Innovation and Commercialisation: Report on Essence Drinks' Strategy

This report provides a comprehensive analysis of innovation and commercialisation strategies, using Essence Drinks as a case study. It begins by defining innovation, differentiating it from invention, and highlighting its importance for organizational growth and competitive advantage. The report then explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialisation. It delves into the 4Ps of innovation (Press, People, Product, Process) and uses an innovation funnel to examine and shape innovative ideas. Frugal innovation is discussed, with examples relevant to Essence Drinks. The report also covers the commercial funnel, new product development processes, and the creation of an innovative business case, including funding access. Finally, it examines tools for protecting intellectual property. The report provides a detailed overview of innovation and commercialization within a business context.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 .......................................................................................................................................4
P1 Explain the context for innovation and determine the difference between invention and
innovation:...................................................................................................................................4
P2 Explaining organisation vision, leadership, culture and teamwork shape innovation and
commercialisation:......................................................................................................................5
TASK 2............................................................................................................................................6
P3. 4ps of innovation and use of innovation funnel to examine and shaping innovative ideas:.6
P4 Frugal innovation and its example.........................................................................................8
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel and application of new product development..................9
P6 Innovative business case......................................................................................................10
TASK 4..........................................................................................................................................11
P7 Tools that are used by company to retain their intellectual property...................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation define as the implementing new ideas or methods in the organisation. In
organisation innovation involve as the new way of doing work which attract its customer. It is an
act of making ,inventing and producing something and use different creativity.
Commercialisation describe as introducing new product in market and deciding timing,location
to lunch the product. This is the phase of development,distribution and sales of new product .
This manage all lunch programme to achieve its established goals and objectives of the
organization. Its required long term planning to lunch a successful product.
The founder of essence drinks is Akshay kumar, this company started two year ago. This
company produce the product of “healthy mango lassi” into UK market. In context of expansion
the company of essence drink produce new product name as “kesar lassi”. This project report of
innovation and commercialisation cover points of what is innovation , importance of to
organization in comparison with invention. Defining organizational vision , leadership , culture
and teamwork which shape innovation and commercialisation(Ahmad, Mallick and Schroeder,
2013). Explaining different types of innovation which include 4Ps of innovation . Uses the
innovation funnel to examine and shape innovative ideas. This report cover frugal innovation and
also providing the example of how it is used in an organisational context. Explaining the
importance of commercial funnel and application of new product development processing for
commercial of innovation. Making an innovation building case for an organisation and including
ways to access funding. Different method for protecting ideas and understand their advantages
and disadvantages.
TASK 1
P1 Explain the context for innovation and determine the difference between invention and
innovation:
Innovation is describe as add on new idea,design in the product which create demand in
the market. Innovation includes two aspects that is creativity and commercialisation. Create
something in the product and update it into the market(Anderson 2013.). When the product is
innovative there is more chances of increasing sales in the organisation.

Invention explain as create something something new. In this create the product which
new to the world discovered and created. Invention based on primary scientific skill. Invention is
the first idea of new product and innovation is the first attempt to carry it out into practice.
Determine importance of innovation in organization in comparison with invention :
innovation play very important role in the organization. Without innovating product of
organization can not increase its sale in market. Invention is different from the innovation;
invention define as which is new to the world and innovation define as adding new ideas in the
product or updating old product (Bertoni and Tykvová 2015).
 Growth of economy: This is the most important reason of needing innovation.
This is the way of economic growth. Essence drink creating and transferring new
knowledge into new product to meet the market needs. Innovation create new
things in the essence drink and this is fundamental source of growth in
industry. .Invention have there economic or non economic motives and innovation
have its economic motives.
 Important for better returns: innovation is important for providing better
return to the organization. When essence drink provide its product of kesari lassi
then they should use creative ideas for better return. Invention is the first creation
and process.
 Important for higher business revenue : Innovation is important for higher
revenue. In this marketing sales is considers here and do well to sell more of what
you have. New product and services bring in new revenue too. In intervention it
may bring few changes but innovation include organizational changes.
 Important for competitive advantage: Good innovation create competitive
advantage for essence drink. When ESSENCE DRINK add something new in its
product which attract its customer in the market. ( Verma, Rangnekar and Barua
2012)Invention differ from this because this is new to the world and one
procedure after that this one include as invention.
P2 Explaining organisation vision, leadership, culture and teamwork shape innovation and
commercialisation:
 Organizational vision: in this the vision of Essence Drink is to expand its product in an
effective way. Vision is to expand its product from mango lassi to kesar lasssi in an

