Strategic Innovation and Commercialization at Essence Drinks Company

This report analyzes innovation and commercialization strategies for Essence Drinks Company, focusing on the importance of innovation, organizational vision, leadership, and culture. It discusses different sources of innovation, the development of a culture of innovation, and the measurement of innovation success. The report also examines the 4P's of innovation, the use of the innovation funnel, and the development and role of frugal innovation within the organization. Furthermore, it delves into the commercial funnel, its significance in new product development, and the importance of a commercial funnel for the business to formulate the marketing strategies. The report concludes by highlighting the need for Essence Drinks to adapt to market trends, reduce costs, and meet customer demands to increase profitability and maintain a competitive edge. Desklib provides access to similar solved assignments and resources for students.

Innovation and
Commercialization

INTRODUCTION
Innovation is very important for the business in order to improvise or modify something
with products, services or anything which is related with company. It can be understood by the
process by which a product, service or a domain is renewed and brought up to date with latest
processes, establishing successful ideas in order to develop new worth and introducing new
techniques (Abrell, T., Benker, A. and Pihlajamaa, M., 2018). This can be driven by continuous
improvement as well as continuous improvement. On the other side commercialization is term
which is used as a process launching new product in the market and making it available to the
customers. Both the term are interrelate with each other as commercialization attempts to profit
from the innovation as well as facilitates company with additive improvements to the business
effectiveness and add quality to life for customers. The report is based on the Essence Drinks
Company which is required to create a range of innovations in products, services and techniques.
It is significant that company must adopt several innovation techniques in order to improvise
their results from the decreased results of sales.
MAIN BODY
PART 1
P1. Meaning of innovation and its importance to organization with invention.
Innovation allows the business to introduce something new in order to get progress in the
market. It is a process which is undertaken by an organization to conceptualize brand new
products, ideas or processes or to approach existing products, ideas and process in a modified
way. In an addition to Essence Drinks, there are different types of innovation that might be
pursued (Bigliardi, B. and Galati, F., 2018). Invention can be understood with something that can
be produced for the very first time which is required certain skills, talents and proficiencies.
Importance of innovation with invention:-
 Invention is related with something which is launch for the first time but innovation adds
value to the existing products, services, ideas, process, techniques or brand as well.
 Invention without innovation is nothing but with innovation the company can get a
desired profits of time and resources which is used in that process of creation.
 Innovation is a deep insight where it helps to identify and solve problems which no one
else has.

 Innovation helps to convert problems into ideas and make them work for the business.
 Invention can be done with scientific skills but innovation can be done with a set of
scientific, technical and marketing skills in order to support the business.
P2. Organisational vision, leadership and culture is significant to innovation and
commercialization.
Organisational culture comprehends all the area of future aims and objectives of the
Essence Drinks (Calik, E., Calisir, F. and Cetinguc, B., 2017). The vision of the company is to
deliver the best drinks to their customers so that they can enjoy the taste but to increase the sale
they have to create innovative ideas and think about existing products as well as new products.
The vision of the company creates a great impact on the innovation process. It also supports in
invention and innovation process in order to terminate and direct. Leadership is significant to
achieve the desired goals and objectives of business. This supports a company in an organized
way where leader are aggressive and agile to obtain the qualities. There are different types of
leadership's method such as democratic, autocratic, Laiseez-faire or participative which are
suitable for Essence Drinks. Leaders play a vital role to bring the success of business. The
culture of organization is the total of values, attitudes and norms of the staff members which are
taken as the preserver by the organisation for a longer period of time. The culture might be
moulded with attitudes, beliefs, values, countries or cultural differences. The culture might be
valid for one nation and void for the another. In context to Essence Drinks, it highly influenced
with innovation and commercialization (Feldman, M., Siegel, D. S. and Wright, M., 2019).
Teamwork is a dynamic concept in order to solve a problems as well as to complete a specific
task within the organization. It is important to work with proper planning and make a proper
coordination within the team. In respect of Essence Drinks, the organization's leader is required
to take the entire team with coordination in order to get the job done to innovate and
commercialize the product. Teamwork helps to formulate the process of an innovation and
commercialization.
M1. Different sources of innovation and organisation can develop and foster a culture and
environment of innovation.
There are various sources of innovation which were discussed by Peter Drucker. In
context to Essence Drinks, some of them are mentioned underneath:-

