Innovation and Commercialisation: A Report on YOYO Drinks' Strategy

This report provides a comprehensive analysis of YOYO Drinks, a company that launched mango-flavored lassi in the UK market. It delves into the core concepts of innovation and commercialization, differentiating between the two and highlighting their importance within an organization. The report examines various aspects of innovation, including disruptive and incremental approaches, the 4 Ps of innovation (Paradigm, Product, Position, and Process), and the new product development process, including idea generation, evaluation, and concept definition. Furthermore, it explores frugal innovation and its benefits, along with industry overviews, financial projections, funding sources, and methods for testing the effectiveness of new drinks. Finally, the report discusses strategies for protecting intellectual property rights. The report provides a detailed overview of the company's strategies and challenges, offering valuable insights into its business operations.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
1.1 Define Innovation and difference between innovation and invention..............................3
1,,2 Value and importance of innovation in organisation......................................................4
1.3 Different types of Innovation focusing on disruptive and incremental innovation and
define pros and cons of each approach...................................................................................5
1.4Explain 4 P's of Innovation...............................................................................................7
1.5 New Product Development Process and innovation funnel.............................................8
1.6 What is Frugal Innovation and benefits for organisation.................................................9
PART B............................................................................................................................................9
2.1 Covered in PPT.................................................................................................................9
2.2 Covered in PPT.................................................................................................................9
2.3 Covered in PPT...............................................................................................................10
2.4 Covered in PPT...............................................................................................................10
2.5 Overview of Industry and competition...........................................................................10
2.6 Financial projection........................................................................................................10
2.7 Funding sources available to YOYO drinks...................................................................10
2.8 Requirement of Capital funds to be raised.....................................................................11
2.9 Techniques for testing Effectiveness of new drinks produced ......................................11
2.10 Different tools to protect intellectual property rights of new drink .............................11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Innovation is a process of introducing and implementing new ideas or methods to
produce innovative and creative products and services. It includes development of new
applications for existing technologies and delivering products with increased value. On the other
hand commercialisation is concerned with launching new product or service in market and this
includes production, sales, distribution, marketing and other important functions which assist
towards achieving commercial success for new product or service. The present report is based on
YOYO Drinks which started their business operations three years ago by launching mango
flavoured lassi in UK market. The founder and CEO of YOYO drinks is Sameer. The company
has gain profits and achieved gradual increase in sales. In this report it will be discussed about
difference between innovation & invention and importance of it in business organisation. Also it
will explain about types and 4P's of innovation along with new product development process.
Lastly it describes about frugal innovation and benefits for organisation.
PART A
1.1 Define Innovation and difference between innovation and invention.
The term Innovation is concerned with transforming ideas and thoughts into reality by
adding value to products and services which will help in fulfilling needs of customers. It is
related to introduction of new and effective product or service in market that provides customers
with maximum satisfaction by delivering them with innovative and better products and services
(Boruah, and Das, 2017). Innovation can be done by introduction and development of product,
service, process, and technology which helps in providing solutions to present requirements in
market.
Invention is known as act of developing, creating, designing and discovering various
methods, process and devices that are not yet existing in market (Easter, 2019). This is term with
scientific idea developed through research and development which later turns into tangible
product. It can be concerned with new process or method for producing or making improvements
either in new or existing product.

Difference between innovation and invention
Innovation Invention
 This refers to introduction of new and
innovative way to provide customers
with best and creative products so, that
they are able to fulfil needs of existing
marketing expectations.
 Invention is development of idea,
process, device or method for products
and services that have never been
introduced In market.
 It requires skills, competencies, and
knowledge about market needs, risks,
support and trends.
 For performing roles and
responsibilities mainly scientific
technical skills are required.
 This is confined only to add value in
something that is already in existence.
 This is related to creation and
development of new product, process,
method and device.
 The activities related to Innovation are
spread across whole organisation.
 Activities of Invention are limited only
to research and development
department.
1,,2 Value and importance of innovation in organisation.
Innovation means creating and implementing new ideas, as it is a process of converting
innovative ideas into useful products and services. Innovation plays an important and crucial
role in organization as it is a key success factor any organization (Ferasso, 2018). It is important
for established as well as new organization to innovate and change in dynamic and changing
environment. Business can do innovation in there products and services for there success and the
growth. Value innovation helps in improving the efficiency in whole organization and delivers
the better results (Knoke, Missikoff, and Thoben, 2017). Therefore it helps in many many
benefits and profit maximization. Some of the importance of innovation are:

