Higher Nationals Business: Innovation and Commercialization Report

This report analyzes the innovation and commercialization process, using Essence Drinks, a UK-based beverage company, as a case study. It covers the conversion of ideas into products and services, emphasizing the importance of creating value for customers. The report details the commercial funnel, new product development stages (idea generation, screening, concept development, business analysis, product development, test marketing, and commercialization), and the development of an innovation business case. It also explores marketing strategies, funding sources, and the protection of intellectual property through patents, trademarks, and copyrights. The report concludes that innovation and commercialization are crucial for business success, leading to increased sales and profits. References to relevant academic sources are included.

Innovation and Commercialization
Lo 2 and Lo3

Introduction
 Innovation and commercialisation is defined as the process of converting
of an idea and invention into services and products.
 It is important for different organisations to create value and reputation in
front of the customers and stakeholders.

Importance of commercial Funnel
 Commercial funnel is defined as the journey of a customer while buying
any product from the company.
 The commercial funnel is defined as the visual representation of journey
of customer that estimates the process of sales from awareness of product
to action.

New product development
 This company has developed new range of product
and created innovation in lassi i.e. Orange lassi.
 For solving the health related problem present in the
lassi, it is resolved by adding antimicrobial
packaging.
 The new product offered by Essence Drinks
company is making a new change

Idea generation
 This is most important step in development of new product in the
company.
 This stage includes new ideas and creative thinking that is added by
individuals in a product for attracting more number of customers

Screening
 This is the second step which is called as screening and this is known as
screening.
 The idea generated by the company for product innovation must include
effective ideas.
 The idea developed in Essence drinks is Orange lassi and this is a good
innovation for attracting customers towards this product.

Development of Concept and testing
 The third step of development of new product is concept development and
testing.
 Concept development is defined as detailed strategy and blueprint of the
idea of innovative product.
 When a company develops a new idea in any product, it is essential for the
organisation to make it presentable and this is called concept.

Marketing Strategy Business Analysis
 An effective marketing strategy is developed in the organisation for
analysing how to spread awareness of the new Lassi in market.
 Business has to analyse the market before launching product for
estimating the success of product

Product Development
 When all the strategies and new innovations of the product are approved,
then the concept in the product will be transformed into the actual
tangible products.
 This is a development stage of product hat results in development of
prototype or a model of limited production.

Test Marketing
 The test marketing is an essential step in the product development and
according to this step it is the process of testing the marketing programs
which is launched for introducing new product i.e. Orange lassi in the
market of UK.

Commercialisation
 This is the last step of new product development process. In this step, the
product is ready for introducing it in marketing
 The final decisions for marketing the product effectively are made. In this
step, entrepreneurs have to decide which market has to be used for
launching this Orange Lassi.

Build an innovation business case
 A business case is defined as the successful exploitation of new and
innovative ideas into business that can improve the process of the
company.
 It can bring new and improved products and services in the market.