Essence Drinks: Innovation, Commercialisation, and Business Strategy

This report provides a comprehensive analysis of innovation and commercialisation strategies for Essence Drinks Company, focusing on how the company can overcome sales issues and achieve sustainable growth. It begins by defining innovation and invention, highlighting their importance to organizations and differentiating between the two concepts. The report then explores organizational elements such as vision, leadership, culture, and teamwork, and how they shape innovation and commercialization. It further delves into different sources of innovation, the 4Ps of innovation (product, process, position, and paradigm), and the application of the innovation funnel. Finally, the report examines frugal innovation and provides examples of its use within an organization. The report offers insights into how Essence Drinks can leverage these strategies to enhance its competitive advantage, meet customer needs, and drive business success.

Innovation and
Commercialisation

INTRODUCTION
Innovation is an activity of translating an idea or innovation in to goods and services that
creates value of for which customers will pay (Chun, Chung, and Bang, 2015). It refers to
developing and introduction of something new which can be beneficial for the customers as well
as the organisation. This assignment is related to Essence Drinks Company which is supported
by Akshay Kumar in UK. The organization provide drinks like a healthy mango lassi in to the
UK market. This document will unregenerated about the context for excogitation and
determination of difference between innovation and invention. Various types of innovation and
the process of required to commercialise innovation will be explained. Various methods for
protecting ideas and understand their advantages and disadvantages will also be defined in the
report.
LO 1
P1. Innovation and determine its importance to organisations in comparison with invention
In Essence Drinks, the company facing a issue and problem related to the decrement in
the sales so there are need to overcome these issues by using business strategies tactics and
others. With the help of innovation and invention the management of this company can improve
the situation of sales decreasing.
Innovation- It mention to a process and action of devising something new or doing something in
a new manner. It can be a fresh thinking and a new idea, creative thoughts new imaginations in
form of device or method (Polzin, von Flotow and Klerkx, 2016). This term innovation refers to
as implementation of ideas in order to develop entire new product or making modifications in
existing commodity.
Importance of innovation- It is the conception and arrangement of new knowledge into new
goods, processes and services which fit market inevitably. Innovation helps in creating fresh
businesses and is the fundamental source of growth in business and industry. Creation is
important for the business of the company son that by devising creation in its goods and services,
it can fulfil its customer’s needs and demands. There are some of importances of innovation in
context of Essence Drinks:
Meeting customer’s needs- Innovation is required and important for the business of the
firm so that by doing innovation the organisation can provide products according customers
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needs and demands or meet the consumers needs. For example, when the sales of Essence drinks
has been decrease, Akshay thought to form creation in its goods so that they can accomplish or
satisfied their customer’s needs.
Gaining competitive advantages- Innovation is important to gain competitive advantages
when there are number of competitor and they provide various substitute products in the market.
For example, in Essence Drinks, there are a important minimization in sales as numerous rivals
have come in at market place and the owner of the company thought to make innovation in its
existing goods so that they can gain combative advantages.
Invention- It refers to a process which define in about devising fresh items or uncovering new
ways of devising items. It is an specific procedure that can furnish a extremist discovery (Maritz
and Donovan, 2015). When companies make invention, they required a specific field.
Innovation refer to make improvement in the existing products of the company whereas
invention is launch an produce a new product by using effective raw material. These both are
related to commercialization because it help in introducing the products and services in the
market. Innovation is more effective than invention because if the company do innovation it
make improvement within the existing product which is less cost consuming if the company do
invention then it required new resources and other things which is cost dan time consuming.
Difference between innovation and invention-
Basis Innovation Invention
Meaning It mentions the execution of
ideas for goods and services
for the vary fast time.
It refers to the occurrence of an
idea for a good or activity
which has never been
developed and made before.
Concept It is an activity of partially
implementation of new idea.
Invention is an activity of
implementing an primary
thought and its running in
theory.
Skills There are various skills needed
such as a set of merchandising,
specialized and important
For this scientific skills are
required.
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skills.
Activities It spread across the
organisation.
It is limited to R&D
department.
Innovation is important more than invention in context of Essence drinks because if the
people like the existing product of the company then they have a will and need to various
different flavours of the good. For example, By making invention, this company can retain its
potential customers which help in increasing the sales. If the firm make invention and launched
new product then it is not sure that the new products will liked by the customers or not. But by
making innovation company can increase its customer base.
P2. Organisational vision, leadership, culture and teamwork that can shape innovation and
commercialisation
Within an organization there are number of component that maneuver and important role
in furnishing effective returns and they can be vision, leadership, culture and teamwork
(Hemphill, 2014). These all components are needed for the company so that they can slay the
actions in a amended style. In context of Essence Drinks, these all elements are required so that it
can achieve success by including these factors in its business.
