Report: Innovation and Commercialisation at Essence Drink, UK Market

This report provides a comprehensive analysis of innovation and commercialization strategies, focusing on the case of Essence Drink, a company introducing a new product (chocolate banana lassi) in the UK market. The report begins by defining innovation and differentiating it from invention, highlighting its importance for organizational growth and competitive advantage. It then explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization efforts within Essence Drink. The report delves into the 4Ps of innovation (Paradigm, Product, Position, Process) and explains the use of the innovation funnel to examine and shape innovative ideas. Furthermore, it discusses the frugal innovation model, the importance of a commercial funnel, and the development of a new product development (NPD) process, including an innovation business case. Finally, the report examines tools for knowledge retention, development, and protection within the organization. The analysis emphasizes the significance of adapting to market changes, understanding customer needs, and developing effective strategic decisions to enhance profitability and maintain a strong brand image. The report also highlights the differences between innovation and invention, emphasizing the benefits of the former in terms of time, cost, and energy savings.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Explain innovation and determine its importance to organisation in comparison with
invention .....................................................................................................................................1
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................3
TASK 2............................................................................................................................................5
P3 Explain 4Ps of innovation and explain the use of innovation funnel to examine and shape
innovative ideas. .........................................................................................................................5
P4 Frugal innovation model .....................................................................................................7
TASK 3 .........................................................................................................................................7
P5 Importance of commercial funnel and develop New Product Development ........................7
P6 Innovation Business Case .....................................................................................................9
TASK 4 ...........................................................................................................................................9
P7 Different tools for organisation to retain, develop and protect knowledge. .........................9
CONCLUSION .........................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Innovation is the process of improving a product service from its current state by
implementing new or creative ideas in order to add value to customer as well as to gain
sustainable competitive advantage. It is regarded as one of the essential tool for business growth
and development as it enable the company to acquire all possible changes to face up competition
by establishing effective strategic decision (Ahn, Minshall and Mortara, 2017). The report is
based upon Essence Drink which produce the product i.e. healthy mango lassi in UK market
from past two year. Although this product was introduced by Akshay Kumar with an aim of
capturing large number of profitability or market share, but due to increase of competition within
industry, company decided to introduce innovation in their current product i.e. mango lassi. As
they targeted large number of customer base by adding some flavours into it and that is chocolate
banana lassi which acquire the attention of all potential customers.
This document covers the importance of innovation to firm in comparison with invention,
impact of organisational vision, leadership, culture for shaping innovation and
commercialisation. Moreover, developing 4Ps of innovation to determine an innovative ideas as
well as create business case for analysing market growth. Finally, usage of various tools to
enhance business operation and function is also mentioned here.
TASK 1
P1 Explain innovation and determine its importance to organisation in comparison with
invention
Innovation is the process of creating, developing and implementing new product or
service with an aim of improving efficiency or competitive advantage as well as it is considered
as a successful exploitation of new ideas (.Ajagbe and et. al., 2015). On the other hand, invention
is a term that bis often used in the context of innovation as it defines that creating something new
that has never existed before. Invention doesn't satisfy customer need neither include any
exploitation of concept in marketplace. Thus, innovation differ from invention as it is focus on
creation of something novel and also it involve development for benefit by adding value to
customer.
There are various sources of innovation that are mentioned below:

 The incongruity: This refers to the state where a difference is required to be made related
to the existing state of the firm and the desired one. Thus, in order to effectively enhance
the scope of improvement and to sustain within the marketplace, innovation must be
aimed towards achieving a better state within the company.
 Process Needs: This is the source of innovation which is raised due to weak spots in the
process adopted by the organisation. Furthermore, this need drives innovation straight
towards improvisation of processes and techniques which are practised within the
company. In addition, innovation within these needs enable a firm in bringing in more
innovations within the company and ensure better ways of reaching up to the
organisational objectives.
These various sources are required to be analysed within the company and thus, a firm
must assess them in order to ensure appropriate innovation as they could effectively help the firm
in developing a culture of innovation through identifying areas that needs innovation in order to
enhance organisational performance.
Commercialisation is the activity of bringing new products or ideas to market by adapting
creative or effectual production method for establishing the product easily available in market.
Thus, innovation and invention plays a vital role in commercialisation product as it help Essence
Drink to come up with new idea or product in order to gain competitive advantage in UK market
effectively. However, Essence drink has come up with an innovation in lassi by adding chocolate
and banana flavours into their product with a goal to survive in market for longer period of time
and attain higher level of profitability. Furthermore, innovation gives organisational
sustainability as it enable small business to make continuous improvement on their product and
encourage them to acquire all possible business opportunities to attain high level of proficiency
among industry (Azarmi, 2016). As Essence Drink undergoes with a major issue of increasing in
competitors within UK market which decreased its sales volume. Hence , it has been determined
that Essence Drink can introduce innovation into their existing product rather than developing or
inventing a new product for achieving maximum level of sales output. Thus, there are some
importance for Essence Drink to adapt innovation in their product are as follows:
 Customer needs are constantly changing based on the trends or lifestyle. Thus,
innovation enable the Essence drink to predict the changes in market and provide
solution before people even realize they need them. By this, they can obtain high

