Innovation and Commercialization: A Case Study of Essence Drinks

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INNOVATION AND
COMMERCIALIZATION

Table of Contents
LIST OF FIGURES.......................................................................................................................3
INTRODUCTION........................................................................................................................4
LO1........................................................................................................................................... 5
P1......................................................................................................................................... 5
P2......................................................................................................................................... 6
M1........................................................................................................................................ 7
LO2......................................................................................................................................... 10
P3....................................................................................................................................... 10
M2...................................................................................................................................... 11
P4....................................................................................................................................... 12
M3...................................................................................................................................... 13
LO3......................................................................................................................................... 14
P5....................................................................................................................................... 14
P6....................................................................................................................................... 14
M4...................................................................................................................................... 15
LO4......................................................................................................................................... 17
P7....................................................................................................................................... 17
M5...................................................................................................................................... 17
CONCLUSION.......................................................................................................................... 19
REFERENCES........................................................................................................................... 20

LIST OF FIGURES
Figure 1 Sources of Innovation.................................................................................................8
Figure 2 Innovation Funnel.....................................................................................................11
Figure 3 Innovation Funnel.....................................................................................................11

INTRODUCTION
The organizational growth of the companies is usually based on the innovation and market
commercialization of innovative products. Thus in the following report, the concept of
innovation as well commercialization with reference to Essence Drinks is being discussed.
Due to the increase in the competition in the market and increased in the demand of the
drinks, Essence Drinks is influenced to innovate the drinks produced by the company.
Therefore, through innovation and commercialization, Essence Drinks’ has sustained its
position in the market. Along with this, leadership and culture also influence the innovation
to takes place in the organization. In this report, the form of innovation and the methods
suitable for the Essence Drinks’ will be identified. The innovation frugal, as well as
innovation funnel, is being discussed and the commercialization process is being explained.
Essence Drinks is a UK based company. Akshay Kumar is the founder of the company and
manufactures Lassi which is prepared from fresh fruit mango. Lassi is the most demanded
product in the UK and due to the high demand of energy drinks, Akshay Kumar with the help
of innovation consultant, the innovation process which will help a company to sustain in the
market will be analysed.

LO1
P1
Innovation and invention are usually similar terms as both have a similar aim to launch the
new products in the dynamic market to make the organizations sustain in the market. In this
part, the difference among both the terms is being discussed and the importance of
innovation in the Essence Drinks’ is also being determined (Wagner, 2016).
Innovation: The process that changes the existing product into an innovative product with
different and new ideas is known as innovation. Innovation means transforming existing
products and adding value to the products and services (Surbhi, 2016).
Invention: Invention means the introduction of the new product or brand in the market. The
invention is the process that generates a new idea, designs the product, with new process
and methods (Park, 2016).
Comparison of innovation and invention is described below:
Innovation Invention
The innovation is the term used for
transforming and adding value to the
existing products.
The invention is the term which is used for
the introduction of the whole new product.
The idea is to change the product is being
implemented in the innovation.
While in the invention, there is the
occurrence of the idea to introduce the new
product and services.
In the case of innovation skills like marketing
and strategic skills are required.
There is the requirement of scientific skills in
the invention.
The various products are combined in the
process of innovation.
Generally, there is a single product focused
on the invention.
Following is the description related to the importance of innovation with reference to
Essence Drinks' with compare to invention