Vision- It can be related to the future goals and objectives of a company. In an
administration, the visual sense of the organization is set and framed by the help of managers .
For example, Essence drinks vision is to provide quality products like healthy mango lassi and
become one of the leading companies in the UK. It is helpful because, if the company has a
vision then it have a direction to work accordingly. If the management have a vision then it has a
purpose to make innovation and make improvement in the product.
Culture- It mention to the feeling and belief of various customers. Culture is they
characteristics and knowledge of a specific unit of individuals which encompassing language,
religion, social habits (Hang Do, and et. al., 2014). In Essence Drinks, the organisation provide
products according their customers so that thy can remove cultural differences. For this they
make innovation in its products and offer according to their consumers demand. The
management of the company can make innovation according to the values and beliefs of the
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customers. If the firm produce products according to the culture then it help in increasing the
sales of the frim.
Leadership- It is an action which is taken by the company to lead a group of people or
employees. For example, In Essence Drinks, the leader can use democratic leadership style to
lead and guide the team and team members. But to increase the sales and gain profit, they can
follow autocratic leadership. This help in making innovation and attracting more customers. If
the leader consider the views of various followers and customers and after determining them,
producing or making innovation in the product then it beneficial for the growth of the firm.
Teamwork- It refers to the cooperation between those people who are working towards a
task and attain the share objective and goals (Abdul Razak, Murray and Roberts, 2014). This
help the organization to deliver effective services to the clients. For example, in Essence Drinks,
when the employees are doing work in a team or group to achieve a common goal. There are
several members in a group and team or they have different ideas and views. If they analysed
these ideas and after concluding them, thy make innovation in the product then it will be useful
for the business of the company and help in the growth of the firm.
Innovation is beneficial for maximizing the sales of the firm, satisfied the customer's need
and gaining competitive advantages at marketplace. The above discussed factors and elements
help the company to form creation and exploitation.
M1. Different sources of innovation and how the organisations can foster and develop an
environment and culture of innovation
There are various root of creation and they assist the firm so that it can foster and create a
surroundings and society of excogitation. The source of innovation are lead form the front, make
a civilisation of conception, build impressive groups, wages occurrence, by gaining ownership of
the customers issues, benchmark towards the best and flat structure of the administration. By
adopting all these strategies, the firm will able to map, manage, measure and improve innovation
and the company can foster and make development in a surroundings and discernment of
creativity.
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LO 2
P3. 4Ps of innovation and the use of innovation funnel to examine and shape innovation ideas
4Ps of innovation- For the business development of an institution creativity and creation is an
important factor because it help in the growth of the organization (Ahn, Minshall and Mortara,
2015). The 4Ps of innovation are as following:
Product- It is a thought of utilizing in transferring activity through designing their own
framework that can ameliorate the creativity and innovation cognition. For example, in Essence
Drinks, it refer to the products of this company which are manufactured and produced by it such
as a healthy mango lassi etc.
Process- In Essence Drinks, the term process refer to all those activities which are
manufactured a product and to deliver it to the customers. It consist with supplying, selling,
recruiting and financing.
Position- This factor is related to the own perception that what perception the customer
have about the company and its products. The perception of them, maintain the position of the
company. For example, In Essence Drinks, if the customer wants different favours in nits
products then the firm should do innovation an d build a position at market place.
Paradigm- It concerns the modification in the manner something is finished in the
organisation which can be anything related to the products and services. For example, in Essence
Drinks, if the organization sell its goods off line but by generating change, it can use business
method and merchandising on the cyberspace.
Innovation funnel- It is used to explain the steps that help in developing a process and product
(Ismail, Nor and Sidek, 2015). There are three major step ns of innovation funnel that are as
follows:
Wide moth of funnel- This is the first step in which the company increase its knowledge
and information base. The main objective of it to gather various ideas through its possible ways.
In Essence Drinks, the company can gather information from its competitors, research and
several other ways. With the help of this information it can make innovation in its products and
gain competitive advantages.
Narrow segment of the mouth- This is the second step, in it the firm can implement
those ideas in its business which it gather with the help of first step. For example, in Essence
Drinks, the administration division of the organization can implement ideas and relevant
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information to compete its competitors and make innovation in its products according to its
customers demands.
Narrow segment of the funnel- This is the last step, in it, the firm ensures that the
information and ideas chose to deliver on the company's aims that were anticipated when the
organisation was established. In this stage, the company develop new services and released them
in market by making innovation to them in order to fulfil their customers needs and demands.
