Innovation and Commercialization Strategies Report: Essence Drinks

This report examines the innovation strategies of Essence Drinks, a US-based company focusing on mango-flavored drinks. It explores the importance of innovation versus invention, highlighting how Essence Drinks plans to introduce new drink concepts and flavors to maintain market competitiveness. The report details the role of organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization. It further analyzes the application of the 4Ps of innovation (Product, Process, Position, and Paradigm) and the development of frugal innovation strategies. Additionally, the report explains the significance of a commercial funnel and new product development for innovation and commercialization, culminating in an innovation business plan and methods for securing funding. Finally, the report evaluates tools for retaining and preventing intellectual property rights, providing a comprehensive overview of innovation management within the context of Essence Drinks.

Unit 8 :Innovation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Innovation and its importance to organisation in comparison with invention.......................3
P2 Organisational vision, leadership, culture and teamwork shape innovation and
commercialisation ......................................................................................................................4
P3 4P's of innovation and its usage to shape innovative ideas....................................................6
P4 Development in Frugal innovation and its examples ............................................................7
P5. Explaining the importance of commercial funnel and new product development
application for processing innovation and commercialization....................................................8
P6&M4. Preparing an innovation business plan for enterprise with inclusion of methods to
access funds...............................................................................................................................10
P7&M5&D3 Evaluating the various tools that the organization should utilize to retain and
prevent intellectual property rights...........................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is the process of converting an idea into a new good or service which helps
organization in creating the value. It is the system of creating better and more effective
processes, technologies, ideas and products that are accepted by changing world. The present
study is based on Essence drink, a US based company which deals in the mango drinks. Essence
company is planning to innovate new drinks which chances the concept from the provision one
and also the taste is appropriate to the customers choice. Furthermore, study includes the
description relating to innovation and invention. It also describes the kinds of innovation that
company will be using and the process for innovation and commercialization. Moreover, it
describes about the different tools that company will adapt to gain intellectual property right.
MAIN BODY
P1 Innovation and its importance to organisation in comparison with invention
Innovation: It means innovating or bringing new ideas or method relating to the goods
and services which customers are liable to pay. Innovation can be done on the basis of
researching the demand and need of product and examine its usefulness in market and then
establish concerned product (Innovation, 2019). Thus, Innovation is the process of translating
idea into innovative products and services that creates some value for customers.
Inventions: Inventions in terms of product means that which is not available in the
market before. Such invention are patented (Weiss and et.al., 2018). Thus, invention is defined as
the creation of new product which is established for the first time.
Basis of difference Innovation Invention
Product Existing product can be
innovated or change according
to the customers demand.
Creation and launch of new
product for the first time in
market.
Patent Can't use the patent strategy as
the product is already
discovered (Powell, 2017).
Product can be patented if it
differentiated with the other
product.
Research The product innovation spread
in all internal management
Its research is limited to
research and development

team. (Witell and et.al., 2016)
Ideas Can mix up 2-3 ideas to
innovate a single product.
Can't mix any ideas (Bertoni
and Tykvová, 2015).
Akshay Kumar, Founder of Essence Drinks innovate a new drink named as healthy
Mango Lassi in UK market (Rorwana and Tengeh, 2015). Essence drinks are the one of most
famous brands which bring new concept in drinks and due to one year continues success in
market, when company enters in third year it results to loss as large number of competitors enter
in market for same product. Akshay want to innovate some new taste in market but didn't want to
move away from lassi.
Akshay, instead of adopting invention method, adopts the innovation method to raise
funds in Essence Drinks. Innovating the existing product had more positive aspects such as in
terms of attracting customers (Barbosa and de Pinho, 2016). As customers are already happy
with product but they demand new flavour which helpful for them to attract customers again.
Akshay didn't have to work more on promoting product. Posters and advertisement are enough to
attract the customers towards innovation of product.
P2 Organisational vision, leadership, culture and teamwork shape innovation and
commercialisation
 Organisational vision: Akshay Kumar vision for establishing the product in market is to
bring different shape and innovative in that brand, so that customers are attracted towards
that products and prefer to choose it by viewing their label image. Through this strategy
they can beat other products in the market through his strong visions. But due to entrance
of large competitors in market its product fails to maintain a proper place. The success of
company arises when they amend product and resolve its changes of customer's
negligence in product (Da Rin and Penas, 2017). Organisational vision is to make a deep
survey in market regarding product status and customers taste. As customers taste are not
stick to one flavour they always demand some new product which mostly companies take
advantages. Their main vision is to align the shape of the product to some different
innovative ideas to present it in different manner.
 Leadership: Organisation uses democratic leadership style to attract the employees to
work harder. With this style they can motivate the employees to bring new strategies in

