Innovation and Commercialisation: Strategic Analysis of Essence Drinks

This report provides an analysis of innovation and commercialisation strategies, focusing on Essence Drinks' healthy mango lassi business in the UK market. The report addresses the company's declining sales by exploring the importance of the commercial funnel, new product development processes, and frugal innovation. It discusses the 4 Ps of innovation, the innovation funnel, and various sources of innovation. Furthermore, the report examines the role of vision, leadership, culture, and teamwork in shaping innovation and commercialisation. It also covers the development and measurement of innovation within an organisation, the importance of protecting intellectual property, and strategies to overcome challenges in developing successful innovations, aiming to provide a strategic framework for Essence Drinks to revitalise its business and enhance its market position.

8 – Innovation and
Commercialisation

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Innovation and determination of its importance compared to invention...............................3
P2: Vision, leadership, culture and teamwork shaping innovation and commercialization........6
M1Different sources of innovation..............................................................................................7
P3: Explaining the four P's and innovation funnel......................................................................8
P4: Explaining the development of frugal innovations and providing examples for its
utilization in an organization.....................................................................................................10
M2 Apply the innovation funnel in organisational....................................................................11
M3 Role of frugal innovation in the organizational context......................................................11
D1 Critically analyse how innovation is developed, embedded and measured in an
organisational context................................................................................................................11
P5 Importance of commercial funnel nd new product development process............................13
P6/ M4 Business case for company, including ways to access funds.......................................14
P7/M5 Different tools to protect knowledge and intellectual property.....................................16
D2 Critically evaluate the nature of innovation and the context in which it is developed,
providing evidence-based judgements on how organisations can overcome challenges to
develop successful innovations..................................................................................................17
Conclusion.....................................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Innovation is the suitable way of approach and the process that are used by the organisation
in order to create new thought of idea. Such innovation will include several set of new products
and practices to present the manner of products and their services to develop unique application
in the field of the market. Innovation will be effective when there are several sort of new
divisions of systems in order to enhance the role of authentication, technical supervision,
advertisement and reviewing of the products and their services in terms of consumers. In the
following report it considers the Essence drinks of healthy mango Lassi in the UK market, that is
develop by Akshay Kumar to operate an effective business for longer period of time. Due to the
decrease in the sales for the third year of its operations, this organization is considering some sort
of innovation for increasing its sales. In this project the importance of commercial funnel has
been provided as the solution to this problem for highlighting the solutions of strategic
capability. For the solutions provided the available resource will be discussed. The analysation of
frugal innovation will also take place. A summary for a new idea is also going to develop for
meeting the stakeholders needs. The techniques for discussing and testing the effectiveness of the
new product. The resources which are needed to proceed with the help of innovation in business
for funding the market research. The different tools which this company can utilize for the
protection of the intellectual property and the rights for launching new drink will also be
discovered.
TASK 1
P1: Innovation and determination of its importance compared to invention
 Innovation – Innovation is defined as the procedure of practical presentation of new and
orientated innovative ideas in terms of new products and services. In respect to the
business, they offer effective products to their consumers that are connected with

implication in products to satisfy consumers requirements at wide term range.
Organisation will advertise new products like mango lassie that are developed with fresh
mangoes and offers to consumers as per to their requirements. When products and
services is varied in terms of several new applications to develop it as effectively and
influence on consumers. It will have termed as the challenge to other company in the
field of marketplace. By innovation in the management it will lead to the high set of
competitive advantages and benefits in the management.
 Invention – It will have defined the term of innovation with new and unique tactics,
strategies that are connected with the development of the products and the process.
Invention is referred as a suitable key section for increasing products, course of sections
for creating high set of targets. In the current scenario, invention is an important term to
expand the management at global field. Each individual in business have their own idea
and orientation in terms of business strategies. Invention are unique and they are not
demonstrated before by any other company in the field of market.
Importance of innovation and invention
In the organisation invention and innovation plays an important role to demonstrate all
the organisational functions and working in an effective way. It will also allow the management
to maximise various sort of competitive advantages in the management for stock invention that
are connected with creating effective products and new orientation of perspective of
management. In terms of Essence drink, company are advertising their healthy mango drink in a
potential wat of target market to have an impact on new section of consumers. It will also assist
the certain field of organisation to solve their basic set of issues and problems among advertising
of products in efficient manner. As the mango drink is produced from fresh mangoes that will
have an impact on consumers and it will also increase their productivity and profitability of
Essence drink.
Comparison between invention and innovation –
Basis of comparison Invention Innovation
Meaning The invention is defined as
the way that recounts to Innovation is defined as the

