Innovation and Commercialisation: A Report on Essence Drinks' Strategy

This report examines innovation and commercialisation strategies, using Essence Drinks, a UK-based lassi company, as a case study. It explores the importance of innovation, organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization. The report delves into the 4Ps of innovation (Paradigm, Product, Position, and Process), the innovation funnel, and frugal innovation. It further analyzes the commercial funnel, the application of New Product Development (NPD), and the creation of an innovation business case, including funding options. Finally, it evaluates tools for developing, retaining, and protecting knowledge and intellectual property. The report highlights the differences between innovation and invention and emphasizes the significance of these concepts for business growth and sustainability. This report is a comprehensive analysis of innovation and commercialization principles, with a focus on practical application within a real-world business context.

Innovation and
Commercialisation.

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................4
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................6
TASK 2............................................................................................................................................7
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................8
TASK 3............................................................................................................................................9
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation. .....................................9
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
...................................................................................................................................................11
TASK 4..........................................................................................................................................12
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation is an new idea or concept, creative thinking and imagination in way of device
or method. Innovation viewed as an application for better solution that helps in meeting new
needs or requirements and existing market demands in a better way. Innovation is one of most
important way or method to satisfy consumer needs and wants in better way to reach at desirable
goals and objectives (Mazzarol and et.al., 2014). This report is based on Essence Drinks which
established before two years and their co founder that established Essence drinks firm that is
Akshay kumar. The main objective of that organisation is to serving best and healthy lassi in
market of UK but due to fierce competition their sales decreases because their competitors also
adopt that concept. To beat their competitors co founder of organisation want to bring some
innovation so that they can provide pleasant experience to consumer base. This report is based on
the importance and role of vision and mission with innovation to satisfy emerging needs of
consumers. Further it explains significant factors of innovation and importance of funnel to
shape creative ideas. Further it explains stages of new product development by building business
case for funding.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation is an creative idea or thought that emphasis on emerging needs and wants of
consumers to gain long term competitive advantage. In scenario of Essence drinks they bring
new idea into marketplace by accessing emerging needs and wants of consumers so that they can
provide delighted experience to them (Ahn, Minshall and Mortara, 2017. ). In that case their
brand strategy team suggest about to bring lassi in healthy way and also convenient to bring it
any where. In that way they suggest to adopt lassi with many flavours and also fat free that give
something new to their consumer base. That innovative idea or concept proved beneficial for
organisation to enlarge business opportunities and enhance market share. Some key important
factors that are as follows:
Innovative idea or concept helps them to enhance productivity and revenue in case of Essence
drinks (Ajagbe and et.al ., 2015..). It also helps in compensate needs and wants of consumers in
proper way that enhance their loyalty level.

On other hand it enhances goodwill of an organisation within in marketplace to grab attention of
large number of consumer base. It also helps in assisting to achieve goals and objectives to
remain always competitive into marketplace.
From the above discussion it has been observed that innovation is very much important for
motivation level of employees (Azarmi, 2016.). It works to bring healthy lassi with kinds of
flavours to enhance sales of that product into marketplace to lead in market. On other hand
innovation and invention are different from each other, in case of Essence drinks they only want
to bring innovation because consumers mainly want innovation in lassi and their related products
(Dodourova and Bevis, 2014.). In scenario of Essence drinks they bring innovation in their
existing product because their USP relate with Product that is Lassi so with the new idea they
grab attention of large no. of consumers. There are difference in them that are as follows;
Difference between innovation and invention (Difference Between Invention and Innovation
2019):
Basis of comparison Innovation Invention
Meaning Innovation is concerned with
applying new concepts or
thoughts for satisfying needs
and wants of consumer at first
time (Dodourova and Bevis,
2014)
On other hand invention is
concerned with occurrence of
something which never before
exist and satisfy consumers
wants.
Purpose The main purpose of
innovation is to add some new
features or attributes to give
something new to consumers.
In invention idea or concept is
totally new and never come
before.
Basic In innovation new idea or
concept should implement in
practically.
It works on both practical part
of idea and theoretical also.
Skills required To bring innovation in any For invention scientific

sphere particular skills such as
technical, planning and
managing are very much
potential.
knowledge and skills are
required.
Occurs when Innovation occurs when
requirement should be
analysed by accessing needs
and wants of consumers.
On other hand invention occurs
when an new idea or concept
comes in mind.
Concern with In innovation consist of
various kinds of steps or
procedures to implement it
successfully.
To apply invention some
processes or procedures are
very much obligatory to reach
at desirable goals.
Activities It implemented in entire
organisation to make it
possible.
It only limit up to research and
development department to
reach at desirable outcomes.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Vision, mission and objectives are very much important for organisation that give
direction to reach at desirable goals and objectives (Fuertes-Callen and Cuéllar-Fernández,
2014.). In case of Essence drinks to gain better and significant position in marketplace they have
to develop a clear vision, mission and objectives for their staff members. In that organisation
clear vision and mission give them path by following that they can attain goodwill within
marketplace. Hence leadership, vision and mission gives a definite path in shaping to bring
innovation and commercialisation. Here are various concepts which are very important for
organisation that are as follows:
 Vision: The main vision of Essence drink si to offer delicious and healthy drinks in lassi
in various flavours in UK (Katzy and et.al ., 2013). Also they want that they can give best
and enrich life to consumer base by satisfying needs and wants in proper way.

