Innovation and Commercialization Strategies: Essence Drinks Case

This report provides a comprehensive analysis of innovation and commercialization strategies, using Essence Drinks as a case study. It begins by differentiating innovation from invention, highlighting the importance of innovation for business growth, customer satisfaction, and goodwill. The report explores the organizational vision, culture, leadership, and teamwork that shape innovation, emphasizing the role of democratic leadership and flexible culture. It identifies various sources of innovation, including demographics and market structure, and discusses how innovation is developed, embedded, and measured within Essence Drinks. The 4P's of innovation (product, process, position, paradigm) and the innovation funnel are analyzed to shape innovative ideas, with a focus on frugal innovation and its benefits, such as environmental limitations and fast-growing markets. The report also examines the value of the commercial funnel and the application of New Product Development (NPD) for commercializing new products, along with the creation of an innovation business case and methods to access funding. Finally, it identifies tools used to develop, retain, and protect knowledge and intellectual property within the context of Essence Drinks, concluding with an evaluation of the innovation's nature and its creation.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
P1. Innovation and determining its importance in comparison with invention...........................4
P2. The organisational vision, culture, leadership and teamwork that shape innovation............5
M1. Different sources of innovation and how companies can foster and create a surrounding
and culture of innovation.............................................................................................................7
D1. Innovation is developed, embedded and measured..............................................................7
P3. 4P's of innovation and innovation funnel to analyze and shape innovative ideas.................7
M2. Analyze and apply innovation funnel..................................................................................8
P4. Developments in frugal innovation with specific examples..................................................9
M3. Appraise the role of frugal innovation...............................................................................10
D2. Produce the financial reports..............................................................................................10
PART 2..........................................................................................................................................10
P5. Value of commercial funnel and application of NDP.........................................................10
P6. Produce in innovation business case and methods to access funding.................................12
M4. Produce a detailed innovation business case which shows its effectiveness using suitable
techniques..................................................................................................................................13
P7. Several tools that used to develop, retain and protect knowledge and intellectual property.
...................................................................................................................................................14
M5. Present supported evidence based evaluation of these various tools.................................15
D3. Critically evaluate the innovation’s nature and the context in which it is created and
catering evidence based judgements..........................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and Journals:...................................................................................................................17

INTRODUCTION
The report is discussing all about innovation and commercialization. Every organisation
work with innovation which leads to growth and development. The term innovation can be
understood as a method of producing something new into goods and services that creates value
in the market for which customers will spend their money. It also means of modifying the
business model as well as accepting changes in the environment to offer effective products and
services. Commercialization deals to launch innovated a new product in the market. Mutually,
both innovation and commercialization generates better opportunity for the companies to grow
and allows an effective dealing of business towards handling uncertainties and complexities
while operating their business in a particular market (Zahra, Kaul and Bolívar-Ramos, 2018).
This report is going to prepare on the Essence Drinks which was introduced by Akshay Kumar.
In this report, the difference between innovation and invention has been discussed to understand
the significance of innovation. 4P's innovation is mentioned to understand the roles and
functionality in any organisation and how frugal innovation accomplished rapid development of
the business. Application of NPD is mentioned for commercialization of new or innovated
product. Lastly, using case study of this report ways and intellectual property of innovation has
been mentioned below in context of Essence Drinks of Akshay Kumar.
PART 1
P1. Innovation and determining its importance in comparison with invention.
Innovation can be understood as an action in which new ideas has been created for
achieving long term success. In context of Essence Drinks, it is a small scale organisation that
offers healthy mango lassi to the customers in the market of UK. But, after few years of opening
their business their sales are significantly diminishing so the founder thinks to come up with new
and innovative ideas in their lassi (Santos, Abreu and Anes, 2019). Hence, the innovator puts a
suggestion to bring green tea lassi with papaya as it is tasty and healthy both this will help to
increase the immunity and soothe a sore throat of customers. The following are the importance of
innovation for the Essence Drinks:
 Innovation results in increasing sales and supports to generate profit for the organisation.
Also, new and innovative products aids as per the demands and requirements of

customers which also results in maximized satisfaction level and creates customer
loyalty.
 Innovation also help in developing goodwill which is very essential for any business into
its market place. It also helps in attracting countless number of customers which supports
in attending the objectives in a certain time period.
Apart from all this, innovation act as a growth and development method for whole
organisation and employees. In order to satisfy the wants and requirements of the customers,
Essence Drinks innovate their existing product that is mango lassi into green tea lassi with
papaya to maximize its sales. Likewise, innovation is different from invention (Odriozola-
Fernández, Berbegal-Mirabent and Merigó-Lindahl, 2019). The Essence Drink’s USP is lassi so
the founder wants to develop innovative products instead of replacing it from another invention.
Essence drink is not executing any form of invention as if it will change their USP then its sales
automatically decreased.
Basis Innovation Invention
Meaning It refers to the process of
creating new ideas into
current products.
It is the happening of
thoughts or ideas for products
that have been never existed
before.
Concepts These are the ideas which are
implemented in a practical
manner.
As these are the original ideas
and their process into
theoretical way.
Skills needed Several skills are required
such as technical, creative,
marketing, strategic and
many more.
Scientific skills are required.
Activities Its activities are performing
by every member of the
company
Its activities are bounded up
to R&D department of
company.

