Innovation and Commercialisation Strategies at Essence Drinks UK

This report provides an in-depth analysis of innovation and commercialisation strategies employed by Essence Drinks, a company offering healthy mango lassi in the UK market. It explores the importance of innovation and its impact on the company's vision, leadership, culture, and teamwork. The r...Read More

Innovation and
commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
P1 Innovation and its importance to organisation.......................................................................3
P2 How vision, leadership, culture and teamwork impact innovation and commercialisation. .4
M1 Source of innovation and organisation develop environment and culture of innovation.....5
D1 How innovation is developed, embedded and measured......................................................6
P3 4Ps of innovation and use of innovation funnel....................................................................6
P4 Development in frugal innovation.........................................................................................8
M2 Apply innovation funnel.......................................................................................................9
M3 Role of frugal innovation......................................................................................................9
D2 Produce financial reports.....................................................................................................10
P5 Importance of commercial funnel and application of NPD.................................................10
P6 Innovation business case to access funding.........................................................................13
M4 Detail innovation business case..........................................................................................14
D3 Nature of innovation............................................................................................................15
P7 Tools used by company to protect intellectual property......................................................15
M5 Support evidence based evaluation.....................................................................................16
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Innovation is called as spark of insight that brings new product, idea or method which
accomplish demand of the community. It is the commitment of excellence towards continuous
improvement in existing products and services. The purpose of innovation is to enhance
effectiveness, competitive benefit and efficiency of organisation performance which exploit new
business idea to deliver creative value. The commercialisation is an efficient procedure that
offers new products and facilities in competitive field of the market place. It control process,
input, output, validation and analytical method for developing products which satisfy needs of
market potential. It will allow to solve problems of new offerings and then introduce them into
competitive market. In the given case study, Akshay kumar is the founder of Essence Drinks
which offers healthy mango lassi in the UK market. The report includes significance of
innovation and how it shape vision, leadership, culture and teamwork of organisation. The report
highlight 4Ps of innovation and explain innovation funnel along with its developments. It explain
importance of commercial funnel and application of New product growth. The report evaluate
several techniques that are utilised to protect knowledge and intellectual sections.
TASK
P1 Innovation and its importance to organisation
Innovation is the application of an innovative idea in the managerial practice that help in
fulfilling demand potential market place. The concept of invention help in maintaining
competitive advantages and increase scope of long term sustainability (Bretton, 2020).
Innovation is the transformation process which brings unique and productive features in the
products and services as per changing environment of company.
Invention is the form of physical creation of new idea or concept. The invention is the
creation of business idea or concept without any verification of its commercial value. It known as
occurrence of business idea regarding product or process that is not produce earlier and
innovation is the implementation of idea regarding product and services for the first time.
Basis Innovation Invention
Meaning It is the implementation of idea
for product which is done on
It is occurrence of idea for the
product which is not create

frequently basis. before.
Concept It refers practical
implementation of the new
idea.
It based on original idea and
apply working theory in the
process.
Skilled required Required strategic, technical
and marketing set of skills.
It only required scientific
skills.
Concern with Combination of several
products as well as process.
Only single product and
process.
Occurs when Necessity felt to produce
improvised product in existing
line.
New idea strikes in the mind of
scientist.
Importance of innovation
In this case, Essence drinks capture biggest market share and generate more revenue in
their starting years with the help of innovation concept. But due to increase in the competition
level company concentrate on innovation concept in its existing products and services so that
they can improve its sales ratio (Bustamante, 2020). Invention is developing something new
which does not exits before while innovation is the continuous changing aspect for the
commercial benefit so, company must adopted innovation process. Innovation develop company
offerings and help them to achieve competitive advantage. They focus to introduce innovative
drinks with influencing packaging and promotion for creation of more revenue. They utilise
innovation development process (Idea generation, mobilisation, advocacy, screening,
experimentation, commercialisation, diffusion) to develop unique selling proposition. This will
help them to improve scope of profitability and enhance customer base of the company. The
company concentrate on innovation and invention in its existing products and services in order to
grab attention of new customer base.
P2 How vision, leadership, culture and teamwork impact
The success and failure of enterprise is determine by its innovative capacity because it
will help company recognise actual demand of market and develop creative products (Carl,
2020). To maintain competitive advantage company need to brings innovative and add on

