Essence Drinks: Innovation and Commercialisation Strategies

This report presents an innovative business case for Essence Drinks, a recently established company in the UK market specializing in Mango Lassi. Part A focuses on the concept of innovation and commercialization, emphasizing the importance of innovation in a competitive business environment. It explores the role of teamwork, leadership, and organizational culture in fostering innovation, and applies the 4Ps of innovation to develop strategic solutions for Essence Drinks, including frugal innovation to drive new and innovative drink offerings. Part B delves into the company's background and problems, proposing innovative solutions with funding strategies. It also discusses various tools organizations can use to develop, retain, and protect intellectual property. The report aims to provide actionable insights for Essence Drinks to enhance its brand name, competitive position, and overall growth potential in the market.

An Innovative Business
Case Part 1&2
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
TASK...............................................................................................................................................3
Innovation and invention.............................................................................................................3
Role of teamwork, leadership as well as culture in bringing innovation.....................................5
4PS of innovation and usage of innovation funnel......................................................................7
CONCLUSION................................................................................................................................9
PART B.........................................................................................................................................10
INTRODUCTION.........................................................................................................................10
MAIN BODY................................................................................................................................10
Background to the company and problem.................................................................................10
An innovative case for an organization, including ways to access funding..............................14
Different tools that organizations can use to develop, retain, protect intellectual property......17
CONCLUSION..............................................................................................................................18
REFERNCES:................................................................................................................................19
Books and Journals:...................................................................................................................19
REFERENCES..............................................................................................................................20
Online........................................................................................................................................20
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INTRODUCTION
PART A
The report aims to acknowledge the concept of innovation and commercialisation. The
business environment is becoming complex day by day which require innovations to provide
favourable product and service into market. There is a lot of competition as business provide
similar kinds of product which gives choices to customers. Therefore, innovation is required to
bring something different which adds value to customer purchase. This report is going to provide
innovative solutions for Essence drinks. The company is recently established into market and
mainly sells drinks into UK market (Hernández-Ramírez, 2018). The main product is their
Mango Lassi which the company do not want to switch with. Therefore, with the help of this
report, there will be demonstration of innovation and how it is important to organisational
leadership and culture. Also, the report provides strategic solutions through undertaking 4ps of
innovation. This will helps in identifying the effective form of innovation and how frugal
innovation will help the company to drive new and innovative drink into market. Therefore, the
company could bring necessary change in organisation to ascertain growth and potential back.
TASK
Innovation and invention
Innovation is the key area which brings some change in organisation. This change could
be in products and services, technology and operational functioning of company. Bringing
innovations helps in fulfilling the need of customers as the demand is constantly changing into
market. It refers to add some new features and usage in products which make it more effective to
deliver in market. Innovation is necessary to undertake customer satisfaction and fulfil market
demand. Therefore, it is also essential for Essence drink as they currently deals in Mango Lassies
but now they required to add some new flavours and other drinks to the list. This will helps the
organisation to ascertain brand name and competitive position into market.
Importance of innovation.
Product innovation come with various benefits for the organisation. It is important to
make a culture of regular innovation due to having a lot of advantages which are described
below:
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 The organisation could achieve market standards through bringing new products
features which will boost sales and profits. Essence drinks could achieve sales targets
and bring the position back.
 Innovation is important to take the lead in market and get competitive advantage. It helps
in differentiating one product through others. Essence drink could give tough
competition to the other drinks provider (Baark, 2019).
 Innovation in helpful for economic development as it add value for society and people
could experience new things.
 It helps in achieving the aims and vision of the company to be the market leaders.
Innovation brings large customer engagement.
Invention:
Invention is the development of the whole new product or services which is not yet
available into market. It adds new planning, resources and techniques to bring invention which
gives a one kind product. The organisation thinks of new ideas and thoughts which require a
deep market research and scientific skills. It require appropriate strategy and effort in
operation's of organisation. Invention sets a unique and separate brand name for the organisation
in the eyes of global audience.