 The Unexpected: In order to bring the increased sales for the organization it is
important to explore the market where a manager or a leader of the company can grab
the opportunities.
 Process Need: It includes the identification of companies weak points and drag them to
correct and redesign them (GOLOBOKOVA, G.). It is referred as task oriented solution
which comes from the present capabilities and current way of conducting the business.
 The Incongruity: It is a tricky process between what is doing and what it should be.
This source of innovation can be taken as key to make the business successful. It says
that to bring the success in the organization, one can does not ignore the complaints and
unmet wants of customers.
It has been seen that if management in the organization encourages new ideas and
creative thinking then innovation can happen in a natural way. There are certain ways through
which Essence Drinks can foster and develop the environment and culture innovation:-
 Create space for innovation: Several resources and processes are needed to foster the
innovation in an organization (M.Hall, J., Matos, S. and Bachor, V., 2019). Establishing
the stand-alone space in order to create effective team work is important where
thoughts can be tested and cultivated.
 Embrace experimentation and Risk: Driving disruption in the company needs a
culture that grasps risks and experimentation as well as encourages employees to
learn from their failures. This way says that it is important to bring improvisation
and advancements from failures.
D1. Innovation is developed, embedded and measured.
Essence Drinks can be develop innovation through fulfilling the demand of customers
and meet with their requirements. It is required with certain skills, knowledge of market trends
in order to implement the idea. Embedding innovation helps to add significant value to the
products and services. The company can put innovative ideas in order to add value to them. And
lastly, in order to measure the success of Essence Drinks, they must consider the past, current
and future performance of innovation (Ham, J., Choi, B. and Lee, J. N., 2017).
P3. 4P's of Innovation and use of innovation funnel to shape and examine the innovative ideas.
4P's of innovation:

Product Innovation: This is the first thing which is offered to the customer, it will be significant
to the company. In case of Essence Drinks, the company will get competitive benefits if it able to
add value to their product which is launched in the market and provide the best services.
 Process Innovation: This signifies the changes in the way that a company created
product and their services (Hinteregger, C. and Et.al., 2019). In case of Essence Drinks, if
they produces their delivery in a short time period, there will be more chances to get
success or vice versa.
 Position Innovation: This signifies the contents which is about product and services.
Essence Drinks wants to achieve its position by providing best services to their
customers.
 Paradigm Innovation: It is the change which reflects mental models which is framed by
organization by thinking creative and bring innovative ideas. Essence Drinks has a plan
to face changes by providing new drinks to their customers.
Use of Innovation Funnel:

This can be understood by those process of developing and innovative ideas by
describing the steps through which an idea can be best processed in order to serve customers in
an best way (Huang, F. and Rice, J., 2018). There are several types of thoughts and ideas, various
types of innovation funnel through which an idea can be impelled and processed, which also
might be helpful to accomplishing goals of the company of Essence Drinks. There is first step in
which a company can collect all the informations and evaluate how this will work or which is
best suitable to fulfil the wants and demands of customers. Then next step is to screening those
ideas among different ideas which can best for the execution. Furthermore, it has been
questioned that what can be the best approachable to the opportunities and consequences of
company. And lastly, ideas are implemented to actualize into actions.
M2. Innovation funnel in organizational context.
It has been examined that innovation funnel is required by the company to adapt
innovation. Initially, the company is required to focus on the wider approach in order to consider
the different innovative ideas to develop their business. Further, the narrow concept can be used
to develop innovative process which support to improve the market. In context to Essence
Drinks, the company side by side examine where they can be best in order to increase their
productivity and profitability and focus on the defects.
P4. Development of frugal innovation with examples.
Frugal innovation: This can be defined as a process in which complexity and costs are reduced
of a product or its production (Islam, N., 2017). In other words, it can be help to eliminate the
unnecessary features from a durable product in order to sell in developing countries. In addition
to essence Drinks, it can be done in order to achieve its goals and to increase the sell in the target
market. This includes external factors such as political, economic, social and many more. The
company considers this factors critically and significantly in order to deliver significance for the
goods and services by shifting to the lower level of buyers in order to reduce the costs and
complexity. For examples, the company is targeting customer in UK, in order to meet their taste
and demands of customers but they are demanding quality and willing to pay much extra for it.
So there is a chance this will not work in UK but in India there are many customers who wants
products at reasonable prices.