their work and accomplish them in different way. With these techniques they can retain
the employees for longer term and also challenge the other business regarding such
techniques. To make new changes in the style of training, employees feel ideas in
different way which helps to initiate the new style in product. To innovate existing
product, Akshay used to prefer leadership style to innovate and bring creative ideas and
thoughts in product. It's duty of leader to motivate their employees to present and develop
creative views to change structure of the product (Importance of leadership in Fostering
organisational Innovation, 2016). Without innovating new concepts, products vast no
longer and also customers distracts their interest from that product. Thus, by choosing the
best leadership style, it helps to design the most creative ideas from employees which is
to be implemented in their work for more profits.
 Culture: Essence Drinks uses task culture to innovate or change the product structure.
This helps the organization encourage the employees and motivate them to work as a
team. This help them to give more ideas as working together brings various thoughts and
ideas and also analyse the demand in the market. Task culture is briefly helps in
innovation of products. Task is related to team work made by all employees working in
organisation along with senior levels. There are more chances of risk but success ratio is
high in innovating and commercialisation in organisation (Dogan, Yamamoto-Ibusuki
and Andre, 2017). They motivate employees to discuss their reviews regarding products
and their decisions are appraised in organisation. This helps company to analyse the
failure of products and also resolve the issue arises.
 Teamwork: Thought Oriented team work helps company to regenerate product in
innovation procedure. As various employees are working in the organization and they
have different views and thought to complete the task in their own way (Duncan and
Elkan, 2015). To innovate a new product proper team is implement to establish product
and its marketing ways. Different ideas are designed by team employees to make a single
product and this procedure which helps in innovating new product. With the effective
team work they can challenge the other competitors to work as a team to achieve targets
within the allotted time. So thoughts oriented procedure helps Akshay to innovate a new
product.
M1

Different sources of innovation such as firstly, unexpected source which depends upon
opportunities. As Akshay had to continuously study the market to adapt the opportunities which
he assembles in his previous product. Demographics is also some sources which depends upon
population in market (7 sources of Innovative opportunity, 2012). To innovate a new product in
market study on population is the major aspect to analyse demand of product. The main source is
regarding industry and market structure changes as taste of customers are changing frequently.
Employees leave freely and independently manages work which helps to create an innovative
thinking and ideas regrading product. As if they work under pressure which restricts them to get
innovative ideas.
P3 4P's of innovation and its usage to shape innovative ideas
Innovative ideas is the best way to stand with new identity in the market and it helps the
company to maintain stability regarding cash flow.
Product: Firstly, to bring products in market, the main objective is what is demand in market. To
establish new product, taste of customers are analyses by having market survey. In the case of
Essence drinks, Mango Lassi is the existing concept which increase the sales of the company
(Godewyn and et.al., 2016). The new concept which they bring in market and customers like
taste and shows interest in products of Essence drinks. Similarly, to stand in market, new
products are innovated keeping in mind customers need.
Process: After finalising product, process came up with company in terms of supplying, selling,
accounting and recruiting products in the market. This process helps them to know complete
expense which are incurred to innovate new products in market. Process helps internal
management team to improve its productivity and provide good quality products at reasonable
price (Hohenberg and Homburg, 2019).
Position: Position is similar to promotion of new and innovative products in global market. The
product is not successful if it not requires proper promotion of the product. Social media
marketing is the best way to promote new product which also shows status of the company.
Examine position in market is important to establish new product (Adams andet.al.,2016). This
helps company to save funds from spending more on maintaining market position.
Paradigm: It involves that shift which completely represents new technology. It depends upon
need of people if people demand new products they shift the product in that criteria
(Kleinknecht, 2016). Thus, it indicates changes done in some way which is done in organisation.