developing new and unique
ideas in order to develop the
new products and their
services.
process of modernising such
products and developing new
and unique resources in the
organisation.
What is it? Invention is connected with
creating new and exclusive
idea of orientation in terms
of the products.
The term innovation that will
connects the manner of
developing implication to the
advanced out of viewpoint
and application that are
created in invention process.
Concept Invention is an original and
new thoughts that are not
developed or demonstrated
by someone else before.
The idea of innovation are
formerly demonstrated idea
that are implemented in
organisational products and
services as effectively and
efficiently.
Skills required As there are various
technical and vital skills that
are important to develop
original view of orientation
and concept in the business.
In the way of the innovation
it includes promoting and
advertising their strategies
that are important in order to
implement an innovation that
are connected to their
products and their services.
Implementation time
period
Invention is implemented
when a new and original
view of orientation is hit
Innovation is applied when
launching of new products in
competitive field of the

hard in practical mind. market as according to the
customer.
Concerned with Invention is connected with
particular products and the
services in the organisation
Innovation is defined as with
merging of several products
goods and their facilities in
the area of the marketplace.
P2: Vision, leadership, culture and teamwork shaping innovation and commercialization
Commercialization is that process which helps in bringing new services and products into
the market. The overall process of commercialization includes implementation of production,
sales, marketing, customers support and other key essential feature which are requirements for
the establishment of a business with a new product or service. It is very different from innovation
as in innovation a product can be improved or relaunched (Kotler, 2020). Whereas in
commercialization it is the process of launching a brand-new product that has been invented.
But, both innovation and commercialization is shaped by the following.
Vision – As it is the vision of every business to enlarge their management in several field of
nation and other nation as well. Essence Drink creates the managerial vision of suitable and as
well-known brand by offering high set of superiority and healthy mango lassie in the field of the
market. To accomplish the vision, management have to deliberate several viewpoints and other
contestants that are offering their goods in the marketplace. In every business there is vision
which allows it to think about its future. Vision is one of the main factor with the help of which it
develops goals. Vision allows the business to think about the ways in which it can achieve
something which has been its goals. With the help of vision the organization can describe to
itself on how its products or services need to be. For changing a certain product an organization
requires innovation than can help it to bring changes that are required (Dziallas, 2020). Just like
that for bringing a new product into commercialization the vision is equally very important
factor.
Leadership – Leaders are termed as the person who encourage workers to achieve their
objectives and aims in well-defined way as well as resolution all their issues and difficulties that
they are facing in the field of the market place. As Essence drink organisation serves mango lassi

in the market to their consumer that covers new aspects and taste that distinguish the product
form other contestants. Every organization requires a leader, therefore whether it is innovation or
commercialization leadership is very important for it to take place. Leaders are the one which
explains the resources of the organization about their role in the vision that has been developed.
Bringing innovation means that the organization needs some changes, in such a scenario the role
of leader becomes very important as it has to allocate the work accordingly by setting the
example.
Culture - Organisational culture plays an essential term of manner in important section to
express how managerial workers think, perform as well as answer in the management. Essence
Drinks of management will maintain original, efficient and positive working surrounding that
encourage the workers to present in distinct way. The culture of the organization is one of the
factors that can shape the innovation and commercialization. Culture of the organization is
considered as the important factor of the company which helps into going forward. The culture
of a company if is good allows the business to try to generate more effectiveness in the business.
Implementation of innovation and commercialization involves the organization to work as a
team. It is important for an organization to work as a team to achieve the goals of innovation and
commercialization (Tian and et.al., 2018).
Teamwork - Teamwork is termed as the cooperative efforts of amount of people to accomplish
all distinct targets and aims in effective way. Leaders of Essence drink create efficient culture for
the role of motivating teamwork and sprit of unity in between the management. The management
will motivate their workers to take active part in decision-making procedure. With a good
organization culture an organization is able to develop good teamwork that allows the business to
improve its procedures related to the innovation and commercialization. Due to the influence of
team work a team of the organization learns to collaborate with each other. Collaboration is
considered as the key to implement a new policy in the organization. Innovation and
commercialization consists of different activities which are needed to be collaborated for the
implementation of its influence (Saharuddin and et.al., 2020).
M1Different sources of innovation
As there are several sources of innovation that will aid the management to bring a new thing in
management that are as follows -

