Innovation and Commercialisation Strategies for Essence Drinks Report

This report examines innovation and commercialization strategies, using Essence Drinks, a UK-based beverage company, as a case study. It explores the importance of innovation compared to invention, emphasizing the need to adapt products to meet market demands. The report analyzes how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. It delves into the 4Ps of innovation (product, process, paradigm, and position) and the innovation funnel, including incremental and radical innovation. The report also discusses frugal innovation principles and the commercial funnel, including the application of New Product Development (NPD). Furthermore, it includes building an innovation business case and evaluating tools for developing, retaining, and protecting knowledge and intellectual property. The report concludes with a focus on how Essence Drinks can leverage these strategies to improve sales and gain a competitive advantage in the market.

Innovation and
Commercialisation

Table of Contents
.........................................................................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Innovation and determine its importance to organisations in comparison with invention. . .4
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................5
TASK 2............................................................................................................................................6
P3 Explain the 4Ps of innovation and use of the innovation funnel...........................................6
P4 Explain developments in frugal innovation..........................................................................8
TASK 3 ...........................................................................................................................................8
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD)....................................................................................................................8
P6 Build an Innovation Business Case........................................................................................9
TASK 4..........................................................................................................................................10
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
Today's business marketing environment is complex and competitive, it is necessary for
the organisations to modify and innovate its products so as to meet the needs of the existing
market. Innovation is concerned about making changes in the exiting products of the company
by adding new features to the product and maintains sustainability in the business. This project
is based on Essence Drinks which is founded by Akshay Kumar, and launched the company with
one drink that is healthy mango lassi within UK market, but the problem associated is decrease
in the sales of product because competitors have increased within similar sector. This requires
the organisation to innovate a new product, i.e., pineapple lassi with toasted almonds and saffron
so as to gain competitive advantage and enhance sales of the company's product (Ahn, Minshall
and Mortara, 2017). This project will focus on the importance of innovation as well as how
leadership, teamwork and culture within organisation shapes innovation and commercialisation.
It explains 4 p's of innovation and the process required to commercialise innovation. Apart from
this it evaluates range of intellectual property tool to protect ideas and Knowledge.
TASK 1
P1 Innovation and determine its importance to organisations in comparison with invention.
Innovation is the way of creating and translating new ideas and thoughts towards
bringing modification in the existing products, to satisfy needs and expectation of consumers. It
is concerned with the applications of adopting better solution to the product and effectively gains
competitive advantage.
Invention is concerned with creating and developing new product by adopting
technological advancements and providing such products which is not existing in the market.
Therefore innovation and invention of products has a proper relationship with commercialization
as it is concerned to developing and bringing new products and services to the market by
entailing to effective manufacturing, production and customer support and therefore meets the
objectives of the company (Ajagbe and et. al., 2015).
Situation or the problem in the company is of declining sales of the company's product
, This is the major challenge for the company as customers were satisfied with the quality but
want innovations in the product as with just one flavour of mango, customers started switching
towards another company's products. In order to solve this problem innovation of pineapple lassi
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with toasted almonds and saffron is introduced so as to effectively sustain in the market for a
longer term. This innovation will aid the company to increase its sales with its existing resources
rather then inventing a new product which will be a costly process for the company and there
will risk associated with its success.
Importance of bringing Innovation within Essence Drinks
By bringing innovation within its existing lassi products, it benefited the company to a
greater extent, which is described as follows-
It assist the respective organisation to gain the competitive advantage by providing
innovative and a healthy lassi that provides consumers with delightful experience, at the same
time assist in improving profit margins and reduces the cost and risk associated with inventing
new product (Azarmi, 2016). By continuously bringing innovation in lassi products, it enable to
enhance good will of the company as well as enhances morale of the employees to work with
great dedication and involves in decision making process. This will reduce employee turnover
problem as well also assist in enhancing sales of the new innovative product.
This source of new innovation will help the respective company to gain competitive
advantage over its competitors and therefore able to maximise sales and profitability within the
company. This also provides an opportunity to the company to expand its market share and
therefore enhances its brand image globally.
Comparison of Innovation to Invention
Basis Innovation Invention
Meaning Innovation refers to converting
ideas into action, regarding
making modifications in the
existing product(Reasons Why
Innovation Is Critical To
Businesses, 2019.).
Invention is the process of
developing products which is
not available in the existing
market.
Costly It is not a costly process as
modifications are made in the
existing products of Lassi.
It would be a costly process
for Essence Drinks as it leads
to adoption of new
technologies and resources.
