Report: Innovation and Commercialisation for Essence Drinks, UK Market

This report examines innovation and commercialization strategies for Essence Drinks, focusing on the UK market. It covers various aspects, including the 4Ps of innovation, frugal innovation, and the application of the innovation funnel to shape and examine innovative ideas. The report analyzes the importance of the commercial funnel for new product development and assesses the role of frugal innovation in an organizational context. It also explores the development of an innovation process, methods to measure the overall effectiveness of innovation, and how organizations can overcome challenges to develop successful innovations. Furthermore, the report evaluates tools for knowledge retention and intellectual property protection, like copyright and trademark. The analysis provides insights into how Essence Drinks can enhance its business practices, increase competitiveness, and protect its innovative products within the UK market.

INNOVATION AND COMMERCIALISATION

Table of Contents
Introduction......................................................................................................................................3
Assignment 1...................................................................................................................................3
Covered in PPT............................................................................................................................3
Assignment 2...................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................3
1.2 Explain developments in frugal innovation and how it is used in organisational context....4
1.3 Analyse and apply the innovation funnel in an organizational context.................................4
1.4 Evaluate the role of frugal innovation in an organizational context......................................5
Task 2...............................................................................................................................................5
2.1 Importance of commercial funnel..........................................................................................5
2.2 Build an innovation process...................................................................................................6
2.3 Measure overall effectiveness of innovation.........................................................................7
2.4 Nature of innovation and provide evidence based judgements on how organizations can
overcome challenges to develop successful innovations.............................................................7
Task 3...............................................................................................................................................7
3.1 Evaluate different tools that organization can use to develop and retain knowledge and
intellectual property.....................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

INTRODUCTION
In the current business scenario, all the business entities have been emphasizing on
innovation and creativity so that they can enhance the value of business through adopting new
and different tools and methods. In order to make the business practices creative and innovative,
it is essential for the business entities to raise the existing standards and that will also enhance
the competitiveness of the business services. The present research study has been made on
Essence drinks which offers different sorts of drinks to the end users especially in UK market
place. Thus, in such respect, researcher has discussed the importance of innovation and invention
to the business entities and along with that, discussion is also made regarding role of leadership,
culture and teamwork in shaping innovation and commercialisation.
Furthermore, in the research study researcher has stated different forms of innovation and
use of innovation funnel to examine and shape innovative ideas. Apart from that, investigator has
also stated the role of frugal innovation in an organizational context. In the same domain,
researcher has stated the importance of commercial funnel and how it can be applied to the new
product development processing for commercialisation of innovation. Similarly, researcher has
also mentioned different tools that could be used by Essence drinks to retain and protect
knowledge and intellectual property.
ASSIGNMENT 1
Covered in PPT
ASSIGNMENT 2
TASK 1
1.1 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
There are basically four forms of innovation such as incremental, disruptive, architectural
and radical innovation and this also leads the business entity to ascertain the directions of
changes that could enhance the value of business in diverse facets. In the present study, Essence
drinks needs to make use of architectural innovation which simply requires lessons, skills and
overall technology within a different market (Bogers and West, 2010). Such sort of innovation is

highly helpful in increasing customer base of Essence drinks as long as the new market is
receptive. It also has several risks such as reliance and reintroduction of proven technology;
however, still it could enhance profitability aspects of the business entity.
 Product: Herein, it is crucial for Essence drink to determine which element will be added
in order to make the product innovative (Abdul Razak, 2016).
 Price: Changes is required to be implemented in the pricing element so that attention of
customers can be acquired.
 Place: Product should be sold through adopting innovative method of distribution.
 Promotion: Essence drinks needs to adopt convenient mode through which customers
could be attracted.
1.2 Explain developments in frugal innovation and how it is used in organisational context
The main aim of innovation funnel is to take an idea from concept to reality by
converging to a specific product that could meet a market need in an economical form. However,
on the other hand, frugal innovation is regarded as the process of reducing the complexity and
cost of a good and its production (Rietsch, Beaudry and Héroux-Vaillancourt, 2016). This refers
to removing non-essential features from a durable good so that it could be sold to developing
countries. Currently, the business has been selling specific drinks which also aids in acquiring
attention of customers; however due to competitor’s entry in the same market, demand for
Essence drinks have reduced to a higher extent.
Therefore, it can be said that Essence drinks needs to utilize the concept of innovation
funnel so that new drinks could be introduced at market place and this can also assist the
business entity to become more competitive (Polzin, von Flotow and Klerkx, 2016). Thus, in
order to derive a new and innovative drink, it is imperative for Essence drinks to conduct market
research so that the demand for dairy products can be analysed. The business must also analyse
the sources through which additional creativity and innovation could be implemented.
Afterwards, certain changes are required to be implemented in the business activities so that the
possibility of innovation can be raised. Then, lastly the final plan is required to be implemented
(Dincer, 2017).

