Innovation, Commercialization and Business Case: Essence Drink Study

This report explores the concepts of innovation and commercialization within a business context, focusing on Essence Drink's introduction of a strawberry-flavored Lassi. It emphasizes the importance of the commercial funnel and new product development (NPD) processes, detailing stages such as idea generation, concept definition, market analysis, product development, and commercialization. The report also constructs an innovation business case for Essence Drink, considering funding sources like bank loans and retained earnings, and discusses methods for measuring the effectiveness of the business case, such as benchmarking and key performance indicators (KPIs). Furthermore, it evaluates various tools that organizations can use to develop, retain, and protect knowledge and intellectual property, including patents, trademarks, and copyrights, highlighting their advantages and disadvantages. The report concludes by underscoring the significance of innovation and commercialization for organizational growth and competitive advantage.

Innovation and
commercialization
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Introduction
Every company in the economy deals with the innovation to have growth and
development which starts with the invention. For the company the innovation is the important
aspect which display the challenges influencing between the competitors. The term innovation is
the interactive process which matches the needs and desires of the clients to fill the gaps of the
knowledge regarding the product conception, design, marketing etc through the technological
competencies (Cao, S and et.al., 2019). The commercialization helps in introducing the new
product in the market. Every business firms wants to attain the competitive advantage by
introducing the new policies or products in the innovative manner. In the study the Essence drink
is taken which will introduce the strawberry flavored Lassi. In the study the discussed topic is
based on the importance of the commercial funnel and new product development, further it also
develops the business case and ways to access the funds. In last it evaluates different tools to
develop and retain knowledge.
ACTIVITY 1
Covered in the Brochure
ACTIVITY 2
P5 Importance of the commercial funnel and the application of new product development
(NPD)
The commercial funnel is also known by the name of sales funnel which demonstrates the
consumer journey towards the purchase of service or product. In the commercial funnel the sales
process starts with the awareness of the customers and their problem is identified. It is the
process where the company generates the more leads and engages more customers. In the context
to the Essence drink the commercial funnel is important aspect. The company attracts the
customers with the help of commercialization by modifying products and services more than
usual. Thew main objective of the commercial funnel is to generate the profit through different
activities of marketing to selling (Davies, G.H and et.al., 2021). In the commercial funnel
different phases are included which makes the products efficient of the company. The
commercial funnel is very important as it leads to the company success by finding innovative
ways to make new product sop that more appeal can be created for the customers. The company
takes the help of research and development to create new products which also leads to
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improvement in the present condition of society. The company of Essence drink quickly adopts
the marketing strategy for the generation of more sales.
New product Development Process:
The new product development is the process which defines the essential approaches that
are essential in the introduction of new product or service in the market. The core methods are
identified so that the sales of the company can be increased by developing this procedure in the
time of market emergence. The process of the new product development includes various steps.
 Idea generation- It is the systematic process where new product idea is generated from
the external and internal sources. In accordance to produce the product in respective to
need and demand of the market the new initiative and ideas are created regarding the
present product. The essence drink produces the flavored strawberry lassi according to
the young generation by focusing on the current generation and to go for production.
 Concept definition- In such the product specification is made to the customers through
the company where the essence drink uses various steps to display the variety of flavored
product of lassi in which the strawberry lassi is one. The product is differentiated from
the other which can be also included in this step. This helps the essence drink to show
itself different from the other in the market (Eklinder-Frick, J.O and et.al., 2018).
 Market analyzing- It is very essential to analyze the market before introducing the
product in the market. The market analysis includes the market conditions, demand,
customer preferences etc. before the introduction of the product. In the same way the
essence drink analyzes the market and targets market in accordance to the customer’s
demand. The price of the product is set according to the satisfaction of customer.
 Product development- After the analysis of the business the product development work
is hand over to the research and development department which goes through various
testing. The product is established and deliberate in certain manner to attract the large of
customers. The product of the essence drink is developed and designed is such a way so
that customers can be attracted easily (Hasan, S.M and et.al., 2017).
 Commercialization- It involves the exhibition of the product in the market after testing.
In this process the final decision is taken whether to launch the product or not. It is the
final stage of the NDP process known as commercialization which is basically related to
the launch of new product of the essence drink of strawberry flavored lassi and high cost
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is incurred. It also requires the marketing efforts, sales promotion and advertising.
P6 Build an innovation business case for an organization, including ways to access funding.
To work efficiently in the organization the innovative business case is made through which the
company is able to measure the performance and for the future task the idea is delivered. The
essence drink is the manufacturing of the soft drink which also launched the strawberry flavored
lassi. To have the innovative business case it involves the new product development process,
pricing strategy, and customer awareness program. In the implementation of the business
innovation the funding is the vital aspect. From various sources the funds can be collected for the
launch of the product.
Bank loan- The company can get funds in the form of loan by fulfilling the minimum criteria
and the interest amount is set by the bank. The loan is offered for the objective of the short term
and long term (Lim, S.S. and Sonko, L.K., 2019).
Retained earnings- The company sells the product or service to earn the profit. The net income
left over after the payment of expenses and obligation is called as retained earnings which is used
for the business growth and invested in the new project.
Executive summary The planning is made by the essence drink in the launch of new
product which is flavoured strawberry lassi so that large segment of
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the new customers in the market can be attracted.
