be defined as a mechanism that allows a constant streaming of thoughts and ideas.
It is also termed as funnel management process. The innovation funnel is a famous approach for
the innovation that is practiced by organisations to build a innovative and realistic action plan. In
context of Essence Drinks, innovation funnel is required as the company's sales has been
decreased from past few years and need to innovate their present product (Haddad and Et.al.,
2019). It is concerned with four stages: Ideas and conceptualization: It is an initial stage in which Essence Drinks should focus
on the idea generation in order to choose the suitable one by critically analyse every
option. The organization is needed to focus on the concept to consider various innovative
ideas through brainstorming sessions.

 Feasibility analysis: In this stage, ideas are eliminating from the pool of ideas. For such
purpose, Akshay Kumar needs to test the feasibility of every option which satisfied the
needs of objectives. Development of new raw material: In this stage, an organisation need to develop new
raw materials as per the requirements of best ideas that are chosen before. It is the stage
of selecting the suitable idea after analysing the pros and cons of every option.
 Customer approval and trade:This is the last stage in which company needs to take a
approval from their customers so that new and innovative product can be sold. If the
products get approved then it can be traded but if not then company needs to put some
more changes (Hou, Hong and Zhu, 2019).
Analyse and apply innovation funnel in the context of Essence Drinks.
It has been analysed that innovation funnel can be separated into three segments which
has a initial stage of idea generation, next step is the concept development and narrow concept
explains the concept of launch. Akshay Kumar can utilize the innovation funnel in their business
by generating new ideas which are required to be developed in the business. The second step is
of concept development in which new product is created and then their scope is finding out that
are vital for the product. Last step is the concept of launch which incorporates of produce
business case for Essence Drinks and then creating the products, testing the products and
commercializing the products.

Development in frugal innovation with suitable examples in the context of Essence Drinks.
Frugal innovation can be meant by the process in which costs and complexities of
innovative product are reduced. In other words, it helps to avoid the unnecessary characteristics
from the product in order to sell in the market. Through frugal innovation, a company can find
solutions that helps reduce the costs of product or its production. This can be better understood
with the help of example, which is stated below:
 Essence Drinks must focus on the resources and materials that have been used in the
production of innovative products. For example, Essence Drinks can avoid the process of
shaking lassi by hand as there are several automatic machines are available in the market
which could shorten the time and efforts.
 Reducing the use of resources is another method that create frugal innovation in the
organisation. Suppose, Akshay Kumar can reduce their workers as there are machines
available that could take their place of preparing lassies. The company required to invest
only one time for the purchase of materials (Iqbal and Et.al., 2019).
Appraise the role of frugal innovation.
It has been realized that innovation is very necessary for any company as it is the key of
successful business. It is important for the Essence Drinks to think and apply frugal innovation as
it helps to eliminate unnecessary costs of the products. Frugal innovation is the method through
managers can reduce and minimise the extra costs in the innovative products and services. For
instance, this can be done by eliminating costs in the manufacturing process, eliminating
unnecessary features in the new product and many more. It is essential that these steps can be
applied in an effective way so the organisational goal can be gained. Hence, it is suggested that
Essence Drinks should produce innovative products but also use cost effective strategy that can
enhance the profits for the business.
Build financial reports.
Requirements Cost
Costs of fruits 4000
Machinery and equipments 2000

Labour 1000
Production costs 2000
Advertising costs 1500
Part-2
Importance of commercial funnel and the application of NPD.
Commercial funnel is a marketing term which is used by the business as a vital tool to
find, qualify and trade the new product to their customers. It is associated with the journey of
consumers to gain their attention towards brand so they can buy the product. It involves the
important steps that helps to improve the current sales of business (Kebebe, 2019). In context of
Essence Drinks, the following are steps of commercial funnel:
 Attract: This is the first stage in commercial funnel in which company finds different
ways to invite customers to the brand and convince them to purchase innovative
products . In context of Essence Drinks, they find ways to invite their customers to try
their different flavoured lassi. In this stage, Akshay Kumar assumes that their customers
have no idea about the new and innovative flavour of lassi, thus, they are required to
utilize several marketing techniques such as advertising or other marketing campaign to
let their customers know about the product.