 Creative development: In today scenario, a innovative and new creative business idea is
executed for achieving the growth and success. The management learn the business skills
that makes value for creativity. The manager of YOYO drinks is focusing on innovative
development to capture huge market share in UK.
 Continuous improvement: Innovation gives the organisations a continuous
improvement, which the good manager of YOYO drinks will recognize need of
innovation and there is growing need of increasing business skills to increase the
creative productivity and efficiency.
 Branding: For organisations, the promotion and branding is very important for long term
success and growth. In context of YOYO drinks managers can appoint brand
ambassadors for promotion of flavoured lassi which will help to increase sales.
 Using of social media: Social media is important and innovative tool for YOYO drinks,
as it helps in getting ideas from many people on the social networks which gives
successful outlet and platform. As it also helps company to promote and brand products
and services.
1.3 Different types of Innovation focusing on disruptive and incremental innovation and define
pros and cons of each approach
Innovation is significant term for sustainable economic growth and prosperity. The
change and innovation are important in this dynamic business environment which help company
to give customers with maximum satisfaction (Meyer, and et.al., 2018). For managers of
business organisation it is crucial for them to have skills and competencies related to innovation.
Therefore, the types of innovation specifically focusing upon Disruptive and Incremental
Innovation are described below:-
1. Disruptive Innovation- This approach of Innovation was coined by Clayton Christensen
which develops new market and value network and disrupts existing market and network
by replacing established market alliances and leaders. This is related to development that
specifically make changes in the whole organisation structure and its functions. It is also
known as stealth innovation which involves application of latest technology or methods
in company (Moreddu,, 2016). This type of innovation is stealth in nature as newer
technology can be considered as inferior to present technology in market. The company
YOYO drinks has gone for disruptive innovation by providing customers with mango

lassi in UK market. Also it is planning for developing more flavours in Lassi like kiwi,
strawberry and blueberry. Prior to this companies and customers mainly were aware
about Lassi without any flavour. In order to Disrupt market it is necessary to make
frequent changes and focusing on producing or introducing innovative products as per
changing needs and expectations of consumers. Therefore various pros and cons are as
follows:-
◦ Pros of Disruptive Innovation
 This helps managers to expand their market share with the help of innovations
made in their new and existing products or services.
 This also assist managers and leaders to discover future opportunities for
company growth and profitability.
◦ Cons of Disruptive Innovation
▪ It is not necessary that innovation will be successful as there are many hurdles
that are required to be overcome for success and growth.
▪ Their are already established companies offering same product or variety will
prevent new company from being successful and achieve their objectives.
2. Incremental Innovation- This is known as continuous and radical improvement in
existing products, processes, services or models of business to face competition in market
(Olaniyi, and Prause 2016). As per this the core product remains same but known
technologies, products and services remains same. The purpose of this type of innovation
is to strengthen competitive position for short term and gain maximum profits. This
approach of Incremental Innovation is emerging technique now-a-days for consumer
industries as companies strive hard on continuous basis in improving products with
consumer friendly aspects. The company YOYO drinks can make improvements in their
existing products as per consumer specifications and expectations. As this will help
company to face competition in markets of UK. Along with this it has various advantages
and disadvantages which can arise after implementation of Incremental innovation in
organisation. Some of them are discussed below:-
 Pros of Incremental Innovation
◦ This provides basis for future development as this helps managers in gaining
both knowledge and experience.

