Innovation and Commercialization in Essence Drinks: A Business Report

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Innovation and commercialization
Word count: 3, 722

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Contents
Introduction......................................................................................................................................2
LO1 Delineate innovation and distinguish between innovation and invention...............................3
P1 Discuss innovation and state its significance in organizations with respect to invention......3
P2 & M1 explain the ways in which the vision of Essence Drinks, culture, team work can
shape innovation and commercialization within the company and the ways in which it can
promote innovation culture in the organization...........................................................................4
D1 explain the ways of developing innovation and efficiently measuring it..............................6
LO2..................................................................................................................................................8
Delineate the different types of innovation.....................................................................................8
P3 & M2 explain the 4Ps of innovation and discuss the importance of innovation funnel within
an organizational context.............................................................................................................8
P4 & M3 discuss the meaning of frugal innovation within an organizational context..............10
LO3................................................................................................................................................11
How can the products be commercialized in the market...............................................................11
P5 discuss the significance of commercial funnel and the uses of new product development..11
P6, M4 & D2 develop a business case to measure the effectiveness of innovation techniques
used............................................................................................................................................12
LO4................................................................................................................................................14
Discuss the range of methods that are used for securing the innovative ideas..............................14

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P7 &M5 discuss the tools and methods that are used by an organization to develop, retain and
secure the intellectual knowledge..............................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

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Introduction
Innovation is the process of adding and creating dynamic products and brings changes in the
existing products innovatively to enhance the company’s sales. Commercialization is the process
of introducing a new product in the market and makes it available to the customers in the market.
In this report, we have chosen the company Essence Drinks whose founder is Akshay Kumar
who launched the company with mango lassi product (Radjou et al, 2012). In this report,
innovation and commercialization is discussed with respect to Essence Drinks Company. The
company is UK based that had initially started with launching mango lassi drink for about two
years. The innovative formula and distribution policy is what made the company famous. This

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report will discuss the concept of innovation and invention and its distinction and discuss 4Ps of
innovation. Further, the commercial funnel will be explained and the process of new
development product will also be discussed.
LO1 Delineate innovation and distinguish between innovation and
invention
P1 Discuss innovation and state its significance in organizations with respect
to invention
Innovation is the practice of creating effective things, processes which could be implemented
within an organization to create dynamic products to reinvent the existing products within
Essence Drinks. The company was successful initially because of the innovative methods they
used to market and distribute their products in the market. It is the process of reinventing an

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existing product to make it look new and attract customers to buy the products of the company.
Essence drinks is a company situated in UK that started up with a mango lassi drink from which
the company became really famous because they used innovative methods to market their
markets. Hence, innovation is the key to consistent success for an organization (Preuss, 2011).
To bring about innovation there should be efficient drivers of force to bring about innovation of
products within the company. The drivers are intellectual thinking, critical thinking, courage,
creative thinking etc. Innovations acts as a source of holding back employees and add to the
future productivity and growth of the organization.
Invention is a something that is totally a whole new process of inventing or bringing about a new
product in the company or the market that never existed before. It is the process of actualization
a new idea and brings it into action to be administered in the market and make it available to the
customers. The main distinction that is present between innovation and invention is that
innovation is just bringing in or adding some creative changes to the existing product to make it
look new whereas invention is bringing out something new in the market that never existed
before.
Significance of innovation in comparison to invention
Since Essence drinks is a soft drinks company people are always attracted to drink it and this
type of drinks are very popular amongst teenagers and children. Hence, the growth is also large
since the age limit is not restricted. Therefore, if the company brings about innovation and create
new drinks from the existing ones then customers will be more attracted especially when the
potential customers include children (Mathews, 2010). Children’s are easily attracted to such
drinks by how they look, their color, their texture etc. hence, just bringing about innovation in

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the color of the drink will make the drink look new and will easily sell off in the market.
Invention is introducing a whole new product by adding various ingredients in it to introduce a
new product in the market. Once it is invented it is known to the market people try it and then it
becomes old but with the process of innovation the same drink can be innovated a large number
of times and sold it out in the market successfully. Innovation is a small process and usually not
a lengthy process and can be several times with just little alterations in the drink and can be
served to customers in hundred different ways.
P2 & M1 explain the ways in which the vision of Essence Drinks, culture, team
work can shape innovation and commercialization within the company and
the ways in which it can promote innovation culture in the organization
Commercialization process uses both invention and innovation to launch a product in the market.
 The organizational culture that exists in Essence Drinks is the major parts that adds to
this process because it involves the knowledge and thoughts of the employees of the
company of how they will bring and launch the product in the market successfully.
According to the culture that is practiced in the organization the ways of invention and
innovation will help to decide how the company will bring it about in the market.
 The vision of Essence Drinks is to provide teenagers and children with innovative drinks
with various tastes and colors that will attract children to buy their drinks on daily basis.
The invention and innovation is only going to help the company complete the vision they
have set to enhance their sales and productivity of the company (Martin, 2010). This will
help the company to gain a competitive edge in the market and be successful.