innovative way . When Essence Drink expanding its product with great idea of
innovation it help this organization to increase its sales. In prospective of
commercialisation; Lunching the product at the right and right location which work
effectively in this organisation(Bogers and West 2012).
 Leadership: In this leadership deals different aspect of organisation such as human
psychology as well as expert tactics. In this leader have the potential of control the
individual and group of the organization. Leader of Essence Drink guide individual and
group for creative ideas and sale out product in best possible way which increases sale of
organization. In Essence Drink organisation leader motivate employee for using creative
idea which help in increasing sales in context of commercialisation.
 Culture: This is describe as beliefs , values , assumption and way of interacting followed
by Essence Drink. In this innovation depends on the culture according to the culture
organization set its innovation. Every country has there different values, culture and
beliefs so according to that Essence Drink set its new ideas. In context of
commercialization Essence Drink manage all the launch programme of its product in
market. Team work: team work define as a group of people who work together for achieving the
goals of organisation. In this team member discuss their task information for achieving
team objectives(Bolden 2016). In Essence Drink the team member discuss their ideas,
information of product and implement that ideas for better productivity in the
organisation. In Essence Drink its take long time for established successful product.
Different source of innovation: In this there is different type sources which is given below:
1. New knowledge: This is the source of innovation in which new gather information about
the market. Every year new areas are discovered and much gets added to the existing base
of human knowledge.
2. Changing perception: According to time people change their perception. This very
important for Essence Drink to get changes according to the perception of people. Smart
companies must pay attention to this in order to capitalize.
3. Demographics: Constantly changes in population ,income level, human capital and age
ranges according to this customer change its need and demand. Essence Drink should
constantly paying attention to this(Buccafusco et,al. 2014).

4. The incongruity: in this there is a discrepancy between what is and what it should be.
Incongruity is a key to developing wildly successful businesses but this is also of the
tricky task.
5. Process need : in this it involves identifying organisation weak area and correcting them
accordingly or redesign them. This help Essence Drink to retain its customer for so long.
TASK 2
P3. 4ps of innovation and use of innovation funnel to examine and shaping innovative ideas:
press ,people,product and process these are the 4Ps of innovation which is explain below:
1. Press: This define as from where organisation communicate with its customer.
This is define as from where organisation need change and buying area of
product. Way of communication with the organisation(Brunswicker and Van
Vrande 2014). Provided resources where everything the organisation has
available to aid in the area targeted for innovation. This is innovation as well as
reward system
2. People: This is focus on human behaviour and focus on local leadership and
responsibilities. Issue related to people such as services individual difference and
team work .this is the process lead to innovative product and services process.
3. Product: In Essence Drink explain that how they improve their product then
before. In this product is core basic thing which is offer to the customer. It is up to
organisation that how can they make product more appealing and better than other
available product in the market. Increases changes and innovative make product
completely different.
4. Process: In this Essence Drink analysis that how to create that offering . In this
process this is not all about preparation of product. In this organisation should
think about all the steps which organisation take , steps such as supplying ,work
flow ,hiring people. This how help ti enhanced increasing profit.
P3 Explain innovation funnel and uses:
Innovation funnel define as the group of so many ideas at the same time for
implementation. it is a wide opening which is allow many ideas to enter it but it become

narrower to allow only mean-full idea(Galindo and Méndez-Picazo 2013). Organisation who's
funnel does not become narrower waste a lot resources in innovation.
An innovation funnel is the process of defining steps that is developed by the
organisation in order to generate new product in the organisation. The main agenda of them is to
make products that relates with customer needs specifically in economical terms. In Context of
new product which is Kesar lassi market mix helps to cover wide area of market through
formulating effective strategy which is as follow:
 For new product price is the crucial factor that impact on sale as well as demand of
products. So for this management decide price which is affordable by all type of
consumer.
 Kesar lassi is totally new product through which is not exist in the market of UK.
Therefore it create opportunity for Essence drink to cover more market.
 Essence drink provides their products on all stores. It undertakes retail shops,
supermarket, whole-seller etc. So it is easy for customers to approach towards them.
 Mango lassi already cover wide area of market but for new product organisation
implement new strategy to promote their product. Within circumstances of Kesar lassi
they promote their product through word of mouth.
 Solid link with strategy : great strategy work as excellent profit in the organisation. In
open innovation organisation involve border set of assets .
 Flexible process :The process should be flexible so it can easily mould the product in an
efficient manner. It help in continue improvements and continue to prove the concept. In
this innovation can be done easily.
 Effective and complete implementation: In this the implementation which is done by
the done by the company should be completed. Innovation should be done in an effective
manner.
P4 Frugal innovation and its example.
Frugal innovation is describe as a innovation in which company manufacture their products at
low a cost. This innovation also include to develop the products and to increase the production
process(Cebrián, Grace and Humphris 2013 ). Frugal innovation help a company to reduce the
complex process of production. With these company can increase their profit by increasing sell
of company products. Method by which frugal innovation can be easily understand.