◦ It helps to increase sales and profits for companies existing products and
services.
 Cons of Incremental Innovation
◦ This represents wastage of resources and only shows minor improvements in
existing products and services.
◦ It shows only modification made in existing products, processes and services
and no new products or services are introduced in market.
1.4Explain 4 P's of Innovation
4 P's of innovation is a model introduced by John Bessant and Joe Tidd. Manager gets
help process of innovation of business, that how can business can improve and successful. The
innovation mix consist of paradigm, product, position and process (Olaniyi, and Prause 2016).
This tool is flexible and increases the innovation thinking and support idea generation which
helps in understanding where and how innovation is done. Therefore, 4 P's of innovation in
context of YOYO drinks are discussed below:-
Paradigm: (How do we frame what we do?)- Paradigm is a innovation which concern
with the positive changes done in the organization for its growth and success. This includes
modification in nature of product, change in business model and structure like change in
promotion tool of product to print into the online platform. As yo yo drinks do innovation in their
products as company is introducing the floured lassi in the UK market.
Product: (What do you offer?)- The managers are doing innovation in their products as
introducing different floured lassi in the UK market as it helps the organization to growth and
increase in sales, profit maximization and market share (Páez-Avilés, and et.al., 2015). In
context of YOYO drinks they can plan for innovative product that is blueberry, strawberry and
kiwi flavoured lassi to grab attention of more and more customers as this is considered as healthy
drink too.
Position:(How do you create that offering?)- The top management are coming up with
some innovation changes in products as it helps to grab new opportunity and targeting customer
as well as market. The manager of YOYO drinks can use attractive advertisements, discounts,
and social media platforms for increasing awareness about product and company in UK market.
Also this will help in developing brand image in international market by offering innovative
product that is lassi in different flavours like blueberry, strawberry, kiwi and many more.

Process:(Where do we target that offering?)- This step is related to making changes in
their ways of creating, developing and delivering products and value to their customers. As per
this manager of YOYO drinks can make alterations in their processes in such a way that products
are produced efficiently and fastly along with better quality products.
1.5 New Product Development Process and innovation funnel
Idea Generation- The foremost step in new product development process is concerned
with generation of idea for introducing new product or service in market (Pfotenhauer, and
Jasanoff, 2017). In case of YOYO drinks, the manager is planning to introduce various flavours
in lassi like strawberry, kiwi and blueberry for the customers of UK.
Idea evaluation- This stage of new product development process is concerned with
analysing various alternative ideas and finding best and suitable idea for company. In context of
YOYO Drinks the managers should do proper market research and select the best alternative as
per needs and expectations of consumers of UK.
Concept definition- In this step the concept is defined for the successful of generated
idea. The concept definition means that what will be innovative in product of company. In
context of YOYO drinks, Lassi offered in different flavours will help in increasing customers
and retain them for long term.
Analysis of strategies- As per this stage the company focuses on determining strategies
which will help in making product well-known in market and help in achieving maximised
profits (Schmidt, and et.al., 2018). In context of YOYO drinks the manager make sure that their
new variants, flavoured Lassi is attractive and accepted by customers of UK. The marketing
manager of YOYO drinks can make use of social media and provide free sample of their product
so that on that basis more and more customers are attracted.
Product development and testing- This stage is concerned with development of product
in such a way that they are successful in market. As well as testing of products is vital part for
every company because this helps to know that product will be successful or not. With reference
to YOYO drinks manager after preparing product should test their products and ensure that the
flavoured lassi is tasty as well as healthy and is pre tested before offering it to customers of UK.
Product testing is necessary for any company to know whether this product will be successful or
not. Essence Drinks ensures that vanilla cashew Lassi is healthy and tasty.

Commercialisation- This is related to introducing new product in market. The manager
of YOYO drinks must ensure that products launched in market is accepted by customers and this
also helps in increasing both sales and profits.
Product Launch- At this stage, product is launched and introduced in market. YOYO
drinks at this point have introduced their product for customers of UK.
Innovation Funnel:
Innovation Funnel effectively allow organisation to diversify range of services and
products in order to increase their products and services in marketplace. In this there are 3 step
ladders which is required to be consider by manager that include, true wealth test along with
innovation pedestals with the help of which company can have check on their related information
of trend within marketplace. Along with this YOYO drinks is required to consider strategies of
rivals as to compete them in best effective manner. With the help of this organisation can
effectively able to increase organisational productivity and profitability.
1.6 What is Frugal Innovation and benefits for organisation.
Frugal innovation is defined as the process of reducing problems and complicity
occurring in the product during production and cost of goods (Servajean-Hilst, and Calvi, 2018).
In other words it helps in removing the non essential features in durable products. Frugal
innovation in context of YOYO Drinks is introducing a kiwi, strawberry and blueberry flavoured
Lassi in UK and expanding it' s market share, building the brand and maximising profits for the
organization. Some of benefits of this are as follows:-
New market opportunities- The organization find the new opportunities for the growth
and success which helps in grab the market share and the targeting the customers effectively. It a
important the company to keep innovation and changes in the products for the customer
satisfaction and profit maximisation.
Resources- Frugal innovation sets the limits for various resources like financial, raw
material, labour, machinery and many more (Ustyuzhantseva, 2015). Resources are important
asset for the organisation as they make optimum utilization of resources in efficient and
effective manner. Frugal development requires proper and effective resources for the innovation
in drinks.
Frugal Innovation