The process of innovation involves the introduction of a new idea in the existing products
while in the case of the invention the whole new product is introduced in the market. In the
UK, Essence Drinks' is the largest producer of lassi produced from mangoes. Essence Drinks’
decided to introduce the lassi drinks with some innovative and flavoured tastes so that it
can sustain among the competitors. The invention at the company will introduce the whole
new product of energy drink in the market. Generally, the companies differentiate their
products by implementing the innovative ideas in the existing products and thus lead in the
market among the competitors (Surbhi, 2016). The reason behind the implementation of
innovation is due to the high demand of the innovative products among the people and this
influences the companies to move towards the process of innovation. As the demand of
lassi has been increased in the UK market and also there are various competitors that
produce energy drinks with various flavours, so in order to retain the customers and attract
the new customers, Essence Drinks’ has to generate the ideas to innovate the products and
enhance the profitability. In the process of invention, there is the occurrence of ideas for
introducing new products like different flavoured drinks in the market (Wagner, 2016).
Thus from the above discussions, it is clear that innovation is significant for companies like
Essence Drinks' to meet the edge of competition.
P2
Innovation deals with transforming the existing products into the new innovative products
while the invention is all about introducing the new products in the market. Both innovation
and invention deals in commercializing the new products in the market. As in the process of
commercialization, the marketing of new products and innovative products is being
included. The commercialization is the final stage where the products and services are being
introduced in the market (Kim and Yoon, 2015).
The organizational objectives and goals make the people work according to the pre-
determined strategies in order to achieve the goals. With the help of adopting proper
leadership style in the organization, Essence Drinks’ is able to encourage its employees to
work efficiently and meet the organizational goals.
Essence Drinks' main vision to achieve sustainable growth with the help of collective
collaboration from employees and partners and to reach the goals.

In the Essence Drinks,' the management has adopted the participative style of leadership in
which the employees also participates in the decision-making process of the company. Due
to this, the employees of Essence Drinks’ found themselves encouraged towards their work
and this will also bring some innovative ideas from the employees (Szczepańska-Woszczyna,
2015).
The organizational culture of Essence Drinks’ also contributes to the innovation that takes
place. The culture of the organization influences the employees so that they contribute to
bringing the innovative change in the organization. Due to this the employees' works
efficiently towards the company's objectives and thus this leads Essence Drinks' to achieve
the business objectives (Flatten et al., 2015).
The teamwork is similarly important in the organization as other factors as the team
efficiency leads the organization to achieve the business objectives. In the same way, the
teams of Essence Drinks’ of every department equally contributes in bring the innovative
change and implement the changes in the organization thus by introducing the new drinks
with different flavours in the market (Flatten et al., 2015).
M1
There are various sources of innovation that leads the organization to achieve the growth
and sustain in the market. Some of the innovation sources that are introduced by Peter
Drucker that can be implemented at Essence Drinks’ are as follows (Arfi et al., 2018):

Figure 1 Sources of Innovation
(Source: Serrat, 2017)
THE UNEXPECTED
There are various opportunities at the marketplace that can be developed in the business.
Akshay Kumar the founder of Essence Drinks’ with the help of the research and
development sector in the organization evaluates the opportunities through market survey
and the same to be implemented at the company. With the help of this, the level of demand
for mango lassi can also be determined (Biemans, 2018).
THE INCONGRUITY
The irregularity in the tasks performed in the organizations leads to the situation of
incongruity. Though being complex in nature, incongruity leads to success in the
organization. With the help of the incongruity, Essence Drinks’ is able to analyse the
requirement of the innovation in the products.
PROCESS NEEDS
The company Essence Drinks’ is able to recognize its underperformed parts and can apply
the necessary process to improve the same. Through this, the sources related to innovation
can be assessed and this will also enhance the task performance of the company.
THE
UNEXPEC
TED
DEMOGRA
PHICS
SOURCES
OF
INNOVATI
ON
THE
INCONGRUI
TY
PROCESS
NEED
CHANGES IN
CONSUMER
PERCEPTION
N
NEW
KNOWLED
GE
CHANGES IN
INDUSTRY
AND
MARKET
STRUCTURE