P4. Developments in frugal innovation and provide examples that how it is used in an
organisation
Frugal innovation- It is a procedure of minimizing and decreasing the cost of goods and its
production or complexness (Tsai, 2015). This process can be used and refer for removing non-
necessary dimension from a quality product and service. With the help of frugal; innovation, the
firm can attain various opportunities in market. In context of Essence Drinks, there are number
of value of frugal innovation which are as following:
Find opportunity in adversity- The company can get various opportunity in the situation
of problem and conflicts also. For example, in Essence Drinks, the company suffer with the
problem of decrement in sales. In this situation the firm can make innovation by manufacturing
various flavours in that specific drinks which help in attracting numerous consumers and
providing satisfaction according their desires. This help in improving the situation of decrement
in the sale of the company.
Do more with less- The company can achieve growth with the help of available
resources. For example, in Essence Drinks, the manage department of the company can increase
the sales by providing offer and discount pricing strategy. To deal with the decreasing sales
situation, the company can make innovation in the existing product and launch it in different
flavours. It is less cost and time consuming process and the firm can do more with less and
improve the sales of they organisation.
Thinks and act flexible- By thinking critically and gathering information or analysing it,
the researcher can provide and develop ideas fro the growth of the company. For example, the
management department of the company gather information about the customers need and
develop ideas to fulfilling their demands. To overcome the situation of the decreasing sales, the
management of this company can think critically like by doing marketing analysis and produce
products as per the demand of the customers which provide satisfaction to them.
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Keep it simple- In Essence Drinks, the solution of the problem should be simple so that it
can help in gaining effective outcomes like increasing the sales. The management of the
company can adopt simple solution of making innovation so that they can overcome the situation
of decreasing sales. It simple improvement because in it the management will not use any
strategies and plans.
Follow your heart- It refer that person should be passionate and work by using with all
their efforts so that help the company in an effective manner. Under, the management of the
company can monitor the views of the employees and staff so that they can make improvement
according to that which help in overcome the situation of the decreasing sales.
LO 3
P5. The importance of the commercial funnel and the application of new product development
processing for commercialization of innovation
Commercial Funnel is very popular and most used concept by a company in context of
attracting the customer behaviour to perceive the reaction of the customers for the product
(Fuertes-Callen and Cuéllar-Fernández, 2014). This method assists the organisation in drawing
the potential customers into consumers. This method can improve the productivity as well as the
profitability ratio of the firm by attracting new consumers. Commercial funnel is required for
turning potential customers in to long term consumers. It is important for Essence drinks
because it help in bringing potential customers into the fold on a consistent basis that they can
then market and promote their products and services to over time is important for the business.
Utilization of New Product Development Include convinced steps:
Process of New Product Development
Idea Generation: While introducing a new product into the market there comes various
ideas in the mind of creators and this step includes the series of ideas that can be considered by
the organisation.
Idea Screening: Here, the ideas formulated in the first step are altered and used
according to the need of the organisation and analysed what idea will be effective and accessible
to create by the organisation is selected.
Concept Development: Under this, the idea is now transformed into reality so that the
organisation can able to generate a competitive advantage out of it.
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Development of Strategies: This is the place where several strategies are selected by the
research & development team of the organisation in respect to creativity as the chosen ideas are
need to be innovative to attract customers.
Examine Business Conditions: It is very crucial for the organisation to understand the
business environment to sustain in the market place.
Product Development: The company creates the product in this stage and try to collect
and analyse informants that would be required for the successful implementation of good.
Marketing Test: The product developed is tested in to the market in this step to see the
reaction of customers for the first time and whether it will be able to stand out in the market.
Commercialisation: It is the final step of the process as it refers to successful
implementation of the product in to the market so that the customers can see the product and
made the decision of whether buying or not. Here, the role of the company is to commercialise
their products in such a way that the customer is willing to buy the product.
Commercial funnel and NPD is important because it help in brining potential customers
in to the fold on a consistent basis that the company can then market and promise the products
and services to over time which is essential for the business of the firm. NPD is important for for
the growth of the company. It is beneficial because it help in changing consumer, increasing
competition, provide new opportunities, help in increasing brand reputation and others.
P6 Innovative business case for an organisation, including ways to access funding
Business case: A business case is written document prepared by a mangers to gives idea to
the top level management. This document contains the innovative idea which is created by lower
level of management to handle a problem or to acquire new assets to increase efficiency of its
organisation. As given in the above case company is selling lassi in UK markets, in order to
increase its sales company can use various technique such as setting up vending system in the
most crowded areas of UK markets, selling their product online and making it available to
customers in a single working day, company can come up with digital marketing techniques
using SEO and showing it ads online on different social media websites targeting the customers.