Difference between innovation and invention
Invention and Innovation both the terms have different features and concept. The
differentiation is provided below:
Basis Innovation Invention
Meaning It is the concept of adding new
features to the old products
to give it a new value.
It refers to the process of
enabling the whole new idea
which is single in its kind.
Occurrence The innovative ideas occurred
by doing market research and
check the requirement of
bringing something new to
survive in market. When
company conducts research
The idea for invention is
occurred through creative
mind of the entrepreneurs and
scientist. It takes a lot of
research and deep study about
the concept and analyse the
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and identifies that there is
need to develop the product
and bring some changes the
process of innovation takers
place.
availability of resources
required to create the whole
new product.
What is it? Innovation is a kind of
process that develop changes
in products (Daneshjoovash,
Jafari, and Khamseh, 2021).
The main aim is to innovate in
such a way that give new
experience and extra benefits
to the customer by using
innovative products.
Invention is creating a new
concept and product list
which is yet to be discovered
and bring into market.
Skills Innovation require creative
thinking skills as well as good
management skills.
The skills required in
scientific field and deep
knowledge.
Role of teamwork, leadership as well as culture in bringing innovation.
Innovation is not an easy concept for an organisation. It require a lot of management
progress and new ways to bring some new changes whether in products and operational
management. Therefore, companies vision, leadership and culture plays a vital role to make the
organisation stick to their goals. All these essential elements are necessary for bringing positive
innovation and established brand name. Essence drink is required to focus on their management
planning and policies and required to regulate it among all the employees. They are the key
people which will help the company to work for putting efforts to drive necessary changes in
products and services. Essence drinks has to focus on vision, teamwork and leadership which are
described below:
Vision: An organisation has their vision which sets a path and goal. The employees,
managers and all the people in organisation works to achieve single vision and put all their
efforts for getting best results. Essence drinks has their vision to provide healthy drinks in
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market. The company is preparing to create innovation which will help in their growth in market.
Therefore, all the employees will choose a path towards innovating and work will be carried out
by considering this vision of company. This would be done through bringing new flavours in
mango lassie and focus on providing a refreshing taste to satisfy thrust.
Leadership: It is also a vital concept which helps in bringing innovation in the
organisation. Effective leadership will manage the tasks and employee performance. They guide
the way towards achieving the targets for innovation. Leaders helps in motivating employees to
ascertain tasks and understand what should be done in proper manner. In essence drink company,
the leaders use transactional leadership style which is effective to provide instructions and gives
autonomy at the same time (Brandt, 2018). It helps the company to engage participation of
employees as they will come up with innovative ideas helps in decision making. Innovation will
only get success through proper coordination and leaders support.
Culture: an organisation works under the culture which sets some riles, beliefs and
values. It emphasize on employees working that must maintain organisation policies. It helps in
creating a positive working environment that eliminates any biasses and disputes. Culture defines
the whole criteria and operations of company. Similarly, Essence drinks has a culture of
innovation in which they enjoys taking new and creative ideas from employees and make them a
part of planning. Cultures set the responsibility and attitudes of employees which impact in
achieving goals for innovation. It involves surroundings of company which employees undertake
while working their tasks as it affects their efforts and dedication to work for adopting changes.
Teamwork: The organisation could achieve their targets through teamwork. It is an
essential part to bring innovating in the company. There is need for coordination and group
efforts in order to re innovate the existing product of company. All the team members need to
work for mutual interest and avoid confusion, misunderstanding for smooth functioning. Essence
drink require team work which will make the work easy and less time taking to achieve growth
into market. The team works according to the set limitation and targets to enhance productivity
and manage innovation in production process. The managers of essence drink needs to make
good strategies for creating interpersonal relations. It will help all the employees to work
together and support each other at the time of crises. As innovation may bring problems or issues
which might affect the target of company. Good teamwork leads to bring new flavours and
increase sales in essence drinks.
