Analysis of Innovation and Commercialisation for Essence Drink Company

This report provides a comprehensive analysis of innovation and commercialization strategies, using Essence Drink as a case study. It begins by differentiating between invention and innovation, exploring how organizational vision, culture, and leadership shape these processes. The report delves into the 4Ps of innovation, the innovation funnel, and frugal innovation, providing real-world examples. It then examines the importance of the commercial funnel and new product development, culminating in the creation of an innovation business case, including funding access. Finally, the report addresses the tools organizations use to protect their intellectual property, offering a holistic view of innovation and commercialization in a business context.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Difference between invention and innovation..................................................................3
P2 Explaining organisation vision, culture and leadership shape innovation and
commercialisation...................................................................................................................4
LO2..................................................................................................................................................7
P3 4Ps of innovation and the use of the innovation funnel to examine and shape innovative
ideas........................................................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................8
LO3................................................................................................................................................10
P5 Importance of the commercial funnel and the application of New Product Development.10
P6 an Innovation Business Case for an organisation, including ways to access funding.. . .12
LO 4...............................................................................................................................................14
P7 Tools used by the organisations for retaining the intellectual property..........................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
The term innovation is the process of developing some new value in the existing product
or market. Innovator translate an idea or invention into a product that generate for which
customer are ready to expense their money. Innovation are developed to satisfying a need,
demand and expectation of a customer. With the help of Innovation company create a way for
making alliance with new customer and to formate flexible working hours for employee's. The
word invention is a process that start from engireeing and end with creation of a new product that
is not exist in the market. Organisation chosen for this report is Essence drink which operate its
business in United kingdom. Essence drink successfully launched it Mango lassi in the market
which show great response from its customer. Now company want to introduce new product in
the market(Dereli 2015). So they attract more customer for their business. Difference between
innovation and invention. Stages for a new product development and importance of invention
and innovation are the topics that are covered in this report.
LO 1
P1 Difference between invention and innovation.
Invention is the composition of different activities that combine together to make a new
product or service in the market. In the process of innovation it include overall development of a
product that start from converting raw material into finished product. The word invention include
different types of invention which are as follow:
Scientific- In these invention new technology is launch in the market. It is totally a
scientific process that create a new product or service in the market like phone, computer etc.
Socio-political- Under this invention new laws, rules and regulation are created in the
market. Socio-political invention is developed to change the human behaviour in an
organisation(Cowen and Shenton 2017).
Innovation is a tool for entrepreneur that developed a new value in the product. It is the
new concept by which company use their resources to create a new value in a product. Innovator
develop a positive change in a existing product. In the innovation some fresh solution are applied
to find the solution of a problem. Some type of innovation are defined as below:

Evolutionary innovation- In this type of innovation innovator develop regular changes in
a product or service. This changes are developed to improve the technology of a product. Like
to add new feature in our product.
Revolutionary innovation- This type of innovation are always new and are risk taking as
they explore and create a new market in the organisation. It is a complex process because change
is an existing product are not accepted by market easily.
Compare between invention and innovation.
Basis Invention Innovation
Product With an invention, inventor create a
new product or service in the
market.
In the innovation, innovator develop
more value in existing product or
service.
Concept Invention is an idea which start in
theory and end with practical
implementation of the theory.
In innovation product is already
exist. But the idea to increase value
in a product is very practical.
Development In an invention a single product is
need to be develop in the
organisation. It is a process which
start from manufacture and end on
consumer.
Innovation is the group of different
activities that combine together to
increase the value in a product or
service.
P2 Explaining organisation vision, culture and leadership shape innovation and
commercialisation.
Vision- The word vision define the future image of a business. Vision help a company to
create and achieve their goals in the market(Chen and Lynn 2012). The vision of essence drink is
to increase its market share in the market by introducing more variety of their products. The term
Innovation help essence drink to create vision that give them a clear focus of their goal. As
company want to expand its business in similar segment. So mixed fruit lassi is a better option to
launch it into US market. Some of the benefit of innovation and commercialisation are as follow
Stand out from competitors- The major reason to develop a new innovation in the
organisation is that it help a company to stand out from its rivals companies. Like Essence drink