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P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
In order to shape proper innovation and commercialization, leadership style, culture,
teamwork and vision of the organisation plays a vital role towards helping in growth and
development of business. It is discussed as follows-
Vision- Vision of Essence Drinks includes providing healthy and superior quality lassi to
its customers and gains the competitive advantage. Employees should be clear with the vision of
the respective organisation so that they perform their job related responsibilities in a proper
manner and develops more innovative ideas towards the success of the business.
Leadership- It is necessary for Leaders at Essence Drinks to adopt to participative
leadership style which determines involvement of employees in decision making process and
leads to collaborative working at work place. Moreover proper direction and support should be
given to the employees so that they develop more ideas and suggestions and properly shapes
innovation and commercialization of products.
Team work- Manager at Essence Drink should develop harmonious environment at
workplace and allow the employees to work in groups towards collective sharing of ideas,
opinions and develops and selects the best idea and effective shapes innovation of
commercialisation of lassi products within Essence Drink (Dodourova and Bevis, 2014).
Culture- Culture determines the ideas, customs and the social behaviour which governs
the individual to work and behave accordingly. Among different culture such as power, task, role
and person culture, Essence Drink should effectively follow task culture which leads to the
development of more ideas and opinions and shapes commercialization and innovation of
products.
This way these factor greatly enhances the employees within the company to shape
commercialisation and innovation of business idea.
For instance- Essence Drink has successfully bring innovation in its products by introducing
new flavours and associate with Indian Name. This innovation meets the needs of the existing
market as it is differentiated with its quality and Indian name, these grid points attracts the
customer within UK to try different product and thereby enhances sales of the company.
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TASK 2
P3 Explain the 4Ps of innovation and use of the innovation funnel
Innovation mix or the 4 p's model is an effective which assist the organisation to
determine that how innovation process can be implemented and can bring success towards the
growth and development of business. Innovation mix consist of four components such as
process, position, paradigm and product are described as follows-
 Product- Product of Essence Drinks includes lassi, it is the responsibility of the manager
at Essence Drinks to identify their product quality, feature etc. and identifies the
requirement of the customers. Thus this leads Essence Drink to take effective decisions
regarding innovating its products and fulfils the requirement of the customer.
 Process- Process of converting healthy mango lassi to pineapple lassi toasted with
almonds and saffron, requires manager of Essence Drink to identify the need of work
force, hiring people and the training needs. It also determines the latest trend to carry the
process and works in a effective manner towards enhancement of profits.
 Paradigm- Before implementing the change it is necessary for manager at Essence Drink
to identify the impact of bringing change within its products as all the change doesn't
benefits the organisation and assist manager to analyse the impact of change and take
proper decisions regarding growth and development (Fuertes-Callen and Cuéllar-
Fernández, 2014).
 Position- Positioning refers to the image of the brand in the market as well as in the
minds of the customer. Because of the entry of large competitors within this sector, it is
necessary for Essence drink to adopt proper promotional strategy and provide quality and
economical products in market.
Innovation Funnel- Innovation funnel is a effective funnel or a tool which provides the manager
at Essence Drinks to select the most appropriate ideas from the constant stream of ideas. It is a
effective way of prioritising the ideas and ensures that the better will be selected and leads to
innovation and commercialization of products. Steps within innovation funnel helps respective
organisation to innovate the product in a proper manner, described as follows-
 Opportunity Assessment- This is the first step in which manager at Essence identifies
and grabs the opportunities regarding bringing innovation in lassi products.
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 Ideas Screening- By analysing the opportunities, there is constant stream of ideas.
Manager at Essence Drink should select the most viable idea I.e to innovate pineapple
lassi with almonds and dry fruits.
 Conceptualisation- Under this step managers along with its employees should define the
concept of pineapple lassi selected and determines the packaging, advertising and pricing
strategies for its new offerings.
 Evaluation- At this step manager within respective organisation should evaluate the
success of its product by test marketing in order to know feedback of the customers
regarding the product and access the need for further modifications.
 Go/ No Go- After evaluating the product, it gives insight to the manager to launch or not
to launch the new product in the market.
Their are types of innovation which are discussed as follows-
 Incremental Innovation- Adopting this innovation brings changes in the existing
products by the use of existing technology . This innovation is adopted by Essence
Drinks to innovate its lassi products with its exiting technology.
 Radical Innovation- This innovation leads to the development of of completely new
product by using advanced technology methods and practices, rather than making
changes in the existing products (Katzy and et. al., 2013.).
Use of innovation funnel to shape innovative ideas
 It helps the manager within the respective company to adopt to the effective idea towards
introducing the new product.