To meet these above mentioned requirements to increase company sales funding is required as it
is one of the most important part for any organisation. Following are some ways through which
Essence drinks Ltd can access funds:
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Proposed Idea- In Essence Drinks, the management of the company going to make
innovation in its existing product mango lassi to increase the customer base because it face the
worst situation of decrement in sales. So by making innovation the firm decide to increase its
sales and customer base.
Own funds: To invest own capital in an innovative business owner should have enough
confidence. It is important for a owner to invest own capital in a business in order to attract
investor and government to invest in business. Investors will only invest in the business if initial
funds are invested by its owners.
Government grants: Governments grants can be provided to owners in form of subsides
and long term bonds raised by governments. As to support new business governments provide
various facilities in the form of subsidies and governments loans payable after a long term. To
provide these funds company’s, governments sets different eligibility criteria.
Debts: Funds can be arranged through debts for innovative business idea. In order to raise
funds from debts the idea of business should be unique and innovative to attract debenture
holders who are ready to invest money. Debts which is taken by these companies are long term
which is payable after a long term after agreeing of both the parties to a specifics future date.
Debts are raised commonly from different financial institutions and credit unions through loans.
Equity: Equity is the most common type of sources of funding. In this type of funding funds
are raised through issuing equity shares. In return equity shareholders are given a percentage of
earning as a dividend, these dividends are not necessarily paid. Dividend is a part of earning
given to share holders for their money invested in a business.
Business angels: Business angels are private financial institutions with high net worth who
want to invest money in this kind of innovative business for equity shares in the business. They
usually wait for a long time for returns, as they provide funds to setup a business and initially
any business does not give high return but as time passes they capture the market and gives high
return. These business angles then enjoy the returns, they are like an angles to business owners
who are ready to invest money.
Technologies- This terms refers to the machineries and equipments that are required for
the production of innovative products. During the time of making innovation in its existing
products the organisation required new technologies and instruments so that it can make
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innovation or provide product according to the customers needs which help in satisfying the
needs and demands of them.
Social media- When the firm implement this idea and produce new products by making
innovation then to promote this new product the management of the company can use various
promotional technologies like social media, Internet, Web advertisement to create awareness
about new innovation.
Fund and finance- The management of the company required finance for making
innovation in its existing products and services so that it can retain its potential customer and
make increment in its sales. The fund it required for purchasing needed raw material, to buy
machineries, for promotion and other activities of marketing.
Budget
Particulars Amount
Advertising on TV (10%) 20000
In social Media Platforms (25%) 50000
On newspapers (10%) 20000
Sales Promotion- (30%) 60000
These all things are necessary to attain the business growth of the firm so that the the
firm can maintain its economic condition and fulfil the needs of the demands of the customer by
providing products according their taste and preferences.
LO 4
P7 Evaluation of different tools used by organisation to protect knowledge and intellectual
property
Intellectual Property: Intellectual property refers to an intangible creation of human
intellect. They are the unique ideas which is developed by an individual to start up his own
business by using a way which is never been used. Protection of these property is very important
for any business as they are a unique ideas created by an individual to capture a market share and
earn maximum return. To protect these types of property following are various types of tools:
Patent: It is an exclusive rights designed by an innovator and registered with a government
so that only that person has a right to use that kind of technology or design in their business.
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Patents provides a right to patent owners to decide that how it will be used and has the power to
give patent right to others.
Copyrights: Copyright is used as a legal term for artistic and literary work; it includes
various types of artistic works such as books, music, paintings etc. This is also like patent in
which the person who has filed a copyright has the right to provide access to other to copy their
work. This is filled with government in order to protect original content written by original
author or artist.
Trademarks: Trademarks are considered as a mark which is used to distinguish the product
of one entity from others. These are used since the ancient times, where products are marked
with a distinct symbol which states that this is a product of some other individual.
From the above determination it can be analysed that patent is an effective tool of
intellectual property. It provide a right to an investor to exclude others from exploiting the patent
invention. It provide protection to the company from large organisations and providing a
competitive advantage that makes the differentiation on the competitors and that in medium
term will help in making improvement in the profits of the company.
CONCLUSION
From the above report it can be concluded that innovation are most important factor in order
to enter in a market. The above report shows the various ways through which an individual can
raise funds to start their own innovative business. The above also states the various tools
provided by government to protect the intellectual properties such as patents, copyright etc. It
can also be conclude that it is important for an individual to raise funds and invest their own
capital in business to attract more investors.
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