 Re-examine the problem- In these the company can find out future threat for their
business and then try to find out different ways by which they can convert those threats
into opportunity. Like essence drink discover out that there is lack of product range in
their business so there is a need to introduce a new product for their business.
 Limited resources- In the process of frugal innovation the organisation can bring out
more productivity in their production process with the limited resources that are available
to them. In case of essence drinks company should extend their production with a new
variety in same production system.
 Flexible- frugal innovation says that company structure should be flexible like they
should not make their system complex because in dynamic business environment
company needs to be change as per consumer demand and need. For essence drink
company should already segment their market towards health sector now they should also
target other sector also like local society and tourist.
 Simple process- if a company is expanding there product variety in regular days.
Consumer are more confused like the more choices create complexity in purchasing their
decision( Helmers, Rogers and Sena 2014). So essence drink can go for fewer range with
inferior quality of their products. Simple variety of products create easy process in buying
the products.
 Customer preference- this process says that company should communicate with their
customer and ask them to provide solutions of company problems and other way is to
observe the things what are needs of our customer and then company try to get out from
their comfortable to satisfy the needs of their customer.
 Passion- when a company is starting a new project in their business then they should
create the business plan and develop strategy for their new product after that they should
follow them passionately so there investment should not be failed and company can
achieve more success for their new product.

TASK 3
P5 Importance of commercial funnel and application of new product development
Commercial funnel- it is a phase in which a company can develop different stage like
how the prospect can be convert into the customer. Importance of commercial funnel is as
follow-
 Sales funnel help a company to choose them their marketing strategy and tools by which
they can create a model for their project(Kaufman and McCaughan 2013). Like for
essence drink company can target those clients which are already at the stage of decision
making so they can take action or respond towards them with effective way.
 After finalize of strategy company can relate their customer with company marketing
strategy after that they can drive more customer into action so that they can develop a
sequential manner which say lead them towards their desired goal.
Application of new product development- when a company discover the opportunity and
find that now there product had a limited life span at that time they create design, label etc. and
manufacture a product that can covert market opportunity into a product that is available for sale.
Stages for a new product development is as follow(Lawson and et. al., 2015).
1) Idea generation- to find a idea is the company first step for a new product development.
The idea can be grab from anywhere like by invite proposal from customer, by doing
survey and research in market. For essence drink company can go for brainstorming
session and doing research that which new product can be included in their lassi business.
2) Idea screening- at time of research company can find out so many ideas but all of them
are not feasible so the top management of the company can attempt those ideas which are
possible to crack. Essence drink is already familiar with lassi this can help them to
introduce a new lassi drink that is feasible to produce.
3) Concept testing- after screening company try to develop a concept that can understand
by the customer in these some groups can provide full information about product so that
company can analysis that whether consumer can like their product or not.
4) Business analysis- in this the business detail can be analysis in brief by this company try
to find out that how much their new product should contain value with them. Essence
drink should read their concept from business point of view that how much profit should
earn by new product in case of company.

5) Product development- it refer that how products can be produce by production
department, how marketing department distribute their product. In case of essence
company should create the list how will they advertise their product, what are sources of
their finance these all process is done for a test marketing.
6) Test marketing- for do a test company launch their product on a very small base in a
limited area of market. As essence is already present in market so for there new product
they can deliver their product in a particular area so they analyse the response of the
customer.
7) Commercialization- if the response of test market is positive then company can introduce
their product in the market for large scale basis. Like after positive response on new lassi
company can advertise their product by sovial media, newspaper etc. so the consumer are
aware about company new product.
P6 Innovative business case.
A business case gather necessary information that is required to take action or to operate
some activity that can effect on the product, customer and the business. It is a test of market
chance on a commodity level so company can know that this case help them or not.
Summary of the organisation- in the case of essence company has already a mango lassi
product which show a high growth in first two years of their business now at third year there is a
decline in the sale of mango lassi because now consumer want a different variety in companies
product and second reason is company felt there is a need to develop a new product for their lassi
business(Pedersen and et. al., 2015). So for these year company decide to launch kesar lassi in
the market to earn sustainable profit.
Need for the product- after observe that there is low sell of their product in the market
company realise that to gain similar profits that they earned in their last two year company
should discover a new product that can help them to earn similar amount of profit again.
Satisfy the need of customer- mango drink of the essence can already made a success in the UK
market. Consumer are already satisfy with quality of their product. So for new product company
can advertise that how there new lassi provide health benefits to there consumer.
Problem statement- It is the systematic process that is executed by Essence drinks to gain
high knowledge. So it is easy for them to develop new facts through which they develop
competitive edge in market. Essence drink is loosing their market because of less range of