Frugal innovations acts as an one of the most effective measure with the help of which
organisation can effectively able to avoid their unwanted cost that are linked with production.
This allow organisation to reduce their cost by decreasing any kind of unnecessary elements.
Thus, it has been recommended to organisation to take use of frugal innovation within their
organisational structure in order to reduce their cost of services as to offer their products and
services with optimal price range.
Recommendation:
It has been recommended to YOYO drinks to take use of frugal innovation techniques
within their organisational structure as to conduct their day to day operations in well effective
manner on daily basis. With the help of this organisation can effectively able to increase their
overall rate of return along with profitability. By offering drinks with best quality they can
effectively able to increase their customer base and can further build affirmative relationship
with them. In addition with this, YOYO drinks is also recommended to make best effective form
of relationship with their employees in order to increase their efficiency, productivity and loyalty
towards organisation.
PART B
2.1 Covered in PPT
2.2 Covered in PPT
2.3 Covered in PPT
2.4 Covered in PPT
2.5 Overview of Industry and competition
YOYO drinks forms part of food and beverage industry. This industry comprises of many
companies either offering same or close substitute products to their customers. The company is

facing is fierce competition as number of new firms are entering into market. YOYO drinks is
facing cut throat competition so manager is planning to launch new range of flavoured Lassi.
2.6 Financial projection
The business case is defined either written or verbal document that describes information
about objectives and goals of YOYO drinks.
Executive summary- YOYO Drinks is introducing lassi in UK market. It is necessary to
develop strategies and business models which will help in maximising sales of the company in
UK.
Mission statement- The mission statement of YOYO drinks is to make healthy and tasty
beverages and drinks and increase customer satisfaction.
Resources- YOYO Drinks require various resources like raw materials, funds, milk,
fruits essence, etc. for long term success and growth
Market analysis- Marketing analysis helps to ascertain possibility of success of
innovative flavoured lassi in UK market.
Financial projection- The fund required for flavoured lassi is £20,000.
Types of funding- There are different types of funding or ways through which YOYO
drinks can take funds from bank, friends and investors.
2.7 Funding sources available to YOYO drinks
Their are many funding sources which are available for YOYO drinks which are defined
below:-
Friends and relatives- The manager of company can get sufficient funds from friends
and relatives without paying any interest rate.
Bank Loan- For funds company can go for bank loan but their they have pay certain
amount of interest rate which varies from bank to bank.
2.8 Requirement of Capital funds to be raised
Their are many reasons for every business organisation that there is requirement for
capital funds. Some of reasons can be product development, marketing and promotion.
Investor: The funds can be raised through investors as company can easily rely on them
before introducing new products.

Profits: Company can utilise past profits to come up with new product range.
Bank loan: Bank loan can be raise funds for new product range as the company has
good creditability
2.9 Techniques for testing Effectiveness of new drinks produced
To measure and test effectiveness of flavoured lassi produced by YOYO drinks the
manger can take reviews and feedback from customers, offer sample products to customers and
conduct survey after sale of product that is range of flavoured lassi to their customers.
2.10 Different tools to protect intellectual property rights of new drink
There are different ways to protect the YOYO Drinks innovation in Lassi. These are
government tools used for protecting the innovative products from copying or theft.
 Patent- patent is a tool that provides rights and authority and licence to the owner from
preventing the product from exploring. YOYO Drinks have taken patent of their various
flavoured Lassi to prevent production of product by any other competitor.
 Copyright- it refers to the legal term which protects original product for number of
years. YOYO drinks can take copyrights of all flavour of Lassi to protect and secure
product from any harm.
CONCLUSION
From the above report it has been analysed that innovation is important part that has to be
considered by every business organisation as this will help to capture huge market share and
increase their profitability. Also, the innovation will help company to become competitive in
market and successful running of business. Therefore, innovation and commercialisation will
help in enhancing sales, profits and maximum customer satisfaction. Along with this innovation
made by company requires to protected and this can be done by copyrights, trademarks and
patents. Innovation helps companies to provide customers with maximum satisfaction by
fulfilling their needs and demands of them.

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