Innovation and Commercialisation Strategies for Essence Drinks

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INNOVATION AND COMMERCIALISATION

Executive summary
Based on the following discussion, this report analysis different innovative strategies and
development ideas regarding commercialisation of fruit drink production industry for Essence
Drinks. It can be summarised that, market size and revenue generation of Essence Drinks
continuously decreases because of high competitiveness in drink production industry in UK.
Therefore, provides different marketing expansion and development strategies to Akshay
Kumar for creation of opportunities in international business environment. Ultimately,
researcher also analyses several factors of 4P to understand market trends in drink production
industry.
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Table of Contents
Introduction................................................................................................................................4
LO1 Explaining innovation and differentiating between innovation and invention..................4
P1 Explaining innovation and determining its importance in organisation in comparison to
invention.................................................................................................................................4
P2 Constructing innovation and commercialisation with respect to leadership, organisation
vision, teamwork and culture..................................................................................................5
M1 Analysis of different sources of innovation and process of fostering organisational
innovation with environment and culture...............................................................................6
LO2 Explaining the different types of organisational innovation..............................................8
P3 Explaining 4Ps of innovation and the application of innovation funnel for structuring
and examining innovative ideas.............................................................................................8
P4 Explaining developments in the frugal innovations and its application with examples. 10
M2 Analysis and application of innovative funnel in organisational context......................11
M3 Evaluation of role of frugal innovation in organisational context.................................11
D1 Critical analysis of the developmental procedure for frugal innovation........................11
LO3 Discussion about the process for commercialising innovation........................................12
P5 Explaining importance of commercial funnel with application of New Product
Development (NPD).............................................................................................................12
P6 Developing an Innovation Business Case, including the process of accessing funds.....14
M4: Development of Innovation for Business using techniques..........................................15
LO4: Evaluation of several methods to protect ideas to explain advantages and disadvantage
..................................................................................................................................................15
P7: Evaluation of different tools for development of knowledge for retention of intellectual
property.................................................................................................................................15
M5: Evaluation of evidence-based tools for business environment.....................................17
D2: Critical analysis of innovation and development process.............................................17
Conclusion................................................................................................................................18
References................................................................................................................................19
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Appendices...............................................................................................................................21
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Introduction
In the era of globalization, every organisation is focused on accepting innovation and
commercialisation to address the diversified needs to customers and to increase business
opportunities. This study aims to analyse different processes of innovation, invention, and
commercialisation of products in consequences of Essence Drinks, a beverage manufacturing,
and selling company. Innovation is a process that helps in revitalising the products by adding
values and attracting customers to it through commercialization. The study supports the
analysis of 4Ps of innovation, frugal innovation and innovation funnel for successful
integration of innovation and commercialisation of products. Additionally, the process of
protecting intellectual property for the company is also discussed.
LO1 Explaining innovation and differentiating between innovation and
invention
P1 Explaining innovation and determining its importance in organisation in
comparison to invention
Innovation is a method that helps in generating and applying new ideas about services,
products related to organisational development. As mentioned by Laforet (2016:379),
innovation in business services and products has potentiality to support success in
competitive business market. Different drivers such as intellectuality, differentiating
workforce and intention to go out of the ordinary are effective in implementing innovation
within organisation. On the other hand, Sakowski et al. (2018:6) commented that invention is
essential and one of the crucial factors in bringing innovation in the organisation. The process
of actualisation of ideas supports in invention of new products. In the given scenario, the
process of invention along with innovation is essential to achieve the objective of launching
new beverages in the market.
Importance of innovation in case of Essence Drinks: The process of invention and
innovation are interlinked to develop opportunities for a business company to advance with
the short-term and long-term goals. As described by Koren and Palcic (2015:27),
organisational innovation can only be obtained with the scope of invention and suitable
practices to support the changes within the company. Essence Drinks strategize to increase
their product sale and compete against the new entrants in the market by innovating new
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range of drinks along with their lassi products. Therefore, this new and innovative idea is
needed to be actualised with logical reasoning and develop products that are capable of
bringing competitive advantage over the market competition. The distinctive features in
relation to flavours, nutritional values are new concepts of the company to make the company
renowned among a large range of customers. In addition to this, the combination of different
flavours can bring innovativeness which is needed to be actualised for market capturing.
Figure 1: Innovation in essence Drinks
(Source: Koren and Palcic, 2015:28)
For instance, the featured drinks of Starbucks have helped in increasing sales growth rate by
10.42% (statista.com, 2019). It is evident that the application of innovation in featuring
products and initiating invention for launching them is beneficial for the company, Essence
Drinks. Moreover, Essence Drinks needs to value add to their new products of amount of
£1.4 million to affect the innovation and shape product development successfully. However,
Jorna (2017:56) commented that sustainable innovation is only applicable when ideas are
formulated and then implemented for attaining competitive advantage.
P2 Constructing innovation and commercialisation with respect to leadership,
organisation vision, teamwork and culture
Generating new ideas through innovation and actualising it through invention play critical
role in bringing change in organisational productivity. As mentioned by Johne (2018:79),
innovation in productivity can be acquired with the aid of differential service of
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increase outlets bt 5%
increase sustainability
Business
expansion
go against rival
companies
increase sale by 7%
Gain competitive
advantage introducing new
flavours
products with
nutrition and
uniqueness
Address customer
needs
to increase
perfromance
reduce competition
Attracting talents

