Innovation and Commercialisation: Strategies for Essence Drinks, UK

This report provides a comprehensive analysis of innovation and commercialization strategies applicable to Essence Drinks, a UK-based company focused on lassi products. It begins by defining innovation and highlighting its importance for business growth, using Essence Drinks as a case study. The report then explores how vision, leadership, culture, and teamwork shape innovation within an organization. It delves into the 4Ps of innovation (product, process, position, and paradigm) and the use of an innovation funnel. The report also examines frugal innovation and its applications, including new market opportunities and resource management. Furthermore, it covers the commercialization funnel, new product development, and the creation of an innovation business case. Finally, the report discusses tools for developing, retaining, and protecting knowledge and intellectual property. The overall focus is on providing actionable strategies for Essence Drinks to foster innovation and successfully commercialize its products in a competitive market.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
P 1 Innovation & determine its importance ................................................................................1
P 2 Vision, leadership, culture & teamwork can shape innovation............................................2
TASK 2 ...........................................................................................................................................3
P 3 4Ps of innovation...................................................................................................................3
P4 Frugal innovation & their uses...............................................................................................5
TASK 3............................................................................................................................................6
P5 Commercial funnel & application of new product development............................................6
P 6. Build an Innovation Business Case......................................................................................8
TASK 4............................................................................................................................................9
P 7 Tools to develop, retain, protect knowledge & intellectual property ...................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is the procedure of translating an new idea which creates value to the
individuals. It includes deliberates application of information, imagination & initiative to provide
higher value. To achieve organisational goal it is useful because people want innovative and new
things which are not available in the market and if corporation bring innovative things than
business will grow and get success. To better understand this concept Essence Drinks has been
chosen which is founded by Akshay Kumar in United Kingdom. The main aim of this report is to
bring innovation in context to lassi products. There are various topics are covered in this report
such as: to explain innovation & determine its importance to company, different types of
innovation and to discuss the process which is required to commercialise information. Apart
from this it also discus about the different tools which can be used by the corporations in order to
retain and protect knowledge & intellectual property.
TASK 1
P 1 Innovation & determine its importance
Innovation is the procedure which is emphasis to develop new product or idea so that
value can be create which fulfil the expectations of individuals and corporations. As Essence
Drink provides healthy mango Lassi in UK but after some time it has been analysed that sales of
company has reduced. For that purpose Akshay Kumar has emphasis towards innovation and
come up with new innovation in lassi. As a brand strategy innovator it is been suggested that
company can introduce lassi power that can be use by consumers while travelling. Importance of
innovation to corporation is describe as below:
 With the help of innovation the sales of company will increase and it can generate higher
profits. As the consumers will be happy because they will get innovative product which is
new in the market and their needs will satisfy(Hemmelskamp and Leone, 2013).
 The market share of Essence Drink will increase which help the company to sustain for a
long term. It is also helpful to achieve the goals of corporation which is helpful for the
growth of business.
So, innovation is beneficial for the corporation because it will boost the business growth.
As Essence Drink is coming with lassi power in order to satisfy the desires of consumers and it is
beneficial to increase the sales as well as profits. Therefore, innovation & invention are distinct
1

from each other. For the company Essence Drink, lassi is their USP so corporation wants to
make innovation in its existing products rather than replacement from another invention. So it is
important for the organisation to maintain its USP otherwise sales of firm will reduce.
Explantation of this are as mention below:
Basis of comparison Innovation Invention
Meaning As innovation is associated to
applying of thoughts or ideas
for existing products as well as
procedure which is used very
first time.
Invention is associated with
occurrence of any idea for
goods or process that is never
made before.
Concept To apply new ideas in practical
manner.
Original ideas & their process
into theory.
Activities The activities are spread into
whole business entity (Shakeel
and Zhu, 2017).
The activities which are
associated with it are bounded
up to research & development
section.
Skills required Required skills are creative,
strategic, technical etc.
In this scientific skills are
more required.
Focuses on It emphasis towards
accumulation of various
products & activity.
It emphasis towards particular
method for entire procedure.
P2 Vision, leadership, culture & teamwork can shape innovation
Every organisation need to fix their objectives, vision and goals which is predetermined.
Essence Drink produce wide range of products and now they introduce new product in the
market which help the organisation to grow in the beverage market but for this, firstly they need
to build their clear objectives, vision or mission and will share with their staff members and
influence them to follow the same objectives. With the help of vision or mission statement of the
organisation employees can perform their work effectively. Through following their path to
2

