Report on Innovation and Commercialisation at Essence Drinks Ltd

This report provides a comprehensive analysis of innovation and commercialisation strategies, focusing on Essence Drinks, a UK-based company. The report differentiates between invention and innovation, highlighting the importance of innovation for organisational growth, customer needs, and competitive advantage. It explores various forms of innovation, including incremental and disruptive innovation, and examines the four directions of change an organisation can take. The report also discusses the innovation funnel and frugal innovation, recommending steps for Essence Drinks to develop new and innovative drinks. Furthermore, the report delves into the company's background, the problem it faces, the importance of using the commercial funnel, and a new idea for a drink product that meets stakeholder needs. It also covers techniques for testing the effectiveness of the new drink, resources required for its development, and tools for protecting its intellectual property rights.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. Difference between invention and innovation........................................................................1
2. Importance and value of innovation to organisations and how this can be embedded within
the organisational leadership and culture....................................................................................2
3. Forms of innovation and four directions of change an organisation can take along with 4Ps
of innovation...............................................................................................................................3
4. Discuss innovation funnel and frugal innovation...................................................................5
5. Recommend next steps that Essence drink take to derive new and innovative drinks...........7
PART 2............................................................................................................................................7
Company background and the problem......................................................................................7
Explain the importance of using the commercial funnel............................................................8
A summary of the new idea for a new drinks product and how it would meet stakeholder
needs............................................................................................................................................8
Techniques for testing the effectiveness of the new drink........................................................10
Resources required for proceeding with the innovation business case e.g. funding for market
research, desk-based research, product development...............................................................10
Evaluate the different tools Essence Drinks could use to protect the intellectual property rights
of a new drink............................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation defines as a process of developing new and unique ideas that helps in modify
the current product and services to attracts the attention of people of society. Therefore in
organisation innovation is crucial term to maximise market share and profits in marketplace.
Therefore commercialisation termed as those activity in which company launch new products
and services within marketplace to develops high profitable results and revenues (Zhou and et.
al., 2019). To complete this project Essence drinks is to be undertaken that is a prominent
company in UK. This company started by Mr Akshay Kumar since two years ago with only
mango lassi. By this lassi they gain high profitable results in marketplace. Therefore in recent
years company face major downfall in their profit earning and to solve this situation Akshay
wants to innovate lassi using organic plum and avocado fruit syrup with their pulp. To
effectively execute this innovation in lassi this report develops in two sections. In one sections
invention and innovation concept is explained along with culture, leadership and teamwork of
Essence drinks. It also demonstrate the innovation funnel with frugal innovation that helps in
completing innovation effectively. In second section this reprot demonstrate business case to
properly execute the innovation in lassi so that high profitable results are enjoyed by
organisation.
PART 1
1. Difference between invention and innovation
Invention defines as a creation of goods or launching of a particular process for a very
first time. This term demonstrates the idea development process or the manner of doing it.
Therefore is reflects product development activities and engineering methods. It mainly needs
scientific logic along with deep analysis of consumer needs (Liyanage and et. al., 2019). In
terms of Essence drink Mr Akshay focus on innovate lassi with plum fruit syrup with pulp lassi
that is healthy for consumers and also helps firm to encourage number of customers in small
period of time.
Innovation happens when an individual or organisation focus on improving or make
significant changes in something that is already invented. It involves develops the current ways
of processing or operate something new that is beneficial for user in various manner.
Distinct between invention and innovation
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Basis Innovation Invention
Definition It implies execution of new idea for
current product or process for first
time.
It defines the presence of new idea
for a products and services that is
never been developed or produced
before.
Skills needed Innovation needs marketing,
strategic and technical skills
Invention needs scientific skills
Activities These activities are spread across
the organisation
It is limited to research and
development department
Examples The innovation in Essence drinks
mango lassi is plum fruit syrup with
plup lassi. In this Essence drinks
manager take help of all team
member and select the best
alternative that is healthy and
profitable in customer and company
context.
For instance- if company done
innovation in preserving lassi
bottles with color changing bottles
that is totally new innovation in
market and useful to generate huge
base of customers.
2. Importance and value of innovation to organisations and how this can be embedded within the
organisational leadership and culture
Benefits of innovation
There are several importance of innovation in context of business terms. In terms of
Essence Drinks several importance are demonstrated below:
 Grow business- The main importance of innovation is that it grow the profits and
revenues of business on which who business operations are working (Muizniece, 2020).
In context of Essence Drinks, doing innovation in lassi using plum syrup and pulp in lassi
helps in encouraging customers towards buying the lassi due to this business profits are
grown.
 Fulfil customers needs- Therefore organisation focus on innovation for fulfilling the
needs of customers. In terms of Essence Drinks, company sales is negatively affected due
to this Mr Akshay focus on done innovation in lassi using Plum syrup and pulp that is
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healthy and useful to attracts more customers. It is so because currently people are
attracted towards healthy things.