 It helps in the proper analysis of the customers demands and requirements and therefore
help towards choosing and adopting the new innovative idea ion order to maintain
sustainability of the business environment.
P4 Explain developments in frugal innovation
Frugal innovation is define as the process in which it is effective in reducing the cost and
complexity of the production. This frugal innovation focuses on the innovation that is produce
a product which is faster, cheaper and better. In this context , drink essence to develop an
effective idea with the limited resources. . This frugal innovation is effective in eliminate extra
cost with providing better quality with this it will also attract marginalised people in the
market.
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Frugal innovation has some principle in context of organisation these principle are explained
below:
Create Sustainable solutions: In this organisation of essence drink should focus on the
problem and errors which is going on in the organisation. Organisation emphasises on removing
that error in a simplified manner. In this, when organisation remove that error, it will give result
in the growth of the organisation.
Asset flex: In this, essence drink should focus on the new innovative ideas and the
concept. When organisation emphasis on more new ideas and innovation than organisation can
build that will help organisation in gaining its competitive advantage. With this, organisation is
able to manage the demand and issues in an effective manner.
Behaviour of the consumer's : In this organisation provide the product to its customers
according to their taste and preferences. This will result in formulation of desired strategies.
In this while applying this concept frugal innovation essence drink use theses :
 Find opportunity in adversity: In this essence drink find out the problem and check the
threat or seems like adversity. In this, turn all the problem and adversity in the
opportunity for the organisation. Essence drink find out the opportunities at a time of
facing the problem.
 Do more with less: in this organisation should considered the better solution and ideas
which they have rather then focusing on more ideas.In essence drink have less resources
so that they need to do more with that less resources.
 Think and act flexibly: in this think about improvisational rather rigid. Focusing on other
problem essence drink need to focus on the improvisational.
 Keep it simple: complexity create lots of problem so it is better not to create any
complexity and focus on the fewer resources and work effectively with them. In this
essence drink not to focus on the complexity keep the procedure simple.
Steps for frugal innovation in the organisation :
 Generating new ideas and innovation: In essence drink, organisation plan to develop
the new idea of making pineapple lassi with almond and saffron. The main emphasises is
on developing new idea which is effective in attracting new customer and in increasing
the sell.
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 Screening new ideas: In this stage, new generated idea is screened to acknowledge that
its is able to satisfy the needs and preferences of the customer.
 ideas screening : In this new and innovative idea of different flavoured lassi will be
screened (Khan and et. al., 2014).
 Testing : In this stage, it will effective for the company to understand that pineapple
lassi with almond and saffron is up to the mark or not . If any modification is required
than modification will be carried out.
 Review market-plan: This is the last stage , it is important to review the opinion of
customers and performance of pineapple lassi with almond and saffron within the
market place.
Role of frugal innovation in organisational context
Frugal innovation plays a important role as it helps the manager within the respective
company to choose the most efficient innovative idea which overall reduces the cost of the
company to bring innovation and therefore brings modifications in the existing products.
Its another role is to increase the profitability within the business by analysing the
competitors innovative strategy and therefore make certain modification in one's own respective
company product so as to maximise sales.
TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD)
Commercial Funnel act as a revenue and sales funnel by promoting and creating
awareness about the products of the company and thereby enahnces the sales and improves the
profit margins of the company. In order to sustain in this competitive marketing environment,
Essence Drink should make the effective use of Commercial Funnel and determnies its
importance within the business.
Importance of Commercial Funnel
 It assit the respective company to enhnace growth and development of their business by
identifying the level of competition in market and assessing the demands of the customer
which allows Essence Drink to innovate its products accordingly and leads to increase
profitability (Kutvonen, Savitskaya and Salmi, 2014).
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 With the use of Commercial Funnel it led the company to adopt technological
advancemnets and can to adopt effectiove tools and practices for production of goods and
sustains competitively in market.
NPD Process for the commercialisation of innovative product
In order to commercialise its innovative lassi product it is necessary for Essence Drink to
follow proper steps which is described as follows-
 Idea Generation- In order to bring innovation in its lassi product, manager within the
company should generate the idea by analysing the information related to consumer
needs and wants and accordingly brings modification in product.
 Idea Screening- Under this step, manager within Essence Drink should screen th various
ideas and select the most viable idea them. Idea selected is of introducing pineapple lassi
with toasted almonds and saffrons.
 Concept Development-After the idea is selected, manager defines the concept of
innovative product stating its features, pricing and technology taht will be used.
 Marketing Strategy- It is necessary for the manger within Essence Drinks to formulate
effective strategies regarding creating awareness about ist product. Company can adopt to
online marketing stratgies regarding promoting and enhancing sales.