 Leadership: In innovation and commercialisation leadership and their various theories
and practices are very much essential. It is responsibility of an leader to bring
development by launching new products and services into marketplace. On other hand
the another main task of an leader is to develop an positive environment in which
employee and employer can give their best in organisational development. Leaders and
managers are very important for an organisation in control working in proper manner.
 Culture: Organisation culture is one of important aspect that bring harmony in
organisation work and procedures. Culture refers to values, beliefs and norms that are
vary from organisation to organisation (Khan and et.al ., 2014). If culture of organisation
is friendly and flexible enough in that case employees able to give their best and easily
implement a new kind of lassi and their flavours in market. In Essence drinks, their staff
members to build an effective culture in which every one can contribute a lot for that they
give effective training and development.
 Team work: Team and its working are very important for an organisation to achieve
desirable goals and objectives in proper way (Kutvonen, Savitskaya and Salmi, 2014). In
case of Essence drinks before launching various kinds of flavours in market they build an
effective team in which every one proficient in their own work so that they can give their
best to get success. To build an effective team distribution of works and procedures
should be in clear and proper way so that every one can give their best in organisational
development. In case of Essence drinks they build teams according to their specialisation
so that they majorly contributes in organisational development and enhancement.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
Innovation which has a vital part for every organization, it clarifies the new update in product
and maintain a stability in market. Innovation has different P's which has discovered by John
Bessant and Joe Tidd. This tool has an impact in innovating new feature in existing product or to
get an idea of a new merchandise to offer in market. Innovation mix has 4P's which are
Paradigm, Product, Position and Process. Essence Drinks need to improve in many aspect which

can create a need in market for future and establish a stability to get a profit from market. To
understand it properly let's take 4p's of innovation which is as follows:-
Paradigm- A game plan which design a business for long term stability is much
important as it handles all department with a proper management. To improve the quality of
work by update of every technology in the filed of new innovation is necessary. A Paradigm
defines as designing of a model or strategies to get all operation in an appropriate manner.
Company like Essence Drink should focus on maintaining a proper model as to enter in market
for stability. It clarifies every aspect of taking a full-flesh profit from market. Customer need a
proper management in every organization by which it facilitates every service in an appropriate
manner. For example- Keep updating the techniques or strategies by which a company runs.
Product- To improve the stability of a business, a product or services should be well
maintained as per the market scenario. It regularise a customer demand and maximize the profit
margin for a company. To understand it properly, how product can improve or what additional
can be offer in services for customers (.Mazzarol, 2013.). Good and services should be
presentable in front of customers as it creates a brand in market. Incremental change,
diversification, to match with customer taste and preference and update it in a way which market
demanded is the best suggestion to establish a proper market for future growth. Company like
Essence drink has to work on every aspect, it creates a market by indulging into offer varieties of
product category with proper presentation.
Process- A company has many different work and the operation department has to focus
on various clarity to start a work as to get efficient and effective manner (Mazzarol and et.al .,
2014). Process does not include only the presentation process of product, but it has wide term to
use in an organization. It clarifies every part of process to check its efficiency and effectiveness.
To keep in mind about every step of process such as operating, presenting, marketing, supplying,
flow of work, human resource, training etc. These every part of a process should be kept in mind
and make a growth in market in an appropriate manner. Company like Essence drinks has to
understand that every single unit of company give the best for the betterment of an organization.
Processes are many to operate a company, but handling it in an efficient and effective manner is
much important to get the stability in market for long term.
Position- The target market for a product plays a vital role towards the creation of need
in market. Products and services develop to keep market scenario in mind, as to offer proper taste

and match for the consumer. Product and services should be frame by keeping every target
market in mind. People level of understanding towards the product, public way of keeping eye
on market etc. Company like Essence drink should understand every individual level of mind as
to portray the better facility for the growth of company. Company should maintain a proper
market with exact segmentation to target for the product as to maximize profit.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Cost cutting for a business is much beneficial as to earn more. Finding it in a proper
manner helps a business to improve various section of operations. Frugal innovation defines as a
process which focus in reducing the value of complexity by which the cost of good sold and the
production cost of a merchandise can maintain a proper match with the demand of consumer in
market (Mazzarol and et.al ., 2014). This has a vital part for an organization as it helps in
removing the non-essential activity or the use of raw material and try to get the product cost
favourable with market.
Example of frugal innovation:
There are 80% of blindness is in treatable manner instead of that millions of people
around the world are blind. So there are huge demand for quality eye test access. To eliminate
Illustration 1: The Big P in Our 4P Innovation Process 2018
Source: The Big P in Our 4P Innovation Process 2018

