Report on Innovation and Commercialisation for Essence Drinks Company

This report examines the innovation and commercialization strategies of Essence Drinks, a UK-based beverage company founded by Akshay Kumar. It explores the significance of innovation for organizations, focusing on the vision, mission, leadership, culture, and teamwork that shape innovation and commercialization. The report delves into the 4Ps of innovation (product, process, position, and paradigm) and the use of the innovation funnel for shaping ideas. It also discusses frugal innovation, new product development (NPD), and the development of a business case. Finally, the report addresses the tools used for protecting intellectual property within the context of Essence Drinks' operations, particularly concerning the introduction of a dry fruits Lassi product.

INNOVATION AND
COMMERCIALISATION

INTRODUCTION
Brining new products and services in market is considered as main strategy for
surviving in today's business era. Innovation is a process converting new ideas into reality. It
involves doing various kind of activities in a new way (Aghion, Van Reenen and Zingales,
2013). Added value and innovation should be that can satisfy the demands and requirement of
consumers. This report is based on the Essence Drinks, a UK based beverage company. The
founder of this Drink is Akshay Kumar and this company was started two years ago. This
report will discuss about significance of innovation for an organisation. Vision & mission of
enterprise urges them to commercialise innovative idea. This perspective will also become part
of this file. 4Ps of innovation and use of innovation funnel to examine as well as shape
innovative ideas will get discuss here. The concept of frugal innovation and NPD (new product
development) will be considered in this assignment. A business case will be developed in the
ending and tools which are used for protecting intellectual property will become crucial part of
the project.
TASK 1
P1 Innovation and determine its importance to organisations in comparison with invention
Innovation refers to challenging the old ways of doing things. It is not represented
through introducing or executing new methods of ideas. It is related to add some new things in
to existing goods to make them attractive or unique. Added value and innovation should be that
which can fulfil demand and requirement of consumers in significant way (Ariga and et. al.,
2013). In context to Essence Drinks, it need to be suggest to owner to add necessary ingredients
in its Lassi such as Dry Fruits through which taste will be delicious and it will be healthy for
people. The health conscious people will purchase it and sale of Essence company will be
enhanced.
Invention is a unique method, process or composition. It is a procedure within overall
product development process.
Some importance of innovation mention below:
 It provides firm an advantage in to penetrating the markets faster and give effective
connection to developing markets which can be lead to higher opportunities.
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 Innovation aids in create the original concepts while providing visionary attitude and
proactive to also take get the things done (Boudreau and Lakhani, 2013).
 It is helpful in enhance reputation of company as it is important to retain at market place
fort long time period.
These are the benefits of innovation through which company can able to increase its
sales through make some changes in its Lassi by adding some dry fruits. With the help of this
company can gain more attention of consumers and increase its sales (Drucker, 2014).
Difference among Invention and Innovation
Innovation and invention both are varied from the each other and management of
Essence drinks decided to make some innovation in its products than invent it through
replacing with other goods. The difference among innovation and invention mention below as
above:
Basis of
Comparison
Innovation Invention
Meaning Innovation is concerned with
execution of thoughts and ideas into
existing goods in order to make
innovative product.
Invention is a procedure of
developing new for first time.
Inventing or developing product
to launch at marketplace so that
sales can be enhanced.
About It is about adding some value into
current goods and services in order
to make new.
It is related to make invention of
new product.
Concept Innovative and new ideas are
executed in current product.
New real current idea is
executed.
Concern Concern with various process and
products.
Involvement with particular
process.
Necessary Skills Marketing and Technical skills are
required.
Scientific and Management
skills.
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Activities Work in firm. Control to R&D department.
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Culture, vision, teamwork and leadership plays necessary role in give shaping
commercialisation and innovation. This is necessary to set these all things for the proper as
well as effective working in company. It is important for company to have leadership, mission,
vision etc. so that company can also gain sustainable and position at marketplace. These
necessary things are mention below:
Vision : It refers to an ability to think about future with proper imagination. The vision
of every company is to gain success by providing better quality of services to consumers and
also satisfy their needs (Edquist, 2013). Vision of the company is to develop and also sell the
drinks by making improvement in quality of life as well as well-being. Its main focus is on
make the life of people healthier and better. On the other hand, this company is having vision
of providing its healthy and tasty dry fruits Lassi to people of United Kingdom for gain
attention of large number of consumers and increase its sales .