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It has analysed that an organisation brings innovation by ascertaining vision. The
employees contribute in practical implementation of the product innovation. Therefore, leaders
are the essential characters which bring some positive attitude and traits which inspire others to
work dedicatedly at workplace. The more staff would be motivated, the more they will focus on
bringing positive change (Najib, Septiani, and Nurlaela, 2020). Therefore, it is necessary to
ascertain good leadership styles, set vision and regulate it among all the departments. Essence
drinks has to maintain all these factors under control in order to achieve success in innovation.
As management plays vital role which include team work, coordination and interpersonal
relations that results in positive change and innovation in products and service. The company
will easily conduct marker research and analyse what customers are looking for. So, innovations
would be healthier and as per market requirement. Team work could lead to creating support and
avoid dis balance between roles and power.
TASK 2
4PS of innovation and usage of innovation funnel
Innovation is the concept of new product development by giving it new features. As
innovation could be in any process or operation of organisation. 4Ps of innovation helps in taking
decision to bring the necessary innovation at what level or stage of the innovation process.
Essence drinks needs to analyse their business potential and identify which stage will be most
effective for taking making innovation in the organisation. This helps in coping up with
challenges within the company and achieve the vision and mission of the company.
Paradigm: it is the way in which organisation wants the relevant change in the
organisation. It demonstrate some particular category to bring change in the company. It bring
innovation in the services and deliveries of product in a unique way. In order to keep the work
simple and give a unique experience to the customers (Sun, Liu, and Ding, 2020).
Organisations look for bringing change in logo, manufacturing, catering, delivering or any part
of customer delivery process. Essence drink needs to think for bringing change in supply of
products by adopting digital technology.
Product: It is the most vital concept concept for the company to take decision for.
Product is foremost category which bring opportunity for innovation. The organisation will look
to ascertain new features, taste, flavours and technique of production to get the innovation done.
Product is the one which influence the customer at initial level. Therefore, Essence drinks needs
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to think for bringing new flavours to their lassie as well as diversify the products by adding more
drinks in different flavours.
Position: It refers to the stage at which organisation stands in the market. Position shows
the potential of the companies product for the customer as what position it takes in the business
environment. Therefore, the essence drinks has their aim to achieve reputed position in UK
market. This could be done through undertaking innovation that provide a remarkable experience
to the customers and retention for long term. Position is necessary for the organisation to
maintain its existence into market. To create this position, Essence drink needs to bring
promotional techniques and focus on marketing through digital media. It regulate awareness
about brand name and information regrading new product launch.
Process: The production and innovation requires a long process to convert it into a
consumable output. The innovation could be consist in process by using technology, effective
machinery and simple ways to perform done with product making (de Zubielqui, Fryges, and
Jones, 2019). The process must be cost effective, valuable and fastest to improve and change the
existing organisation working. Essence drink need to look at the improvements require in mango
lassie and make it with more effective techniques. Also, they need to analyse the market first in
order to identify new technology, equipments are available into market.
From analysing the 4ps of innovation, it has identified that these stages are most essential
to take decision regarding innovation. Essence drink has to identify each stage requirement
within the practical functioning (Mention,, Ferreira, and Torkkeli, 2017). The company must
look for change in product then analyse the process which would be more effective than the
previous one. Also, essence drink needs to include branding and promotional strategy at often to
provide awareness among customers.
Innovation funnel:
it is a kind of framework through which the organisation could undertake the strategies
for bringing innovation in the organisation. There are some significant stages which helps the
essence drink to easily choice between many ideas for innovation.
Ideas and conceptualisation: at this stage of funnel, essence drink needs to welcome many
ideas and then analyse which on is suitable for company. There is need for employees
participation to bring creative thoughts for innovation.
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Feasibility analysis: this analysis helps in checking the relevancy of ideas as per companies
objective. The best ideas could be retain for implementation and which are not will get
eliminated.
Development of raw materials: at this stage, the essence drink needs to choose ideas which are
best suited as per the availability of resources. It require regeneration of materials for bringing
innovation.
Customer approval: once the ideas gets selected, the essence drink could first provide product
sample in market to take customer approval. This will helps in making improvisation if customer
does not like taste or additions.