features which grab the attention of mass audience. The process of innovation and
commercialisation help in develop different products from other competitors and generate more
revenue of company. Company of Essence drinks overcome its competitive challenges by the
help of innovation and commercialisation.
Company's vision: The statement of vision explains business hopes which organisation want
to achieve in upcoming years. It specifies particular time period like four to five years in which
entity want to achieve its desirable goal (Çengel, 2019). Essence drink company vision is to
deliver healthy drinks to their respective customers to develop revenue and sales. For improving
its financial position company concentrate on innovative concept so that they can add on unique
features in the existing products and services. To accomplish vision statement, company require
high commitment towards innovation and commercialisation.
Leadership: The leadership is the style or art of inspiring or motivate individual to
accomplish its set objectives. Leaders plays significant role in introducing fresh innovative idea
and create effective strategy for better performance. Leaders of Essence drinks appreciate
employees efforts to produce creative products and services and provide suitable direction to
achieve specified goal.
Company's culture: The culture of company involve habits, beliefs, habits, characteristics
and mindset of employees. Business operation gets impacted by the employee work culture and
innovative aspect (Cohendet, 2017). Essence drink company have strong and effective culture
that develop innovative strategy to promote unique selling proposition of company.
Team work: The team refers as group of employee which accomplish organisation objective.
Essence drink ensure effective working team which involve synchronization cooperation to
promote effectiveness in goal achievement. The team develop unique and productive idea in
existing products and services with proper coordination.
M1 Source of innovation and organisation develop environment and culture of innovation
The Peter Drucker's seven source of innovation deliver useful method for exploiting new
opportunities of business and manage risk. Starting four sources of innovation determine
something useful that is already developed or require only minimum efforts. They refers as
reliable indicators which introduce innovation in existing products and services. The remaining
three sources develop unique and limited features in new product offering which acquire high
risk and great rewards.

The unexpected: The company hold excellent position by exploring new opportunities and
effective management. They monitor employees activities and involve innovation in product
development.
The Incongruity: Some substantial gap has been seen in existing sector and demand in the
competitive market. This is beneficial for the overall growth and enhance company capabilities.
Process need: By understanding MR. Kumar business operation, company address its
weaker point and focus to improve its innovation process.
Demographics: The factors like population, income, variables are considered as
demographics which involve in business activities as per priority basis.
New knowledge: This is the base of innovation which develop effective and productive
process to introduce innovation in the existing products and services.
D1 How innovation is developed, embedded and measured
Essence drink company provide healthy drinks like mango lassi, they are in the third year
so need of innovation is highly required in their beverage system of supply chain. Through
innovation they can produce unique kind of drinks to target mass audience (Friedrichs, 2017).
They made some invention in its drinks and beverages with the help of commercialisation and
generate more profits. To accomplish future demand of the competitive market, company need to
brings some changes in its current process. By involving innovation in its process some issues
has been faced in assessing current market trends (Isaksen, 2018). The company create exclusive
shorts of drinks and beverage to target mass audience.
P3 4Ps of innovation and use of innovation funnel
The innovation is the productive process which produce something unique and valuable
to satisfy market demand. For introducing innovation in the product portfolio, Essence drink
company implement 4Ps of innovation.
Paradigm: This is the first element of the innovation process which help company and
provide assistance to deal with several changes in the innovative approach. It is very classified
and planned approach which help in running operational activities. The chosen organisation can
easily deal with the changes in innovative process and perform their task with positive changes.
It will help in changing existing portfolio of product and services to satisfy need of the
customers.