 Convert: This is stage where company converts their strangers into visitors so they can be
able to taste the new flavour of lassi. Akshay Kumar assumed that visitors have little or
no knowledge about the company so they are necessitate to use appropriate strategies in
order to maintain the regular and healthy connection with their customers through email,
phone calls, SMS and many more (Konlambigue and Et.al., 2020). This will also help to
weigh the preferences of their visitors. Close: This is next phase in the sales funnel where company deals to boost their sales for
the respective product. With an addition to Essence Drinks, the company demonstrates
the benefits of innovative lassi to their customers (Zuo, Wang and Corder, 2019). For
example, lassi commonly used in summer season where customers want something that
refresh their body and soothes their mind so company demonstrates about the product
that how lassi can be beneficial to their health.
 Delight: This is the last stage in which customers are happy with the product of Essence
Drinks where it also helps to success the product and increase the revenue.
New product development is also important for the company. Its application required
several stages which must be understood by the company. In context of Essence Drinks, there are
eight stages of the new product development, which are given underneath:

 Idea generation: This is a step where company required to generate creative ideas for the
new product development in which Akshay Kumar asks their employees to build new
ideas through brainstorming sessions (Longmore, Grant and Golnaraghi, 2018). Idea screening: In this step, company is needed to work on different ideas generated in
the first stage. Akshay Kumar filter and choose the best idea among all. Concept definition: After choosing the suitable idea, the company looks for some
specification such as product design, technical feasibility, market potential in order to
check the possibility of the new idea. Marketing strategy development: Essence Drinks requires to develop their marketing
tactics in which they should outlines the description of target market, marketing budget,
prices, 7P's of the marketing mix. Business analysis: This step reflects the review of new idea in terms of cost, sales and
profits so that effectiveness of the idea can be found in the context of Essence Drinks.

 Product Development: In this stage, finally the product has been developed and in case
of Essence Drinks, the company creates different flavour of lassi in the market. Test marketing: This step is very crucial to the company where it offers some samples of
product to the customers in order to test the success of the product as the customers like
the product or not. In context of Essence Drinks, it is a vital step where company can test
their innovative product and its sales in the marketplace (McCarthy and Et.al., 2018).
 Commercialization: In this final stage, the company is ready to deliver the product in the
marketplace with an intent to earn profit, boost brand value, increases sales and many
more.
Build an innovation business case.
Business case is build during the early stages of the proposed project and outlines the
what, how, why and who essentially to decide if is worthwhile to continue the idea or not. In
context of Essence Drinks, it evaluates the costs, benefits and risks of the proposed idea and
facilitates a rationale for the preferred solution.
Innovation business case- Vision: The vision is to enrich the life of customers through healthy and balanced drinks. Mission: The mission of Essence Drinks is to cater healthy and quality lassies to the
prospect customers, also make a place where employees and other staff members feel
happy to provide those lassies. Objectives: The main objective is to make a leading brand which serves delighted
products and services (MUAFI and Et.al., 2020). Market research: This is a research about the target market where company can produce
and offer as per the demand of the market and where aims can be fulfilled without any
harsh problems. Financial reasoning: This should be understood by the company that fulfils the financial
requirements and does not go beyond the pre-decided budget so that expenses won't be
increased. Potential marketplace: The target market can be those where the Essence Drinks can be
accomplished their goals, where profits and sales can be increased and customers feel
delighted.

 Bootstrapping: In order to start a project, it can be an fundamental procedure where one
can invest his savings as the contribution. This can be considered as the easiest and quick
solution of funding. Crowd funding: In context of Essence Drinks, the company can gain its popularity in the
local market of UK. This one is the great solution to raise the funds from the big group of
people in order to initiate the project of the company.
 Venture capital: On a bigger scale, equity shares can also be issued to raise the funds for
the company.
Innovation business case which includes how to measure its overall effectiveness with suitable
techniques.
It has been found that Essence Drinks is one the great company in UK where they sell
lassi to the customers but in the third year of business, the sell has been declined. With the help
of innovative ideas, the founder is now able to work on the current product and modifies it with
some uniqueness. This will help them to gain competitive benefits and attain their respective
goals. Essence Drinks execute their idea to bring innovation in the current products as it helps to
enhance the operations and functioning (Nejabat and Et.al., 2018). If the company deals with the
effective stages then their resources can also be utilized. This will actually help them find
sources of funding.
Different tools that can be used in developing, retaining and protecting knowledge and
intellectual property.
Intellectual property (IP) means the creation of mind which is intangible such as
inventions, designs or symbols or images used in commerce, artistic works and so on. IP is
protected by law which allows people to gain recognition or any financial benefits from they
create or invent. In context of Essence Drinks, the following are some tools and techniques
through which they can protect their knowledge and intellectual property: Patents: Patents are the useful tool that helps company to protect their inventions and
improvements that have been placed in the products. Hence, it is a protection or a legal
right that been used by Akshay Kumar to restrict the use of invention and idea.
Pros Cons
 It helps to protect the right of owner  It requires higher amount to protect the