Development in frugal innovation with examples
Frugal innovation is the concept of bringing innovation in existing product. The main aim
of this technique is to lower down the cost of production and make production effective as much
as possible (Stefoska-Needham, and Tapsell, 2020). It gives a competitive strategy to bring
necessary changes in the organisation. Therefore, essence drink need to use frugal innovation to
analyse the reason behind their low sales form recent time. Frugal innovation helps in cutting the
unnecessary waste form production in term of cost, materials and technical usage that may
become complex for the company.
 For example, essence drink needs to bring more flavours and refine taste in their lassies.
It could be one through monitoring the process and stop using existing flavour so that,
new taste would be added greatly.
 With the help of frugal innovation, The essence drink will be more sustainable that
creates a positive image into market. As it avoid wastage and use of hazardous
substances, the products will come out with great use of environment.
CONCLUSION
The report has concluded that innovation is necessary for organisation to keep the brand
name into market. It has identified that, there is need for vision, leadership and teamwork to
bring positive changes within company. Success is only come from great teamwork and
collaborative efforts to cope up with dynamic changes. At last, the report has highlighted upon
the significance of 4ps of innovation and frugal development.
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PART B
INTRODUCTION
Innovation is defined as practical implementation of ideas and thoughts which is designed
by an individual for the purpose of running their business and attain higher productivity. In other
words, innovation is all about responding to change in a creative way that involves new ideas,
research & development, improving process and managing the productivity in changing
environment (Angginta Ramdani Ibrahim, 2020). The present report is based on case study of
Essence Drink where customers influenced from its Mango Lassi. The management needs to use
innovation for creating an innovative new drink for moving forward. The report covers business
problem, importance of using commercial funnel, new idea for new drinks, resources required
for developing business, and tools that used to protect intellectual property.
MAIN BODY
Background to the company and problem
Essence Drink is the famous healthy Mango Lassi organization, started two years ago and
running their business continuously. Initially, company have achieved a dramatic rise in sales
due to using innovative formula and high capability of distribution. A business issue faced by
company as enters its third year of trading there has been a significant decrease in sales as a
number of competitors have entered the market. This has created a challenge for business
organization to operate its business by influencing customers and increasing sales. To moving
forward and increasing customer base company has to bring creation in its product and satisfy
customers (Reyes and et.al., 2021).
Importance of commercial funnel and the application of New Product Development
processing for commercialisation of innovation
Commercial funnel is defined as marketing tool that used by organization to find, quality,
and trade its merchandises to consumers. This break down the consumer journey from awareness
to purchase stage. In other words, whenever an organization decided to introduce new products
and services then also use marketing tool which can help to reach the targeted customers and
develop the organizational performance (Sergeevna, 2021). If there is no marketing tool or
commercialization activities, then it will be challenging to operate their business effectively.
Essence Drink is introducing new product name is Mango & Plum chocolate Lassi by using
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creative ideas that could help to influence the number of customers and develop organizational
productivity.
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Figure 1Commercial funnel, 2020
Awareness: This stage is used by Essence Drink by creating awareness online and offline
via marketing campaigns, advertisement and others that can help to explain product launch date
(Beck, 2020).
Interest: After knowing about New Mango & Plum chocolate Lassi, customer will
show an interest, repeating custom and sharing their positive views regarding particular product.
Decision: The interest of customers about new product being develop that helps Essence
Drink to increase organizational sales over a period of time.
Action: The use of campaign and marketing channel helps to solve problem as customer
make buying decision and retain for long period of time.
Importance of commercial funnel
Generating profits: Pick a great marketing strategy can help to relate to potential
customers that support to generate sales. The management of Essence Drink choose effective
marketing strategy for introducing new Mango & Plum chocolate Lassi that helps to reach
targeted customers and increase sales that leads to higher profits
Gives an edge against other newbie entrepreneurs: The main issue of entrepreneurs is
lack of direction and low customer base. To resolve this issue, Essence Drink introduce new
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