 The unexpected – Executive will consider the market constantly to ascertain high set of
chances for their development and advancement as well as involving group in innovation
and variation in the field of management.
 The Incongruity – As there is variance among the present marketing tendencies and
requirement of market. Management will change this condition into opportunities.
 Process need - Essence drinks consider global term of procedure and adapt the idea of
task-oriented procedure as well as resolve all problems and complications as efficiently.
 Demographics - As there are several variations that are happened in population
necessity, income and partialities that might be the source of innovation.
P3: Explaining the four P's and innovation funnel
4 Ps of innovation are termed as the features that identified that how the management will
bring innovation to advance several sustainable competitive benefits than other challengers and
make distinguishes positioning in the field of the market. These factors are as follows -
 Paradigm Innovation - Paradigm is termed with the section of changes in managerial
techniques, procedure and concept to generate new innovative sections. Essence drinks
innovates managerial section in present goods by utilising latest technologies as well as
wrapping to distinguish goods from others. The paradigm innovation is considered as the
changes which are responsible for underlying the mental models which can frame the
organization does or can do alternatively. In this innovation the company also frames
what it is doing and how it is doing (Houman Andersen, and Laursen, 2020).
 Product innovation - Innovation in goods is termed as process by which management
will execute the variations in present goods and generate new goods by utilising several
latest technique and approaches. As the Essence Drink management will launch new
goods as well as make all essential modification in good taste and quality as per to needs
of effective consumers. In the product innovation the organization conveys itself into
changing the products and services. This is basically bringing innovation into what the
company offers.
 Process Innovation - As the management bring new innovative goods in the field of the
market like mango lassie so the management need an innovative procedure and
equipment to generate the goods. In terms of Essence Drink, management change goods

wrapping and publish posters that supports in attracting potential consumers This
innovation is the change in the process, which refers to the way of creating or delivering
products and services.
 Position innovation – Position is defined as the elevation but there are several
differences in manner of how the customer will perceived managerial goods. As Essence
drinks management will serve high quality and healthy mango lassie to consumers that
will create an efficient brand image and positioning in market place. Position innovation
is the change in the context to how the products and services are introduced to the target
customers. In other words the change in the place in which the target has been offered the
products or services.
Figure 1 4 PS of innovation, 2021
Use of Innovation funnel in shaping and examining ideas
Innovation funnel helps in the description of the process which allow the development of
the product and process. The indication of the word funnel is regarding the whole procedure
which involves the need to meet the marketing needs for the product and services. It can also be
said as a refinery system that allows the product to get innovated before its launch. There are
three major steps which are involved in the journey of modification of product and services. In
the starting few steps of the funnel which involves the opening that is wide (Niroumand and
et.al., 2020). It helps in the gathering of more and more information about the innovation of the
product. This information’s then is collected to for developing new ideas which are concerned