CHANGES IN THE INDUSTRY AND MARKET STRUCTURE
The change that affects the production department of the company which will make the
Essence Drinks’ to innovate the drinks such as Lassi is to be evaluated. Thus through the
market survey conducted will help Essence Drinks’ to take the decisions to innovate the
drinks and introduce in the market (Biemans, 2018).
CHANGES IN CONSUMERS’ PERCEPTIONS
With the change in the market trends, the perception also changes towards the products.so
to cope up with the same Essence Drinks’ have to introduce the flavoured drinks in the
market.
DEMOGRAPHICAL CHANGES
The changes in the demography also make the companies take innovative decisions. The
factors like individual's income, the demand of the product, preference as per age, level of
knowledge, taste preferences, etc. are some demographical factors that are required to be
considered by Essence Drinks' (Biemans, 2018).
NEW KNOWLEDGE
The knowledge of advanced technology is also required to implement innovative changes in
the company. For this, it is required by Essence Drinks' to develop the strategies for
adopting the technological changes in the production and marketing of the Lassi and various
other drinks (Tonț and Tonţ, 2016).

LO2
P3
In innovation, the new products are being formed from the existing products. There are 4Ps
of innovation that are being introduced by John Bessant along with Joe Tidd and which are
implemented in Essence Drinks’ for the innovation process.
PARADIGM
Paradigm is an organizational business model that helps in evaluating the need for
innovation in the company, the requirement of the changes and the ways to implement
such change (Wang, 2017).
POSITION
The position of the innovation mix describes the products and the services of the company
that is to be communicated and promoted in the market to lead the position.
PROCESS
The process through which the innovation can be carried out in the company is being
depicted through the process of innovation mix.
PRODUCT
The product in the innovation mix is all about the products that Essence Drinks’ offers and
transforming the existing products such as Lassi (Wang, 2017).
INNOVATION FUNNEL

Figure 2 Innovation Funnel
(Source: Soresina, 2017)
The innovation funnel helps in analysing the process to be taken to transform the products.
Through this, the best quality products are being formed which will fulfil the needs of the
customers. The probability of achieving the idea is being analysed and thus it becomes
feasible to achieve the goals of Essence Drinks’. The process innovation funnel outsources
the idea through screening and eliminates the part which is not to be utilized. There are
three stages in the innovation funnel such as development, products delivery and
outcomes/results to be investigated by screening or filtering the resources. At last, the
products are being produced and delivered (Wang, 2017).
M2
Innovation funnel process is being explained through the below-given diagram which is
being used at Essence Drinks’
Figure 3 Innovation Funnel
(Source: Soresina, 2017)
INFORM AND ENGAGE

The 1st stage of innovation funnel describes the innovative idea that is to be implemented at
Essence drinks' which involves developing innovative drinks. Thus, in this stage, the
information is being gathered related to the available substitute products (van den Ende et
al., 2015).
ACCEPT AND STRETCH
The accept and stretch stage is the 2nd stage of innovation funnel and it deals in screening
the gathered information so that Essence Drinks’ is able to work on the final selected idea to
achieve the best outcomes.
SELECTION
In the innovation funnel, the selection is the last stage where the execution of the idea
along with the screened information is being done to develop the innovative drinks with the
best quality (Soresina, 2017).
P4
The use of frugal innovation will result in cost-effective products. The frugal innovation
focuses on eliminating the unused resources and making available the best resources for the
products (Radjou and Prabhu, 2015).
The products are being restructured through frugal innovation i.e. the transformation is
being done effectively. Through the customers’ needs are being satisfied, the configuration
of the value chain is being done and also assess the business models. The weakness of the
organization is also being analysed and thus the company overcome the same
(Venuturupalli, 2017).
The number of customers is being attracted towards the products of the essence Drinks’ as
the company will generate some innovative and flavoured lassi apart from mango lassi.
Through the frugal innovation Essence Drinks' products have become cost-effective and the
products are available to the customers at the affordable prices. These have increased the
demand among the customers and also enhanced the profitability of Essence Drinks'. Thus,
the business model of Essence Drinks’ is being established and the company is able to attain
sustainable growth (Radjou and Prabhu, 2015).