organisational departments and commercialising products to increase its popularity in market.
Through commercialisation, the aggregation of innovation, invention, marketing and
communication with customers can be achieved leading to effective business competition.
The management of commercialisation of new products is affected by factors such as
organisational culture, goals, leadership and team performance. For instance, the objective of
Essence Drinks is to increase sale against the new entrant by introducing new range of
beverages along with lassi. The vision is influenced by market demand, organisational
performance and the possibility of incorporating innovation in organisational culture.
Leadership
Incorporating new technologies for developing drinks with exquisite flavours and having
nutritional values can help in increasing the sales by 7.2% and number of outlets in the
surrounding cities in UK (Sakowski et al. 2018:15). Initiating a healthy leadership system can
help in developing organisational environment that supports innovations and hone talents for
realistic implementation of strategies to make successful business development. As
mentioned by Sethibe and Steyn (2015:325), transformational leadership endures comfortable
workplace environment to increase organisational performance, however, transactional
leadership is more effective in facilitating innovation within the organisation. Hence, Essence
Drinks needs to consider transactional leadership to promote incorporation of new ideas and
performance through punishment and reward system.
Organisation culture and vision
Organisational culture and dynamic team performance are essential in commercialisation and
innovation as they reflect upon the organisational operations through controlling the value
and attitude of employees towards organisational vision. As stated by Eidizadeh et al.
(2017:250), sharing knowledge and responsibility in the organisational environment can
regulate the culture and team performance as they boost organisational development towards
innovation and support commercialisation. Therefore, teamwork and promotional
organisational culture are important in achieving organisational vision and gain competitive
advantage with innovation and commercialisation.
M1 Analysis of different sources of innovation and process of fostering
organisational innovation with environment and culture
Bringing innovation within the organisation can be supported with leadership style and an
accepting workplace culture that upsurges the involvement of employees and promote
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investment of high-level performance. As opined by Verbano and Crema (2016:524),
technological support for sustaining innovation can help in increasing the scope of business
progress and providing opportunity for business expansion through great management
strategies. Nevertheless, Essence Drinks need to consider facilitating scientific knowledge in
product development and marketing along with assessment of process need to introduce new
range of drinks.
Figure 2: Different sources of innovation
(Source: Influenced by Eidizadeh et al. 2017:253)
Spontaneous innovation within the business is needed to be supported by organisational
activities and decision-making. As explained by Love and Roper (2015:28), fostering
innovation in SMEs need to consider different processes that recognise, global market
demand, organisational culture and environment. The steps of fostering innovation within the
organisation are as follows:
Steps Possible impact on organisational innovation
Developing
transactional
leadership style
The leadership style would foster enhanced performance and team
collaboration to enhance the scope of production management and
developing products that are innovative. This can facilitate
production enhancement by 5.7%
Facilitating culture of Facilitating innovation in workplace culture can enhance team
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innovation collaboration and brainstorming. Thus, Essence Drinks can benefit
through this strategy.
Benchmarking market
needs and
performance
Benchmarking needs and performance promotes strategy
development for exploring opportunity related to innovation.
Flat structure of
management
This can support innovation incorporation within organisation to
develop beverages with new flavours and nutrition range.
Building effective
teams
Developing effective team can help in invention and
commercialisation of the innovations.
Table 1: Steps for fostering innovation
(Source: Influenced by Koren and Palcic, 2015:28)
LO2 Explaining the different types of organisational innovation
P3 Explaining 4Ps of innovation and the application of innovation funnel for
structuring and examining innovative ideas
The 4Ps of innovation is effective in determining the potentiality of the implemented
strategies in relation to commercialisation. Essence Drinks needs to introduce new drinks to
compete against new market entries and thus, the strategy for innovation mix can be analysed
to support the growth and successful implementation of innovation to achieve organisational
vision. As commented by Akgun et al. (2017:70), the application of 4Ps can help in
sustaining developmental strategies to increase business opportunities.
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Figure 3: Stages of 4P
(Source: Influenced by Akgun et al. 2017:72)
Paradigm is a planned process that helps in bringing changes to support the innovation and
the process of organisational flow. Essence Drinks can benefit from developing new concepts
about delivering products and commercialisation to attract customer attention towards it to
increase sale up to 7%. Product is main items that s to be offered to the customer and reflect
upon organisational reputation (Nuseir and Madanat, 2015:78). New product range of
Essence Drinks along with high customer service can add value to organisation and gain
competitive advantage through innovation and commercialisation. Process is the way by
which customers can avail the facilities of service and product. The delivery process of
Essence Drinks needs to incorporate technological adaptations to make it more effective and
making successful customer attraction. Position is the goal of specific innovation and
commercialisation process for the organisation. Essence Drinks need to act to achieve a
competitive advantage over the new entrants by providing unique beverages and services to
customers.
Innovation funnel of Essence Drinks involves the process of developing new ideas by
gathering related information and reflecting upon them. As proposed by Ramirez et al.
(2018:693), evaluation of ideas and it can be analysed with the support of this model until the
product is developed and launched.
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Paradigm
to increase sales up to 7%
Product
to introduce new flavours in
beverages along with lassi
products
Process
enhanced delivery system
safety measurements of product
Position
to achieve competitive advantage
over new entrants
Stages of 4P