variety products. In order to overcome from this management decided to launch new product that
increase their market share.
Idea generation- Essence drink want to develop new products that relates with new
healthy products only. For this organisation decided to make lassi in new flavours which increase
their market share as well as profits also.
Innovation about the product- the concept for lassi is already exist in the market but
essence has introduce their lassi that is mixed with mango now for new product company
observe that if saffron is mixed with curd it result that people will like it taste as well as health
benefits are also included in these drink. So individuals who are aware about their health can
like this drink.
Customer research- company had done various research before launch of mango product
they use different tools and technique that can help company to segment their target market. Like
for new product essence target youth, sport-person and health conscious people who are aware
about their health and those who attract towards consume of healthy products.
Source of finance- for launch a new product in the market first research is necessary to be
done after that there is a big investment is required to company for manufacture, advertise and
marketing of the new product. In case of essence company can use surplus profit but from this
year company revenues are low. So they can go raise the funds from venture capitalist, angel
investor and by taking loans from the banks. In this the best source of finance is to raise funds
from financial institution like banks. As they charge less interest rate and provide funds in simple
manner which determines that they involves less formalities.
TASK 4
P7 Tools that are used by company to retain their intellectual property.
Intellectual property is the creation of brain like invention, art, label and design etc.
which is used in the business. Intellectual property is protected by the law so the person who
invested time and money to create a new invention can get monetary returns from it.
In today scenario there are large number of competitors already exist in the market if a company
introduce a new product then their competitors try to find out substitue of new product so they
don't loose their market share. For this company are using law of intellectual property in which

patent, copyrights and trade mark help a company to save their rights and to maintain balance
between interest of innovator and the public.
Patent- it is a right that help an inventor to protect invention and eliminate all others to
use, make and sell their invention. It also help a company to save the new ideas for their business
so other cannot steal and use them. Once a company get the patent after that they are whole sole
person that are license to make use and sell of this product. In case of essence company can
patent their design like the shape of their bottle and other is to patent the plant for kesar lassi
company can use the patent plant so product cannot compete with new product for a shorter
period and company can earn more profits.
Trademark- it is a symbol and word that is used to represent a business or may be a
particular product it is the identification that is registered by the company for its particular
business after that no other company can use similar sign or word for their business. It is a never
ending process once a company register its trademark after that consumer are not aware about
company but whenever they see the trademark consumer can create perception of the company.
Like essence can register their trademark for create a perception of their drink in mind of the
consumer(Shapira, Youtie and Arora 2012).
Copyright- is the law that provide ownership to the person who has created it under
copyright there are several right that can be cover under the copyright like right to recreate work,
to deal with several copies of work etc. after copyright it can be hold in hands of that person who
has invented it and other person cannot break it under law. So the person who had invested his
resources in creating the product can announce in public that they have ownership of invention.
Copyrights also help a company to suit a case against any other person or company if they do an
unethical way without copyright innovator cannot convey a case in the court. Like essence can
apply for their kesar and mango lassi so any other company cannot develop similar products with
same recipe.
Essence drink invest huge amount of money for the development of new products. It
includes several aspects like research, purchase of raw material, to update new machines etc.
Thus it is essential for them to generate intellectual rights. For Kesar lassi organisation
implement right of patent. With this it generates positive outcome by securing their product for
long term period. It determines organisation earn profits for several years.

CONCLUSION
From the above report it is concluded that innovation is compulsory for a business in
present scenario to retain themselves for a longer period in the market. Transparent culture,
vision etc. can help a company to work as moneymaking for their business. Company can
develop frugal innovation and apply them for their new product. For a new product development
company can use sales funnel and launch new product as commercialisation.
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