Report: Innovation and Commercialisation Strategies for Essence Drinks

This report provides a comprehensive analysis of innovation and commercialization strategies, focusing on the case of Essence Drinks. It begins with an explanation of innovation and its importance compared to invention, followed by an examination of the leadership, teamwork, and culture necessary to shape innovation and commercialization. The report then delves into the 4Ps of innovation, demonstrating their application within an innovation funnel, and explores the developments in frugal innovation and its application within organizations. Furthermore, the report describes the commercial funnel's importance and application in new product development. It includes an innovation business case study, considering funding, and assesses tools for developing, retaining, and protecting knowledge and intellectual property. Overall, the report offers a detailed overview of strategic innovation and commercialization processes relevant to the success of Essence Drinks.

Innovation
and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Explain innovation and identify its importance within Essence Drinks by comparison with
invention.................................................................................................................................3
P2 Explain vision, leadership, teamwork and culture which will shape innovation and
commercialisation...................................................................................................................5
P3 Explanation of 4P's of innovation and it's usage in innovation funnel.............................6
P4 Explain developments in frugal innovation and ho9w they are being used in organisation.
................................................................................................................................................8
P5 Describe importance of commercial funnel and its application for new product
development for commercialisation.......................................................................................9
P6 Create an innovation business case study which also include access funding................11
P7 Assess tools that organisations can use to develop, retain and proect knowledge and
intellectual property..............................................................................................................13
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................15

INTRODUCTION
Innovation refers to creative thoughts, new idea and new imaginations in form of
methods or devices. They can be defined as process which comprises of different activities for
exposing new ways for doing things. Commercialisation is defined as process of creating
economic values for organisation (Abdul Razak, Murray and Roberts, 2014). By utilising
knowledge and converting them into services and products requirements of customers can be
accomplished. This report is based on Essence Drinks which was founded by Akshay Kumar.
They started this organisation with healthy mango lassi within market of UK. In initial time they
made high sales due to their innovative formulation. This report comprises of innovations
importance, vision, culture, teamwork and leadership which can shape commercialisation and
innovation. Moreover 4Ps of innovation and evolution in frugal innovation have been included.
Apart from this, importance of commercial funnel and its applications are explained. Business
case is provided by taking into consideration funds and various tools are evaluated which are
used for developing and retaining knowledge.
P1 Explain innovation and identify its importance within Essence Drinks by comparison with
invention.
Innovation: It is a process which is used by organisation for adding more value to their
services and products, so that they can gain competitive edge within market. It is attained as
overall outcome of commercialism and invention. It refers to procedure by which alterations can
be made in existing services and products by adding something new within process of
production. This alteration can be in form of design or size. This technique aims at providing
extra benefits to customers by addressing their wants and needs. By this organisation like
Essence Drinks can enhance their customer base there by maximising their profitability. They
have been involved in continuous improvement so that they can provide their customer with
value services (Ahmadi and O'Cass, 2016).
Invention: It refers to unique process, composition or method. Basically it is activity of
bringing new within market. Invention comprises of technical knowledge with respect to
existing. For Essence Drinks this process will lead them towards success. They are involved in
improving their lassi with more flavours so that they can provide their customers with
improvised experience in terms of taste.
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Variation between Innovation and Invention is shown below:
Basis Innovation Invention
Concept It is process of adding value to
services and products which
are being offered by
organisation. They execute
creativity in their services and
goods by which
competitiveness can be
enhanced within market.
It refers to process of creation
of something new which is
fresh. By this organisation
aims at developing new market
for that specific product (Chun,
Chung and Bang, 2015).
Scope There is a broad scope as
different activities can be
undertaken with respect to
technology, market theme, cost
and innovation (Dincer, 2017).
It has constrictive scope as
they can take into
consideration a single service.
Occurrence It is necessary for Essence
Drinks to make enhancements
in their existing products.