make lassi many companies produce similar product. So with innovation company stand its
products in a unique way from other substitute product.
To meet customer needs- Customer needs are very dynamic. At first day customer like its
product while after some time customer demand is something else. So innovators predict the
change in customer demand and manufacture product according to customer need.
Leadership- The role of a leader in the company is to motivate their employee's. So the
performance of an employee is increased and help company to achieve its target easily. The
Democratic leadership style help essence drink to take decision with the opinion of their
subordinates. So it is beneficial for company to explore more new ideas or variety of lassi that is
feasible to launch. Several point which show importance of innovation as per leadership style.
Attract best talent- Companies want that large number of talented people will work for
them. As it help Essence drink to make its products more effective and it help them to generate
more profits. So it is the responsibility of a leader to boost the employee's of an organisation and
bring out more productivity from them.
Culture- The word culture describe value and assumption that is followed by Essence
drink. The culture of an organisation decide the type of innovation that company implement for
their product and service. In context of Essence drink company go with evolutionary innovation
as it help them to add more feature in a product(Bhatti 2012). As company did not want to
change its segment so Evolutionary innovation is more healthful for their new mixed fruit lassi.
There are large number of employees who work together but belong to a different
background. So organisation develop a culture inside the organisation which is followed by all
employees. In context of Essence drink management implement Handy typology of culture.
Essence drink establish themselves few years ago. As task culture provide more benefit to them
because in this culture level of cooperation is high with the equal power decision. This help
management to put effort towards a result oriented approach.
Teamwork- Team is define as a member of an organisation who work together to achieve
the goal and target of an organisation. The team members of the organisation will discuss about
strategy by which they put their efforts in right direction. For the case of Essence drink team
member discuss idea and information about the product. So it is easy to launch their mixed fruit
lassi in the market. In the case of Essence drink they implement Belbin model of team under this
model there are nine type of different character which combine together to make a effective

team. For Essence drink resource investigator is a person which implement in teams. Because
this person are extroverted and very enthusiastic and always look for new ideas.
Sources of innovation
The term innovation is a deep study to make some changes into a new product. Company
has various alternative by which they develop innovative ideas. Some of them are as follow:
 Changing perception- The customer has many option to buy a particular product. So
the buying decision of a consumer is not stable towards a same thing. In past years
overweight people are known as healthy but in present scenario lean person are
more healthy. So with these perception customer's demand a healthy and low
calorie food that help them to stay fit.
 New knowledge- Knowledge is the major source of innovation for a new product.
With this source innovator will gather information about the market. Essence drink
is already exist in the market and manufacturing mango lassi(Andersson and et. al.,
2016). So their new product mixed fruit lassi is easy to produce and sell in the
market.
 Demographics- The way of living a life style is also a source for innovating a new
product. Like in present scenario most of the people are health conscious. So they
consume a healthy diet to stay healthy. Essence drink predict this opportunity and
convert and convert it into potential market. By launching their mango lassi in the
market.
 Necessity- Essential product are the manufacture of a innovation. Need always
strike the mind of an innovator and inventor. Innovation are always the bright ideas
of human mind. Like demand of lassi strike in the mind of Essence drink to increase
their product variety. So the market share and profits of company is increased.
LO2
P3 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas.
The term innovation contain four P's which help an organisation to support company
innovative ideas. The 4P's model of innovation was developed by John Bessant. These 4P's are
mention as below:

 Product Innovation- The word product innovation include everything whether product or
service that is offer by the organisation(Aghion and et. al., 2013). To improve a product
companies use this type of product innovation. Like in Essence drink company explain
that mixed fruit lassi is healthy as well as good in taste.
 Process innovation- The process innovation include way and method by which product
and service are manufacture and delivered by the company. Most of the companies focus
on the customer in the process innovation. So with these innovation consumer are more
needs are more satisfy.
 Position innovation- The product is position in the market by which it attract more and
more customer for their product. Like Essence introduce its new mixed fruit drink in
market by create position for healthy market. This position is developed by company by
creating positive customer perception in the mind of our customer for Mixed fruit lassi.
 Paradigm innovation- It stand for change, in these how, what and why a product is
developed all are explain with a single phase. Paradigm contain theories, models and
belief that support a new innovation for the customer(Govindarajan and Euchner 2012).
In the case of Essence drink company first decide strategy, method and technique by
which mixed fruit lassi is easy to develop and consume.
Use of innovation funnel
The aim of product development for a project and to develop a idea that help a business
to convert a concept into reality. This concept help the consumer to fill their need. Company
developed this concept in an economic form so it also help company to earn profit. Essence drink
use the funnel innovation in their company to develop a new product. As company decided to
launch mixed fruit lassi in the market. So for this product company put a large number of inputs
and then slowly refines and keep only those resources which are essential for their new drink.