Organisational leadership
This defines to those action that leader of organisation is to be used for influencing and
guiding subordinates for attaining goals within set time frame. In terms of Essence drink leader
adopts transformational style of leadership. By using this employees are encouraged towards
accepting change as per requirements of market. Currently people of UK highly move towards
the use of healthy products as per this firm need to innovate their lassi by using plum syrup and
pulp and serving in a colour changing bottles that fulfil the objectives of people related to health.
It develops profitability and sustainability in marketplace.
Culture
Organisation such as Essence drinks adopts the task culture where manager of Essence
drinks allotted task as per individual skills and knowledge that helps in completing innovation
effectively and efficiently. This gain profitable results in company sustainability and also useful
to gain competitive advantage within marketplace. This helps in achieving the objectives based
on innovating drinks in favourable manner.
Teamwork
It define the group of people who works together for accomplishing common goals.
Teamwork is essential within organisation to maintain collaboration and cooperation among staff
members so that particular objectives is attained appropriately. In terms of Essence Drinks
manager make effective teams so that innovation in lassi is done in productive manner. Due to
team work company survive for longer time period and it also encourage employees productivity
(Hahn, Minola and Eddleston, 2019). Teamwork within Essence drinks supports innovation in
lassi within colour changing bottle and take advantage of good market position in competitive
environment.
3. Forms of innovation and four directions of change an organisation can take along with 4Ps of
innovation
Directions of change that Essence drinks take
 Transformational change within organisation reflects the process of reshaping business
and strategy that represents shifts in working culture. It mainly shows unexpected
changes in market (Nylund, Ferras-Hernandez and Brem, 2019). For instance people in
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UK are now very health conscious as they only prefer to take healthy diet this unexpected
and frequent change from customer side force Essence drink to innovate mago lassi to
organic plum syrup with plum pulp lassi in color changing bottle that is very healthy to
drink. These changes are effectively done by employees.
 People- centric change is very crucial for Essence drinks because to innovate lassi it is
essential to hire new candidate who have smart knowledge as per current market demand
so that high profits are generated.
 Structure change are very necessary to do innovation in lassi by Essence drinks. To
effectively done innovation Mr Akshay adopts hierarchy structure so that activities are
done effectively without any misunderstanding.
 Remedial change is mainly raise when firm examine the changes within customer
demands. To fulfill the demand of customers Essence drinks do modifications in lassi and
gain high success.
Forms of innovation
In context of Essence drinks several forms of innovations are to be demonstrated below:
 Incremental innovation- It is a type of ordinary form of innovation because within this
firm exploit the advanced technology for increasing the value of products and services in
the eyes of customers within market. In case of Essence Drink company adopts the use of
this innovation by doing small innovation in terms of colour changing bottle to deliver
lassi to customers so that more customers are attracted towards it.
 Disruptive innovation- It defines that form of innovation which is done in a refined
manner within goods and services which is quite needed by company to attracts broad
market (Holroyd, 2019)(Marttin, 2020). If essence drinks use disruptive innovation it
means they adopts the use of big-ticket products so that they attracts elite market in
society.
From above forms of innovations Essence drinks focus on incremental form of
innovation because they do alteration in lassi for attracting customers and enhance brand image
in UK.
Sources of innovation
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There are several sources of innovation that helps organisation in innovating products and
services for gaining more profitable results. In terms of Essence drinks some sources are
presented below:
 Market structure- It defines suitable structure of market that offers idea to company in
terms of innovation so that they gain more profitable results. In this google, play crucial
role as it offers millions of ideas that enhance market structure. This highly influence
Essence drink culture in an positive manner because due to this they gain proficient
results in long term survival. By using google employees understand people taste and
preferences so that innovation ios done properly and effectively that maximise market
structure.
 Necessity- It reflect core element of innovation because it is necessary for company to
develop products and services as per necessity of market. This helps Essence drinks to
enhance market share and revenues in competitive market place.
4 Ps of innovation
Innovation is termed as essential step in present business environment in order to gain
competitive advantage and attracts huge base of customers. Therefore, innovation put magic in
company profits and sustainability. Essence drinks use innovation as approach that is effective
for leading the market is represent more advantage to company and customers. There are mainly
4 Ps of innovations that are discussed below in relation to Essence drinks:
 Product- This define as those term which is being offered to customers by company to
fulfill their needs and demands. In terms of Essence drinks company is to offer healthy
lassi by emphasizing on health conscious people so that more sales will be enhanced in
marketplace.
 Process- This process is defines as those aspect that is mainly focused on the process
adopted in manufacturing goods and products. In context of Essence drinks Mr Akshay
offer organic plum syrup with plum pulp lassi in colour changing bottle with the use of
environment friendly practices at the time of producing organic plum lassi.