Unique ideas are utilised by
scientists through which they
can invent fresh products.
Skills required Different types of skills must
be possessed by individuals in
terms of technical and adaptive
skills which will assist them to
formulate plans and strategies
which will provide effective
guidelines for employees.
It is necessary for organisation
to have effectual scientific
skills so that they can bring
something new within market.
Importance of Innovation in Essence Drinks
It is important for an organisation to opt innovations in their operational activities in
order to attain profitability as well as competitiveness within market (Dodourova and Bevis,
2014). It is essential for Essence Drinks to take vantage of innovation so that they can remain
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sustainable within market in this dynamic world. It enhances returns on investment as well as
customer base. Its importance is mentioned below:
 Increase creativity among employees: Expeditious and trenchant techniques in
innovation renders enhanced benefits to employees as well as their creativity is also
improvised. Essence Drinks provide mango lassi in market of UK. By using various
innovative techniques they can have significant affirmative impact on efficiency and
productivity of employees.
 Increased profit: It is an essential factor for organisation to run their business in
effective manner so that customer base and earnings can be maximised. Innovation assist
organisation to provide something new in their existing products (Fuertes-Callen and
Cuéllar-Fernández, 2014). Essence Drinks can make use of trenchant techniques within
their production process. Like they can provide their customers with different flavour in
lassi like orange, chocolate or any other. This will add value in their products by which
they can fascinate attention of different customers by which they can improvise return on
investments.
P2 Explain vision, leadership, teamwork and culture which will shape innovation and
commercialisation.
Innovation refers to essential part of organisation by which they can enhance creativity
and cultivate their growth. It is the process for creation of new ideas. In context of organisation
innovation will provide them with enhanced benefits which they can use for rendering effective
services. Essence Drinks can go for various innovative techniques in processes such as
development of products and their management so that their creativity can be enhanced.
Administrative, process and technical are types of innovation. Essence Drinks can make use of
various processes of innovation like making their drinks available online. For this they need
make use of continuous enhancements in their systems (Fuertes-Callen and Cuéllar-Fernández,
2014). It is necessary for them to opt for alterations in their organisational practices so that they
can have creative environment. Some contributions which are made by Essence Drinks in terms
of culture, vision, teamwork and leadership, are mentioned below:
Innovation and vision:
When organisations have strong vision then they can invest their energy, money and time
on innovation. If organisation does not have suitable vision then this will result in failure.
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Innovation can be productive when leaders have systematic vision and have suitable strategies
for communicating with employees (Greenaway and Rudd, Eds..2014). Vision of Essence Drinks
is to provide their customers with healthy lassi to their customer with high nutrition’s and taste to
people of UK. They aims at giving their customers best and valued services. By this they will be
able to render profitability and competitiveness.
Leadership and Innovation:
For implementation of different techniques in innovation, it is responsibility of leader to
motivate and guide their employees so that their performance can be enhanced. It is essential for
leaders of Essence Drinks to give benefits to them so that they can improvise their skills and be
more innovative and creative. Employees are not more innovative when they are busy with
carrying out their daily activities for meeting deadlines (Gulbrandsen and Aanstad, 2015).
Innovation and Culture:
Culture is defined as values and beliefs which are opted by organisation or individual.
Different kinds of culture are present within organisation which leads to innovative culture. It is
the basic responsibility of leader of Essence Drinks to have effectual coordination among
employees so that they can have flexible working environment. It is necessary for organisation to
build trust among management and employees. For this it is essential for them (Essence Drinks)
to give employees freedom so that they can try different things.
Teamwork and Innovation:
It is necessary for leaders of organisation to execute different techniques of innovation so
that their team works in effective and collaborative way. Leaders of Essence Drinks ensure that
their employees share their point of views related with specific topic. This will help done to
accomplish their tasks in appropriate manner (MacGillivray and et. al., 2014). This will enable
them to sustain within market in tough situations also. By this they will be able to enhance their
profitability and productivity.