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 The leadership that is practiced by the company should be strong enough to guide the
employees within the organization to innovate and invent products in the market that are
successful enough to be in demand by the customers. The leadership methods can be
chosen by the company or the leader himself from the various leadership styles such as
autocratic leadership, democratic and participative methods.
 Culture of the organization greatly depends on the geographical location of the company
as to where it resides and the kind of culture that is followed within that region. In every
company there are employees that come from varied cultures and work together in the
company to achieve the standard vision set by the company.
 Team work is very important within an organization if they have to achieve the targets set
by the company. If the company has to innovate products and enhance their sales their
should be efficient team work within the company because more the employees that work
in the team more will be the ideas and this will lead to enhanced innovation within the
company.
All of the above mentioned features will promote the growth of the organization in various ways
and help to add to the productivity of the organization with efficient employee work.
D1 explain the ways of developing innovation and efficiently measuring it
Innovation is important for every organization in today’s competitive world and to gain a
consistent success in the market. If there is no innovation in the product you serve to the
customers initially people will buy it and later get bored of it and stop buying the same product
over and over again. Hence, it is very essential to develop innovation techniques and methods
that are used to innovate products within the company (Krueger and Casey, 2014). The various
ways of developing innovation within the company are churning ideas from employees that work

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in the organization and in-house researchers who give can ideas for innovating a particular
product and the other way is gaining ideas from external sources such as suppliers, customers,
online reports, media, market research etc. all these sources will help to provide ideas for
innovation that the organization can apply to the company and record and measure its results.
Only innovating products and leaving it out in the market is not enough the innovation that the
company constructed should be measured in efficient ways to know how acceptable and
successful the innovation was. To measure the innovation created by Essence Drinks the method
used is leading and lagging indicators. This method helps the company measure and selects
leading indicators that drive the results of innovative solutions.
Fig: Leading and lagging indicators. (Source: www.thinkhdi.com)

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LO2
Delineate the different types of innovation
P3 & M2 explain the 4Ps of innovation and discuss the importance of
innovation funnel within an organizational context
The innovation mix model or the 4P model was developed by John Bessant and Joe Tidd. This
method helps the company to interpret the significance of the innovation process and how it can
help the company to achieve success. The 4Ps of innovation are product, process, position and
paradigm. Essence Drinks wants to enhance the volume of sales of its products for which the
company needs to follow various forms of innovation strategies to complete this goal.

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 Product: This is the main thing that is offered to the customers in which innovation has to
definitely be there to attract customers and enhance the company sales. If the company is
providing efficient and innovative products then it will add value to the company.
 Process: This method with respect to innovation is the innovative development of the
process that makes the products affordable to every customer and makes it feasible for
both the employer and the customer to sell and buy the product respectively.
 Position: This involves the promotional activities that are performed by the company to
establish or position itself in the market to achieve the target sales of the company. The
company can advertise its products via ads, banners, billboards, discounts, promotional
offers etc. (Govindarajan et al, 2011).
 Paradigm: The innovation process is structured according to the organizations
performance and accordingly the goals of the organization are set to enhance the sales of
the company.
The innovation funnel is used to describe and delineate the steps and plan the process of
innovation by putting it in various stages. There are three steps within an innovation funnel the
first step is to collect information and process it that will help to maximize the sales of the
company. The second stage is to screen the process and ideas that have been listed by the
employees in an organization and the third stage is the ideas that are selected should be
effectively delivered to the customers.

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Fig: Innovation funnel. (Source: www.123rf.com)
P4 & M3 discuss the meaning of frugal innovation within an organizational
context
Frugal innovation is the process of reducing the cost and complexity of the product that is
provided to the customers. The political, environmental, social factors all add to the factors of the
innovation process. The main components of frugal innovation are redesigning the product,
reconfiguring value chains and discovering new business models that will help to add innovation
to the products served by Essence Drinks (Gorschek et al, 2010). This type of innovation
includes tapping or overcoming the scarcity of the resources that are required by the
organization.