Innovation and Commercialisation: A Case Study of Essence Drinks

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Innovation and Commercialisation
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Table of Contents
Introduction................................................................................................................. 4
LO1: Difference between innovation and invention (M1)............................................5
LO2: Different types of innovation (M2, M3)................................................................7
LO3: Procedure required commercializing innovation (M4)......................................10
LO4: Range of methods advantages and disadvantages (M5).................................14
Conclusion................................................................................................................ 16
Reference list............................................................................................................ 17
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Introduction
Commercialisation and innovation is the method through which in a new products
are brought into the market so that financial prosperity can be attained and higher
revenue is enjoyed. It is important for an organisation to perform innovation
commercialization because through it, more employment is created and new
products are pushed into the market. In this particular case study, the organisation
named Essence Drinks has been selected. This lassi shop operates within the
United Kingdom market where the chief executive officer of the organisation is
Akshay Kumar and he wishes to provide a new healthy lassi to the market. In this
study, fruit and nut chia-seed lassi will be suggested which would be geared towards
health-conscious people.
Figure 1 - Image of the Fruit and Nut Chia-Seed Lassi
(Source:)
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LO1: Difference between innovation and invention (M1)
P1: Explanation of innovation and its importance to enterprises in comparison
with innovation and invention
Innovation is a procedure through which ideas and thoughts are transformed into a
new product or service, which delivers utility to customers (Andersson et al. 2016).
Resources are utilised in a new fashion so that something entirely visionary is
provided into the market through the process. Through the process of innovation,
alternative resources are evaluated so that it can be ascertained that which
ingredients are the best choices in order to create a new unique commodity. It is
important for innovation to exist within an organisation such as Essence Drinks, as
it helps to extend and grow the product line of the company. Through these new
choices are provided to the consumers. The higher the number of choices the more
likely that sales will increase, this will enable more organisational activities to take
place. These organisational activities include actions such as increasing the
marketing campaign of the organisation, expanding the outline of the business and
other activities (Prajogo and Oke, 2016).
There is a huge difference between invention and innovation. Invention focuses on
Following through on an idea or thought through which a process or product that has
not been attempted before is made. On the other hand, innovation implies the
implication of creating a new product or process for the very first time. While
invention focuses on creating, something innovation focuses on adding value to a
product or service that already exists. Invention focuses on an idea that is still in the
process of being created on the other hand innovation has practical applications at
the time at which there put into the market. While invention is a scientific approach,
innovation is more based on technical, marketing and strategic skills (Andersson et
al., 2016).
When compared to invention, Invention is more important within Essence Drinks as
it assists in creating better lassis for the target audience that already exists within the
United Kingdom. For the purpose of this study, the new lassi, which is proposed for
the market, is a fruit and nut chia-seed lassi through which a new health-conscious
section within the market will now be targeted.
P2 Explain how organisational vision, leadership, culture and teamwork can
shape innovation and commercialisation.
The vision of Essence Drinks is to provide healthy milk based lassi to the United
Kingdom market so that more customers are able to enjoy a healthy lifestyle. From
the above-provided case scenario, it can be ascertained that Akshay instils a
democratic form of leadership where he invites the opinion of other employees. The
work culture of Essence Drinks has been ascertained to be a dynamic teamwork
based organisation where people support one another so that a higher level of
efficiency can be achieved. All of these aspects help a company to be more
innovative as a number of knowledge assets are present within Essence Drinks. So
that more products exist in order to create a platform nearby to provide higher sales
can be facilitated (Freel, 2016).
In the initial stages of the organisation had managed to push its lassi products into
the UK differentiated marketing. Here the special emphasis has had been put on
how the drink was different from local products. Market visibility was achieved when
the innovation of the mango lassi into the market had been put forth. It was through
good leadership that Akshay Kumar was able to understand the psychology of the
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consumers in the market. Through which he had been able to create demand. Over
a period of 2 to 3 years, he was able to create and deliver lassi products into the
market through collective teamwork by every employee present in Essence Drinks.
M1: Different sources of innovation and development of culture and innovation
in organisation
Multiple sources of innovation are present in the food industry these sources
encompasses places such as Incongruity, multiple demographics around the
country, changes in perception of customers and others. Within an organisation,
such as Essence Drinks, the managerial heads and employees understand how is
essential it is to develop an innovation culture. It helps in growing the product line of
the company, which helps the marketing team of the enterprise to advertise more
products into the industry. It has been brought to the attention of Akshay and his
team that currently in the UK market there is a huge increase in temperature with
negative phenomenon occurring such as global warming and others. Events such as
these increase the humidity causing more people to want a cold new beverage in
their position, which is the fruit and nut chia-seed lassi is perfect for this market
(Miozzo et al., 2016).
