This report examines innovation and commercialisation strategies within Essence Drinks, a company introducing a healthy chocolate mint lassi. It differentiates innovation from invention, highlighting the importance of innovation for competitive advantage, customer satisfaction, and market share. The report further explores the 4P's of innovation (Product, Position, Process, Paradigm) and the innovation funnel, detailing stages from idea generation to post-release. Frugal innovation developments are discussed, and a business case for the new lassi is developed, including funding options. The importance of the commercial funnel and the application of the New Product Development (NPD) process are also covered. Finally, the report evaluates tools for creating, retaining, and protecting knowledge and intellectual property within Essence Drinks. Desklib provides access to similar reports and study resources for students.