P2. The organisational vision, culture, leadership and teamwork that shape innovation.
When a product or service is innovated or commercialized, there are several
considerations which have been kept in mind such as organisational culture, vision, leadership
and teamwork (Salazar and Et.al., 2018). It is very obvious that the innovation and
commercialization approach is very broad in terms, consequently, it is to be make sure that the
objectives of organisation are not ignored. Also, the innovation is required a decent amount of
resources, managers of Essence Drinks observe their innovation activities with predetermined
objectives. In Innovation process, there are different operational work are supervised and is
being ensured for the accomplishment according to the desired standards and quality of results
with optimum utilization of resources. In context of Essence Drinks, the company's vision,
culture, leadership and teamwork can definitely influence the innovation and commercialization:
Vision of Essence Drinks-
The vision of Essence Drinks is to provide nutritional beverages to their customers in UK
and expand their business at international level (Dickens, A., 2020). So, the vision has great
influences over several innovative actions and such actions are bound to vision of the company.
Leadership in Essence Drinks-
Essence Drinks follows the ‘democratic leadership style’ in their business. This will
allow business to work effectively and adopt culture internally. This type of leadership style
influences innovation and commercialization process. It also allows to work with flexibility in
the planning process and will also overcome challenges and threats of company.
Culture of Essence Drinks-
When an organisation is having flexible culture then it is well appreciated and followed
by its members. In context of Essence Drinks, this facilitates better growth opportunities in terms
of defining plans for innovation and commercialization in an operational market.
Team work in Essence Drinks-

The spirit of teamwork is promoted in the respective organisation (Gutterson, 2020). It is
believed by the employers that allocating a certain task in a team offers a better opportunity to
utilize resources in an effective way.
M1. Different sources of innovation and how companies can foster and create a surrounding and
culture of innovation.
There are various sources of innovation which are discussed below:
 Demographics: In context of Essence Drinks, demographics decide that which product
should be modified and in which market.
 Market structure: It refers its commercialization process. It presented that how modified
products get introduced in the global market.
 Changing perception: Every customer has different perceptions and different tastes. In
context of Essence Drinks, innovative tools are being used as per the different
perceptions of their customers.
D1. Innovation is developed, embedded and measured.
Essence Drinks has been operating their business for more than 2 years where managers
are planning to develop innovative products in their business (Barnett, 2021). The founder of the
company does not want to switch existing product to the new product instead they want to
innovate something new in the existing products in order to enhance their sales. While
considering their goals of the company they are required to discover several activities that would
lead their business towards success.
P3. 4P's of innovation and innovation funnel to analyze and shape innovative ideas.
Innovation mix includes 4P’s which are much practiced by the organisation. In context of
Essence Drinks, the 4P's are mentioned underneath:

 Products: Essence Drinks highly focuses on the product innovation as this is the thing
that will be facilitated to their customers. It is very essential for the companies to try to
make some incremental variations so that their existing product looks more attractive to
their potential customers.
 Process: Process is the method through which a product or service is delivered to the
potential customers (Kadir). This does not only cover the preparation process of any
product or service but also include all the phases such as workflow, supplying, employing
people and training. It is anything that can do to enhance the process within the
organisation so that they are more efficient, quicker and cheaper. In context of Essence
Drinks, they are also focusing on to identify the best processes that will produce more
goods and services for their consumers with affordable prices.
 Position: Position refers to something that an organisation tries to offer their products
and services that can position in the minds of consumer. The founder Akshay Kumar is
very well understood that without having a good perception about their goods and
services to its consumers, it cannot attract the customers.
 Paradigm: It is that phase in which company tries to identify the reasons why they do the
activities in their company. In context of Essence Drinks, the managers of the business
identify the best method of conducting their business so that radical change become
appropriate to all the members (Mowery and Et.al., 2020).
Innovation funnel-
Innovation funnel can be determined as the initial step in creating new concept, product or
service. It is an outgoing process which covers innovative ideas that must be evaluated to