P3 Explanation of 4P's of innovation and it's usage in innovation funnel
It is a innovation mix tool which deals with what improvements can innovation process
bring within business. It includes paradigm, position, process and product. By this effective
direction can be given to employees of organisation by which they can execute innovative steps.
By this business organisation can evolve new and expeditious ideas. These steps will facilitate
organisation to attain long term edge. These 4P's are described below:
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(Source: 4P's of Innovation, 2018)
Product Innovation: In this different measures are developed to improve and innovate
effectiveness of existent products. Essence Drinks have executed new methods and latest
technology for improvising their services or develop new products (Mohannak and Samtani,
2014). This can be determined by taking effectual steps to that they can satisfy their customers
and maximise their profit.
Position Innovation: It comprises of new market segments for their services and
products. In this organisation find out different ways to identify new market for their new
services and products for their innovations. BY making use of this, Essence Drinks can analyse
various market segments and identify their potential customers. This will ensure their long term
sustainability within market.
Process Innovation: In this organisation find innovative measures for creating value and
improving their process so that they can build cheaper goods with enhanced quality. It is internal
process which will assist Essence Drinks to increase their profitability. For this they need to
evaluate entire process of production and distribution of their drinks (Pellikka and Malinen,
2014).
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Illustration 1: 4P's of Innovation

Paradigm Innovation: It comprises of doctrines, theories, beliefs and values. Theories
and models are enclosed in this which assists to interpret ways in which their market operates
and creation of paradigms by which their development process can be enhanced. By this Essence
Drinks can enhance quality of their services.
Use of Innovation Funnel
It is a measure which is undertaken by organisation during development of services and
products. Rationale behind usage of this measure is to increase and have effectual services and
products which are required by their customers (Pellikka, 2014). This comprises of three steps
which must be examined by organisation. First step is to have strong information base which will
facilitate organisation to have effectual knowledge with respect to trends prevailing within
market. Essence Drinks use this step for gathering information related with their competitors and
customers with making use of questionnaires and surveys.
Second step in this process is to screen ideas of organisation. It is necessary for
organisation to have competent ideas for generating effective services and products within
market. By screening ideas they can find best method and use it increase their rate of interest
(ROI). At last, this idea will aid organisation to accomplish organisational objectives which are
identified after critical evaluation. After this products are being offered customers. Essence
Drinks must implement competitive strategies by which they can accomplish needs of their
customers in flexible manner. Innovation funnel will facilitate Essence Drinks to enhance their
profitability and productivity.
P4 Explain developments in frugal innovation and ho9w they are being used in organisation.
Frugal innovation refers to measures which are taken by organisation to eliminate cost of
production and complexity. This innovation will decrease cost of services and products by
eliminating non-essential elements from long-lasting goods. Generally innovation has impacts of
social, environmental and political factors which prevail within country where they are
operating. Organisations execute frugal innovation within their working structure to decrease
cost of services and make them available within market at low prices (Sengoku, 2015) (Sterckx,
and Cockbain, 2014).
It is very effective for Essence Drinks to enhance their return on investment. This is used
by organisation where there is insufficiency of resources. It will assist them to decrease cost of
production process. Example can be taken in this context with relation to Essence Drinks , they
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provide drinks which is made from lassi as it contains less carbohydrates. By this they will be
able to increase their customer base within market as there are more number of health conscious
population who are associated with organisation.
It is mandatory for Essence Drinks to opt for frugal innovation technique in their daily
operations as it will help them to enhance profitability and increase ROI. As Drinks provide
effective nutrients and vitamins which are essential for customers of all ages. This will provide
Essence Drinks strong customer base and enhance quality & effectiveness of their drinks. Apart
from this, all the necessary measures are taken by organisation to maintain relationship with
customer’s which assist them to their loyalty which results in growth of organisation (Abdul
Razak, Murray and Roberts, 2014).