Product-It is the main element which develop value to the company by targeting
potential customers. Respective company is capable to add innovative value in their products and
services by continuous focus on incremental change. Company must focus on product
differentiation to build USP in the competitive market.
Process- It is mainly concern with the products and services preparation process which
includes steps of supplying, appointing people, workflow and training. Process is the value
creation for the improvement in existing products and services of respective company. With the
help of innovative process company develop efficient idea creation which raise productivity and
profitability of company.
Position- The aspect of positioning is the crucial process which generate interest in the
target customers by the help of influencing promotion technique (Jaegersberg, 2017). This will
promote brand image of Essence drinks and ensure strong market positioning of its products and
services.
Use of Innovation Funnel- It is the execution that ensure continuous stream of creative
ideas that is already followed by viability. This is used by the Essence company to examine
realistic creative thoughts (Kriz, 2018). The purpose of innovation funnel is to create several
multiple training programmes in order to determine feasibility and realistic approach of business
idea. It allows management of the company for brainstorming activities so that they can utilise
optimum sustainable resources to develop innovative ideas. The effective innovation funnel help
Essence company to develop profitability and sales ratio. Phase of innovation funnel that is
implemented by the Essence drinks are as follows-

Innovation Funnel, (2020)
Investigation- The aim of this section is to examine experience of the innovative concept
regarding product growth. This will evaluate whether innovative product will meet requirements
of the market in form of economical and manufacturable.
Development-It starts with the input refining and screening alternative options of
development in order to examine risk and challenge (Lewis and et.al., 2017). The respective
company expand knowledge and develop existing products and services by focusing on attractive
opportunities.
Shipping products-This is the final phase of innovation funnel when product is developed
and ready to ship towards target customers. This section involve improving supply chain
management so that business of management that can ensure availability of products to their
target customers.
P4 Development in frugal innovation
The frugal innovation is the effective procedure that recognise managerial model and
evaluate value chain, re-create existing goods and then transmute into inexpensive final products
which is ready to ship (Marchiori and et.al., 2021). This is the sustainable methodology which
includes valuable resources to enhance manner of the company in the field of the competitive
market. It is termed as the procedure that create valuable goods and facilities at very inexpensive
cost. This will help in reducing cost of operation and complexities in the innovative process. The
Essence company is focus to develop their frugal innovation in order to develop its existing
Illustration 1: Innovation Funnel, (2020)

products at low cost. The elements in the growth of frugal innovation is adapted by the Essence
company are discussed below -
Environment constraints- This is associated with energy, water and climate resources,
these resources increase the need of the frugal model which facilitates creation and activity
section.
New technology- It covers dynamic changes which decrease cost of production while
introducing innovation in technology (O'Kane and et.al., 2020). The new technology help in
raising opportunity and develop value through optimal frugal innovators.
Fast growing Market- This will develop some emerging economies which satisfy realistic
demand of the market. With changing market, company products and services also gets
modified.
Example- Essence drinks offers lassi drinks in the UK country, there customers are very
sophisticated and aware about trends in the market. So company is required to introduced frugal
innovation in order to satisfy demand and preferences. It will support them to create inexpensive
goods and fulfill different demands of the consumers. It will build company availability and hold
greater market share in the field of the market place in UK. By frugal innovation company is able
to deliver innovative products to their target customers.
M2 Apply innovation funnel
In context of Essence drinks, application of frugal innovation will encourage company in
order to produce large number of innovative products and provide value to the potential
customers at affordable cost (Perng, 2019). This is most beneficial for the company because they
can develop affordable products in optimize way. The use of technology help company in
reducing operating cost and improve operations which attract mass audience. Application of
innovation funnel helps in expanding potential customer and improve income output.
M3 Role of frugal innovation
Mr Kumar focus on frugal innovation for organizing arrangements of nutrition drinks and
beverage. Company utilize their resources incredibly and conduct feedback for collecting useful
information of potential customer. This will help them in reducing cost of operation and
formulation of strategy for innovating its products and services. Through frugal innovation
company is capable enough to enhance its existing goods and services and generate maximum

revenue level. Frugal innovation is used to make strategic development that focus on smart
development and appreciate investment without waste.
D2 Produce financial reports
The stock is known as inventory which is kept nearby corporation's premise in order to
serve purpose of business operation. For operating daily transaction company required inventory,
raw material and work in process (Ratti, 2019). Supply of produced item help company in
building strong financial position (by sales). Inventory of finished goods is easily managed by
the wholesalers as well as warehouses. Essence company face some difficulties in planning
entire resource system for controlling products and services. They try to transform raw material
manufacturing into profitable resources. They invest in the development of the marketing to
promote its products and services.
Requirements Cost
Costs of materials 4000
Machinery and equipments 2000
Labour 1000
Production costs 2000
Advertising costs 1500
P5 Importance of commercial funnel and application of NPD
The commercial funnel is the effective marketing tool by which company identify qualify
and trade their merchandise customers. This is known as effective model which visualize journey
of customer from initial to purchasing stage (Rush and et.al., 2021). This is the chronological
process which attract large base of customer towards company products. For better
understanding of significance of commercial funnel AIDA model is applicable-