Essence drinks product Mango Lassi is now shifted to some other thoughts which includes the
taste of Lassi but in some new flavour. This helps them to continue their taste and reputation in
the market.
The concept of funnel in relation to marketing is useful in terms of customers
perspective. In context of outsourcing is the basic model as it helps companies to examine their
customers and develop their taste in the products. Many a time, customers are not aware of the
products which are newly launched in the market, with this strategy it helps to know the
customer's retention period towards the products. The uses of innovation funnel to shape
innovative ideas are relating to one of the method as mouth funnel (Bain and Kleinknecht, 2016).
This means that it enables or gathers as much information regarding product availability and
accessibility in market. From this activity it clearly identifies that gathering as much information
and putting in a prescribed manner helps in producing an effective product.
Illustration 1: How to Create a Marketing Funnel that Generates Sales (Templates
Included)
Source: How to create a marketing Funnel that generates Sales, 2019
With this picture its is clearly demonstrated that the funnel procedure is important in marketing
process.

P4 Development in Frugal innovation and its examples
Frugal innovation means reducing the unnecessary cost from the product to enhance their
stability and durability inn the market for longer period. In this way they innovate the same
product with same quality but different features which are not required in the product. This
results in improving profitability of product by reducing its cost (DiMasi, Grabowski and
Hansen, 2016). For development of new product, frugal technology is helpful in following ways
as by protecting environment in terms of utilizing the resources. Due to the fastest growing
market techniques, this technology helps to make product differentiate and unique by providing
its usefulness to customers (Bason, 2018). With this method, firm can reduce cost of product
which is beneficial for customers and challenge to competitors to adapt the product.
Example in relation to Essence Drinks: In this case Akshay Kumar already engage their
product in relation to lassi and if they innovate the same product with different branding and
other qualities which differentiate from the previous products with low pricing and same quality
than it is considered to be frugal innovation. They didn't have to promote that products, they
launch the product in the same manner of the products but the presentation is different from other
but the taste is same.
M2
According to survey in market it helps them to gather more information regrading
failure of products and success of other products in market. As different ideas and thoughts came
up regarding product which they gather and analyse major aspect (Biemans,2018). Various ideas
bring up with one best ideas which help Essence company to implement that and generate top
position in the market.
M3
Frugal innovation plays a unique role in context of Essence Drinks. As Akshay Kumar
bring product in market at low rates and with less confidence that this product is successful.
Customers love taste of mango Lassi and with enter of third year product fails (Berry and Berry,
2018). They use frugal method to establish taste of Lassi and also cut off various changes to
make product pocket free.
D1
Innovation is always helpful for companies in many ways. Innovations are developed
when company not maintain their products at top priority (Etzkowitz and Zhou, 2017). They are

embedded and measured when customers shows lack interest in product and company occurs
losses due to non demanding of product. They measure changes and information for not
preferring products in the market. Innovation is measured as per the market survey and embed
according to the results generated from the survey.
P5. Explaining the importance of commercial funnel and new product development application
for processing innovation and commercialization
Commercial funnel referred as the process of buying that the enterprise leads to the
customers through at the time of purchasing the products. It also means the process from which
the corporate finds, sells and qualifies the products to its buyers. Commercial funnel is very
much important for reaching success in business world. Commercial funnel enables in picking up
marketing strategy. Marketing tools and business model that need to be adopted in the business
for succeeding as an entrepreneur comes from sales funnel. Sales funnel enables enterprise in
relating with their customers. By identifying and determining sales funnel effectively, company
can change products as per the needs, desire and specification of product to satisfy the customers
in a better way (Barbosa and de Pinho, 2016). More sales can be generated by using commercial
funnel as strategy can be build for marketing effectively which leads to attain higher sales which
in turn results in greater revenues. Through sales funnel large customers can be attracted towards
the product as it focus on interest and awareness section efficiently. Competitive advantage can
be gained by executing sales funnel because it gives proper understanding and reviewing the
production process by applying tested or tried systems to produce economic and quality
products. This in turn helps Essence drinks in growing its business and gaining success
pertaining to reaching the sales target.