P5 Describe importance of commercial funnel and its application for new product development
for commercialisation.
Commercial funnel refers to revenue and sales funnel. It is graphical representation of sales
process which customer goes through when they buy product. First step includes awareness stage
and last stage signifies post purchase evaluation. It is an effective process for taking business
from domestic to international market. With respect to Essence Drinks, for attaining more
growth opportunities they need to maximise performance of their sales. They are about to launch
new product within market and reason to provide nutritious drinks is to focus on health
conscious people (Ahmadi and O'Cass, 2016). By this Essence Drinks can enhance performance
of their sales and attain high competitive edge in market. They are moving to global market, by
this they expand their operation in different countries for gaining more audiences which will
assist them to launch their product fruitfully. It is necessary for management of Essence Drinks
to have proper guidelines by which employees can be given directions for carrying out their job
responsibilities. Some phases of commercial phases are provided beneath:
Idea generation: It is initial stage of development of product in which management will
develop innovative ideas to improvise performance of sales. Nutritious drinks full of vitamins
will help them (Essence Drinks) to attract more number of health conscious people. They also
need to ensure that requirements of individuals are accomplished.
Idea Screening: In this management of Essence Drinks will identify feasibility of their
products within market. This will assist them to remain a step ahead from their competitors. This
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will also help them to identify areas where there product cannot succeed and for this they can
take effective steps to overcome this (Chun, Chung and Bang, 2015).
Testing Concepts: In this step, R&D department of organisation will analyse demands,
requirements and needs of customers by which they can attain their loyalty and retain them for
longer time frame. This will also ensure that their (Essence Drinks) product will be successful
within market.
Analyse needs of product development: It is imperative step, in which strategies are
formulated to launch product successfully within market. Also nutritious drinks will help them to
gain acceptance from market which will help them to develop their affirmative corporate image.
Commercialization: It is concluding or last step where Essence Drinks can introduce
their product within market with an aim to generate large market share and increase their
profitability. This will make sure that their product is launched successfully by using appropriate
strategies and techniques (Dincer, 2017).
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P6 Create an innovation business case study which also include access funding.
Business case refers as the company which assemble all the required and important things
that are essential for reaching with desired goals and objectives of business. This is crucial for
company is to consider all the needed items so that they can easily run business operations and
its functions of Essence Drinks in better manner. Along with this, business case can be define in
both forms such as written and verbal which includes all accurate data and information related to
business and their working condition (Dodourova and Bevis, 2014).
Executive summary – The business case of Essence Drink is to announce customised
lassi (as per taste of customer’s modifications will be made) as a product of the company in the
large market place of United Kingdom. For carry out this specific product, an organisation
required to design appropriate marketing strategy that involves PESTLE, SWOT AND Porters
five force model. After the implementation of innovation, results are gained in order to reach
with growth and success.
Mission statement – Essence Drinks mission is to supply health based customised lassi
which are good is taste, real and healthy drinks that can lead towards make people healthy and
happy people. The main motives of this statement which are related to Essence Drinks are
described as under:
 To develop customer satisfaction in order to supplying goods that exceeds
customer’s expectations (Fuertes-Callen and Cuéllar-Fernández, 2014).
 To ensure about the quality of raw material for manufacturing flavoured lassi.
 To set up trademark with the help of conducting marketing strategies.
Resources – There are various assets that are required to be considered by firm in
effective manner so that they can manage innovation activities in successful way. In addition to
this, it is required for an organisation is to arrange and organise proper resources that are
necessary for meet with regular activities.
Market analysis – This is necessary for Essence Drink is to analyse and examine whole
market place in proper manner in order to recognise major competitors, buyers point of view
regarding lassi and their taste. This will assist them to furnish their operations within appropriate
manner as well as analyse the entire market. By this, they will be able to have knowledge
associated with different aspects and accordingly they can render their services.
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