Developing Innovation Strategies for Essence Drink Company Products

This report provides a comprehensive analysis of innovation and invention strategies for Essence Drink Company, highlighting the differences between innovation and invention, the value of innovation, and various forms of innovation including incremental, disruptive, architectural, and radical. It explores the 4P's of innovation—product, process, position, and paradigm—and suggests improvements for Essence Drinks. The report also examines innovation approaches such as the innovation funnel and frugal innovation, using examples from companies like Amazon and Tesco. Furthermore, it outlines necessary steps for Essence Drink Company to drive new and innovative drink development, emphasizes the importance of the commercial funnel, discusses funding options, techniques for testing product effectiveness, required resources, and tools for protecting intellectual property. The ultimate goal is to provide actionable recommendations for Essence Drinks to enhance their innovation practices and market position, with Desklib providing access to similar solved assignments.

UNIT 8

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Difference between innovation and invention.............................................................................3
Value and importance of innovation in an organization..............................................................4
Different form of innovation and 4P's of innovation with some suggestion...............................5
Approaches of innovation and examples of companies who have applied this approach...........6
Necessary steps Essence drink company should go through to drive a new and innovative
drink.............................................................................................................................................7
The importance of the commercial funnel along with its appliance of new product
development processing for commercialisation of modernization..............................................8
Innovation business case for Essence Drinks, including ways of funding................................10
Techniques for testing the effectiveness of the new drink produce...........................................11
Resources required for proceedings with the innovation business............................................11
Different tools that firm can use to develop, protect and retain knowledge and intellectual
property of a new drink..............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation is an repetitive procedure of fulfil the desires and requirements of the clients to
the technological competencies so that they are able to fill the gaps among the knowledge related
to the manufactured goods, design, beginning, promotion and various other processes. Each and
every business organisation tries their maximum to innovate new policies related to their offered
products in order to have competitive advantages over the other firms. The organizations who
appropriately able to utilise the strategies defines their role that they try their maximum to
maintain good culture through which they are able to boost up the innovation practices
(Mazzarol and et.al., 2020). This report will describe difference between invention and
innovation to diverse organizations along with different ways to engage with the leadership as
well as culture. Apart from this, the study will also highlight the 4P’s of innovation with
diversified approaches that has been adopted by Essence Drinks Company. Furthermore, certain
recommendations will also be provided in order to make the innovation among the offered
products become more effective and ruling the market with their uniqueness.
MAIN BODY
Difference between innovation and invention
Invention states that a product or services that are created for the first time. On the other
hand, innovation means a product or process which is implemented for initiatory in an
organization. Invention is generally for non-economic and economical motive but innovation is
only for economic motive. Further, activities that are emerged in invention are limited to the
single department that is research and development. On the other note, innovation activities are
spread across the whole organization. Invention concept is related to creating new product and
innovation is associated with making a changes in already existing product or process. In
addition to this, invention is required to have scientific and technical skill on the side marketing,
technical, logical reasoning skills are needed to apply innovation in product or process. Invention
is based on original idea but innovation is focuses on implementation of new idea.
Value and importance of innovation in an organization
As said “Necessity is the mother of innovation”. To survive for a long term in the
dynamic market it is required to implement innovative ideas. In the current scenario, there is
high competition in the market place which lead to increase the importance of innovation.

Essence company need to implement innovative strategy to sustain the customer base in the
market. Moreover, it is too hard to create brand in the mind of customer which helps in making
loyal customer base (Aghion and et.al., 2018). This is only possible when company apply
innovative ideas to solve the problem of customer by changing existing product and services.
Innovation helps the business to adopt innovative selling strategy which helps to reach the target
market. Moreover, innovation of product and process helps the organization to achieve the
demand and supply of the market. Innovation increases organization chances to react to the
different situation which discover new opportunity. Organization keep their arm open to hire new
talent from the market which provide innovative idea (Ali and et.al., 2019). This innovative idea
reduces the gap between the market opportunities and organization working.
Essence Drink company has introduced mango lassi which was at the stage of boon in the
initial days. Further, carrying out this product without innovation lead to decrease in growth
opportunities. It is required to apply innovative ideas in order to achieve organization success.
The innovation can be applied in the organization culture to encourage employees for taking risk
by giving reward to move ideas into reality. The risk in the Essence drink company is that people
don't have more fear of financial loss rather than their fear is related to the loss of pride, status
etc. Essence company should provide reward to the employees for sharing their knowledge.
Leader direct the path to the organization employee to drive the success. Moreover, leadership
encourage new ideas from the employees and direct then to achieve it.
Different form of innovation and 4P's of innovation with some suggestion
Forms of innovation Incremental innovation: It is the most common and important form of innovation
(Assmann, 2018). In incremental innovation, company utilize its existing technology in
order to increase the value of the product by changing design, features, color etc. in the
existing market. Essence drinks company can offer mango lassi in different ways like
change taste, change in serving services etc.
 Disruptive innovation: Disruption innovation is also called as stealth innovation
which means company apply new technology or process in the existing market. New technology
which is applied in the company is superior then the old one. It creates an impact only after few
interactions which surpasses the new technology with the old one's. Essence drink company can
change their technology or taste, design in order to sustain in existing market.