New product development process
New product development process that will be followed by Essence drinks for bringing its
new range of energy drinks with different flavors as
Firstly idea will be generated in which brainstorming of innovative idea will be done.
Secondly, evaluation of an idea for coming up with the new energy drinks will be screened out
that it is worth to execute this idea or not.
Thirdly, concept will be defined relating to design, market potential and technical feasibility of a
product. The research will be conduct in terms of new idea. Then at the next stage, strategic
analysis will be made in which it is ensured that the idea fits into strategic plans of the business
nor not and identifying the demand, profit margin and cost of the product.
Thereafter, development and testing of the product will take place where a prototype will be
created for testing purpose.
After this, market testing of new product developed will be made in which alterations if needed
in the product will be modified as per feedback given by the customer, suppliers and
manufacturer (Da Rin and Penas, 2017).
Then, commercialization takes place where prices will be set for product and marketing plan will
be framed. Lastly innovative product will be launched in market.
Thus, these stages of the product development has the great impact on the success of the product
innovated in the overall market. It helps in knowing the response of the customers and the in
creating a unique positioning in the minds of the customers.

P6&M4. Preparing an innovation business plan for enterprise with inclusion of methods to
access funds
Business plan
Overview- As per scenario, due to continuous decline in sales of existing product our
Essence drinks has planned to develop a new product in range of energy drinks with different
flavours which will help specifically sports people, athletes and gym trainers in performing well.
Objectives-
To increase sales by 15% by end of 2019.
To enhance market share by 10% by beginning of year 2020.
To become a leading provider of energy drink till 2021.
Marketing mix
Product: Different kinds of energy drinks will be introduced as a product that includes orange
flavour drink, blueberry flavour and sugar free drink, Essence zero calories drink etc.
Price: Penetration pricing will be set for new product range in which lower prices are charged at
the initial stage for increasing sale and for capturing large market share. After creating
competitive edge in market, the prices will be increased profitability and to attain growth.
Place: product will be delivered to ultimate consumer through the retail outlets, supermarket,
malls, theatres, street stores, clubs, college and university canteen. The distribution network will
be direct selling from retail shops.
Promotion: Essence drink will use different promotional tools like advertising on Television and
on social media sites. Public campaigns and sales promotional tools such as discount offers,
combo packs etc. will also be used as an effective marketing strategy.
Competitor’s analysis

Essence drinks Blue charge
Product It will facilitate different range
in energy drink with different
flavours.
It only provides energy drink
with single flavour and not has
wide variety in its product
range.
Price Penetration pricing is adopted
by this enterprise so that
products can be delivered to
customers at affordable and
reasonable price.
It uses skimming pricing
strategy in which higher prices
are charged for new product
which will reduce its sales as
normal income group will not
buy it.
Innovation Timely innovation has been
made by this entity to remain
in market with sustainability as
it had initiated with mango
drinks which was unique at
initial stage. Now it will be
expanding in energy drinks.
No innovation and creativity
has been adopted by this firm
in its product range so it lacks
growth due to many
competitors entered in market.
STP approach
Segmentation: This strategy will be based on behavioural and psycho graphic segments where
in behavioural segment Personality and user status criteria will be included and in psycho
graphic segment life style and social class will be included. Ambitious personality and regular
and non-regular users will be focused on and middle class and upper class will be included.
Targeting: Differentiated targeting strategy will be adopted where different products will be
offered to different kinds of customers.