Innovation and Commercialisation Report - BTEC Business Module

This report examines the innovation and commercialization strategies of Essence Drinks, a UK-based company selling Mango Lassi. The report analyzes the company's challenges, including declining sales due to increased competition. It explores the importance of the commercial funnel in understanding customer needs and modifying products, specifically focusing on a packaging redesign to improve brand image and sales. The report discusses techniques for testing the effectiveness of the new packaging, including project efficiency and customer impact. It also covers tools to protect intellectual property, such as trade secrets, trademarks, and registered designs. The conclusion emphasizes the role of innovation in achieving competitive advantage and the utility of the innovation funnel in addressing product-related problems. The report highlights the importance of resources and overcoming challenges for successful product launches.

Innovation And
Commercialisation-Re

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of the company and problem..................................................................................3
Importance of using commercial funnel.....................................................................................3
Techniques for testing effectiveness...........................................................................................4
Tools used to protect intellectual property rights........................................................................5
Critical evaluation.......................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation refers to transforming of unique idea into products or services so that
customers can buy it in exchange of monetary value(Datta, Mukherjee and Jessup, 2015).
Purpose of innovation is to solve the problem customer by offering companies product so that
their needs and demands would be satisfied which leads to better profitability of business. For
this report, Essence drinks is taken for discussion which deals in Lassi which is a refreshment
drink and operates their business in UK. Company is going to change their packaging of Mango
lassi to attain more sales would be discussed. Commercial funnel would be discussed below with
functional example and besides this, how company can use different intellectual property to save
their property rights. Moreover, different types of resources which is important for innovation
will be explained.
MAIN BODY
Background of the company and problem
This report is based on company called Essence drinks which is selling their products
Mango lassi in different parts of UK. Company is owned by Mr. Akshay Kumar and under his
supervision, company has seen rise increase in sales in the first year because of innovation
formula and distribution capabilities but as company is approaching its third year, they have
faced signification decrease in sales due to increase in competitors. To resolve this critical issue,
company is planning to change their packaging of Healthy Mango lassi so that they can modify
their brand image in the mind of customer which could leads to high sales and profitability.
Packaging plays an important part in the success of product and services as if customer does not
like the colour or way through which packaging is done then they wont buy the product which is
negative for company's growth and profitability.
Importance of using commercial funnel
Commercial funnels refers to activity which is used by company to manipulate mind of
customers so that company's product will achieve new heights of sales (Thore, 2012). Main aim
of this funnel is to identify the real problem customers is facing and how they could modify their
products accordingly. Essence drinks must make their product and strategies according to their
capabilities so that proper utilisation of resources would be attain. Main goal of company is to
increase their sales by 10% in the 4th year. Essence drinks have ample amount of fixed and

working capital which would help them to achieve their goals by investing in marketing
activities like promotions, advertising etc. Besides this, it helps Mr. Kumar company's to analyse
and monitor the the risk they are going to face in the future and how they can tackle it with full
productivity and efficiency. Different types of risk which their company could face at the time of
innovation is resistance to change in employees, low motivation of employees, sociological risk
from the society and at last risk of deteriorating the environment. At last, commercial funnel
assists Essence drinks to change their packaging of product by utilising more resources which are
cheap and already existing. It would decrease cost of packaging as excess work which does not
contribute in the products will be removed which will leads to better earning for essence drinks.
Techniques for testing effectiveness
Stakeholders ultimate aim is to earn more profit from their investment and in third year of
Essence drinks would not be able to attain more sales which is negative sign for company's
investment. So to meet up with the stakeholders needs, Mr. Kumar is planning to launch their
existing product with new packaging so that positive or favourable image would be made in the
mind of customers. After implementing any new product or modified product, it is important to
analyse the effectiveness of it by using different factors which is given below,
 Project efficiency: Overall efficiency of the new product have to analyse by company.
All the factors which directly affects cost price of product like schedule, raw materials
cost, selling price etc will be analysed. After mapping packaging of product by various
means like breadth of use of product, frequency of product usage, efficiency of it etc. So
it can said that new innovation is fully efficient in nature.
 Impact on customer: Customer are the one due to which company makes their product
and through them only profitability is earned. Mr. Kumar should conduct survey,
questioners, interview etc to find out the impact of new product in the market. If they are
satisfied then company's future is bright and if it does not then Essence drinks have to
change their strategy once again.
 End results: Main aim of every company is to increase their sales and profitability so
that they can gain competitive advantage over others. After analysing all the aspects of
new packaging, it can be said that Essence drinks would going to see high sales in the
next year because packaging is done on the basis of customers needs and demands. There
are different resources which Mr. Kumar company has like high amount of working and

fixed capital, skilful workforce which would assist company to attain their objectives,
advanced machinery which helps them to make the new packaging more efficient and
less expensive.
Tools used to protect intellectual property rights
As mentioned in the case study, company has unique combination of innovation formula
and distribution capabilities. But they failed due to increase in competition. At that time Essence
drinks have to protect their formula through trade secrets. It refers to any formula, pattern,
solution which is not known to person who is not directly linked with the company who are
filing the rights. To protect their uniqueness of brand name, Essence drinks can trademark their
name so that other competitors can imitate or copy their name. Moreover, Mr. Kumar can also
save their logo of brand by using rights like copyright and trademark. It helps them to maintain
their uniqueness of brand in the market.
To protect their bottle or packaging to not get imitate, Mr. Kumar should file a registered
design grant so that no other company can copy their shape or size of product. But Essence
drinks should considered few points before filing it like design must be new, it must be no
published in the market earlier etc. It would help company to make their product and packaging
new and safe from any copying by competitors. With the help of this, Mr Kumar company's
would again attain high sales which they have seen in the first year of launch.
Critical evaluation
So after discussing all the mentioned points it can be said that company has implemented
position innovation in which they are trying to modify or change their position in the mind of
customers. It would help them to attract their existing customer as well as new customers also.
The product quality which is in the bottle is same as they sell before, the changes which they
bring in their product is change of packaging. It becomes more attractive so that it can attract
eyes of potential customers which would make a positive impact in their balance sheet in future.
While launching their product company has face many obstacles like lack of resources, risk from
various factors like competitors strategy, external environment i.e., political, economical,
sociological, technological etc. But Mr. Kumar had used commercial funnel and position
innovation which bringing change which will help to achieve their mission and vision.

CONCLUSION
It can be concluded from above report that innovation helps company to gain competitive
advantage over others. Innovation funnel is useful for providing the solutions of problems
associated with the innovative products of the firms. Various types of resources such as funding,
desk based research etc. are used for launching a new innovative business. There are various tool
which can be used by the firms for protecting their property rights such as copyrights, patents,
trade secret etc. Organisation needs to over come the challenges for introducing new products in
the market in order to get success and growth.

REFERENCES
Books and Journals
Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of
technological innovation: taking stock and moving forward. R&D Management. 45(3).
pp.215-249.
Thore, S. A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.
Walsh, P. R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.