 Architectural innovation: Architectural innovation means take existing technology,
skills and apply within different market. This innovation helps in increasing customer
base as long as the new market is being receptive ( Denicolò and Polo, 2018). Moreover,
company adopt new culture and environment in order to sustain in the market with
existing product. Essence drink company can choose new market place to increasing their
sales in the existing product. Because by changing the market, Essence drink offer
different marketing strategies like discount, sale offers that helps to build new customer
base. The current prices of drinks are suitable in new market because it targets
geographical area of middle class people.
 Radical innovation: Radical innovation means take new technology in the new market.
This give birth to new industry and the implementation of revolutionary technology.
Moreover, this innovation helps the company to increase the customer base, expansion of
existing business unit, product development etc. Essence drink company can apply
radical innovation by changing their existing market with technology updation. This will
take the company to new high with new changes (Min and et.al., 2019). Company can
choose digital platform to increase their reach with offering new varieties of product.
4P's of innovation
Product innovation: When the company redesign its product which is already in
existence then this process will be called as product innovations. Product design and taste
quickly changed with the persistence of innovative idea. Essence drinks has been offering the
same mango drink last 3 years. As per the market demand, people want some new flavors of
drink as the time changes (Oeij, Rus and Pot, 2017). Further, company should hire a new team
for application of innovative flavor which can be included with the existing outlasts.
Process innovation: The method focuses on the process of how product is being
manufactured in the company. It can be defined as how product is being manufactured, how
product is developed with innovative ideas. Moreover, company usually create an innovative
internal process for achieving higher profitability. Essence drink company should change their
internal process by changing product development process which will helps in increasing
profitability.

Position innovations: Positioning innovation stands for repositioning of established
product in the specific purpose. It analyses what the customer perception towards the company,
do company pay salary on time to their employees so many such things affected the perception
of people. Essence company need to work on for creating new positioning in the same market.
Paradigm innovation: This innovation states that the company completely change their
product and services (Reckwitz, 2018). Moreover, certain things like change the company staff
completely in order to apply innovative ideas for the success of the Essence drink company. This
complete change can be done either on process or product.
Approaches of innovation and examples of companies who have applied this approach
Innovation funnels approach in the context of Essence drink company
Innovation funnel states of generating large no. of business ideas out of these a handful
no. of ideas are converted into plan for creating funnel shape. There are many challenges which
is faced to create funnel shape. The first challenges are narrow the funnel neck- it means
generation of an idea should be based on resources and filtered the most attractive opportunities
present in the marketplace. Essence company apply this approach to find out the most
appropriate business idea in order to fill the gap with company resources. Further, next is wide
mouth funnel- At this stage company give more focus on gaining new knowledge and increasing
their information base. Moreover, essence company can get new ideas by hiring new people who
provide current market information.
Frugal innovation approach in the context of Essence drink company
In this approach company focus on reducing the cost and complexity of the product.
Moreover, it removes all the unnecessary features and design from the product to make it simple.
The main components of frugal innovation are discovering new business model, redesigning the
existing product etc.
Essence company use these innovative approaches to maximize the sales which is based
on frugal information. Further, this can be done by hiring new talent from the market which will
help in generation and implementation of new ideas. This will take company to new high in the
marketplace (Watson, 2017). Company can use digital marketing in order to advertise the
existing product. Amazon company apply funnel approach by collecting large no. of information
and then all the information are converted into business idea. Tesco company applied frugal