 Paradigm- This is mainly linked with gaining prominent and creative ideas so that
overall capabilities of business is to be maximised (Wang, Lu and Hung, 2020). In terms
of Essence drinks manager mainly involves in decision making process that is quite
useful to inhale unique ideas for gaining profitable results.
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 Position- This is mainly integrated with those types of products and services that are
useful to gain high market position in competitive business environment. In terms of
Essence Drinks manager highly try to being innovated in products and services to
develops the overall profitability of business.
4. Discuss and analyse innovation funnel and frugal innovation
Innovation funnel is mainly used to elaborate the steps that take place for developing the
process or products. At the initial stage of development several ideas are collected that go
through refinery system. This refinery system is termed as innovation funnel. Therefore after
refining several ideas are left so that it becomes easy for company to implement is effectively.It
define as a process of developing innovation and in case of Essence drinks this funnel discussed
below:
 Assessment of Opportunity- It is initial stage where Essence Drink manager go for
market research to recognise various relevant information related to products and services
within market (Abyzov, 2019). In this manager use questionnaire survey method so that
market opportunities are effectively analysed by Essence Drinks.
 Ideation Process- In this stage various ideas are taken place that is useful for Essence
drinks to inhale the best profitable opportunities that are mainly available in market. This
is very useful for Essence drinks to increase the market reach so that large base of
customers are attracted towards company and this helps in gaining competitive advantage
within marketplace.
 Conceptualisation- In this stage different terms are integrated together because of
advertising features. Therefore advertising helps in keeping customers retain and also
useful to attract new base of customers. In this step Essence drink manager create
awareness related to products that they offered to customers so that profitable results are
enjoyed in their long term survival.
 Benchmarking- In this stage Essence drinks manager focus on examine concept and idea
of innovation in lassi with the company objectives because it is essential to improve
products quality and features (Jarmooka and et. al., 2020). This directly impact on
employees performance and profitability to organisation due to this actual position of
business entity is examined effectively.
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 Go or No go and launching- It denoted as a last step in which company take the
decisions related to products within market. In case of Essence drinks manager emphasis
on developing distinct market position by offering high benefits to customers.
Frugal innovation
Frugal innovation defines as a new frame of mind that means one sees resources
constraints not in a liability manner but in a positive opportunity. This does not wow customers
with technically sophisticated products but frugal innovation focus on creating good quality
solutions that deliver high values to customers at minimum cost (Siefert, and et. al., 2019). This
term mainly supports the non essential activities for producing products that are durable in
nature. The key attribute of using frugal innovation is to offer innovative products and services to
customers so that they properly differentiate the key factors which is essential to attracts large
base of customers. In context of Essence drinks, Mr Akshay focus on earning profitable results
for this they emphasis on modify the lassi at economic pricing methods that helps in attracting
large customers base so that high profitable results are enjoyed by company in their long term
survival.
This reflects various approaches that are mainly adopted by other organisation for
developing sales by using innovative products and services. For instance- Tesco use social media
approach to examine the customers needs so that innovation in products is to be done properly. It
also attracts high base of customers in competitive marketplace (Liu, 2021). Another example is
MOMA foods where manager follow human relation approach to launch innovation in market as
this approach helps in examine behaviour of customers so that profitability is maintained
effectively and efficiently.
Analyse role of frugal innovation
There are several role of Frugal innovation within business organisation. The main role of
frugal innovation is to increase customer base of organisation as it offers huge opportunities to
Essence drinks in terms of selling and launching products and services in market at effective
cost. The another role of Frugal innovation is to gain competitive edge in the marketplace
because it eliminates the wastage that helps company to offer quality products to customers.
5. Recommend next steps that Essence drink take to derive new and innovative drinks
From examine the above report it is to be recommended that Essence drink manager
follow several steps for their innovative lassi being famous in marketplace. To derive this lassi in
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market manager develops the business plan that includes background of company, summary of
new idea along with techniques that is used for testing the new lassi. In this Mr Akshay also
reflects several resources of funding and evaluates the intellectual property rights tools for new
drinks so that profitability is to be maintained.
PART 2
Company background and the problem
Essence drinks is a type of drinking company that provide mango lassi to their customers
with the previous two years. By selling mango lassi they gain high profits and enjoys huge sales
but recently the sales of company is laid down. At this time owner focus on innovate the lassi to
retain and attracts customers for gaining more profitable results as it is a company that use
innovative formula. The sales of company is being affected by competitors presents in
marketplace. To overcome with this situation Mr Akshay innovate lassi so that their market
position will increased and firm will sustain longer time period in organisation (Dong and et. al.,
2019).
