Innovation and Commercialisation: Red Bull's Business Analysis Report

This report delves into the concepts of innovation and commercialisation within the business landscape, using Red Bull as a primary case study. It begins by differentiating between innovation and invention, emphasizing innovation's critical role in business growth, especially in competitive markets. The report examines the significance of organizational vision, leadership, culture, and teamwork in fostering innovation and commercialization success, providing examples from Red Bull. It then explores the 4Ps of the innovation funnel (product, process, position, and paradigm), illustrating how Red Bull uses these elements to shape its innovative ideas, particularly in the context of its chocolaty energy drink. Furthermore, the report covers the development of frugal innovation, the importance of commercial funnels, the application of new product development, and how Red Bull manages its business. It also discusses tools for developing and protecting knowledge and intellectual property, concluding with a summary of key findings and implications for businesses seeking to innovate and commercialize their products successfully.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Innovation and its importance in comparison with invention................................................1
P2 Vision, leadership, culture and teamwork of organisation that help in innovation and
commercialisation .......................................................................................................................3
P3 4 Ps of innovation funnel to examine and shape innovative ideas.........................................5
P4 Development in Frugal innovation with example..................................................................8
P5 Importance of commercial funnel and application of new product development .................9
P6 Innovation business for Red bull including ways to review funding ....................................9
P7 Different tools which is used to develop and protect knowledge and intellectual property.11
CONCLUSION..............................................................................................................................12
.......................................................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Innovation and commercialisation means innovate new ideas and create new business in
order to get maximum profit. An entrepreneur is a person who innovate new ideas for success of
organisation. Incorporation of innovation provides number of opportunities to enterprise meet
with expectation of customers. It includes product development which helps to growth of
business activities (Brem and Viardot, 2015). The main aim of this report is to understand the
value of innovation in business industries and how it help to grow the business. This report will
discuss about Red Bull company which is selling energy drink and bring a new innovative
product that is chocolaty flavour energy drinks. This company is selling chocolaty energy drink
since 2 years and earning maximum profit. This report will discuss about number of topics such
as innovation and its importance, organisation's vision, leadership, and culture that help to
increase the profits and 4Ps of innovation. Additionally, report will covered development in
frugal innovation, importance of commercial funnel and application of new product development
for commercialisation of innovation.
P1 Innovation and its importance in comparison with invention
Innovation: It means producing new products or making changes in existing product
with new and unique ideas. This helps to grow the business activities and reach it global level.
The business concern have ability and traits to develop new ideas and run a business all over the
world. This involves implementation of new ideas for product development or getting changes in
existing products. Moreover, innovation is the process of formulation and implementation of new
ideas in existing market. This new innovation help to meet with customer needs and wants and
provide that kind of products and services. Innovation is very crucial that help to enhance the
productivity and profitability by selling the number of products. Such as Red bull is famous for
energy drinks which provides different flavours of energy drink (Clayton, Feldman and Lowe,
2018). It is also selling a new product that is chocolaty energy drink which influenced people in
order to purchase new energy drink.
Importance of new innovation in respect of the organisation Red bull, which are described
below-
Grow in leap and bounds: Innovation is helpful to grow the business activities by
bringing the new products and services. Such as Red bull is multinational company which has
1

introduced from new product in order to expand the business activities. The manager of Red bull
always tries to bring new product and services that help to grow the business activities.
Beat the competition: The new innovation also help to beat the competition by
providing number of innovative products. For sustaining in competitive market innovation is
most important that help to introduce from new product in order to obtain the maximum profits.
The manager of Red bull wanted to be stable in market so it makes planning to innovate new
products and services that help to crack the competition (Ding, Eliashberg and Stremersch,
2016).
Meet customer needs and wants: As customer needs are changing speedily there is
need to have innovation which help to meet with customer needs and wants. Such as the manager
of Red bull find the needs of customer and get information that people are interested to taste
chocolaty energy drinks which is not come in market. That's why the company has decided to
manufacture chocolaty drinks that will help to meet with customer needs. Moreover, it help to
increase the customer loyalty by providing better quality of products.
Attract the best technology and talent: It help to attract the companies as well as
employees in order to accept the technology. By innovation a manager can increase the
productivity and profitability. Such as the innovative manager of Red bull used new technology
that helped to attract other people and company. Moreover, innovation help to grow the business
activities that increase the profitability.
Invention: This is the process of making and inventing new things which is not been
come yet in market. This is done by a person who used skills and knowledge in order to bring
something new. Additionally, it help in creation, production and formation of new product and
services in order to satisfying the customers.
Difference between invention and innovation
Basis Innovation Invention
Meaning It means changing the thoughts and
ideas in to reality. This includes
changes in existing product for
product development that help to
fill the needs of customer.
This means production of new
product and services with new idea
and develop the product in business
market.
2