approach for reducing its product cost by removing complexity in groceries. Hindustan Unilever
company is the best example who has implemented funnel and frugal approach. Further, for
starting new product outlet company applied funnel approach and to save the cost of the
company it applied frugal approach.
Necessary steps Essence drink company should go through to drive a new and innovative drink
It is required for the company to bring out new changes in the existing product and
services. This change helps the company to regain their standard.
 Essence drink can take ideas and review from its customer because customer and staff
are the best source of gathering information.
 Company should prepare report on the basis of its new product sample which is
developed for the implementation of new idea.
 For increasing operating profit, company need to reshape its existing product outlets.
 Company should make targeted and efficient use of its commercial investment.
 Company should use online platform for taking customer order and delivering product to
the customer at their door step.
 Company should open different product outlet which give varieties to their customers.
 Company should release its product after making changes according to the requirement
of the customer.
 Company should hire high talented staff which will give new and innovative idea to
create brand in the market.
The importance of the commercial funnel along with its appliance of new product development
processing for commercialisation of modernization
Essence Drinks are one of the leading manufacture, traders and exporters who are engaged
in offering wide range of beverages namely essence drinks. The company offer various kinds of
drinks for people living in the society and highly popular as per their products. But from some
duration of time, company faces difficulties in selling their products because of introduction of
various good competitive products along with similar price strategies adopted by different
competitors creates problems for the firm and requires certain changes in their products. Thus, in
order to get overcome from these problems, Essence Drinks offer more of flavoured drinks such
as strawberry, chocolate, vanilla, cranberry, etc. and that too all are of low in calories and

contains natural sweetness without any artificial ingredients. In order to understand the concept
of customers’ drive from preliminary attentiveness all the system through translation, the sales
guide or commercial funnel has been utilised (Reboud, 2020). The commercial funnel also
named as optical illustration of offered product which is connected with the functioning of
diversified information to the elderly goods and services offered by Essence Drinks. The
commercial funnel shares different characteristics such as supplementary the producer of drinks
for overseeing the demand within the marketplace. While the acceptance of new manufactured
goods growth (NDP) procedure for the purpose of commercialisation of the modernism that
could put huge amount of influence on a large segment of the customers. There are varied
channels for the purpose of marketing only but it is difficult to make use of those channels for
the progress of various goods and services. Essence Drinks can ponder towards the advancement
and innovation in their products and services that they are currently offer so that the firm will
able to attract large number of clients. With the proper support of industrial channel, Essence
Drinks are able to attract their potential consumers, convert leads into final calls and finally
delight their consumers with their innovative products.
Commercial Funnel
The ultimate goal of the firm is to enhance their sales while matching their final goals and
objectives through certain innovations within their products and services according to the current
demand and requirements within the market as per the competitive scenario. In order to reduce
the complexity of varied goods and services along with diminishing prices, frugal innovation
process has been utilised. Basically, frugal innovation leads towards the taking away of the non-

required description of the product that could affect its presentation and enhance the cost of the
creation (Sharma and Kumar, 2019). In context of Essence Drinks, the firm can scratch
downwards their costs on the redundant expenses so that their innovative products could become
more ready for action and also donate to the country. The company also focus towards up
gradation of their products so that they could able to cut down costs along with change in
covering methods which will put aside the charges of present costly wrapping.
Frugal Innovation
The role that has been played by frugal innovation in context of the Essence Drinks in
their vigorous drinks production can be greatly cost-effective if it could be used in it. The
commerce collection could with no trouble put on the review and gather criticism from their
customers along with congregate complete information regarding the merchandize and know
about the indicate where they could slash down the costs along with introduction of more
flavoured drinks. The feedback that are composed by the firm that could be used to point out the
conduct in which they are able to cut down expenses of their goods at diversified stage so that
innovative products also have been easily introduced by the firm. The commerce could also be
established with the support of varied opening so that Essence drinks could able to put up for
sale miscellaneous kinds of flavoured drinks at the business.
Innovation business case for Essence Drinks, including ways of funding
The Essence Drinks wants to offer innovative product in the form of introduction of more
of flavoured drinks such as strawberry, vanilla, chocolate, cranberry, orange, etc. along with low
calories drinks with natural sweetness in it. This is an incremental innovation for the
organization as it consists of improvement in existing product i.e. the health drink in which
various minor changes makes the product exists in the market place. The company is highly
focused towards providing their products to all age group people and majorly the people who are
highly health conscious people. The company target consumers who are at the age group of 20 to
50 who are at major risks of health issues and faces challenges now a days. So, in order to avoid
certain health issues, company offers more of healthy drinks to their consumers along with
appropriate flavours which automatically fulfil the requirements and desires of clients