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LO2: Different types of innovation (M2, M3)
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel
to examine and shape innovative ideas
There are Four P's of innovation which is most used by an organisation that
encompasses elements such as position, process, product, and paradigm (Drucker,
2014). All these mentioned factors will be investigated within the case of Essence
Drinks When it comes to how they innovate and deploy a new product in the market.
Paradigm illustrates the boundaries of what will be the taste of the fruit and nut chia-
seed lassi, and the ingredients that will not go in it, which includes oats banana and
others. Product investigates the good features that are present within this Lassi,
which includes high protein in nuts, more energy by milk and others. The Process
through which this will be made through the combination of multiple fruit and nuts
and others with raw chia-seed in a mixture of milk. Position illustrate the target
members of the organisation which includes has conscious people.
Figure 2 - P's of innovation
(Source: Christensen et al., 2015)
An innovation funnel is a model that helps in evaluating different types of useful
ideas that have been collected from various different individuals and materials.
Within Essence Drinks, there are multiple heads such as Akshay and others from
various departments that give their imports on what type of pathway would be ideal
for the new product. It is only using the innovation funnel that unnecessary ideas that
do not give any value to the creation process are eliminated. After the utilisation of
the innovation funnel, it has been ascertained that The Company should come up
with dry fruit lassi, which is towards fitness-concerned individuals (West et al., 2014).
P4 Explain developments in frugal innovation and provide examples of how it
is used in an organisational context
Frugal innovation is a process with the help of which the complexity is that exist in
creating a product is toward and the costs that are involved in it are minimised as
well (Soni and T. Krishnan, 2014). Within frugal innovation, there are three main
areas through which a new committee is brought to life within the industry please
include determining innovative choices, evaluating the purchasing power of
consumers, and managing materials and resources (Christensen et al., 2015).
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Through the utilising this form of innovation, the company is able to consider the
opinion of other individuals. Some other ideas, which were considered when using
frugal innovation, were lassi ideas as such as oats lassi, banana lassi and others.
After evaluating all options it was determined that, the fruit and nut option would
widely appeal much more. This type of innovation has also helped the company to
build its teamwork aspects through which more bonds exist within the organisation
(Lasserre, 2017).
M2 Analyse and apply the innovation funnel in an organisational context
The three main elements of frugal innovation will be illustrated here done below
under the umbrella of Essence Drinks:
Figure 3 - Three factors of frugal innovation
(Source: Radjou and Prabhu, 2015)
Resource management - Within this stage Essence Drinks, various ingredients and
types of material are evaluated so that it can be understood which items are the best
fit for this new drink, which has been determined to launch. Unless proper tasting is
done, which combination of ingredients creates the satiation point cannot be
ascertained.
Purchase power - There is a huge pool of consumers who are present within in the
United Kingdom who have become more health conscious over the last few years
with the increase in fast food consumption. This has led to several groups of people
wanting to desire healthier options, making the dry fruit lassi an ideal choice(Radjou
and Prabhu, 2015).
Evaluating innovative - There are gastronomists who are present within Essence
Drinks focus towards providing different beverage offers to the market. With the
expertise of these people, Essence Drinks can now evaluate multiple innovative
choices such as guava lassi and pomegranate lassi and others.
M3 Evaluate the role of frugal innovation in an organisational context
In the particular scenario of Essence Drinks, when evaluating the frugal innovation
than the following few two points can be illustrated:
 After going through multiple types and brands of fruits and nuts, it has been
determined that the best combination of ingredients in the case of this new
lassi would be cashew, raisins, almonds, chia-seed and others. All of these
have good taste and provide nutrition as well.
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 Evaluating what type of customers will be drawn towards the commodities that
this company offers. Then it has been determined that people from the ages
of 15 to 40 would be ideal to market these products. These people have
enough income brackets through which they can sustain to buy this product
on a daily basis to aid their health.
 After tasting, sampling, comparing all of the innovative new products
gastronomists of the Essence Drinks they have suggested. It has been
determined that fruit and nut lassi would be the best choice for the chosen UK
target audience (Hill et al., 2014).
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LO3: Procedure required commercializing innovation (M4)
P5 Explain the importance of the commercial funnel and the application of new
product development (NPD) processing for commercialisation of innovation.
Commercial funnel is a multi-layered sales funnel, which a company like Essence
Drinks utilizes so that they are able to draw in various types of customers from the
market. Through this funnel, multiple combinations of marketing campaigns and tools
are utilised so that the attention of consumers can be attained. There are four stages
in this funnel, which include awareness, interest, decision, and action. At the
awareness stage, the company tries to increase its visibility in the market. Following
which, on the interest stage different type of keywords, discounts, sales offers and
others are put forth to make the consumers want the commodity. After which the
consumer is given a choice to either by or not by the product. Finally, through
continuous market efforts, the consumer is motivated towards taking action and
making the purchase.