Figure 4: Innovation funnel for Essence Drinks
(Source: influenced by Ramirez et al. 2018:694)
Essence Drinks need to evaluate customer needs and align them with the process of
actualising the innovative ideas into reality. The objectives are to be considered as new
product development to implement ideas. However, Verbano and Crema (2016:527) argued
that the process needs to be evaluated to determine the risks and consequences of the product
launch and actualisation of the ideas. Therefore, Essence Drinks is needed to develop a team
to reflect upon the process of product development and its impact on the company.
P4 Explaining developments in the frugal innovations and its application with
examples
Frugal innovation support innovation and invention worth restricted resources. As mentioned
by Shibin et al. (2018:908), frugal innovation is affected by actors such as political, legal and
environmental factors which act as driving forces of innovation within the company. In
addition, this process helps in reducing the expenses of the products and develops a situation
that is both beneficial for the company and customers. On the other hand, Lim and Fujimoto
(2019:1016) proposed that the implementation of frugal innovation, a business company can
take strategic actions in favour of cost control and pricing of new products.
Frugal innovation reduces the complexity of product manufacturing and costing and help in
the process of service delivery to the target group of customers. Therefore, Essence Drinks
can consider frugal innovation to critically evaluate the production and pricing process for
suppliers and buyers to make the product successful. For instance, the products of Samsung
are launched in differentiated form depending upon the economy of the country. It is a result
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Assessment of
opportunities
Ideation based on
insights Conceptualisation
Evaluation and
benchmarking
accordingly
Eavlaution of
product and
decision-making
Introducing
products during
launch program

if frugal innovation that supported the acquisition of maximum profit with modified products.
Therefore, Essence Drinks need to consider customer demand to design new flavours for
beverages along with the climate and economic condition of the target market.
M2 Analysis and application of innovative funnel in organisational context
The innovative funnel is effective in determining the process of product development and
analysing the applicability of the product development and its launch in the market. As
mentioned by Akgun et al. (2017:73), innovation funnel is supportive in developing ideas and
implementing them as per market demand to make a product successful. Therefore, Essence
Drinks need to consider the market research result to develop products as limited edition
products for the specific target group. For instance, the personalised drinks of Starbucks are
limited as they are expensive and thus, it was made successful by limiting its products.
Similarly, information about the designed products is to be collected and used for analysing
consequences of product launch in market.
M3 Evaluation of role of frugal innovation in organisational context
Frugal innovation has affected in reaching customers to address product needs and evaluate
the deficiencies within the product. Further, the complex relationship between buyers and
suppliers can be addressed with ease to evaluate the scope of product (Shibin et al.
2018:910). Therefore, Essence Drinks can include the process for measuring the
opportunities and success rate after introducing the product in the market.
D1 Critical analysis of the developmental procedure for frugal innovation
Resource scarcity helps in radical innovation that is the chief focus of frugal innovation.
Product development for cost-conscious and eco-aware consumers is effective when the
product is developed with the aid of frugal innovation. The process supports cost
management addressing a larger community with the product (Lim and Fujimoto,
2019:1018). In addition, the emerging business can sustain market acquisition effectively
with this process effectively.
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