 Business Analysis- At this stage manager should analyse the effectiveness of its new
product in the market by a way of monitoring sales and profit margins and conducts an
overall evaluation of the sucess of product in market.
 Test Marketing- Before introducing or launching the product in market it is necessary
for the Essence Drinks to provide samples of products in the market and to know the
behaviour of the customers towards the product and make further modifications
according to their demand (Mazzarol, 2013).
 Commercialisation- It is the last step of commercialisation of products by properly
developing a marketing plan regarding introducing pineapple lassi in the market.
P6 Build an Innovation Business Case
Business Case
Executive Summary- In order to meet customer needs and wants and thereby enahnce
sales of the Essence Drinks products, company has bring innovation in its products and taken the
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deciosn of introducing pineapple lassi with toasted almonds and safron. This idea will allow the
firm to gain competitive advantage as well as targets larger customer base.
Resources- For effectively introducing its innovative lassi it is necessary for Essence
Drinks requires resouirces such as effective manpower, various tools and raw materials such as
pineapple, curd, sugar safron and almonds for functioning their business activities.
Market Analysis- For providing its innovative products, Essence Drink has properly
conducted market analysis which is described as follows-
 Segmentation- Essence Drink has segmented customers on the basis of income level and
the age groups and for this lasi product is being avaialble in market in various quantities
so that that customers can buy according to their usage and afforadbility.
 Targeting- This product is for customers for all age groups to provide them a healthy
lifestyle and a enriching experience.
 Positioning- Essence Drink will enjoy a competitive position in the market due tosupply
of its advanced and innovative products ( Mazzarol and et. al., 2014).
Marketing Strategies- Essence Drink should adopt to online marketing strategies such
as make use of social media platforms and adopt to other online portals in order to promote its
products and increse awareness, thereby attracting larger number of customers.
Financial Projection- For providing innovative oferings in market, Essence Drink
requires adequate amount of funds of £ 25,000 to function business activities in a proper
manner.
Different Sources of Finance- Their are different sources through which company can
effectively raise funds such as-
 Banks and Financial Intermediaries- Funds can be effectively raised through banks
and financial intermediaries with a small rate of interest. This is the most effeicient way
of raising the funds and helps the business to manage its activities ina proper manner and
leads to supply products in the market without any interuptions. In this small interst is
paid over the principal amount which has to be repaid over specific time period.
 Through Relative and Friends- It is the another method of raising fund through friends
and relatives, in which there is no rate of intersts and principal amount can be repaid at
any time. Many of the business enterprises prefer this method of raising the funds as it is
the most simple method in which no interst has to be paid.
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TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
Their are different tools that the organisation can use in order to protect knowledge and
intellectual property. Intellectual property are the intangible creation of the humans which
designs and develops their own practices and is the result of their creatively and protects their
knowledge and strategies from being copied. Various tools such as Patents, copyrights and trage
marks helps Essence drink to protect and retain knowledge are described as follows-
 Patents- It is an IP tool which gives owner rthe right to prohibit and exlude other
companies from manufacturing and selling products by using their strategies and policies.
It is the governmental authority or the license provided to the business enterprise and
therefore excludes others from making using or selling its innovation or invention.
 Copyright- It is a form of protection and intellectual property tool that provides
ownership to the creator of the original work and determines in what conditions work can
be copied and used by others for a specific period of time(Pellikka and Malinen, 2014).
 Trade marks- It is a recognizable symbol, phrase or a sign which differentiates the
product or service from all available products in market. Hence Trademark act as
recognisable feature of ownership of company regarding its product. It is the effective
intellectual property tool as when there is a sign of trade mark on the product, t will
enhance brand image of the company and therefore would attract larger number of
customers towards it. In addition to this it will restrict another company to use or sell
products of the company that is trade marked and this will allow the company to gain
competitive advantage and sustains in the global market for a long time period.
From various tools available, patents is the better option which can be adopted by
Essence Drinks regarding protecting and preventing their knowledge and stratgies of innovation
in lassi product as well as allow the company to gain competitive advantage and attarcts larger
number of customers towards its product. As when the respective company will patent their
products it will restrict another company to use their invention and innovation of products and
will lead to increase profitability of the organisation.
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CONCLUSION
It has been concluded from the above information gathered that innovation adopted in the
business assist the company to gain competitive advantage and maintains its sustainability. It is
beneficial for the company to make innovation rather than inventing a new product which is a
costly process for the company. Moreover company should use patent as an effective tool in
order to prevent their information from being copied.
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