achieve their objectives, company develop their goodwill in the market which is beneficial for
the company and it help at the time of promotion. Therefore, leadership, vision, culture and
group work play essential role in the organisation at the time of introducing new product. It will
be discuses below:
Vision: To offer tasty, healthier or cost effective lassi power to their consumers across
the nation of UK. Through this drink, people feel refresh and chose for it as a healthier option in
the range of drinks. Through introducing this product, Essence Drinks can become leader of the
beverage market and increase their profit margin (Baycan, 2013).
Leadership: With the help of leadership, company become able to introduce their
product in the market. Because not only single person involve for the innovation of product
because it include the whole employees contribution to develop it and introduce in the market for
the sale. So leader plays very essential role in the organisation to maintain employer or
employee relation in order to fulfil the requirement or achieve organisation goals & objectives.
Culture: For the successful completion of every project, working culture plays important
role because it affect the employee as well as their performances. Manager of the company need
to ensure that, working environment or culture should be good, so staff member can comfortable
work or they are friendly with their peers. Organisational culture include the various values,
beliefs, norms etc. through implementing these things Essence Drinks can achieve their gaols &
targets. Work culture of the company is heather or friendly which provide the positive vibes in
the organisation. Effective work culture satisfy the each staff members who is working here.
Teamwork: To complete the work within stipulated time period it is require that team
perform their task as per the requirement of company. As Essence Drink bring innovation in lassi
and for that purpose it is require that effective team can be formulate which help the organisation
to accomplish its goals and maximize the sales.
TASK 2
P3 4Ps of innovation
John Bessant & Joe Tidd develops the innovation mix model and there are 4P's of
innovation are as: process, product, position and paradigm. With the help of innovation company
can get competitive advantage which help it to capture more market share and generate more
profits (Arora and Walsh, 2016) .
3

Product Innovation: To make innovation in product is necessary and it is the need of
today's dynamic environment. As Essence Drink wants to make innovation in its product lassi so
that desires of consumers can be satisfy. Company is introducing lassi powder that can be use by
consumers while travelling. It is helpful for the organisation to maximize its sales as well as
profits.
Process: As Essence Drink operates its business in UK and provide flavoured lassi to the
consumers. To capture more market share, it is required for the organisation to consider
appropriate process which help them in bringing better quality of offerings in the market. The
effective working procedure assist the workers to provide quality products in order to filfil the
expectations of consumers. To enhance the sales distribution process is require to be change and
corporation can make online delivery of its products.
Position: It is associated with the perception of consumers in context to the corporation
and its products. For the organisation it is require to position themselves other than just selling
entity and to make better position it is required for the company to satisfy the desires of
individuals. As the current position of Essence Drink is not good because consumers are not
happy with the product of firm. So to enhance the market image and position, it is essential for
the organisation to fulfil the expectations of people and for that purpose it make innovation in its
product (Chesbrough and West, 2014).
Paradigm: It is associated with changing perspective towards the entity and it includes
looking at same thing in a distinct manner. Initially lassi was not considered as potential product
in United Kingdom but after the success of organisation there are various competitors entered
into the market and provides different types of drinks. In this context, it is required for Essence
Drink to change its structure so bring innovation so that it can sustain in the market for a long
term.
Use of innovation funnel in examining & shaping
A company use innovation funnel model to analyse & conceptualise innovative thoughts.
It defines the process of introducing a new product so that desires of market can be fulfilled. The
stage of this framework is insight, opportunity assessment, evaluation, conceptualisation,
benchmarking, evaluation and interest. R&D division can use this model for the business growth.
Organisation can use this model by gaining appropriate knowledge and emphasis to generate
new ideas. In this context, it can generate information information through different sources like:
4