Some uses of innovation are as follow:
 There are large number of ideas in an innovation funnel that are purposed in the market.
As for the new drink company need to develop a new strategy in their market. So frugal
innovation help company to reduce its cost in the process of manufacturing(Hall and et,
al., 2014).
 With the help of frugal innovation company develop a flexible process by which
company easily make changes in the process of their new mixed fruit drink. As market is
very dynamic to understand. So frugal innovation help company to make their process
flexible.
 Frugal innovation is a very complex process so the company need to monitor regular
change in the development process. Like for frugal innovation contain more number of
inputs. So company develop a process by which they effectively and efficiently input
process of frugal innovation.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is concerned with bringing products, services and systems within the
reach of poor and emerging middle class customers. This process discover new business models,
assembles value chains, redesigns products for the purpose of serving customers who faces
extremely affordable constraints in a scalable and sustainable manner(Jolink and Nieste 2015). It
provides functional solutions through scarcity of resources from which needs of various people
can be fulfilled. In this, the main idea of the innovators is concerned with development of
products and services which fit in markets special needs and requirements and that were cheap
enough that every customer can afford it easily and effectively. This types of innovation is
considered by the company when there is scarcity of resources. It is seen as an outcome and as a
process as well. And the process is referred to as frugal engineering whereas the result or
outcome is referred to as frugal innovation. Example of frugal innovation the Moladi housing
technology compare the firms with a social inclusive that is Do more with less. As in African
countries housing is the most sensitive factor. So South Africa government affect support to
develop affordable houses for their country individuals. This opportunity is predict by Moladi

family and they implement a idea in which they developed a new technique to make wall instead
of making brick walls.
Frugal innovations are very important for the organisation because of the following
reasons :
 Growth and cutting finances to cut down debt in developed economies which will
maximise demands for frugal products and services and frugal innovation processes.
 Environmental constraints around climate, energy, water and other resources will
maximise demand for more frugal models of production and consumption.
 New technology platforms are forcefully eliminating the cost of some forms of
innovation, creating huge, new opportunities for frugal innovators(Meissne and Vonortas
2017).
 Protective for quickly ageing societies will require completely new approaches to health
and social care, including radically rethinking business models and value chains that are
apparent in some examples of successful frugal innovation.
 Today’s quickest increasing markets are in developing and emerging economies where
demand for frugal products and services is high.
Therefore, the fruit flavoured essence drink company will also focus on frugal
innovation. In this, the company can use innovation so that cost can be cut and customer can
afford the innovative product easily. For this purpose, company will focus on bio degradable
cups which can be recycled and are also less expensive. Apart from this, the company will adopt
such means of promotional tools which are less expensive or need no money to promote new
product in the market. It can include, advertisements and promotions on social media sites like
Facebook, Instagram, Whatsapp, etc. This will be useful in cutting the cost for the company
which will eventually lead to the establishing lower budget for promotions.(Prabhu J 2017). The
company will also deal with wholesalers of fruits and curd so that they can get that at lesser price
and with better quality. With this, the company will be able to provide the essence at low price
that can be easily affordable by the people.
Commercialisation- It is the process of bringing new products in the market. It include
all the acts like production, marketing and sales to achieve the success for its new product and
service. It include all factors which is ideation phase and the process and to retain its
stakeholders.