Source:AIDA model, (2021)
AIDA model stands for attention, interest, desire and action which is used as advertisement
model to recognize purchasing stage of the individual. It is used for sales strategies, digital
marketing as well as public relations campaigns.
Attention-It considered as first step of the marketing and advertisement which determine
ways to attract or develop attention of customers (Şen, 2020). The Essence company place
advertisement in the unexpected situation or location with the help of intensely targeted message.
They offers personalized products to attract mass audience and improve customer experience.
Interest-When customer gets aware about existing product and services then Essence
company must enhance interest of their potential customers (Sturm, 2020). It is the hardest phase
to generate interest of customers towards company products. In this respective company focus on
specific target market and convey influencing message through online social media campaign.
This will develop interest of mass online user and they prefer to purchase company products.
Illustration 2: AIDA model, (2021)

Desire-After creation of consumer interest, Essence company established goal to develop
customer desire. This will transform mindset (Like to want) of customer towards company
products and services.
Action- It is the ultimate purpose of Essence company to drive customers with the help of
marketing campaign. It transform initiate actions into purchasing decision of the products and
services (Vidmar, 2020). In this phase, respective company initiate actions of customer in
purchasing which is designed to get quick response of customer.
New product development processing
The new product development is the effective process of considering products and
services from conception to market. This process grab opportunities of market and recognize
needs of the customers while delivering exclusive products and services (Wahome, 2020). The
new product development includes eight stages that is implement by the Essence company.
Idea generation:It will entails forward thinking of exclusive products and services of
Essence company. The company can explore opportunity to introduce unique range of drinks and
beverage in the competitive market.
Idea screening: After establishment of business idea, respective company must test its
applicability of the business idea before launching.
Testing: This stage assess innovation's marketability by examine customers of company.
The Essence drinks should gather customer input and involve in its new products and services.
Market strategy: After verification of the idea, the next step of this process is to recognise
necessity of business development by the help of marketing tactics. This will familiarise
customers with variety of beverages idea.
Feasibility study: Essence drink company required to examine product sustainability by
fulfilling customer requirement. They need to check sustainability of idea creation before
launching products in the UK market.
Product development: In step of product development, when company receive positive
feedback from above steps, then respective company is in the position to transform their business
idea into marketplace.
Test marketing: During this stage, some set of products will be provided to the specific
customers for checking likeliness of customers towards company products.

Commercialization: The last stage of commercialization, respective company launch
exclusive products and services to the marketplace of UK.
P6 Innovation business case to access funding
The business case of innovation is refer as official documentation which evaluate
relevancy of organization long term goal, it also includes mission and vision statements.
Executive summary: Essence drinks wants to develop varieties of favour in its existing
drinks and beverages which enhance sales and revenue (Yeo, 2019). The innovative business
build unique position of company in corporation sector.
Mission: The mission section of the business is to manage the quality of healthy drinks to
mass audience. The innovative business case of Essence drinks, aim towards introducing
varieties of products and services in its drinks and beverages to enhance sales volume.
Vision: The vision statement of Essence company is to capture greater market share for
creation of revenue and profitability.
STP strategy: STP strategy is most effective approach that is utilize by the business
analysts of Essence company in order to understand segmentation as well as classification of
their prospective customers.
Segmentation: It is the effective process in order to breakdown large customer base into
smaller divisional of marketing (Bevilacqua, 2018). The respective company wants to offer
healthy drinks and beverage so they can target specific group of health conscious customers.
Targeting: It is the act of dividing large group of customers into smaller one by
recognising similar needs of the individual and then target accordingly.
Positioning: This is the powerful marketing tool which create original situation in the
mindset of consumers. The respective business offers sort of products and facilities to satisfy
requirements of the particular customers.
Product innovation: It is the creative technique which brings innovative idea in the
Essence company. They implement new varieties of drinks and beverage to target mass
audience.
Funding –
The business management of Essence company ensure assets from the fund of new
innovation, it is cooperated by the administration power. Funds will support business operation
and enhance scope of foreign investment.

