Innovation & Commercialisation: An Innovative Business Case for Drinks

This report presents an innovative business case for Essence Drinks, a UK-based company facing sales challenges with its main product, mango lassi. The report details the process of scoping new product ideas, identifying a solution through a commercial funnel, and proposing a new product: "Nutr...Read More

AN INNOVATIVE
BUSINESS CASE
INNOVATION &
COMMERCIALISATION
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of company and problem statement........................................................................3
Scoping for ideas for new product...............................................................................................3
Identification of solution for problem using commercial funnel.................................................4
Testing techniques for new product.............................................................................................6
Access for funding:......................................................................................................................6
Ways for protecting intellectual property....................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation can be understood as practical execution of any ideas which results in
introducing the new products and services (Nissen and Knudsen, 2020). Whereas
commercialisation is the process of launching the new commodities into commerce and making
it available in market. Essence drink in UK sells lassi as their main product, company is facing
problem in generating sales for their product, hence this report is aiming to develop innovation
business case for the company.
MAIN BODY
Background of company and problem statement
Essence drink a drink producing company in UK, company sells mango lassi as their main
product, for this product they have experienced the great sales in their initial year. But after
entering into their third year company is facing serious issues generating revenues, as market is
becoming more competitive, in such it is necessary for the firm to introduce innovation in their
products to reach back to better position in market.
Scoping for ideas for new product
New product development is all about converting the new ideas into reality, for the essence
drinks their new product is “Nutritional organic mixed fruit flavoured lassi”. For this product
NPD is as follows:
Idea generation: It is the initial stage to generate the ideas for the new product which requires a
proper approach so that better output can come out (Gbadegeshin, 2019). Essence group also
requires to focus on their target consumer and to enable their R&D team to analyse the market
and search out the latest trends in market, it will help in knowing the consumer behaviour
towards lassi product.
Idea screening: When ideas are developed it is obvious that firms prepare more than one idea so
that they will further analyse it and presents the best ideas, this process is called as screening,
where Essence group also need to apply screening on their ideas on the basis of its cost, demand
and other aspects then approve the idea for further production process.
Concept development and marketing strategy: It is important to design the meaningful and
detailed version of the idea, for that reason company need to carry out the market research for
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analysing the cost and profit which will be arise from new lassi product. Thus with proper
research information they will be able to find the target end users for their new organic mixed
fruit flavoured lassi product. As for the marketing strategy it is important to follow the marketing
mix for better pricing and positioning of the product in the market so it will attract the consumers
towards it.
Product development: When the idea is selected with all aspects, next stage is its production,
where production team have major responsibility to deliver the product that will meet the desired
goals. For that Essence group also need to focus on prototype of the product and to proceed with
proper agile methodology for the development process of product.
Commercialisation: After product is prepared next step is commercialisation process, where it
makes sure that product is generating the maximum sell, it consists of the factors like
distribution, marketing and consumer cooperate factor (Alarcón and Arias, 2018). Therefore,
Essence group also requires to implement all strategies to gain attention of consumer in market.
Identification of solution for problem using commercial funnel
Commercial funnel can be understood as marketing tool which is used by businesses to analyse
their merchandise to audiences. It generally consumer journey from awareness to the purchasing
stage, its works in a chronological process to catch consumer attention for the product which
enables them to make buying decision. It also gives the useful or meaningful framework through
which the firm can easily analyse the areas for improvements. However, Essence group has
considered the commercial funnel for their generation of new organic mixed flavoured Lassi.
After too many market research their idea for mixed fruit flavoured lassi is came out. Reason for
making it by organic ingredient is to meet the demand of consumer who prefers nutritional
values first than taste, as consumer are becoming more health conscious therefore this idea is
came out to make lassi an organic flavoured (Da Silva, Kaminski and Armellini, 2020).
Therefore, it aims to meet the requirement of every consumer in the market. it is also predicted
due to health consciousness factor this product will generate more sale in market, which will
easily meet the requirements of shareholders and other staff stakeholders.
Innovation business case
It consists of the things which the organisation wants to carry out their innovation
process. For essence drinks their innovation case is discussed below:

Innovation purpose: Essence group’s main purpose behind innovation is to acquire the better
market position again and to provide the unique product in market that cannot be easily
substitute.
Customer demand: Company has done the market research where it is identified that consumer
are preferring nutritional values in product, that is why final idea is came out to deliver the
product that concern with healthier factors.
Key identified potential risks along with mitigation strategy:
Key risks Strategies
Operational risk To overcome this risk proper management of
equipment is must, monitoring process and risk
assessment should be followed
Lack of depth in market research Plan out marketing activities, and appropriate
execution of marketing tools
Resource scarcity Proper strategy should follow for waste
reduction and to make sure best utilisation of
present resources.
Strategical risk Set the KPI for measuring the success of
strategies
Finance risk Proper budget plan should be carried out that
contains all details, and proper management of
all transactions.
Value analyse applying frugal innovation:
Frugal innovation is process of minimising the complexity and prices of commodity and
its production. Generally, it concerns with eliminating the less important aspects from the
durable goods. Its main purpose is to utilise the resources in best manner so that it will support
the waste reduction process. To keep this in mind Essence drink is also aiming to deliver the
product which aims to utilise the resources in better manner to meet consumers and other
stakeholders demand. For the raw resources company is also connected with the local farmers to
contribute in economy.
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Testing techniques for new product
Testing for the new organic mixed fruit flavoured lassi, following test ways are
appropriate-
Unit testing: This testing is organised prior to the formal testing process, that eventually makes
the initial phase of testing. In this test development team runs the new essential requirement that
is needed to complete the discrete task. For the lassi product this test is required to complete by
the production team.
Regression testing: When deploying the new feature, it is foremost to test the old features,
generally old aspects are not explicitly changed, new additional features can have unintentional
effect over the old product. By utilising the test cases from past launching, testers can easily
determine that the whole product is appropriate and operated as expected.
Test cases: Testing team can develop their own test cases that focuses on the result
requirements. thus test cases probe every approach to which user interact with the feature. Its
main aim is to identify all the aspects which are missed by the developer so that it should be
considered in product development to deliver it to end users (Chang,2019).
Thus for the lassi product lab testing will also be done by the firm to test whether all
ingredients are in equal or accurate proportion or not, and before its introduction in market
sample product can also be shared with employees and other consumers.
Access for funding:
Funding is important process for the smooth run of manufacturing process for essence
group suitable funding options are as follows:
Angel investor: They are retired executive of businesses, essence group just need to discuss
their new product idea with them to raise fund for their new product and its market research or
other process.
Venture capital: They shows more interest in business and they eventually take sharing in
product revenues. Hence company can also proceed with this approach.
Business loans: Company can have this option to take business loans from banks and to return it
with suitable interest after product success in market.
Ways for protecting intellectual property
Different ways for protecting intellectual property are as follows:

Trademarks: They are brand names and logos which are used for distinguishing the
organisational products and services from others. It is the word, signature that can be used for
protecting the products from being used by other (Davoudi and et.al 2018). Thus Essence group
can also proceed to use this over new product so it cannot be clone and imitate by others.
Patents: It is used for registering the invention, as things are rare and unknown to public. Hence
essence group can also patent their new product so that it can secure their product from being
misused and imitate.
Copyrights: This saves the real artistic expression of the authorship, copyrights are licensed for
the artwork, products that are produced by organisation. Thus by using this No other firm can
able to use company’s new lassi product’s idea.
CONCLUSION
From the above report it is concluded that innovation and commercialization process enables
the firms to acquires the better market position. Above have discussed the innovation business
case which illustrated the new product development, it further discussed the testing techniques
and ways for accessing the fund for products. Report lastly concluded with the ways to protect
the intellectual property where it highlighted the patent, trademark factors.
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REFERENCES
Books and journals
Alarcón, S. and Arias, P., 2018. The public funding of innovation in agri-food
businesses. Spanish Journal of Agricultural Research. 16(4). pp.e0111-e0111.
Chang, W., 2019. The joint effects of customer participation in various new product
development stages. European Management Journal. 37(3). pp.259-268.
Da Silva, R.H., Kaminski, P.C. and Armellini, F., 2020. Improving new product development
innovation effectiveness by using problem solving tools during the conceptual
development phase: Integrating Design Thinking and TRIZ. Creativity and Innovation
Management. 29(4). pp.685-700.
Davoudi, S.M.M. and et.al 2018. Testing the mediating role of open innovation on the
relationship between intellectual property rights and organizational performance: a case
of science and technology park. Eurasia Journal of Mathematics, Science and
Technology Education. 14(4). pp.1359-1369.
Gbadegeshin, S.A., 2019. The effect of digitalization on the commercialization process of high-
Technology companies in the life sciences industry. Technology Innovation Management
Review. 9(1).
Nissen, H.A. and Knudsen, M.P., 2020. Commercialization barriers and their characteristics in
innovation projects. In Academy of Management Proceedings (Vol. 2020, No. 1, p.
17583). Briarcliff Manor, NY 10510: Academy of Management.\