Essence Drink: New Product Development and Commercial Funnel Analysis

This report analyzes Essence Drink's strategy to address high market competition by launching a new product, a mixed fruit lassi, to increase sales and revenue. It highlights the importance of the commercial funnel in building product awareness through email marketing and social media, enhancing customer interest, and the significance of new product development (NPD) in creating innovative products. The report outlines key steps in NPD, including idea generation, screening, and market analysis. It emphasizes that both the commercial funnel and NPD are crucial for understanding and satisfying customer needs, making a strong business case for funding, including product expansion, customer interaction programs, and pricing strategies. The report also covers cost and risk factors, funding sources, and intellectual property considerations such as patents and trademarks, along with their advantages and disadvantages. It further discusses the challenges of collaboration and the need for specialized employees and investment in research and development to gain market insights.

Speaker notes
for PPT
Moreover, the importance of commercial funnel is that it
helps the organization in building the awareness of the
product in the market through e- mail marketing and social
media (Cheng and Yang, 2019). Along with this, it allows the
organization in enhancing the interest of the customer in
the products as well as demands in the market.
On the other hand, new product development is the
process of manufacturing the innovative product.
Furthermore, some of the most important steps in NDP is
generating and screening the ideas that contributes in
making the appropriate marketing strategy in order to run
the business. Along with this, after analysing the market
essence company check the products thoroughly before
launching it in the market. However, both the

commercial funnel and new product development is
important in the market as it allows the organization to
understand the needs of the customer and allow
organization to satisfy the customer (Mauerhoefer, Strese
and Brettel, 2017). Furthermore, it helps the firm in making
the business case that contributes in identify the sources of
funding.
Along with this, a business case should include product
expansion, customer interaction programmes and pricing
strategy.
Executive summary: Essence Drink is facing high
competition in the market and because of that firm is not
able to sustain in the market. Moreover, the organization has
decided to launch new product in the market in order to
increase the sales. Along with this, firm has decided to
introduce mix fruit lassie to attract customer so to enhance
the revenue of the firm.
Background:
The firm is facing high competition so in order to reduce
that organization has planned to launch new product. For
that organization has used social media to increase the
awareness among the targeted customer.

Solution Outline: The key solution organization can adopt is
to launch the new flavoured lassie as it will contributes in
marinating the market position of the firm.
Cost and Risk: The overall budget estimated by the company
is £ 5000 that will increase by £ 7000 that will increase the
profit of the firm (Velenturf and Jopson, 2019). However, the
organization can face the external environment risk such as
legal and political.
Assumption and resources:
It is an assumed that firm will be using natural resources as
well as labour and capital in order to manufacture the
new product in the market. Along with this, firm will be
required budget of £ 5000 in order to manufacture the
innovative product.
Project Scope: The organization will be required 10 – 15
specialised employees in for producing the products as
well as to manage the overall project. Along with this, firm
has to implement the appropriate strategic plan in order
to accomplish the task.
Funding sources: The organization can seek the fund from
the financial institution as well as from angle investor
in order to run the business (Feyzullaev and et.al, 2021). In
addition to this organization can collect fund from crowd
funding that will help the firm in gathering large amount.

Moreover, it is consist of art work, mathematical theory.
Along with this, it helps in protecting ownership right and
the life span of patent is 20 years in United Kingdome.
Furthermore, the organization enjoy certain advantage
such organization can use their own invention as well as
increase rate of investment. However, like every coin has
two side the company can face minor disadvantage such as
it is an expensive process so small firm cannot afford it. In
addition to this, invention is revelled in 18 months.
Along with this, it mainly associated with the product
manufacture by the firm as well as symbol or logo used by
the organization. It manila protect the name by which
customer know the firm. Furthermore, the Essence drink
can have registered the organization logo in the registrar
office as special rights are given to the company
(Nambisan, Wright and Feldman, 2019.). Moreover, the
advantage of using trade mark is allowing the organization
to take the legal action in the court in case of fraudulent
use of the brand. On the other hand, disadvantage such
as it can compress the quality as firm will end up losing the
control over elements such as packaging, distribution etc.

The organization can face issue such as lack of collaboration
among employees and partners as it allows the company
to increase the sales of the company. Moreover, the
organization need to hire specialize employees that require
huge budget as well as for conducting the training and
developing programme. Along with this, for connecting with
the customer firm has to invest in research and
development programmes so that it can identify the
market insights.
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