Leadership : For development of firm, leader play necessary role in executing dry
fruits Lassi because leader is one that guides or leads team in a way that each employee can
able to perform the task in significant way without arising any conflict. If all employees will
work in a team then they can able to complete task within given time period. On the other hand,
through this sales of Dry Fruits Lassi can be enhanced effectively.
Culture : Organisational culture is underlying assumptions, values, beliefs and the way
to communicating that can contribute to psychological and unique environment of firm. It is
necessary that Organisation Culture should be positive and friendly as it consists several,
norms, values, beliefs, rules which are developed through top management of company. If the
culture or environment will be positive at workplace then employees will able to adopt
alterations in an easy manner (Etzkowitz and Zhou, 2017).
Teamwork : It is one of the most necessary component that helps in complete the task
within given period of time. In a team, there are many employees are working together for
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completing specific tasks and attain the set objectives through top management. If they all
work in a team then interaction among them will be enhanced and task will also be divided
among them in such a way so that objectives of Dry Fruit Lassi can innovated which can
achieved in significant way.
TASK 2
P3 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas
Innovation mix is explained as tool that helps in search what innovation procedure cane
make improvement and also bring in business. It is helpful for company to explore the possible
deepen in each business area. It provides proper direction what require to go and in those
filedsof business that require to be innovate. The 4ps of innovation mention below:
Product- An Innovation can bring satisfaction level of consumers. In this Essence
Drinks company is launching its innovative Dry fruits Lassi and it will be better for the health
of people. In this present time, people are more focused towards their health. This type of
innovation in its product will enhance sales of business (Freeman, 2013).
Process- Under this, it is necessary to follow the proper process to gain or make
improvement in quality of products. It will help in develop the positive impact on business
performance and reputation. To achieve goal of Dry Fruits Lassi, Essence Drinks should
maintain the process properly and also maintained it so that it can able to provide healthy and
tasty Dry Fruit Lassi to its consumers easily.
Position- Essence drink analyse its actual and current position at marketplace. By
analysing it in better manner, it can able to satisfy needs as well as demands of consumers
effectively and significantly. Actual market position assist to know that what consumers are
supposing from company and through which by it can make some changes in its existing goods
easily so that many consumers can be attract towards the Dry Fruit Lassi.
Paradigm- It is related to change in way something is to be done in company, This is
necessary component that explains regarding existing dominant paradigm of company in
significant way (Gawer and Cusumano, 2014).
Innovation Funnel- It refers to procedure of expalining all the steps which mainly used
for product development and execution procedure of innovative goods. It is a kind of
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mechanism that is able to constant ideas stream which can screened for the viability, it is
mainly used to develop realistic and innovative action plan. For development of the new
product, innovation funnel model given below:
Opportunity Assessment : In this step, Essence Drinks will evaluae by conducting
market research. It will help in determine the market situations and customers expectations
with different realistic information that will be needed to innovate Lassi product . It is mainly
used to determine effective opportunities for new product development.
Insight based ideation: At this stage, various kinds of goods are to be imagine as it
want to be know that better opportunities will be applied in proper manner for Essence Drinks
strategy. It will help in make the image of product better and beneficial for the business that
can provide some opportunities (Goldberg, 2013). It can be analysing through conducting an
investigation through using online sites, surveys etc.
Conceptualization: It is a third stage in innovation funnel as in this manager hired a
consultant who will able to prepare real concept from all necessary thoughts and ideas which
came out as better outcome of ideation stage.
Evaluation and Benchmarking: At this stage, testing will be completed of developing
new and innovated product through targeted consumers. Essence Drinks firm will provide its
innovated Dry Fruits Lassi to its consumers and also get feedback from about its from them.
Go/No Go: In this stage, after getting proper feedbacks and reviews from consumers,
Essence Drinks will know about the effectiveness of Lassi and will also know that it will be
successful in future or not. Consultant of company will take effective decision that this strategy
needs to be follow or not (Govindarajan and Euchner, 2012). Decision should include profit
margins, cost, quality etc. and these are not related to customers preferences and needs.