Values It generates the value for new
product and services in existing
market.
It generates the value of new
invented product that help to
generate more profits.
Needed skills and
qualities
For innovation there is needed
strategic planning, marketing and
technical skills that help to operate
the business by innovating
products and services.
For invention there is needs to have
scientific skills which help to
accept the challenges.
Relationship Innovation creates relationship
among firm and customers that
helps to know the needs and
produce that kind of products and
services.
It has relationship with new
products and skilled person who
produce products with new design
in order to attract the customer.
P2 Vision, leadership, culture and teamwork of organisation that help in innovation and
commercialisation
Every organisation focuses on new innovation that help to sustain in competitive market
by innovating new ideas. Any organisation have number of employees who plays essential role
in organisation. It involves number of factors which help to run a business in effective manner.
These factors are described below-
Vision: It refers the goal and aim of the business enterprise that help to enhance the
business activities in order to obtain maximum profit. Every organisation should have clear
vision or goals so that firm can perform business activities in order to expand business. Such as
Red bull have clear vision is to manufacture new product and provide better quality of products
that help to increase the sale (Dolińska, 2015).
Vision is shaping innovation and commercialisation at Red bull such as the manager built
strategy in order to grow business at large scale that help to bring new product and services. By
introducing new product customer get happy and will purchase more products which helped to
give a shape in innovation and commercialisation.
3

Vision statement of Red bull: To maintain the quality of products and grab the
opportunities that help to beat the competition. Moreover, its main aim is to increase the number
of customers by providing large number of products and services.
Culture: It includes social beliefs, values and norms that help to give a positivity in order
to bring innovation in new and existing market. The culture of Red bull organisation is eco
friendly that help to share problems and and provides good innovative products.
Red bull is focusing on task culture that help to delegate the work among staff and
evaluate the performance. At the time of analysing the performance employer get the information
what need to do in order to solve the problems. Hence, culture is shaping innovation and
commercialisation at Red bull that help to take correct decision (Edquist and Zabala‐
Iturriagagoitia, 2015).
Culture plays an important role such as it give suggestion how to create positive
environment by solving the problems and innovating new ideas. So the manager of Red bull
focused on culture and create the positive environment.
Leadership: This means a leader have quality to influenced people by motivating and
encouraging staff to innovate the new products and services in a particular time. Such as the
leaders of Red bull follows the democratic leadership that help to gain maximum profits and also
guides how to achieve goals of business organisation.
Leadership is shaping innovation and commercialisation such as Red bull has decided to
bring new innovation that need to get support of employee. So the manager of Red bull selects
the leader who can motivate to employee in order to accept challenges.
Red bull is following democratic leadership style that help to make correct with the
concern of all employees. Red bull's manager innovate the new ideas and shares with all staff so
that decision can be taken after delegating the work.
Team work: This means number of employees works collectively in order to achieve
common goals of the industry. Moreover, it includes the coordination and collaboration of
employees who works together for completing the task which is given by the organisation. Such
as the employer and employees of Red bull has decided to bring chocolaty flavour energy drinks
which help to attract the customer. To complete this task they worked as team and innovated new
product which influenced people (Fini and et.al., 2018).
4

This is shaping innovation and commercialisation such as Red bull's manager innovate
new idea and realize that to complete this task there is need to work collectively and effectively
which help to get success.
P3 4 Ps of innovation funnel to examine and shape innovative ideas
Innovation is the wider term that is used to modify the existing product and bring
something new to attract the customer and beat the competition. Innovation is most important in
every business that decides what need to do in order to increase the profit margin. The
redesigning and re formation of product assists industry to fill the current market needs and
wants (4 Ps of innovation 2015). Red bull is focusing on innovating the product of chocolaty
energy drink foe increasing the number of sale. It is the mix model which contains 4Ps to
innovating the products. The 4Ps of innovation has been described below-
Product: This includes the goods and services which is offering by the organisation to
customers. Customers purchases different types of product which help to provide satisfaction. A
business concern analysis the market demand and innovate new ideas in order to obtain
maximum profits by serving number of product and services. Innovative products help to
increase the demand of product and services by bringing changes and modification in existing
product. Such as Red bull is selling different types of energy drinks since 2003 and always try to
bring new product through innovation that help to increase the demand of products (Gosens and
et.al., 2018).
This is more effective because customer get influenced by using better quality of product
and services. Additionally, it help to get maximum profits by innovating new products.
Process: This means changing in the process of manufacturing that is used to deliver the
product and services. The manager of the organisation take effective decision in order to deliver
the product after innovating new ideas. Red bull follows the process of delivering goods and
services that help to innovate new products. Such as the marketing manager of Red bull make
solid strategy that help to give information about Chocolaty energy drinks to customers.
This is effective such as it help to deliver the innovative Chocolaty energy drinks through
advertisement and marketing of products.
Position: Red bulls uses this factor that helps to describe the market position of company
by innovating new products. It has been analysis that the market situation of Red bull is
increasing continuously by introducing new products and services. The Red bull's manager states
5