Objectives  The company aims to increases the sales to have the more
profit generation.
 To develop the exclusive and fresh flavour of lassi for the
customers.
Solution The essence drink launches the new flavour of strawberry lassi to
achieve the objective so that peoples can enjoy the new flavoured
product on every season and to increase the taste. The company
differentiate itself from the others
Innovation in service The company essence drink will launch new product or innovation to
have the customer satisfaction by making the use of fresh strawberries
in the lassi so that it can provide the original and authentic taste
which will help in the increasing demand and attracts more
customers.
Research The market research can be conducted by the company Essence drink
to gather sufficient information and knowledge from its external as
well as internal source that in what way the new offering can be
introduced in the market which has the capability to fulfil the needs
and demand of people.
Funding The essence drink can opt for bank loans or the retained earnings so
that it can turn its idea into a reality (Pereira, A.R and et.al., 2020).
Benefits This innovation will help the customers to get the enhanced level of
satisfaction after consuming the lassi in new flavour which is being
prepared from the real strawberries so that its authenticity is
maintained and higher satisfaction is gained from the customers.
Techniques for measuring effectiveness of business case
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The benchmarking and key performance indicator (KPI) can be used for measuring the
effectiveness. As KPI is a quantifiable measure for performance for specific objective. This also
helps in organization making better decisions. The benchmarking is used for comparing the
business processes and performance metrics with other competitors.
P7 Different tools that organizations can use to develop, retain and protect knowledge and
intellectual property
In the business the protecting ideas is the important consideration. It is very essential to
safeguard the ideas and protect the business practices. There are various ways which are
responsible in the protection of the company confidentiality.
Patents- The Essene drink uses to protect the plan, creation and other intimate of the company. It
helps in offering the technical solution which is defined as the exclusive right for the invention to
do something in the general way. The other business cannot do the business of the same product
if patented by the business which helps in remaining of the competitive advantage position. The
advantage of the patent is it stops the others from copying, manufacturing or selling without the
permission of the important invention. The predetermined period is stated for the protection. The
disadvantage is it is the costly and time-consuming process. The patent application of the
invention is publicly available to the technical information which also makes the process lengthy.
The suitable example in context to Essene drink can be utility design, product design.
Trademarks- The products are distinguished from the competitors which establishes the
trademark. It helps in creating the good relationship with the customers so that they can relies on
the business products. To enjoy the legal protection, it is the brand of the brand. The advantage
of the trademark to the business is there is no statutory constraint and have the statutory life
which is very simple and economical for the Essene drink. The disadvantage is it do not provide
the guarantee for the product protection and takes the registration. The trademark is available for
the period of 10 years after that it is renewed (Son, H and et.al., 2020).
Copyrights- It creates the restrictions on the business not to copy or imitate the products to do
he business. In the copyright option the creator is in safety position which gives the right to those
business who invents the new category of product that is intellectual in nature. It is related to
work of source. The advantage of the copyright has long statutory life which do not create
financial action. It is easy to enroll where the creator gets the security and proprietorship for the
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copyrightable work. The disadvantage of the copyright is it secure the idea statement that there is
the protection of idea not the idea itself. The suitable examples can be business proposals, annual
reports, graphic design and website content.
The company is required to follow some legal requirements and formalities before
adopting any tool or service.
Importance of Intellectual property
The importance of IP leads to property protection for fostering innovation. It drives to
economic growth and competitiveness. The IP is important in setting nosiness apart from
competitors, offers customers something new and different. The IP are the valuable assets for the
organization.
Conclusion
The innovation is the important tool for the organization wh9ich helps in maintaining the
good culture which boosts the innovation practices more. In the same way the concept of
commercialization is very important and each firm is dependent on such approach to have the
success. With the help of the commercial funnel and new product development the new product
is launched which increases the customer base and brand loyalty with high goodwill. It also
considers the various activities in directive to protect the idea of the business. The company
develops the business case to evaluate the performance so that it can achieves the objectives and
maximize the profit.
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References
Books and Journals
Cao, S and et.al., 2019. An Ontology-based Bayesian network modelling for supply chain risk
propagation. Industrial Management & Data Systems.
Davies, G.H and et.al., 2021. University knowledge spillover from an open innovation
technology transfer context. Knowledge Management Research & Practice, 19(1), pp.84-
93.
Eklinder-Frick, J.O and et.al., 2018. Innovation in a globalized world: Proximity-focused policy
and border-crossing innovation projects. IMP Journal.
Hasan, S.M and et.al., 2017. Supply chain performance improvement within collaborative
product development environment. International Journal of Business Performance and
Supply Chain Modelling, 9(4), pp.261-279.
Lim, S.S. and Sonko, L.K., 2019. Linking corporate sustainability and innovation in supply chain
management–evidence of a Taiwan leading glass recycling company. Technology
Analysis & Strategic Management, 31(8), pp.957-971.
Pereira, A.R and et.al., 2020. A knowledge representation of the beginning of the innovation
process: The Front End of Innovation Integrative Ontology (FEI2O). Data & Knowledge
Engineering, 125, p.101760.
Son, H and et.al., 2020. How can university technology holding companies bridge the Valley of
Death? Evidence from Korea. Technovation, p.102158.
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