market demand, consumer preference, competitors and it is helpful for the Essence Drinks to
generates innovative idea in order to launch new product in the market which can fulfil the
expectations of individuals (Saebi and Foss, 2015).
P4 Frugal innovation & their uses
Frugal Innovation is the procedure of minimising the complexity and cost of a goods and
its production. The term of frugal innovation related with reverse innovation, inclusive
innovation and constraint based innovation. It is valuable for the activity of innovation process as
well as invention. Eventually, it is adopted by different organisation in reference to develop extra
element in the present production services. Thus, Essence Drinks is coming up with new
innovation of powder lassi in the competitive market place.
New market opportunities – Before enter new market need to know about new market
opportunities which is based on the analysis and investigation. It can help to understand
competitive market and their offering. Furthermore, it will help to Essence Drink to estimate
about the result when expanding business with new product at the competitive market place. To
achieve new market opportunities create innovation in their products and services so company
has been attained more market share.
Resources – To become successful at market place need to arrange all appropriate
resources which is related to products and services. The Essence Drink can generate much more
income so for manufacturing of products need to resources. So company has been utilised
maximum resources an obtain long time sustainability in the market. As frugal innovation can be
conceivable with any portion and resources are develop as per their capability.
Innovation funnel – It is directly related to new innovation product in reference to
competitive market place. The Essence Drink are coming with their new innovation product
which is powder lassi. The benefit of the lassi it will take during to travelling easily and work as
energy drink at the competitive market place. Hence, modification in frugal development has an
immense effect over it (Wonglimpiyarat, 2016).
Frugal Innovation can comprise of different segments which are determined below: Problem – In new market company has been faced many problems because it is not easy
to handle all situation easily regarding to new innovative product. To make different their
product from another need to present in effective manner and try to reduce all problems.
5

 Related to Product – In innovation, this problem is connected with marketing like
marketed need to lifted out possible existing sources. In reference to Essence Drinks can
communicate with customers regarding to their product and promote in market so for this
need to apply effective communication method. It can help to achieve their goals and
objectives (Witell and et. al., 2016). Generating idea of innovation – Before innovation need to analysis and examine market
condition. After getting result manager of Essence Drinks generate new idea and apply on
their product in effective manner. Screening new idea – At the stage of screening need to create proper planning in
reference to their products and services. Idea Screening – In the process innovative idea of powder lassi will be screened. Testing – It is important part because it is related to health of people. Before launch in the
market test in specific way and know their reaction. Internal Analysis – In the process analysis all internal activities which is related to new
product and identify administration of assets and liabilities.
 Review Market place – There are checking to market place regarding to their new market
and analysis the market situation. It can help to launch new product at right time.
TASK 3
P5 Commercial funnel & application of new product development
Commercial funnel is the way which is divided into three phases and utilise into show
goods by implement various beneficial strategies and policies. Hence, the funnel much more
important regarding to get success in Essence Drink (Keskin and Molenaar, 2013).
Pricing Policy – The pricing strategy set by essence drink as per the customer perception
because it can provide to every type of customer. After analysis of the market it is getting that
customer can not pay much more for lassi and commercial funnel help to know thoughts of the
different customers. The main aim of company is to set their product price affordable so that
consumers can easily consume and satisfy their needs. It help in increasing the chances of
profitability level of the company.
Improving ways for business growth – With the help of commercial funnel business get
growth because it can identify level of the customers. It can help to fulfil the desire and demands
6