and motivates them for the new
creation.
 It facilitate a right to sue or take a legal
action against the person who try to use
their idea without their permission.
right.
 Patentee must kept the date of renewal
in mind otherwise others can take
benefits.
 Copyright: Copyright is a useful tool for the person who is interested or have a
knowledge associated with literature or writing. This type of right has been catered on
books, scripts, articles, music and many more.
Pros Cons
 It aids person to protect their interests
in writing.
 The person who gets the right can save
their materials from stealing or from
the person who can use for the profits
and takes the credit.
 It can protect only words and
expression of the material but not
actually protect the idea behind the
work.
 Trademarks: Trademark is usually used by businesses in order to represent their
uniqueness in the market and where customers can differentiate the brand from one
another (Oduro, 2020). This demonstrates the right against logo, sign or design which can
be used by business as it is not registered yet by any person.
Pros Cons
 It facilitate a recognition to the brand so
that their customers can be able to find
the brand.
 It saves against competitors and other
companies to copy the respective
product and sell on their behalf.
 It is essential that fees must be paid on
time otherwise it creates problem as
trademark will be no longer (Zhang and
Ravishankar, 2019).

Evaluate different tools in the organisational context.
It has been evaluated that there different tools and techniques available in the intellectual
properties act which can be used by the companies to protect their knowledge and intellectual
properties. These tools are very useful which protect the respective organisation from their
competitors and enable to enjoy competitive advantage. As the business world is dynamic, it is
very essential to gain competitive benefits in the market to achieve success. The trademark is an
important tool for the Essence Drink which helps them to save their products and creative
thoughts from being copied and sell by other organisations with their name. It is not only harm
their profitability but also damages the reputation in the marketplace. Trademarks also helps to
recognized by their customers and safeguard them to consume fake products. Patent and
Copyright are also useful tools that protect their innovative product i.e. different flavoured lassi
from their rivals (Peters and Jandrić, 2019). Hence, all such tools are beneficial as it aids
company to survive in the competitive business world.
Evaluate the nature of innovation while providing evidence-based judgements on how companies
can overcome challenges.
It has been evaluated that Essence Drinks is famous brand that sells mango lassi in UK
market and want to innovate their current product with range of flavours but do not want go
away from the traditional flavour of mango lassi. It is a vital step which is taken by the company
to increase customer base and enhance the growth in the market. Such type of innovation is
drastic in nature as it needs a lot of modifications in the product and its productions (Tseng
Huang and Chen, 2020). When the founder realise that they fell with significant decline in the
sell, they must adapt creativity in the existing product that catches lots of attention and delivers a
favourable impact on the business. Although, there are few challenges faced by Essence Drinks
while implementing the innovation idea but with effective management, appropriate tools and
techniques it can be overcame.
CONCLUSION
From the above report, it has been summarized that innovation is the key to any
successful business. It is a process which assists company to offer new and innovative products
and services that is essential for the business effectiveness as innovation also attracts customers.
Innovation is different from invention where invention is the creation of new and fresh idea

while innovation assist in adding value to the current product. There are 4P's of innovation which
i.e. product, process, position and paradigm which helps company to develop and apply
innovation process in an effective way. Frugal innovation helps to eliminate the unnecessary
costs of products and its production which impacts the profit of the business. A business owner
can protect the new knowledge and intellectual properties through various options such as
trademarks, copyrights or patents. Every method has some pros and cons so it is essential to
choose the suitable option.

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