market share as well as add value to customers. This is why innovation is more
effective than invention as it help Essence Drink to improve their overall
performance in UK market by enhancing sales volume.
 It also allow Essence Drink to maintain brand image within the UK market as well as
helps them to gain competitive advantage. Due to this reason, Essence Drink acquire
the idea of innovation as it allow them to identify the market scenario and help therm
to develop effective strategic decision which enrich their profitability ratio.
However, invention is different from innovation as it is mainly focus on developing a
new product into market which is completely fresh for market and also for customers. The
differences between innovation and invention are as follows:
Basis Innovation Invention
Meaning Innovation refer as introducing
new ideas or ways with an aim
of developing or transforming
existing commodity into a
impressive and innovative
product in order to satisfy
customers (Difference Between
Invention and Innovation.
2019). Hence, Essence Drink
has adapted innovation by
adding chocolate and banana
flavour to mango lassi.
Invention is totally different
concept than innovation as it is
concerned with developing or
creating a fresh product into
industry which is not exist in
marketplace. However,
Essence drink does not
introduced a new product as
their main core product is lassi,
they just added some flavours
into it.
Acquirement For capturing an effective
market share among
competitors, innovation
require innovative marketing
strategic which help Essence
Drink to attain high level of
productivity and proficiency.
In order to obtain profit
maximisation, invention
acquires technical and research
and development skill for
understanding the accurate
market scenario. Thus, during
development process invention

is generated by using updated
or latest technology of
machines.
However, innovation is more effective than invention because it enable the firm to made
changes into existing product by adding more features or flavours to it and that is why it is well
said that invention can be converted into innovation easily. Along with this, it saves time, cost
and energy of Essence drink to capture best position in marketplace and help them to stand out
from competitors within the prescribed time limit (Dodourova and Bevis, 2014).
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
For accomplishing organisational goal in an effective manner, company's vision, culture,
leadership and teamwork plays an integral role by assisting them in bringing innovation into
existing commodity. However, if mission, vision is clearly defined in Essence Drink then it help
its employees to achieve business objectives in productive way without hampering the work
process (Fuertes-Callen and Cuéllar-Fernández, 2014). Furthermore, company should imply
effective leadership style to encourage their subordinates by contributing best effort towards the
attainment of profit and also for the smooth functioning of Essence drinks business functions.
Some of the highlights are as below:
Vision: The main vision of Essence Drink is to produce chocolate and banana lassi to
customers in order to enrich drinking experience to be more natural, healthy and tasty for all age
group. Hence, by implementing innovative ideas to the Essence Drink's customers it allow them
to attain high productivity and to gain competitive advantage in an cost-effective manner.
However, their main vision or focus is to offer best quality of product which encourage Essence
Drink's employees to bring more innovative or impressive ideas for enriching or shaping
innovation and commercialisation within firm.
Culture:It is a set of norms, values, beliefs, ethics, rules and regulations within the
premises of Essence Drink. However, management should not be bias in nature rather maintain
effective culture by communicating all necessary business information i.e. regarding lassi to
employees. Along with this, invite each personnel in decision making process and motivates

them to give their valuable suggestions for enhancing innovation to improve Essence Drink's
brand image (Katzy and et. al., 2013).
Leadership:Leadership is the ability or capability of influencing or directing manpower
of Essence Drink in order to perform productively and can obtain high proficiency. Moreover, an
impressive leadership style provide proper guidance to employees and inspire them to participate
in business functions and give views to maintain sustainable growth. Due to this activity, their
will be less chance of conflicts or disputes among subordinates as it enable them to work
effectively and company can promote innovation and commercialisation within the business
operation.
Teamwork: One of the main primal element for Essence Drink success is an effective
teamwork. Hence, when a group of individuals work together or collectively it leads to
attainment of organisational objectives in creative style. However, it is important for Essence
Drink to form a productive team who work passionately or dedicatedly towards the
accomplishment of high sales growth. This will encourage each personnel to share their
innovative ideas in order to enhance the sales of Essence Drink's lassi and can gain competitive
advantage effectively.
From the above discussed elements, it helps Essence Drink to analyse the market
condition and customer's taste and preference which helps them to attain high productivity and
profitability. Along with this, it help firm to foster its business operation by developing effective
strategy before introducing new product into UK marketplace as well as it encourage teamwork
in order to gain competitive advantage (Khan and et. al., 2014).
TASK 2
P3 Explain 4Ps of innovation and explain the use of innovation funnel to examine and shape
innovative ideas.
Innovation signifies 4Ps model which is mainly concerned with improving an innovation
process and enhance the overall performance of company. It is a mix of Paradigm, Product,
Position and Process which collectively allows Essence Drink to obtain high level of business
growth and development. The 4P's of innovation is explained below:
Paradigm: It is related with acquiring possible modification within the business
operation in a well-defined manner which help them to attain high level of effectiveness. Along