Launch: Dry fruit Lassi is an innovative product that is ready to launch at market of
United Kingdom market and it will attract the large number of consumers.
P4 Developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation refers to procedure of reducing price and complexities of products
and also its manufacturing. It is one of most necessary part of invention and innovation.
Several various organisations adopt innovation to create additional component in actual
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production services. Therefore, Essence Drinks make innovation in its Lassi through adding
Dry Fruits in it.
New market opportunities: Research is necessary to aware about the competitive
market and existing products provided through other company in an effective way. It assist
company to have desired outcomes with the help of expanding business in competitive market.
Resources: It is necessary that Essence Drinks should use utilize more resources in
order to retain at marketplace for long time period as well as enhance higher profit.
Innovation funnel: It is about development of new product in the competitive market
of United Kingdom and in relation with the company, it makes innovation in Dry Fruit Lassi at
competitive market (Jain, Ong and et. al., 2013). It will be beneficial for people health
effectively.
Frugal innovation includes two different segments which given below :
Problem : There are several issues which company faced while make innovation in its
products, as this is complex to come up with the new goods in competitive market. For this, it
is essential to company to make some innovation in existing products in significant manner.
Related to product : There is a need to Essence Drink to search better medium through
which it can make promotion of products and attain business objectives in successful manner.
Generating idea of innovation: For innovation process, there is a need to analyse market
through researcher about determination or demands as well as requirements of consumers and
also focus on attain goals within given period of time (Owen, Bessant and Heintz, 2013). Some
steps included in frugal innovation mention below:
Screening new idea : At this stage, planning helps in performing business activities in
systematic manner. Proper planning need to done for innovate goods in products in the basis of
needs of potential consumers.
Idea screening : Under this, there is not nay requirement to screened innovative idea of
Dry Fruit Lassi.
Testing : Under this, there is a need to testing new and innovative products through
getting feedback from consumers effectively.
Internal analysis : It is necessary that innovative goods and services needs to be
determined and used in significant manner.
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Review marketplace : It is a last stage and there is a need to researcher to check the
accuracy of product.
TASK 3
P5 Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
Commercial funnel is explained as purchasing process that organisation leads
consumers when purchasing services and products. It is procedure of getting in front of the
consumers and also moving them by sales procedure. It is a kind of graphic representation of
sales stages through which consumers goes by purchasing product (Patti, Yanes and Siuzdak,
2012). This sales funnel is based on idea that all consumers led by less ore more same phrases
when making purchase.
Pricing policy- In this company can set its pricing strategy through commercial funnel.
It will sell its new and innovative product at reasonable cost so that consumers can purchase it
easily without facing any money related issue.
Aids in improving business growth- Commercial funnel is one of the most necessary
concept for development and success of business. Through this, company can determine level
of every consumer in funnel and after their fulfil requirements as well as wants. With the help
of this, sales and profit level of Essence Drink will be enhanced in proper manner.
Growth through advanced technology - Under this, commercial funnel is mainly used
to launch its innovative Dry Fruit Lassi. Through using advanced technology and make
promotion, large number of people will be aware about the products and they will be attracted
towards it.
Execute investigation programmes- It is necessary for company that research about the
requirements as well as demands of consumer is essential. In context to this, commercial funnel
will aids company to make some innovative products at marketplace (Tidd and Bessant, 2018).
Steps involved New Product development process
It refers to procedure of bringing new goods at marketplace. There is a requirement to
engage in this procedure because of make changes in preferences of consumers, enhance
competition level and make advanced in technology to capitalise new opportunities. There are
some staged included in New Product Development mention below:
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Idea generation -It is first stage and related to systematic search for the ideas related to
new product. This stage states about innovate product i.e. Dry Fruit Lassi through conducting
an investigation and also know about customer preferences.
Idea evaluation- Under this, there is a requirement to idea screening by filtering many
ideas and pick better one or those which are beneficial.
Concept definition- The attractive ideas should be developed in to product concept.
Under this, idea of adding some ingredients such as Dry Fruits in Lassi will be decided.