M3. Role of frugal innovation within an organisational context.
Frugal innovation in the Essence Drinks company plays as a role of integral part in order
to completing the targets of continuing the business (John, E. P. S. and Et.al.). It is significant as
it supports company to back in the game and helps them to reach goals and enhanced revenues
for the company. It also supports to reducing the cost of products and complexity in the
production process. It will get competitive benefits to the company in the target market. This
will give some kind of monopoly advantages that will be hard for the new and existing
companies.
D2. Produce financial reports.
PART 2
P5. Commercial funnel and its significance and application of new product development.
Commercial funnel: It is a marketing term which is used by companies as a tool in order to
identify, qualify and trade its products to customers (Jugend, D. and Et.al., 2020). It includes
steps of sales funnel which is known as top funnel, middle funnel and bottom funnel. It is linked
with the journey of customers in order to attract them towards the brand to purchase products.
In context to Essence Drinks, commercial funnel is important for the business. The
significance of sales funnel of commercial funnel are discussed underneath:-

 It helps to pick marketing strategy: Commercial funnel support an entrepreneur to be
successful in the market. It makes him to understand the marketing tools and business
models (Kraus, S., Ribeiro-Soriano, D. and Schüssler, M., 2018). Marketers also prefer
sometimes to be focused on the clients who are already present in the decision sector of
commercial funnel.
 It also helps to know how relate with customers: Business has its own languages in
order to describe the products, words to the customers or clients, produce content, these
are influenced the business which means how it drives them further down the commercial
funnel. In context to Essence Drinks, if it will be able to identify its would be customers
then it will be easy to produce well directed contents, can easily change the tone of the
copy.
 It helps to generate more sales: When the right marketing strategy is selected, and it
will be best relatable to the potential customers, then it will drive more potential
customers into action section (Lehoux, P. and Et.al., 2018). It will also supports to get
increased sales of product in the market.
New Product Development: It is a process which is consist with several stages that new
product go through from idea generation to launch in the market. This stages may vary or
overlap from business to business. In context to Essence Drinks, the following are the stages of
developing new product:-
 Idea generation: It is a process of generating new ideas with a systematic search.
Essence Drinks collects hundreds or may be thousands of ideas in order to fine best from
them. These can be collected from internal and external sources.
 Idea evaluation: Ideas which are good ones are screened or evaluated in order to drop
the poor ones and pick the good ones as soon as possible. Essence Drinks pick those
ideas which will make profits for them.
 Concept definition: Those ideas which are picked must be developed into produce
concept (Moser, E. and Et.al., 2017). This concept signifies a detailed version of the new
product idea. In this stage, the company considering the specifications such as product
design, technical feasibility and market potential.
 Strategic Analysis: On the basis of product concept, the marketing strategy has been
design for the development and launching of new product in the market. It is considering