with this, it believes that perceiving changes to existing product does not always lead to positive
outcome. Thus, an efficacious strategy allow Essence Drink to sustain their product in
competitive market for longer period of time.
Product: For capturing the market within prescribed time limit, Essence Drink should
take initiative to examine their product and customer demand and based on that implement
innovation for satisfying customers needs. As the Essence Drink is launching chocolate banana
lassi for meet out the demand of customers and also to achieve high level of proficiency
( Kutvonen, Savitskaya and Salmi, 2014).
Position: This element is concerned with capturing the best position within UK industry
which is easily convenient to customer and add value to them. Therefore, Essence Drink must
determine the market scenario of UK and according to that they introduce innovation to new
product in order to achieve high market share.
Process: As the Essence Drink is offering chocolate banana flavour lassi to all potential
customers , which contains impressive and creative process for enhance the volume of sales.
Hence, Essence Drink should choose an effective process for acquiring raw material and to
recruit talented workforce who contribute towards the achievement of goal. At the same time, it
help them to maintain their lassi quality among the competitors and making the product
differentiated in industry (Mazzarol, 2013).
Innovation Funnel is an essential mechanism which enables a constant stream of ideas that can
be screened for viability. Along with this, it is also referred as funnel management process which
help Essence Drink to create an innovative and realistic action plan. This enable Essence Drink
to achieving high efficiency and can enrich their sales growth. Some of the stages which Essence
Drink implies for their innovation are as follows:
 Identifying Opportunity: In this stage, Essence Drink analyse the market and determine
all possible platforms to enhance the sales of company and to develop the new product in
current market.
 Advocacy and Screening: Under this, firm conduct market research to perceive
information regarding market condition as well as customer demand or need. Along with
this, manager select best idea among various data for attaining high productivity.

 Experimentation: In this, company offer their product i.e. chocolate banana lassi for
market test in order to examine or evaluate the customer taste and preferences and to
analyse their satisfaction level.
 Commercialization: Under this stage, Essence Drink look to its customers to verify that
innovation actually solve their problems and based on that they analyse their cost and
benefit of rolling out innovation (Mazzarol and et. al., 2014).
 Diffusion and Implementation: It is final stage in which Essence Drink gain final
acceptance of an innovating new product i.e. chocolate banana lassi by collecting
feedback from population to get accurate picture of market. Based on those reviews, they
set up their structure, maintenance and resources needed for producing it into market to
gain competitive advantage.
However, innovation funnel plays vital role in shaping and fostering the innovation and
commercialisation as it is only way to outperform competitor by developing technological
capabilities. Along with this, it help Essence Drink to create new, top line innovative products
and services which enhance their flexibility in adapting business opportunity and they can
smoothly gain competitive advantage within prescribed time period. However, it is highly
necessary for the firm to use these steps appropriately and efficiently as they could be time
taking in terms of developing the product and presenting it within the market. Thus, a paced-up
approach is required by the firm in order to achieve the same.
Four P's of the innovation is necessary to takes out decision and action plan to applied an
ideology of an innovation such as paradigm, product, process and position to creates positive
response to making of the Banana lassi. Also, it is required to underpinning the negative impact
of usage of an innovation funnel to accomplishes positive impact of these.
P4 Frugal innovation model
Frugal Innovation is regraded as one of the main component for business success which
enable the organisation to decrease or maintain cost of goods and to control over its complexities
in production within marketplace. Moreover, it is define as eradicating the non – essential
features of durable products such as phone, electronics, car etc. whose sales growth can be raised
at global level. However, frugal innovation is essential for Essential Drink which is described
below:

Seeking opportunity in adversities: For capturing the best position in global market,
company should analyse business opportunities in high level of competition. As Essence Drink
brings chocolate banana lassi in UK market to satisfying the rising need of customer in effective
way. In this, firm takes initiative to add more flavour to lassi which allow them to capture best
position in UK market and to meet out customer requirements. E.g. Essence Drink is in search
of identifying opportunity to implement innovation to lassi product in order to satisfy customer
demand and enrich company's brand image (Pellikka and Malinen, 2014).
Optimum utilisation of resources: The another benefit which innovation provide is make
use of available resource in precise manner for attaining business objectives. However, Essence
Drink did optimum utilisation of resources by adding chocolate and banana flavour to lassi
which helps them to gain competitive advantage within prescribed time limit. E.g. Essence drink
added more flavour to lassi which enable them to attain high profitability ratio in a effective way.
However, frugal innovation help Essence Drink to redesign their existing product in order
to increase higher level of proficiency and sales volume. At the same time, it allow Essence drink
to make use of available resource for achieving higher profitably ratio within the market.
However, there might be chances where frugal innovation leads the firm of overseeing certain
essential aspects, resources, or equipment. Thus, in order to overcome this limitation, the firm
must indulge in an effective market analysis practice.
Hence, in context of Essence Drink, they took an initiative to identify or examine current
scenario of marketplace and decided to adopt frugal innovation within their existing brand in
order to minimise the cost and generate increased level of customer satisfaction. However,
Essence Drink added new flavour i.e. banana chocolate lassi within their existing product in
order to acquire best positioning among industry. Moreover, this new flavour enable them to
create cost effective product, add value and improves the overall performance of firm in an
impressive or productive style. As per the situation of UK market, other flavour like apple,
guava, juices is costly compare to banana and chocolate which is the main feature for Essence
Drink growth. Along with this, it is more healthy and affordable which help firm to attract wide
range of population towards their brand that lead Essence Drink to obtain impressive profit
margin with an optimum utilisation of resources within prescribed time limit.

TASK 3
P5 Importance of commercial funnel and develop New Product Development
Commercial funnel is an important framework of three phases that is mainly regarded as
optimum utilisation of resources in efficient way in order to enhance existing product.
Importance of commercial funnel are as follows:
Pricing policy: This phase is related with setting fair price for product after evaluating
the perception of customers. However, Essence Drink producing chocolate banana lassi at a
moderate price in order to gain the attention of customer ans also to satisfy their demand.
Effective ways of developing business: Commercial funnel enable Essence Drink to
examine customer need and help them to develop innovative tactics to enhance profitability
ratio.
Application of updated technology: It allow Essence Drink to adapt innovative
technology which strengthen and boost their business operation and can gain competitive
advantage.
Hence, commercial funnel plays a significant role within Essence Drink that enhance their
productivity in an efficient way. Some of the need of commercial funnel in company are
mentioned below:
Increase sales revenue: One of the main aspect which commercial funnel provide
Essence Drink is that it enlarge its productivity by enabling them to identify potential customer
and take corrective course of action by delivering product in best quality that lead them to
capture the attention of target audience towards their brand. Hence, as demand of product rises it
reflect into the increase of sales volume which improves the overall proficiency of company in a
better manner.
Enhance conversion rate: Under this, Essence Drink makes an attempt to maintain
healthy relationship with their customer in order to retain or make them to consume their product
on continuous basis. Due to this, Essence Drink can enrich its conversion rate and can add value
to their brand image among UK market.
Helps in predicting sales volume: However, with the help of commercial funnel
Essence Drink can improve an existing strategy and develop best decision which assist them to
forecast its sales volume and can attain sustainable profitability ratio.

Furthermore, for enhancing business function and to create innovation in existing product,
Essence Drink has to undergoes with some stages which is given below:
Innovative plan: In this initial step, Essence Drink conduct research and development for
collecting information regarding market condition and customer need. Along with this, it help
them to determine knowledge concerned with advanced technology. By this, it led Essence
Drink to introduce chocolate banana lassi to market.
Analysing idea: After planning innovative idea, Essence Drink analyse those ideas and
choose most reliable plan for the enrichment of chocolate banana lassi product and to satisfy
customer need (Plewa and et. al., 2012).
Defining concept: In this step, Essence Drink describe its concept of new product i.e.
chocolate banana lassi into UK market for improving life style of customer.
Intellection of data and cognitive system: Essence Drink takes initiative to evaluate
current and future trend of demand of customer by gathering data from social media and
feedback from public.
Strategic analysis: Under this, Essence Drink develops impressive strategic decision in
order to capture large customer base. AS they set chocolate banana lassi price at moderate rate
which is very feasible and affordable by customer.
Product development and experimenting: In this, Essence Drink provide their product for
market test which helps them to gain the customer's perception and views regarding product.
Commercialisation: After market testing, based on that Essence Drink develops an
effective market plan which helps them to promote their product in UK market in an effective
manner.
Product establish: In this step, Essence Drink introduce its new flavoured product i.e.
chocolate banana lassi in UK market.
Henceforth, NPD is considered as integral aspect in Essence Drink as it enable them to
analyse current or emerging market trend as well as help them to determine customer taste or
preference in order to gain competitive advantage. This organisation has been opting for
innovation through development of a new product which is Banana Chocolate. The lassi flavours
were widely accepted in the market and carry a higher probabilities of succcess. Moreover, it
assist them to implement best strategic decision and aid them to place their new product i.e.
banana chocolate lassi in a right location so that Essence Drink can easily capture the attention