1.3 Analyse and apply the innovation funnel in an organizational context
From the above discussion, it became clear that innovation funnel helps the business
organizations to implement the idea into reality so that requirements of market can be met
suitably. All such things needs to be done through considering economic aspects. Thus, the
concept of innovation funnel could be applied in Essence drinks for the purpose of bringing new
product and service. Thus, innovation is required to be placed in number of drinks so that
specific needs of clients could be satisfied (Kedron and Bagchi-Sen, 2016).
Therefore, it can be said that Essence drinks needs to introduce economical products as
that will also aid in enhancing the ratio of customer base. Henceforth, on the basis of such
process, it can be said that Essence drinks needs to specify the customers who will be targeted to
reach the success aspects. For instance- Essence drinks could come up with energy and soft
drinks so that different needs of the clients could be met. This is also essential for the purpose of
attracting more customers.
1.4 Evaluate the role of frugal innovation in an organizational context
Frugal innovation is crucial for Essence drinks as that can minimize complexity and cost
of goods in the domain of production. Thus, using such concept, Essence drinks could introduce
new and different products in the existing product line as that will also assist in encouraging
business profitability aspects. Frugal innovation will be helpful for Essence drinks in many ways
and it will also assist in selling the products which could be sold through unconventional
distribution channels (Abdul Razak, Murray and Roberts, 2014).
Thus, with the help of this context, Essence drink would be able to amend customer base
and it can also assist in becoming more competitive at the market place. With the help of frugal
innovation, Essence drinks can also differentiate the business due to involvement of different
products (Hill, 2014). Thus, the source would be highly suitable for Essence drinks. This can
also possess a direct impact on company’s success and profitability facets. This can also assist
the business in enhancing the business practices in different directions.
TASK 2
2.1 Importance of commercial funnel
Essence Drinks is operating in the UK for more than two years and have experienced
dramatic rise in the sales in very first year of operations. However, as the company has entered

into its third year, the sales have dropped by a significant amount. At this stage it is important to
understand the importance of commercial funnel. In essence commercialization is a process
which introduces a new product to the market (Orcutt and Shen, 2010). This entire process can
be characterized as a funnel as at the initial stage there is availability of various ideas and as the
process moves forward the options are narrowed down. Thus, Essence Drinks can introduce
different flavours of lassi in order in pursuance to frugal innovation or it can introduce an
entirely new drink which is different from lassi but holds the essence of Indian culture or the
company can develop an entirely new product in the form of fruit juices. This shall account for
launching of new products and attract the interests of consumers and at the same time shall not
require the company to incur high additional costs. Commercialization is the considered as the
final phase of the entire process of innovation and this often encompasses risks which shall be
considered while calculating the entire plan.
2.2 Build an innovation process
From the variety of ideas available with Essence Drinks, the idea of developing different
flavours of Lassi and introducing the same to the market in different packaging seems to be an
idea with less risk. The most effective promotional tools shall be either advertising or direct
marketing (Van Hemert, Nijkamp and Masurel, 2013). The former shall appraise the potential
consumers with the information in relation to existence of the new products. It shall also enable
them to understand the difference from the old product in an effective manner. Another form of
marketing is direct marketing which shall also show tremendous results as it shall give a personal
experience to the consumers in relation to the taste. The effectiveness of new product can be
determined in the case of direct marketing through receiving instant feedback from the
consumers. Otherwise online campaigns can be another technique to receive feedback from the
consumers and determine the effectiveness of the new product (Bogers and West, 2010.). The
Budget for this innovation could be:
Market Research £200
Planning £400.00
Development of Product £2,000.00
Marketing £1,000.00

Total £3,600.00
2.3 Measure overall effectiveness of innovation
In order to measure the effectiveness of innovative product Essence Drinks shall assess
and analyze the sales level as well as profitability (Abdul Razak, 2016). The former shall enable
the management to test the effectiveness and the acceptance level of consumers in respect to the
same. A relative increase shall illustrate that the innovation has been effective enough to attract
an increasing number of consumers, whereas it shall also establish that the customers are willing
to pay the stipulated price for the purchasing the new innovated form of lassi. In addition, the
improvements shall be undertaken on the basis of feedback of consumers which shall be received
through the use of social media.
2.4 Nature of innovation and provide evidence based judgements on how organizations can
overcome challenges to develop successful innovations
It is an apparent fact that at the time of adopting innovation, business entities experience
several issues and challenges and that needs to be resolved so that it may not impact business
activities (Blackman and Forge, 2015). As stated above, the process of innovation funnel would
be beneficial for Essence drinks and that can also help in implementing the determined plan in
effectual manner. Thus, all the probable challenges could be resolved through employing all the
employees in decision making process. This is also essential for the purpose of enhancing the
value of innovation and creativity and as a result, new product development can also be
facilitated at the same time. In order to make the innovation successful, it is vital for Essence
drinks to employ all such practices that can amend the value of business.
TASK 3
3.1 Evaluate different tools that organization can use to develop and retain knowledge and
intellectual property
Apparently, when a business entity creates any new product and service, then it has to get
assistance from intellectual property so that it can protect its innovation and creativity. Thus, in
this area of concern, it is also crucial for Essence drinks to consider IP laws so that this can aid
business to protect their rights towards the innovated product (Rietsch, Beaudry and Héroux-
Vaillancourt, 2016). In this respect, copyright and trademark could be used for the purpose of

fostering an environment in which innovation and creativity can flourish. With the help of
trademark, Essence drink would be able to create specific identity of its products so that it can
assist in meeting the competitive scenario.
CONCLUSION
Concluding the entire research work, it can be said that at the time of facilitating
innovation in the business practices, it is vital for Essence drinks to consider all the factors that
could impact business and marketing decisions. Thus, with the help of present study, the concept
of invention and innovation is being analysed critically. Furthermore, with the help of trademark
and intellectual property, Essence drinks would be able to enhance its competitiveness aspects.

REFERENCES
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