Figure 4 - Commercial funnel
(Source: Wheelen et al., 2017)
NPD for new product development in the case of Essence Drinks is the process
through which Akshay and team within the United Kingdom market are able to
access and understand. The likes and preferences of the target audience, which is
present within the market through an understanding of the kind of desires, the
consumers have the product can be modified in accordance with the needs of the
customers so that higher utility can be provided in the market. Within this framework,
there are multiple categories such as Idea generation, concept development, testing
of the sample product or prototype and introducing it into the new market. In this
stage, the finalization of product is a crucial role as after a new commodity is created
commercialization process to marketing is initiated by which products available into
the industry (Wheelen et al., 2017).
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Figure 5 - Aspects of New product development
(Source: Bain and Kleinknecht, 2016)
Essence Drinks must use the commercialization process in order to make the new
fruit and nut lassi a visible choice in the market. In order to this aggressive marketing
must occur where strategies such as social media marketing, offline marketing,
marketing, and others can be practised. Through all of these techniques, a deep
sense of urgency can be created into the minds of the potential customers of
Essence Drinks, through which they will be more inclined towards buying the
products of the organisation. This will help the organisation to launch its product
quickly into the market and gain popularity over a period of duration. If good
marketing takes place then the benefits of this beverage will be highlighted to the
consumers, which will help increase the knowledge about the good ingredients (Hill
et al., 2014).
P6 Build an innovation business case for an organisation, including ways to
access funding
In the particular case of Essence Drinks, an innovation case will be created and
executed here down below where 4 stages that the managerial heads of the
organisation must fulfil create this new product will be illustrated
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Figure 6 - Stages for creating a building an innovation business case
(Source: Kogan et al., 2017)
Critical capabilities - At this stage, all of the portfolios of the employees were
present within the organisation are evaluated and it is at certain that what their
capabilities are and what they can do. After exploring all their abilities, it is this
determined what type of job would be best for them to create the new lassi (Autio
and Thomas, 2014).
Evolving strategies - Multiple types of strategies that the company can utilise in
order to allocate its resources better. Techniques such as just in time, total quality
management, continuous improvement and others can be suggested through which
material can be overview well.
Liberating potentials - Market opportunities such as online advancements, website
selling, technological advancements, and automation through which disease can be
made automatically and others are evaluated. Here all these potential chances are
anticipated and decided, which one would be the best partner for the organisation
(Kogan et al., 2017).
Changing the world - In this particular stage, market research is conducted into the
industry and the extent until which the product can succeed is ascertained. Once
knowledge is acquired then and an appropriate product life cycle is attempted to be
created for the new lassi so that the longevity of the commodity can be at its highest.
In order to raise funds from the market Essence Drinks can undertake two types of
Pathways through which it will have more capital:
 Issue of shares and debentures - In exchange of finance Essence Drinks
may be able to give portions of its company into the market so that when
shareholders by stock their table to gain dividend from the organisation.
 Raising funds from the proprietor - The board members of the organisation
can directly request Akshay Kumar to land more money into the organisation
so that it is easier for the lassi to launch (Ansoff et al., 2018)
M4 Build a detailed innovation business case which includes how to measure
its overall effectiveness using appropriate techniques available to test, iterate
and improve.
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A detailed fuelled innovative organisational case can be made in the scenario of
Essence Drinks. This case will be investigated in order to evaluate the effectiveness
and measure how wills a new product can do in the market.
Prototype creation - Based on the lassi idea which has been considered, prototype
products will be made where different ingredients will be used so that. The
managerial heads and evaluate which one tastes better and would fit the
preferences of the consumers in an optimal binary so that the highest number of
sales made is possible (Bain and Kleinknecht, 2016).
Testing prototype - For testing the prototype, a sample size of consumers will be
against whom this prototype will be used for; this will actually help a certain how
much utility can be derived against the amount that was expected.
Iteration - After the testing process was the problem has been identified it is the
responsibility of the different managers that are present within the organisation to
inform with implies that mitigation action must take place. This will eliminate the
entire problem that exists and will help make the product become an even more and
complete package.
Improvement methods - Several methods are present through which the proposed
lassi product can be made even better. This can be done through ingredients that
are important from places such as Switzerland Australia and others where there is a
high degree of vegetation and plant growth. This process will help Essence Drinks to
import cashew, raisin and other products that are premium quality products.
Market survey - Following order, this market survey must be conducted where
different consumers must be asked how they felt about Essence Drinks. They prefer
some sort of other ingredients for service pattern through which the company can
improve in the long run(Shenkar et al., 2014)
Projected fund flow statement - For creating a large quantum of lassi into the
market for the target audience huge funds are required which can be attained
through proper financial projections. Here these financial statements are formulated
in a way so that there are no budgetary restrictions and the goals of the organisation
can be met
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