The Vision of Essence drinks is to earn more revenue and enhance sales by developing
customers based using innovation in lassi.
The mission of Essence drinks is to lead market by acquiring those customers who are
mainly health conscious. This could be easily done by company using plum syrup with plum
pulp lassi serving in colour changing bottle.
Explain the importance of using the commercial funnel
Commercial funnel refers to a marketing tool through which business enterprises
recognise, quality and trade their offerings to customers within marketplace. It breaks the
journey of customers from awareness to purchase stage. It reflects as a chronological activity by
attracting customers towards products and try to convince them related to buy the products and
services. In context of Essence drink it represents as a situation where manager create awareness
about the new offerings in marketplace to develops the buying decisions of customers. In this
Akshay focus on commercialise the innovation that is organic plum syrup and pulp lassi in a
colour changing bottle that reflects a healthy drink for customers. This funnel involves various
stages like awareness, opinion, considerations etc. so that customers preferences are easily
identified so that positive outcomes are occur that are in favour of organisation.
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Importance of commercial funnel to Essence drink
The commercial funnel define the more prominent tool for Essence drink as it takes the
decisions based on innovation of products and services. This is highly useful to develop
customer decision making so that firm profitability is to be enhanced. Commercial funnel is used
to develops the market position so that Essence Drinks enjoy long term survival due to this they
easily beat the rivals within business industry.
Frugal innovation is a concept where organisation respond to different limitations that are
present within organisation whether they are linked with material or financial terms (Hepburn,
Pless and Popp, 2020). In terms of Essence drinks manager mainly focus on innovation in lassi
by using their capable resources so that particular innovation is done effectively and efficiently.
Resources includes human resources, financial resources etc. In case of Essence drink manager
hire talented workforce so that lassi is to be innovated with limited use of monetray resources
because company have shortage of financial resources. To overcome this issue human resource
are working effectively that creates values for lassi in the eyes of customers so that sales of
organisation is to be developed.
A summary of the new idea for a new drinks product and how it would meet stakeholder needs
After elucidating the problem that Mr. Akshay face within Essence drinks is declining in
profit earning and sales because customers are switching their choice to competitors as Essence
drinks only serve Mango lassi. To maintain profitability and revenues owner of Essence drinks
wants to innovate their lassi with the use of organic plum syrup and pulp in a colour changing
bottle so that customers are retain with company and more new customers are attracte3d towards
it because it is a healthy drink with a goodness of plum. After researching the market of UK Mr
Akshay develops this lassi so that they effectively fulfil stakeholders needs.
 Satisfaction of need from the innovation- to satisfy the needs of the stakeholders it is
very essential for Essence drinks to produce an innovative lassi with a goodness of
organic plum. This innovative organic flavour in lassi is distinct from the rivals so that
concerned company take advantage of attracting large base of customers. By producing
this lassi and company holds a remarkable position in marketplace.
 Opportunity in market- Food and beverage market is very crucial market as per current
time scenario (Zhao, Jiang and Wang, 2019). It is done so because now people are move
towards the use of healthy drinks and meals as compare to junk foods and soft drinks.
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Therefore this helps Essence drinks to market their plum lassi as it strengthen the market
position. This lassi also attracts number of customers so that firm enjoyed long term
sustainability and high growth in business world.
 Competitive edge- It is essential for company to invest in those projects that involves
low cost but they are highly effective to fulfil the goals appropriately. In terms of Essence
drinks the main attribute is to maximise market share and growth by retaining and
attracting large base of customers to make a loyal brand in business industry. Hence, by
focus on innovation in lassi company enjoy competitive market that is useful for long
term sustainability.
 Target market- In context of Essence drinks manager targets mainly health conscious
people and who avoids to drink soft drink because it is not healthy of particular person
life. Generally company targets the adults and children so that high profitable results are
enjoyed by company in marketplace.
 Strategy- The strategy of Essence drinks related to serve innovative lassi to customers is
penetrate pricing strategy. It is highly for company to attracts large base of customers and
develops market position.
 Promotional strategy- In terms of Essence drinks manager adopts the use of pamphlets,
social media marketing, local TV ads etc. to promote their innovation in lassi to
customers so that high brand position in marketplace is developed.
Techniques for testing the effectiveness of the new drink
By examine the innovation in lassi by Essence drink, manager need to focus on testing
the techniques that helps in understanding effectiveness of new drink are presented below:
 Return on investment metric- It is best technique to measure the effectiveness of
innovation that company do. Firm innovate their products and services by addressing two
aspects such as resources and monetary returns because it helps in examine the value of
innovation to attain profitable and sustainable results.
 Leadership metrics- In this manager of Essence drinks emphasis on nature of workers
towards innovation. It is done so because it helps in motivate employees to work on
innovative idea so that high profitable results are enjoyed by company in competitive
marketplace.
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