that problem Peek vision focus on improve access towards high quality eye care by Peek Acuity
and Peek Pro Smartphone vision test apps that helps in examining the eye from inside and helps
in acknowledge about the disease. That is one of best example of frugal innovation that helps to
solve the problem of masses and give them new life (From solar torches to bioloos: five frugal
innovations from around the world 2019).
The term frugal innovation define sometime in a distinctive manner and framed as a
reverse innovation, innovation of inclusive in existing one and constraint-based innovation. For
example- Firefox OS unleashes the change in future of mobile, it clarifies the power of server by
an event and creates a perceived value by highlighting the proper advancement of its product
offer in market.
Company like Essence drink should understand it properly about how it should deal with
the management. Cost cutting from various part of operation is necessary as to keep an average
price for market (Pellikka and Malinen, 2014.). It should maintain an enormous change by
keeping in mind about all the extra expenses which has occur due to improper management and
try to lower down the pricing of product and offer in market with an appropriate manner.
Organization focus on frugal innovation which examines all department in a way to tackle
different miss-management because of which cost increases in market and customer shifted
towards the substitute of product in market.
There are some steps that bring innovation funnel that are as follows:
Opportunity assessment: In that first step of innovation funnel in which Essence drinks analyse
data and information, consumer knowledge and data base that helps them in identification of
opportunities.
Insight based ideation: In that stage of commercialisation funnel in which type of opportunities
should be identified for Essence drinks. In that kinds of products and services by which
organisation can gain large market share.
Conceptualization: In that stage researchers of Essence drinks find out design and concept
behind it to bring it into existence. Essence drinks provides kinds of flavours in lassi so that they
can avail opportunities.
Evaluation and benchmarking: In that stage consumers should be targeted by accessing their
needs and wants in proper way. They test actual user and taking feedback from them by offer
their product.

Go/No Go: In that stage through research should be conducted by taking feedbacks from
consumers that helps in get success. In that stage final decision should be taking.
Launching: In that stage after all evaluation final decision should be taken.
From all these steps to bring innovation in organisation in practical way, these steps helps to
follow an definite path from which an organisation can reach their goals and objectives in proper
way.
Importance and role of innovation funnel for innovative ideas:
With the help of innovation funnel an organisation can reap best and out of box ideas by
accessing emerging needs and wants of people. It is one of most fruitful way to find out the new
ideas and concepts and change it into commercialise way. In scenario of Essence drinks by their
innovative funnel they reap ideas in better manner and capture a large market share.
TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
To bring effectiveness in works and procedures organisation have to use commercial
funnel in which three phrases use for updating products and services by using kinds of strategies
and tactics for success of Essence drinks (Plewa and et.al ., 2012.). Here are description of
commercial funnel that are as follows:
 Pricing policy: The one of most important part before launching a new product in to
market place by offering moderate price that can be afford by every kind of consumer
base. There are lot of consumers who prefers to consume lassi and want some new thins
and attributes to comply with emerging needs and wants of consumers.
 Helps to grow up business: Commercial funnel is one of most important aspect in
business growth and enhancement. With the help of commercial funnel needs and wants
of consumers should be find at each stage so that products should be developed
accordingly.
 Usage of advance technology: Adaptation of advance technology is very important factor
to being enough competitive in marketplace. In case of Essence drinks after accessing
needs and wants of consumer base by implementing kinds of flavours in their food in
which highly advance technology is require to give best attribute to end consumer.

 Implement investigation programmes: To reach at desirable goals and objectives Essence
drinks have to conduct various kinds of research and development programmes in which
needs should be evaluated (Razak, Murray and Roberts, 2014). In commercial funnel
which is an important step to bring innovative things for achieving success.
Before launching a product into market product development steps should be adopted that are as
follows:
Idea generation: In that stage Essence drinks find out innovative idea to build lassi by
conducting through research by collect data and information.
Idea evaluation: In that stage errors or mistakes should be eliminated so that a best product
should be offer to consumers.
Concept definition: After the prior stage, the new concept of lassi should be finalised in to
market.
strategic analysis: After analysing strategies and tactics manager of Essence drinks ensure that
their strategy align with demand,cost and profit margin.
Product development and testing: In that stage development and testing of products and
services should be conducted properly (Razak, Murray and Roberts, 2014).
Market testing: In that step some products should launch in marketplace to get feedback from
consumers by evaluating time, cost and resources.
Commercialisation: To bring product for commercialisation price, margin with marketing plan
also determined in proper manner.
Product launch: After well evaluation of each and every concept product should launch in
market.
By following these process Essence drinks can lead in market and reap benefits out of it
so that competitive advantage should be gain in proper way. Further it also helps to be
distinguish in marketplace in comparison to their fierce competitors. So that process is an crucial
model to bring harmony in works and activities.
Importance of process of new product development:
By introducing a new product into marketplace organisation can easily new ideas and
apply it in practical way and give a definite path by following it an organisation can reap
important benefits out of their box idea.