Analysis of Innovation and Commercialization for Essence Drinks, UK

This report provides a comprehensive analysis of innovation and commercialization strategies, focusing on the case study of Essence Drinks, a UK-based company experiencing declining sales. The report begins with an introduction to innovation and commercialization, contrasting innovation with invention, and then delves into the organizational factors shaping innovation, including vision, culture, leadership, and teamwork. It explores the 4Ps of innovation, the innovation funnel, and the development of frugal innovation. Furthermore, it covers the commercial funnel and the development of a new product. The report highlights the importance of continuous improvement, unique selling points, and the role of leadership in driving innovation. It also offers insights into the challenges and opportunities for Essence Drinks, providing recommendations for product development and market positioning. The report emphasizes the importance of adapting to market demands and leveraging various strategies to enhance product offerings and achieve long-term business growth.

Innovation and
commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
TASK 1............................................................................................................................................4
Innovation and comparison with invention.................................................................................4
Organisations vision, culture, leadership and teamwork shaping innovation and
commercialization........................................................................................................................5
4P’s of innovation and innovation funnel....................................................................................7
Development of frugal innovation...............................................................................................7
Commercial funnel and development of a new production.........................................................8
CONCLUSION..............................................................................................................................11
References......................................................................................................................................12
Books and journals:...................................................................................................................12

INTRODUCTION
Innovation is an essential element and practice for every organisation who aims to achieve long-
term business growth during the whole business life. Innovation is a process of developing new
product ideas and concepts to give them a new life by using creative and innovative mind set.
The more innovation takes place in the organisation the more it will provide customer
satisfaction. Whereas, commercialization is a process of regulate innovative product and services
into new or existing market. This report is going to present on the case study of essence drinks
the company was established before 2 years ago in UK (Addie, Angrisani, and De Falco, 2018).
The main product of the company was a (healthy mango lassie) which is an innovation that took
a high growth into the market. Now the company is facing many losses and declining of sales. So
that, this report is going to present innovative solutions with regards to innovate and invention by
showing companies culture. Also, the suggestion for new product by analysing the concept of
innovation funnel, 4 P's of marketing and innovative business case with the evaluation of
different organisation property. Moreover, the report will present the importance of commercial
funnel and frugal innovation in respect of new product development.
MAIN BODY
TASK 1
Innovation and comparison with invention
Innovation: It is the concept of making new product by giving it new features, size and shape
colour and price also. A product will be come out with an innovative feature that the organisation
launches into market with a brand tag and its property right. This innovation is not only leading
to product change but also gives change in company's culture and operations. The essence drink
will try to make innovation in their drinks by giving it a new life. The term innovation can be
more clearly state by below definitions:
Innovation is a process of taking actions to bring a positive change which shows a magnificent
outcome. Innovation performs a drastic role into organisations to with the demand of market and
consumers.

Innovation is also known as something that requires modification and up gradation into existing
practice or process of business. This lead to bring results into new and creative manner (Umarov,
2019)
.
Innovation is important for Essence drink to look back into their process and business practice
and find some change to bring an innovative outcome (Stenberg, 2017). It gives benefit of new
product development and keep the customers retain by experiencing difference products and its
features.
Invention: Invention is a concept of making a brand new product and concept which is one of the
kinds in the market. Invention is basically required high investment and a total new strategy.
This invention brings a unique product which is not existing into market (Giannopoulou,
Barlatier, and Pénin, 2019). The essence drink look for making invention for the company in
every year by launching 2-3 new products into market. Although, a healthy (mango Lassi) was
one of the invention of the company.
Comparison among innovation and innovation
Basis Innovation Invention
purpose The main purpose of innovation
is to maximize the profit by
making a slight change into
existing product or service which
also influences the customer to
take an experience of new
product feature.
The main purpose of invention is
to develop a unique product
which is nowhere into the market
to gain brand image and increase
popularity.
Requirement Innovation is requirement of
every business who works on
global level. It is required to
attract customer by giving
different features which and a
reason for come back. Innovation
is also quite risky if the product
Invention is not necessary for
every business as it depends on
the aim and objective to and
mangers have creative mindset to
develop a whole new product.
Invention requiring a lot of
financial committee of