the description of product, marketing budget or the planned price for the product for the
first year, and profit goals and long term sales. Essence Drinks if find it right or suitable
then it can move to the new step.
 Product Development: In this step, this defines the actual product development. This
mainly depends on the preferences of company. When product concept is passed then it
is move forward to this step which is the development into physical form.
 Marketing testing: This is the second last stage in which product as well as its proposed
marketing programmes are tested in practical market settings (Nikolova, L. V., Rodionov,
D. G. and Afanasyeva, N. V., 2017). Essence Drinks, can modify this as per the taste and
preferences of customers, producers and supports feedback of the company. It is involved
with deciding the suitable time and process for launching the new product into the
market.
 Commercialization: This reflects the readiness of the new product or service to be
launched or back to earlier stages. It worth more than just advertising which outlines the
production, sales, marketing, distribution or customer support team that have to be in
place which gives assurance of successful launch.
P6. Build an innovation business case.
In addition to Essence Drinks, the company implements the methods which can help to
improve the ways which leads to performing their operations of trade in the target market.
The vision, mission and objective are framed in order to achieve the purpose of the company.
Vision: Enriching the life of people through healthy and balanced drinks.
Mission: The mission is to provide the quality of lassies and other drinks to the potential
customers and where staff members are happy to provide services (Oduro, S., 2020).
Objectives: To become one of the leading brand in the market which is serving tasty and healthy
drinks with lots of flavours.
Marketplace search: This search helps company to produce and deliver as per the requirement
of market, where goals can be fulfilled without any complications.
Financial Reasoning: This should be utilized in such a manner in which all the financial
requirements are fulfilled and staying the predetermined budget so that the expenses of company
won't be increased.

Potential market place: The target market for the company can be those where the goals of
company can be achieved, profits and sales can be increased, as well as customers demand can
be fulfilled.
Bootstrapping: To initiate a production, it it can be an effective procedure in which savings of
oneself can also be invested as contribution. This can be determined as the cheapest method of
funding.
Crowd funding: Essence Drinks can be enhanced its popularity in the domestic market. It is a
great method to raise the funds from the large group of people in order to provide the required
fund as capital to the company.
Venture Capital: On a larger scale, the equity shares can be issued in order to attract the
investments.
M4. Build an innovation business case which includes measurement of overall effectiveness with
appropriate techniques.
It has been seen that the business sell is decreased from the past years, but with
innovative ideas and creative thinking they can able to work on products in a unique and
modifies way (Paik, Y. and Woo, H., 2017). It allows them to get benefits of competitions again
and achieve their business goals as well. Essence Drinks implements their ideas regarding
innovation in order to improvise their operations and functioning. If the business work with
effective stages then it can also leads to managing resources. This will also helps to find the
actual funding and techniques of funding.
P7. Different tools that an organization use to develop, retain and protect intellectual property
and knowledge.
Intellectual Property: It can be understood as a category of property which is consist with
creations which are not tangible of the human intellect. It is also known as the ability to improve
the working abilities (Suh, Y. and Jeon, J., 2019). In context to Essence Drinks, there are some
tools and techniques that are mentioned underneath in order to develop, retain and protect the
knowledge of intellectual property of company:-
 Patents: This are used for the purpose of protecting the invention and improvements that
have been used in the development of products and services of business. In case of
Essence Drinks, these are used as safeguards in order to protecting the rights.
Advantages:

 It supports owner to save his interest in their invention and encourages for his innovative
and new ideas.
 If any person can try to misuse or copy then he has a right to sue that person.
Disadvantage:
 To register properties in patents then he will required to spend a high amount.
 In order to enjoy the patent for longer period of time, he will required to get a reminder of
fees payment.
 Trademarks: This are used by companies in order to protecting rights over the name,
logo, images or symbols, that are practiced by the business owner Akshay Kumar for the
making their products and the uniqueness of business in order to make easy identification
by the clients.
Advantages:
 It facilitates with identification and recognition so that customers will easily get in tough
with the company (Tan, D. H. and Et.al., 2019).
 It provides competitive benefits and save from the competitors and other small firm to
copy and sell the products with their brand name.
Disadvantage:
 It is important to pay the fees on time, otherwise it will create problem to the trademark
of company.
 Copyright: This are utilized with an objective of protecting the rights of expressing ideas
in artistic, literary and musical works (Xiao, L. and North, D., 2018). Essence Drinks can
protect their rights for marketing so that no one can copy it.
From the above discussion it can be seen that this can be advantage and disadvantage in
their way of terms:-
Advantages:
 It helps an businessman to protects his rights in writing.
 It can save his right to be misused or theft by the other person for the profitability with
credits
Disadvantage:
 It protects work from expression and words only. And not able to save the actual
thinking behind the work.