of customers so as a result increase sales and get much more profit. With the help of commercial
funnel get long time advantages. By analysing market trends and customers demand company
can create their brand image and established their competitive image.
Growth of technology advancement – The company Essence Drink can utilise advance
type technology regarding to innovative product. The advantage of the powder lassi it can use
during travelling. By using updating technology, company may reduce production cost and at the
same time also maximize profitability level at competitive market place. This will also improve
the customers base.
Executive investigation programs – For Essence Drink need to conduct market research
to collect information regarding to their product. In the process of commercial funnel it can play
major role which is important and provide help for innovative product in to competitive market
and obtain success (Micieta and Krajcovic, 2014).
New product development is mention as a lengthy process and also it includes several
steps that are mentioned below -
 Idea Generation – It is first step to carry out innovation into lassi so for this need to
conduct proper research and know about already existing product. As it is new idea for
company to invite large number of customers towards its services. This will improve the
chances of establishing competitive advantage from its rivals.
7

 Idea Evaluation – In the second step, here in ideas that are generated through junior
innovation consultant will be determined so that ideas that are not worthy will be
eliminated (Dereli and Altun, 2013). Under this, manager of marketing evaluate whether
new idea is beneficial or not. If it is appropriate than company easily increase their
profitability level at market place. Concepts Definition – After determination of idea apply the concept of powder lassi in
their particular product. The main concept of developing new idea is to capture larger
marker share by inviting more and more customers. This is possible by manufacturing
quality products and services. Strategic analysis – To assure about the innovative product the manager of Essence
Drink can prepare strategy regarding to their product and estimate about the demand, cost
and profit. For attaining the same, company analyse their strength an weakness to make
appropriate changes. This will improve the chances of attaining success at market place. Product development and testing – In the step bfore launch product in the market need to
test product development and testing (Sağ and Güzel, 2016). Under this, marketing
manager develop products and also analysis its requirement at market place. By this,
company improve the chances of accomplishing their competitive brand image. Market testing – There are market testing of powder lassi based on the different types of
customers and their taste & preference. To carry out innovation in particular market at the
time also matter. Commercialisation – Cost of powder lassi will be evaluated along with market plan. In
this marketing department set their products price in market place as per customers
demand. It help in increasing profitability level at market place and also improve
customers base as well.
 Product Launch – It is the last step of essence drink come in market with their product of
powder lassi. With the assistance of this, company may easily established their
competitive brand at market place and also improve their profitability level as well.
P 6. Build an Innovation Business Case
With the help of business case organisation can analyse the required things which are
important in order to accomplish the goals and targets. It is important for Essence Drink to
8

consider all factors which support the firm in context to growth. So business case can develops
by the organisation which required relevant data and information associated to the business.
Executive summary: As per the business case Essence Drink is introducing powder lassi
in United Kingdom so that it can boost its sales as well as profits. For that purpose company can
develop effective marketing strategy that involves SWOT, porter's five force model & PEST so
that innovative plan of firm can be implement properly which support the growth of entity.
Mission statement: Essence Drink Emphasis to maintain quality and it provide healthy
& flavoured lassi products so that individuals can remain healthy. The main purposes of
statement are:
 To fulfil the expectations of consumers by providing quality products.
 To grab more market share by maximizing the sell so that it can generate higher profits.
Resources: Man, money, material, power and labour are the key resources which are
required to bring innovation so that Essence Drinks can achieve its objectives (Hossain, 2013).
Market analysis: For Essence Drinks it is important to analyse the market conditions,
competition and demand of consumers which is beneficial in context to make innovation.
Cost analysis: After the market analysis, cost of its new product is require to be consider
and it should be reasonable to that maximum consumers can purchase the products of company.
Financial projection: To introduce powder lassi, Essence Drinks require the amount of
approx £25000.
Ways to generate funds: Finance is the most important need of develop a business and
to conduct regular business operations. There are various ways through which Essence Drink can
arrange funds which are as:
Bank & Financial institutions: These are the money lenders which provide the funds to
the organisations and charge interest against the principle amount. Essence Drinks can arrange
funds from these money lenders so that it can effectively expand its business through innovation.
Friends & family members: Company can also arrange funds from friends and family
members and it does not have to pay interest which is main benefit (Fabrizio and Tsolmon,
2014).
9