what is market segment and requirement of a customer in order to provide satisfaction to
customers. The manager get the needs and wants of customer and make changes as customer
wants.
This is more effective because by innovating new products an organisation can increase
the market position and grab the opportunities. Hence, Red bull can increase the market position
and market share by providing better quality of products (Hohenberg and Homburg, 2016).
Paradigm: This contains changes in the structure and size of organisation. Such as the
Red bull company has innovated product development ideas that is chocolaty energy drinks
which are helpful to increase the number of customers. Moreover, this factor help to increase the
production and profitability of the enterprise.
This is effective such as Red bull has decided to innovate new energy drink and increase
the structure and business size of company. By innovating new products customer will purchase
different products and increase the sale.
Innovation Funnel:
This is the business model which is used by organisation to evaluate the ideas and create
images of products. In other words, this is the process of of describing the steps which help to
develop the process or products. It also help to evaluate the actual position of product in
competitive market. Different types of innovation funnel are described below-
Defining opportunity: Red bull company identify the market and get the information
what customer wants and how it can be satisfied. The manager of Red bull company innovate the
idea to bring new product like chocolaty energy drink that will help to create the product
demand.
Insight based thoughts: Red bull uses number of techniques such as extensive research,
new technology and group discussion to get the better product and services (Jauhiainen and
Hooli, 2017).
Evaluating and benchmarking: This means Red bull's marketing manager offers
sample of chocolaty energy drinks and evaluate the performance of employees in order to get
success of the organisation. Additionally, it help to get information about product and services.
Feed back: After offering sample of Chocolaty energy drink Red bull company get
feedback from customer and improve the products if required. This phases help to get
information about weakness or quality of product and get improvement in product and services.
6

Launch: Red bull company launched the innovative product in new and existing market
place that helps to increase the number of customer and expansion of business activities. Such as
the marketing manager of Red bull organisation increase the productivity and profitability by
innovating the product and services.
7

P4 Development in Frugal innovation with example
Frugal innovation is the process of overcoming the complexity and prices of goods and
its production. Mainly, it is used to remove the unwanted features from durable goods. In other
words, frugal innovation is the process of accepting challenges through accepting new
technology that are able to do better with less cost.
Therefore, the Red bull is planning to bring chocolaty energy drink in competitive market in
order to enhance the business activities-
New market opportunities: This is used to increase the market opportunities by offering
number of products and services. Such as Red bull company planned to innovate new product
that is chocolaty energy drinks. This plan worked effectively by providing the better quality of
products. It uses innovation frugal that help to reduce the difficulties in order to produce new
product (Laužikas and et.al., 2016).
Resources: This means if organisation has enough resources to develop the product that
means it can grow the business activities. Such as Red bull is international company who has
financial, human and other resources in order to bring chocolaty energy drinks. By using
available resources it manufacture innovative product and offer at different places in order to
maximize the profits.
Include profit margin: The main aim of any organisation is to reduce the cost and
maximize the profits. For increasing the profit business organisation brings new product that help
to increase the number of customers. Such as Red bull has introduced chocolaty energy drinks
which mainly influenced woman who love to eat chocolate. This innovation helps to increase the
profit margin by introducing new products and services.
Frugal innovation is used in Red bull company such as the manager has decided to
innovate new product which will help to increase the number of customer and profit margin. For
this company need to utilize available resources in organisation that will help to increase the
profit by reducing the cost. Moreover, the manager will try to overcome the excess cost which
are occurring while producing Chocolaty energy drinks. In other words, it help to remove non
essential features from durable of products. The manager can make effective business decision
by using frugal innovation that help to bring new idea and overcome the organisation cost
(Lopez-Valeiras, Gomez-Conde and Naranjo-Gil, 2015).
8

P5 Importance of commercial funnel and application of new product development
Commercial funnel are important in each and every business such as it help to increase
the production and profit margin. It is used to grow the business activities at multiple places that
help to maximize the return. Red bull also uses this strategy by formulating business planning in
order to expand the business activities. The managers maintain the business transaction in order
to increase the productivity that help to get success. The importance of commercial funnel is
described as-
Set pricing policy: Any organisation can set the pricing policy that help to attract the
customer. Price is the main factor which affect customer in order to purchase products and
services. By application of this strategy Red bull can set the reasonable pricing policy that help
to increase the number of customer and raise the profitability.
Idea generation: Commercial funnel is essential in organisation as it helps to generate
new ideas that help to sustain in competitive market. For instance, Red bull uses commercial
funnel in order to get new idea of innovating new products (Menter, 2016).
It help to grow the business activities: Commercial funnel contains number of business
strategy that helps to grow business. The main object of business organisation is to expand the
business function and grow the business. Such as Red bull uses commercial funnel that help to
keep record of transaction and keep growing the business by innovating products.
Emergence of advanced technology: This means organisation can use advanced
technology that help to expand the business activities. Such as Red bulls apply commercial
funnel that help to adopt new technology in order to innovate and produce new products. As
result it has launched chocolaty energy drink which attracts the customers.
Implement investigation programmes: Red bulls apply commercial funnel that help to
implement the investigation programme and produce innovative products. Such as by advanced
technology it has launched chocolaty energy drink which makes more profitable and more
producible (Nicoletti, 2015).
P6 Innovation business for Red bull including ways to review funding
Business innovation includes systematic planning that helps to develop the business at
large scale. The business concern innovate new ideas in order to increase the product
development. The main aim is to increase the business at global level and earn maximum profits.
9