(Mukherjee and Saravanan, 2019). The business owners could simply go with the flow of market
or market trend for the development and expansion of the establishment. The right of entry habits
of financial support that has been utilized by Essence drinks are looking for commerce associate,
captivating credit from having an account and other sponsors and mass funding from the heath
conscious people and groups. In context of explaining the innovation through 4 P's in the
innovative space the explanation are below:
 Product: The product offered by the firm are the flavoured drink that come up with an
idea to offer various flavours such as vanilla, strawberry, chocolate, orange, etc.
 Price: the price of the offered innovative product must be economical in nature so that it
can attract customers of diversified sectors.
 Place: The product will be offered at digital platform as well in order to capture huge
amount of market place and through which the firm will easily able to sell their products.
 Promotion: Various activities such as giving advertisement in newspapers, social media
platform, templates, TV advertisements, etc. are numerous promotional activities that
helps the firm to advertise their innovative products and services into diversified market
place.
At the time of development of new or innovative products or goods, it is also important to
develop thoughts regarding the offered products. With the development of the thoughts within
the business it describes those novel habits for accessing the expansion of new produce could be
complete in appropriate manner. After generation of thoughts development of idea occurs that
noted down that it is crucial to develop or build those thoughts so that they could work towards
developing the establishment benefits. After the contemplation procedure, the development
process starts. Next step is strategies and plans as once the plans developed it are important to
identify certain strategies and plans that will be assisting in the expansion of the goods and
services that are offered by the firm. The schemes those have been used for the purpose of
advertising the goods and export them are to be resolute. The idea is additional put into practice
and the overall procedure of modernism is finished (Kruger and Steyn, 2020). It include of
pertaining all the plans and strategies towards working off the idea and their development. At the
end the market further analysed and certain feedbacks have been composed to know various
ways in which customers have been act in response towards forces of the merchandise.

Techniques for testing the effectiveness of the new drink produce
There are various techniques which provide complete detail about the newly introduced
product such as the new drink that has been introduced by the Essence Drinks such as flavoured
drinks along with low calories and natural sweetness within the drink attracts more of health
conscious people. For this newly introduced drink, the survey method has been chosen by the
marketing managers of the firm in order to identify their success and failure within the market
place. The survey method is highly cost effective and provides detailed evaluation about the
newly introduced product. It pays of real world feedback before launching a new product in front
of other competitive firms.
Resources required for proceedings with the innovation business
There are various challenges that have been faced by the establishment in order to proceed
further with the involvement of innovation within the product. In context of Essence Drinks
innovation in the form of more of flavoured drinks along with low calories and involvement of
natural sweetness highly affects the overall concert and facts within the business enterprise. The
information and the dream of the functioning of tactics could be help out with various different
scheme which has been utilised by Essence Drinks for the reason of their modernism.
Apart from various inventions, some of the challenges that have been faced by the firm are
the harsh competition, changing taste, invariable calculation of aroma and unavailability of
currency inflow (Kim and Rhee, 2018). The nature of modernism is said as the procedure of
development of innovation commerce with the support of only certain incomplete resources.
There are varied other matters as well that could guide towards some of the severe fence for
Essence Drinks such as the response of the market on the ground-breaking products along with
the ease of use of money.
Different tools that firm can use to develop, protect and retain knowledge and intellectual
property of a new drink
There are various outfits that could be used by the different selling so that they are able to
expand the information and defend the solitude of the firm’s activity along with their products
(Arntzen and et.al, 2019). In order to save the products there are various tools such as:

 Trademarks: This technique has been utilised in order to defensive the human rights
over the names, symbols, and the images that are utilised by the trade proprietor in order
to make their products as well as company’s sole along with an image so that their
clients could easily able to identify them. This could be used to defend the symbol of
the Essence Drinks trade of healthy and flavoured juice business.
 Patents: Patents are used for the reason of defensive the current invention along with
the improvements that have been adopt by the in the products offered by the firm.
Essence Drinks can safeguard their products of their business which has been offered by
them for the betterment of the firm as well as customers (Yordanova, 2018).
 Copyright: this has been used for the point of defending the appearance of the idea as
the Essence Drinks can easily able to defend the announcement that is made for the
production from getting imitated. With the help of design rights, the appearance of the
products have been protected by the firm. Design is about the whole idea that makes the
product unique in each and every sense. It is beneficial for the business as it helps to
provide exclusive rights to manufacture and sale of the design.
In context of wider business environment, it is important to posses the innovation as well as
talented brains so that they are able to build up and hold the inventive process of the business.
The tools are divergent tools which illustrates that it has been referencing to the getting of the
various thoughtfulness for the last miniature information that could be confer at the similar time
period. All the innovators and the business possessor need to effort along with their colleagues
for development of the information and employment towards it so that they could able to think
about more innovative work as well as products (Fernandes, Ferreira and Peris-Ortiz, 2019).
However, other type of tools illustrates the convergence tool that can be referred with the
assortment of the information that could be twisted up at the instance of utilisation of the
different methods that has been used. This method is slightly diversified from other instrument
process but it is more dependable and ground-breaking at the time of contrasting it.
CONCLUSION
From the above report it has been concluded that there are numerous wants of the industry
tools and information for the advancement of unbeaten business. Apart from this, convinced
obstacles also had been explained within the tasks that are required to be avoided for the

development purpose. The 4P’s of improvement have also give details within the assignment so
that they are able to appreciate the needs of the market and do effort towards it. The procedure of
the innovation has been varying considerably through the market along with different product
lines.

REFERENCES
Books and journals
Aghion, P. and et.al., 2018. The impact of exports on innovation: Theory and evidence (p. 678).
Cambridge, MA: National Bureau of Economic Research.
Ali, M. and et.al., 2019. Consumer acceptance toward takaful in Pakistan: An application of
diffusion of innovation theory. International Journal of Emerging Markets.
Arntzen, S., Wilcox, Z., Lee, N., Hadfield, C. and Rae, J., 2019. Testing Innovation in the Real
World. London: NESTA.
Assmann, J., 2018. The Invention of Religion. Princeton University Press.
Cowen, M. and Shenton, R., 2017. The invention of development. In Development ethics (pp. 3-
21). Routledge.
Denicolò, V. and Polo, M., 2018. The innovation theory of harm: an appraisal. Available at
SSRN 3146731.
Fernandes, C., Ferreira, J. and Peris-Ortiz, M., 2019. Open innovation: past, present and future
trends. Journal of Organizational Change Management.
Kim, Y.C. and Rhee, M., 2018. Professional collaboration in technological innovation: a case of
technology licensing of university inventions. Technology Analysis & Strategic
Management, 30(11). pp.1351-1363.
Kruger, S. and Steyn, A.A., 2020. Enhancing technology transfer through entrepreneurial
development: practices from innovation spaces. The Journal of Technology
Transfer, 45(6). pp.1655-1689.
Mazzarol, T. and et.al., 2020. Work Book: Adoption and Diffusion of Innovation. In Workbook
for Entrepreneurship and Innovation (pp. 63-76). Springer, Singapore.
Min, S. and et.al., 2019. Consumer adoption of the Uber mobile application: Insights from
diffusion of innovation theory and technology acceptance model. Journal of Travel &
Tourism Marketing. 36(7). pp.770-783.
Mukherjee, P. and Saravanan, P., 2019. Perspective view on materialistic, mechanistic and
operating challenges of microbial fuel cell on commercialisation and their way
ahead. ChemistrySelect, 4(5). pp.1601-1612.
Oeij, P., Rus, D. and Pot, F.D. eds., 2017. Workplace innovation: Theory, research and practice.
Springer.
1

Reboud, S., 2020. Adoption and diffusion of innovation. In Entrepreneurship and
innovation (pp. 165-189). Springer, Singapore.
Reckwitz, A., 2018. The invention of creativity: Modern society and the culture of the new. John
Wiley & Sons.
Sharma, G. and Kumar, H., 2019. Commercialising innovations from the informal economy: The
grassroots innovation ecosystem in India. South Asian Journal of Business Studies.
Watson, W., 2017. Invention. In Cicero and Modern Law (pp. 371-386). Routledge.
Yordanova, Z.B., 2018. Innovation project tool for outlining innovation projects. International
Journal of Business Innovation and Research, 16(1). pp.63-78.
Online
Innovation and commercialization of an organization.2021. [Online]. Available
through:<https://www.bestassignmentexperts.com/samples/innovation-and-
commercialisation>
2