Strategic analysis- In this stage, company will be determine that idea of Dry Fruit Lassi
will be better for business or not. There is a need to understand cost of new product as well as
profit and identifying if they meet with the objectives of firm (Weisburd and Braga, 2019).
Product development and testing- Under this stage, there is a requirement to creating
prototype. If product concept passes business test, then it should be developed in to physical
goods for ensure that product idea can be turned properly in to workable marketing offerings.
Market Testing- Under this, marketing testing need to be completed on the basis of
feedbacks provided through consumers. as per the reviews given by the customers. The test
marketing provide better experience to marketers with marketing product before going to better
experience of full experience.
Commercialisation- Test marketing provided information which required final
decisions to launch the new product or not. In this, more amount required through company by
spending on sales promotion, advertising and some other marketing efforts.
Product launch- It is a last stage in New Product Development Process and Essence
Drinks firm will launch its Dry Fruit Lassi at marketplace.
P6 Innovation Business Case for an organisation, including ways to access funding
Business case captures reasoning to initiating task or project. It is presented in written
document in well – structured manner. It consists all the necessary things which are needed to
attain aim and objectives.
Executive Summary: The innovative product that Essence Drink will be launched is
Dry Fruit Lassi. In order to launch this product, there is a need to firm to develop an effective
market strategy that consists SWOT, Porter's five force model and PESTEL. Through this,
product execution will lead success of business (West and Bogers, 2014).
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Mission statement: Mission of the Essence drinks is to manufacture the high quality of
products at reasonable cost.
Resources: Resources are helpful in produce the products in appropriate way. It is a
responsibility of company to managed as well as arranged all the resources in an effectual
manner.
Market analysis: It is essential for Essence Drink to analyses market in significant way
in order to determining perception of customers, existing competitors and competitive level
towards the innovative goods and services (West and et. al., 2014).
Cost and benefit analysis: Under this, there is a need to develop cost structure after
examining market situation.
Financial projection: Funds are necessary for different market activities such as
design, manufacture, test, launching of products etc. IN context to launch new and innovative
Dry Fruit Lassi, there will re requirement of £20,000 funds.
Different ways of funding
For launch new and new products at marketplace, there will be need of funds. Without
money, company can not able to perform its activities or conduct business operations. Various
ways of funding mention below:
 Financial institution: For developing business, company require bank loan for different
needs consisting long- term growth and operating capital. Essence Drink company can
get funds through Bank and some other commercial enterprise institutions.
 From family and friends: Company can gather money from its friends and family
members. In this mode of fund, there will not requirement to pay them any interest.
Essence Drink can use Bank Loan way to collect fund as it is a better way to get money
and use din business for success.
TASK 4
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property
It is essential for Essence Drinks company to defend its new goods from some other
companies so that they can not be able to copy. The company should use the various means
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which use to develop, sustain and also protect the intellectual property and knowledge (Wolin,
2016). Various tools are given below:
Trade secrets- It is related to intellectual property in form of process, pattern, design,
practice and complication of the information that is mainly known through others. With the
help of this tool, business can obtain economic benefit over its existing competitors.
Copyrights- This is relate assignable and exclusive legal right that provides to
originator for fixed years to publish, film, record, print etc. This tool gives an exclusive
distribution, usage and publication rights for owner (Boudreau and Lakhani, 2013). In addition
to this, Essence Drink can take copyright of its new commodity.
Patent- It is licence or government authority that conferring right for specified time
frame mainly sole right to except the others from using, making and marketing innovation. In
relation to Essence drinks, owner Akshay Kumar has evident right that about drinks which will
not be used through other person or organisation anyone without approval.
CONCLUSION
As per above mention study, it has been concluded that innovation helps in make the
existing product unique and attractive. It is accompanying to adding fresh value in to existent
goods or as per demands of consumers. For invite consumers and raise sales, innovation is one
of most necessary factor. For development of new product, there has been studied about the 4ps
of innovation in detailed manner. The innovation funnel has been discuss here because it helps
in launch innovative goods and services ta market place. Instead to this, it is important for
company to protect innovated goods through using different tools developed through
government such as copyright, patent, trademark and many others.
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REFERENCES
Books & Journals
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