with the segmentation and screening of the different ideas. The last part of the chosen idea is
major step in which it is delivered to the company and its services are helped for meeting the
objectives of the organization.
For Essence Drinks the innovation funnel will be very useful as it will explain the
procedure which it will need to implement an innovation. According to the funnel, the first step
of the innovation will consist of opening in which it will be able to gather all the ideas of
innovation. The ideas will be screened and analysed before making implementing them on the
products and services. Next step to this will be to continue gathering information and making
modification in the process of innovation. Let’s say the product is a new drink for this company
it will need to test it with selected people. After the opinion of these people to company will
implement the innovation.
P4: Explaining the development of frugal innovations and providing examples for its utilization
in an organization
Frugal innovation: Frugal innovation is that type of innovation which refers to the
reduction of the unnecessary cost. It also considers the production of the valuable goods. This
innovation is named as the frugal innovation because it works like the reverse process of
innovation. It is also very helpful in deducing the complexity that is involved in the innovative
methods. Such an innovation is helpful for the company in many ways (Kroll and Gabriel, 2020).
Figure 2 frugal innovations, 2021
Use of Frugal Innovation:
It is able to provide the company maximum profit for the attaining the sustainability in order to
remove the company. As in this type of innovation the reference is towards the reduction of the

cost incurred by the organization and also in reduction of the complexity of the organizational
procedure. Reduction of cost is automatically a way of increasing the profit of the organization.
Increase of profit is the main of the organization helping the organization in its growth. One of
the important feature of this frugal innovation is that it works from the bottom to the top
approach. This happens because this approach gives more reliability to the product which are
being innovated with the help of this process. Highly reliable products also means that the
organization will be able to gain more customers with the utilization of minimum amount of
resources. Due to these reasons the frugal innovation can be said as a different process of
innovation. Frugal innovation is also famous with the names such as frugal engineering,
resource-constrained innovation and also cost reduction innovation (Dessap, 2019).
For an organization like Essence drinks the reason for implementation of innovation is to
generate profit. This company can also try to implement frugal innovation improving the
company performance and also bringing customer satisfaction to their services. For a process to
be effective it is important that the organization can satisfy the customers (Tiwari, Fischer and
Kalogerakis, 2017).
Examples of frugal innovations used in the company
 Essence drink use local goods to generate new goods that decrease the cost of production
and goods will be available to consumers at lower prices as compared to other
challengers.
 The management develop several ideas for mango lassis that is distinguished form others.
Superiority and taste of goods is too good that having impact on number of customers.
 The Frugal innovation is very fragile process which can help this organization to generate
profit with the help of producing good quality of products. For example, A company
called Schneider Electric which had the aim of affordable energy was able to find
solutions with the BiBop program in which the new business model as the low cost of
LED lighting that resulted in the use of candles. Another example, Tata motors were
successful in developing its operations even more as they were able to develop a car
which was just worth $2000. This was frugal innovation at its peak (Pierre, 2021).

M2 Apply the innovation funnel in organisational
Innovation funnel is alienated into three parts that initiate from original funnel by which all
thoughts are created than ideas are established. Essence drinks apply the innovation funnel in the
in the management of drinks by creating new thought of idea and that need to enlarge in market.
Such concepts are produced while involving several actions like finding the thought and scope
for management goods and in the last period of the narrow segment is promoted that integrates
actions such as developing management case, creating goods and launch it in market after
testing.
M3 Role of frugal innovation in the organizational context
Frugal innovation plays an essential manner in the business of management that is adapted
by the executives of Essence drinks in the healthy mango lassi that enhance the profitability of
organisation. By the process of the management that gather response of consumers that facilitates
to increase the procedure as per to it. Management will get all data about the goods and
determine the point to cut value. Customer’s feedbacks will aid the management to enhance the
goods products and cut pointless sections of goods and decrease the cost at all section of
manufacture.
D1 Critically analyse how innovation is developed, embedded and measured in an organisational
context.
By increasing the innovation, a business is able to generate new ideas which are considered
for the business's viability, feasibility and also the desirability. Innovation for a business can also
be for improving its existing products and service or improving the process. There are
innovations which help the company to solves issues which it is facing and some help it to reach
new customers. Innovation for a business is very important as the process of innovation is made
for the creation of the value of the organization. For the creation of value, the creation of the new
revenue opportunities can be used for driving more revenue with the help of existing channels.
With the help of creating efficiencies time and money both can be saved. For improving the
productivity or the performance. Innovation and inventions both are very similar to each other.
However, they have some major differences. Invention is the creation of an entirely new product;
it includes application of existing or new technology for the production of an existing or new
product.