Ways of access funding – Bank loans –Bank provided short and long term loans to the company at very affordable
rate of interest. Respective company can customize their loan payment as per their
requirement. Crowd funding – This source of funding help Essence company in acquiring finance of
small amount from large group of people by the help of internet. These type of funding
can be done with the help of families and friends through social media platform.
Cash flow statement
M4 Detail innovation business case
Factors which determine innovation business case of Essence company are as follows-
A thought: It is essential for company to develop new innovative product for exploring
changing opportunities of market so that company can generate more revenue. Thought of
product innovation develop to accomplish unique desire of customers and competitive market.

Idea development: The idea of development in existing products and services require
information of market and customers for company expansion. Through this company can ensure
and check feasibility of idea development.
Strategies and implementation plans: Plan must be designed in strategic way to promote
new product develop in the eyes of potential customers. Company can adopted online channel of
social media to promote new products and services (Innovation business case, 2019). The
implementation plan ensure effective supply chain management because it will make sure
availability of the products in the competitive market.
Analyzing market: Company need to conduct feedback from market analysis for checking
feasibility of new products and services. Company can made some changes in its existing
products and services if they recognize negative feedback response during market analyzing.
D3 Nature of innovation
Several hurdles has been faced by the business during the process of innovation which
impact Essence company profitability. Challenges faced in the innovation of new products by
Essence company are company competitiveness, customer preferences, improvised in new
product offerings and inadequate cash inflows. The nature of business is associated with the
changes in technology, existing products business process and customer experience.
P7 Tools used by company to protect intellectual property
Intellectual property rights are considered as fundamental rights which individual or
entity have to protect its original idea. The purpose of introducing new goods and facilities is to
generate more revenue and profitability (How to protect intellectual property right, 2021).
Innovation contribute long term sustainability of the company and capture market growth. For
building competitive benefits of the company need to protect its intellectual property by adapting
efficient technique. The rational place is used by the Essence company which protect their
innovative products and services from being copied by the other competitors. Tools that is used
by Essence company to protect intellectual property are as follows-
Copyrights-This will prevents company intellectual property from being copied or
duplicating original work without company permission. If someone illegally used their original
piece of work then they can conduct lawsuit against the party. Copyrights must be register in the
office to protect intellectual property.

Trademarks-It is the protection of company word, phrase, picture, logo and so on which
Essence company used to develop unique identity of company. Trade mark can be enforce in
court as its is not required to be registered like copyrights. This will help company in increasing
its profitability because customer can easily recognize company brand image with its symbol and
logo. They can create their own healthy beverage and drink trademark to protect its unique
business model.
Patents-It is required to protect the original invention of company and develop some
improvements in corporation products. Mr Kumar can safeguard its valuable resources and gain
competitive advantage.
M5 Support evidence based evaluation
For company growth and expansion they required talented workforce for establishing
innovation aspect. Essence company utilize some tools to bring innovation that is mention
bellow-
Divergent tools: This tool help in implementation of last minute alternative perspective
and address issue of company. Innovator of the company try to work with their employees in
proper coordination so that organization gets benefit from positive outcome.
Convergence tools: It refer as idea convergence tools that is mainly concern with the
discovering divergence tool. It will help in solving issues of company and build unique selling
proposition of company.
CONCLUSION
From the above report, it has been conclude that innovation is the effective process which
recognise requirements of customers and introduce technological skills for fill informational gap
of customer in company marketing and designing activities. Organisational culture, vision,
teamwork and leadership provide successful direction to improve innovation process and achieve
competitive competitive gain. The four Ps of innovation has been utilise by the company in its
innovation and commercialisation process. Innovation funnel of respective company aid in
shaping innovative ideas. It include process idea generation, development and implementation
which provide proper base for innovation and commercialisation. To maintain long term
sustainability in the competitive market respective company utilise tool of copyrights, patents
and trademarks. This will help them to protect its intellectual property and knowledge and retain

their unique business idea. The process of new product development help in producing and
implementing innovative products and services because it will assist company from idea
generation to commercialisation.

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