LO3
P5 Importance of the commercial funnel and the application of New Product Development.
Commercial funnel is a graphic representation of the sale process from which every
customer has to go through before making a decision to purchase a product or service.
Importance of Commercial funnel is discussed as below:
 Sales funnel help a business to attract more visitor for their product. The essence
mixed fruit drink use commercial funnel to cover more market. Like to expand its
market from existing customer to more number of customer.
 Commercial funnel help the company to evaluate its market campaigns. Like for
essence it is beneficial to find out that which marketing channel are more effective
for their new mixed fruit drink.
 For essence drink it is beneficial to listen the opinion of employee's and review of
customer. So company easily adopt the changes and modify their product as per
customer needs.
Stage for a new product development
The new product development is a long term performance of the company. For a new
product company follow some steps which help them to launch a new product which are as
follow:
 Idea generation and screening- To find out new ideas are the first step for a company to
start the process of new product development. Like for Essence the idea for a new lassi is
generated when company face decline in the sale of their mango lassi. As when company
explore a idea for a new product there is large number of new concept but few of them
are feasible(Reed and et. al., 2012)(Soni and Krishnan 2014).
 Concept development and testing- after finalize of a idea, a single concept is decided.
This concept is a detail strategy for a new product. In case of essence drink company
chosen to launch a mixed fruit lassi because it is good for health and feasible also.
 Business strategy and product development- After finalzing the concept company check
and analyse which is the best strategy, marketing, branding etc. is suitable for our new
product. After all the strategies are approved and analyse. Company test them so they go
with most efficient strategy. Example- In Essence drink lassi, concept for mixed fruit is
lassi is acceptable by society.

 Test marketing- After finalising all the concept and strategy for the new product.
Company decided to launch its new product in the society. In this case Essence drink
explore launch their lassi in a small market. To check the response of different
customer(Tiwari and Herstatt 2012).
 Commercialisation- After the positive feedback of the customer it is the stage in which
the marketing mix it is applied for the new product. Like for essence drink company
target their specific customer and decide the prices which are accepted by customer.
New product development at Essence Drink
Flavor- Essence drink is already capture high market with its mango lassi drink with large
area of market. For new product company launch make mixed fruit lassi as company does not
want to move away from its strength.
Ingredients- For mixed fruit lassi, company collect curd and fruit that are essential for
manufacturing lassi. As essence drink is already occupied with machine to produce lassi.
Price- It is major factor that impact on the sale of a product. Management analysis and
decide price which make cover the production cost. As also does not provide burden on customer
budget.
Packaging- To attract more number of customer packing is the major factor that impact
on the consumer perception. Like for the new mixed fruit lassi company develop new label,
name and effective colours to create a attractive packing.
Organic- In present scenario customer's are more health conscious. So it is beneficial for
the company to make a product that is organic. Like fruit are healthy ingredients that make
mixed fruit lassi healthy and tasty.
Nutritional value table
Basis Calories Carbs Fat Protien Fiber
Milk 56 2 5 2 1
Fruits 163 35 1 2 7
Natural flavor 20 0 0 0 0
Nuts and sugar 276 9 22 10 5

With this nutritional table company produce a balanced diet by which they attract all segment of
market. Like health conscious customer and sports person.
Funding for new product:
Essence drink launch a new product in the market. So company start its process from the
raw material towards finished product. Like for this new lassi company need funds to make their
product stable in the market.
 Investor provide funds to help company for the process of manufacturing a product. In
this case Essence drink innovative a product with raise funds from investor.
 Surplus profits help company to make a product in the market. Like they develop
marketing strategy for its mixed fruit lassi.
 Bank loan help the essence drink to raise sufficient amount of money that is required
by the company for its whole process.
P6 an Innovation Business Case for an organisation, including ways to access funding.
A business case is the whole detail plan for a new product. For the case of Essence drink
company decided tool, techniques, method and strategy for these mixed fruit lassi. In business
case all factors are included that impact the business. The detail business plan for the Essence
drink is as follow:
Summary of the organisation
Essence drink is already selling their mango drink in the market. As in the first two years
after introduced the lassi in the market it show a growth in the market. People are consuming
more as it healthy for them. But after third year there is a decline in the sale of their mango drink.
So company decide to launch a new product(Toivane and Väänänen 2016).
Need of the product
The slow sale of lassi in the third year realize company that there is a need for a new
product. First reason is that people didn't want similar taste. Second reason is that market for
healthy beverage is increasing day by day. So company want first mover advantage in that
market.
Innovation about the product
Many companies are already a existing player in the market of lassi. But the essence
drink has an innovative idea in which they mix different fruits with curd. This result that it
develop a good taste and it is healthy to consume. So healthy and sport lover consumer are also