is not liked by the customers that
will demand for another
innovation and changed into
product feature or lookout.
organisation and to launch a new
product into market without
knowing its response and market
share.
Therefore, invention is an essential for every organisation to take enormous growth in to market.
As it is discussed, innovation comes along with some risk which are discussed below:
Require improvement: the main risk involved into innovation is to improve the product at
continuous basis. Regular improvement will keep the product new for customers and enhance
their arrival. The (Mango Lassi) by essence drink needs to be improved by making different
flavours into the recipe so that customer will get urge to try different flavours.
Unique selling point: due to having large competitive market, an organisation needs to have
something unique in their product which could be compared with other competitor Hausman,
2017). The unique selling points of essence drink are their mix collection of tonics, soda and
gingers which give a unique flavour to their drinks.
Organisations vision, culture, leadership and teamwork shaping innovation and
commercialization
In order to attain innovation into the organisation, it requires a lot of dedication and support from
the operational and departmental factors of organisation. The goals and objectives to bring
innovation could only be accomplished by below mention factors:
Organisational vision: is it is necessary to analyse the objective and set a vision of the company
where they want to go and how will get achieve. The vision shows companies organisations
lookout which they want to achieve in an upcoming future. The vision of essence drink is to
innovate 4 to 5 product products in every year ( Li, and Mupondwa, 2021). The vision also
includes making regular improvements and innovation into this product which give a unique
experience to customer and increase the brand name.
Leadership: in order to bring a change and innovation into the organisation, leaders play an
essential role to regulate all the new strategies and make their innovative mind ready bringing up
a new way of working. In context of essence drink, there are number of leaders who make their

effective contribution in running organisation fruitfully (Kobarg, Stumpf-Wollersheim, and
Welpe, 2018). They adopt a democratic leadership style in which main focus is on decision-
making criteria by involving the participation of employees as well. As the company require
innovation into their drinks this leadership style will be effective as it take the ideas and thoughts
of other employees that could be beneficial for fulfilling company's vision and objectives.
Culture : the organisation work into a dynamic environment let make them influence to enable a
culture and values into the organisation. The cultural shows policies and ethics organisation
undertake while carrying out the business practices. The essence drink needs to maintain a
culture of change and innovation at a quick interval (Asgari, Zakery, and Pishvaee, 2021).
. This culture will help the employee to adapt and make a habit to think in an innovative way
which will bring a positive ideas and innovative strategies. The company needs to make
participation of number of individuals in order to get pool of new ideas which will be helpful to
analyse the taste and preference of customers as well.
Teamwork: the employees are the major factors in bringing the innovation achieving
organisational objectives. Employees make a great team to carry out organisational vision into
success. The essence drinks is a company who mainly focus on great teamwork and Corporation
among employees is far seen (Lomachynska, and Podgorna, 2018). Therefore, it is essential to
have contribution of of every team member achieving the productivity and influence others to
work in the same manner so that the essence drink will achieve a great level of market image.
When all the employees join hands together this will be the only way to achieve the objective in
a desired manner. As the employees and the leaders are only doer of the company that market
and produce the products into practical manner.
Therefore, all the three elements that our culture leadership and teamwork is essential to
bring Innovation and commercialize the products by their potential capabilities and knowledge of
team members. And innovation comes by facing failure and mistakes which will bring new ideas
in more prominent manner.

TASK 2
4P’s of innovation and innovation funnel
There are many ways of regulating innovation into organisation. But the innovation is related
with the products in essence Drink Company. This will be done by with the help of 4 P's of
innovation which are described below:
Product: it is the first and foremost factor on which the whole innovation is depend upon. The
product must be valuable and meet with the requirements of customers (Pikkemaat, Peters, and
Chan, 2018). The essence drink innovate their product by adding more flavours and a give them
new and exciting names so that customer's will get attract towards it.
Process: the procedure of making products with step to step formulation is known as process.
The process decides the whole look out and outcome by putting input and ideas in its making.
The essence drink company needs to process the idea of innovation through many sources and
get the best out of them which is most suited as according to company’s objective.
Position: once the essence drink company will process the idea of innovation there will be need
to set and decide it position the product must be hold into the market. In order to do so, a proper
market research needs to be done by the essence drink so that the product will hold unique and
rare position which will give long term benefit.
Paradigm: this element is the last but the most important from all. It refers to the practical
implementation often awaiting a product or service through which many issues and challenges
come around for organisation (Prifti, and Alimehmeti, 2017). The practical implementation will
show so all the possible hurdles that need to be overcome at that time only so that it will not
affect the idea of innovation and bring the desired outcome.
Innovation funnel: it is a type of approach or systematic way of performing innovation into many
companies. It is also known as development funnels which carries out all the development
process of a product (Gault, 2018).. It starts by researching substitute options to transfer inputs
into output and start product development by gathering all the ideas and resources.
The use of innovation funnel:

 It is use to investigate about products and productions options to bring a cost effective
innovation.
 It is used to grab the most effective opportunities of ideas which could be put in
development process of products (Yun, 2017).
 It is useful to get successful output by undertaking the approach of innovation funnel.
Development of frugal innovation
The frugal innovation is a concept of changing the look and features of the existing product by
not wasting the resources fully. Frugal innovation technique is most effective in all the terms for
organisation fulfil the aspect of bringing change by doing flight modifications into the product.
Identification of frugal innovation: the essence drink company needs to first analyse and
identify in which product they need to bring change and in which feature. This frugal innovation
is used when the company could not involve more cost and needs to work into existing
resources.
Reducing problem: After deciding the strategy of frugal innovation, there is need to eliminate
problems and start making products by performing step by step changes (Si, and Chen, 2020).
Collect all the resources and put them into production.
Reducing patterns: under this strategy, the essence drink company will eliminate all the
unwanted ideas of innovation and will stick to the one which is most suitable for the
organisation.
Pattern system: in to this last but most efficient stage of frugal innovation, the company will
select the most prominent pattern and start working on it which will give a final piece of work
into a limited time period.
Frugal innovation and organisation
The frugal innovation gives a number of benefits to the organisation which are necessary to
undertake before leading towards change and innovation into products and services. These
benefits are described below:
Product development: this is one of the most essential benefits that an organisation could attend
by performing innovation into company. The essence drink will able to utilise their scared

resources in making product development effectively. This could be explaining by a good
example of Tata Nano car in India, the company has reduced its cost and expenditure and bring a
new car for just $2000.
Market analysis: as it is fact that innovation requires use cost to generate ideas and Research the
market. But in case of frugal innovation, market analysis is become simpler to understand a
slight change by looking to the existing feature of product. For example, the MIT bring concept
of 100 USD computers by using low cost machine but develop low power computer to support
education for children (Agarwal, and Brem, 2017).
.
Use of resources: the organisation could make a proper and Optimisation use of their resources
by use of frugal innovation into the process (Wang, Wang,. and Fan, 2018). This will bring
innovation in a less cost and make resources fully utilised.
TASK 3
Commercial funnel and development of a new production
New product development (NPD)
The new product development is the procedure which described as those Technologies
which is applied by the organization in order to maintain the innovation of the product so that
they can increase more competitive advantages in the Marketplace. It is analyzed that there are
several companies which are engage in maintaining the innovation in the Marketplace with their
services and goods so that they can increase the customer base and increase the profitability and
sales of the organization. In the context of acids drinks organization this is also engaged in
product development and innovation of their product and services in order to increase their
profitability. There are few stages of new product development which is mentioned below:
Idea generation:
This is the first step that is applied by the organization in order to generate new ideas about the
product and modification in the product. In order to innovate new product this Finance team is
always engage in so that they can maintain the budget and accordingly innovate their product.
Steps of the new product development:

Concept definition: It is analysed that to maintain and innovate the new product and services in
the Marketplace it is very required for the organization to collect the information and data about
the preferences and needs of the customer. The major reason for the company which make them
capable to gain more competitive advantage is continuous development and research in the
Marketplace.
Analyse market: It is also very important step for the company to another lies the market and
their requirements in order to introduce new product in the market place. Essence drink is always
analysing Marketplace and the requirement of the consumers so that they can increase their
profitability and increase the popularity of their new product (Adams, Freitas, and Fontana,
2019. This step helps them to get more information about the Marketplace and achieve more
success for the company.
Developing product: After a good research about the requirements of the consumers the next
step which is development of the product. It is analyzed that the development of the product
needed management of the activities and Consumers so that it is become easy for the
organization to achieve more profitability and get more success within the Marketplace.
Commercialization: this is the last step in order to develop new product and it has been
analyzed that the product and services which is introduced in the market is more essential to
maintain the sales and profitability of the company in order to attract more consumers.
These are steps which help the company to develop new products and Services according
to the requirements and Desire of the consumers so that they can increase and get more
opportunities and raise their profitability in the Marketplace. This strategy or concept also help
them to attract more consumer towards the company and maintain their efficiency and
effectiveness in the Marketplace.

CONCLUSION
This report has concluded that, innovation is a must essential factor for every
organisation in order to give customers a new experience of products. The report had shown an
effective comparison of innovation and invention by knowing its impact on culture and
leadership and teamwork also. Moreover, the frugal Innovation and its development is also
emphasized into this report which bring out some important benefits of enabling frugal
innovation system.