demonstrate outstanding ideas. The main purpose of innovation funnel is to conduct various
creative training programs to evaluate if a particular idea is useful or not. It allows management
through brainstorming sessions to get a range of fresh ideas and optimum utilization donates to
the sustainability in the supply of goods and services. In context of Essence Drinks, an effective
funnel development may support to create innovative strategies to increase profitability and
sales.
M2. Analyze and apply innovation funnel.
Innovation funnel help to promote certain products and services and enhances
commercial activity, consequently facilitating large scale manufacturing at reasonable prices.
When commodities are provided at affordable prices it will support organisation to boost their
sales. The major contribution improves profitability and sales of the organisation. With the
support of its productivity, an organisation enhances its performance in the market (Zhao, Jiang
and Wang, 2019). Also, Essence Drinks may use latest technologies to produce an affordable and
efficient product which may be done through implementing low-cost innovations that help in the
development of company through influencing prospective customers. Hence, this will allow
Essence Drinks to get better results and improve income that will help to gain competitive
benefits.
P4. Developments in frugal innovation with specific examples.
As a process, frugal innovation identifies new models of business, redesign products and
services which the potential customer may consume to reform the correct value chain. This make
sure that there are limits on accessibility. It involves crucial process that provide products and
services at very affordable prices to the ultimate customer. The goal of frugal innovation is to
generate importance of money that is very significant to grab large market shares. This refers to
the scalable and sustainable concept which covers emptying and conquering significant
resources. Due to such benefits, the founder Akshay Kumar has executed frugal innovation to
give products at low prices in order to generate sales and profits for the company (Hepburn,
Pless and Popp, 2020). Also, the practice of frugal innovation is very crucial because:
 Environmental limitations- This is related to water, energy or climate resources as it
boosts the demand for more frugal models of production and consumption.

 Fast growing markets- This includes growing and emerging economy where frugal
products and services demand is high.
 New technologies- Nowadays technologies play a very important role as this will
drastically decreasing the prices of some kind of innovations, providing new
opportunities for frugal innovators.
Example- The Essence Drinks operate their business in UK’s market. In order to identify the
demand and supply which is ready to identify the technique engaged in frugal innovation make
sure about the preferences of customers of particular country. A potential customer involves of
an advance consumer who apprises the information for future brand value to focus on
introducing new and creative products throughout the intricate functions. This will ensure the
large market share of company to target with the support of frugal innovation and profitability.
This will protect the market segment of UK’s portion which is accessible with correct utilization
of resources.
M3. Appraise the role of frugal innovation.
The founder of Essence Drinks is highly concentrated on the achievement of low-cost
innovation which is suitable and acceptable to use in the correct preparation of nutritional drinks.
The corporate department conduct surveys and reviews customer’s feedback so the operating
cost can be minimized (Godin, B., 2019). The techniques and information will be extensively
used with an intention to reducing the cost of product while employing various opportunities in
business operations, the founder delivers a range of product.
D2. Produce the financial reports.
Requirements Cost
Costs of fruits 4000
Machinery and Equipment 2000
Labour 1000
Production costs 2000
Advertising costs 1500

From the above table, it has been cleared that the costs needed for the manufacturing the
new product are divided into costs of fruits, machinery and equipment, labour costs, production
costs and advertising costs which all are necessary for the new product development and its
commercialization.
PART 2
P5. Value of commercial funnel and application of NDP.
Commercial funnel can be understood as a visual representation of a product which is
related with the implementation of creative ideas to the existing products and services.
Commercial funnel is also known as sales funnel. Commercial funnel has diverse characteristics
such as supporting the manufacturer for managing the demands of customer in the market. In
context of Essence Drinks, commercial funnel has five steps which are discussed below:
Attract: It is the first step in which customers are invited to buy the creative and
innovative products and services of a brand (Kharb, 2018). As a string organisation is needed to
invite consumers towards their brand with different flavour of lassi with an assumption that their
consumers have no idea about the goods and services delivered by the firm. Essence Drinks is
required to adopt few marketing activities such as advertisement, promotional activities and so
on to create awareness about the new product and services but also in a cost-effective method.
Convert: This is the stage in which organisation is required to make optimum use of
strategies while maintaining regular connection with their consumers so that the customers are
aware that about their offerings. In context of Essence Drinks, they can utilize phone calls,
emails and many more to maintain their regular connections so that they can convert strangers
into new customers for their new flavored lassi and make changes effectively.
Close: Essence Drinks is highly focused on to boosting their sales with the support of
some efforts such as increasing trends of healthy drinking due to the covid-19 situation, it is the
requirement to have strong immune system. It offers an opportunity to attract more customers
towards brand and improve their sales.

Delight: This is the last stage which signifies happiness. In context of Essence Drinks,
they are required to take care that their consumers will help to boost the sales and increase
overall revenue with the use of drinks and must be happy after drinking their healthy drinks.
New product development in Essence Drinks requires to take few steps that are very
important for the implementation. Commercial funnel will help in the development of new
product by improving sales but to make utilization of commercial funnel is required to take
important steps for the NDP which are given underneath:
Idea generation- It is the first step in which new ideas are developed with the help of
brainstorming among employees for the development of new product.
Idea screening- In context of Essence Drinks, this step needs to screen the generated
idea by the employees and filter the best among them.
Concept of definition- Essence Drinks is required to determine some specifications
which is needed for the selected idea such as technical feasibility, market potential, design,
availability and possibility of the opinion.
Marketing strategy development- In the market strategy development, the respective
organisation is needed to take a few steps on marketing strategies like description of target
market, rising marketing budget and many more (Bröring, Laibach and Wustmans, 2020).
Business analysis- This is the stage in which business is analyze their ideas in terms of
sales, profit as well as cost so that they can support the effectiveness of activities in the business.
In context of Essence Drinks, this business analysis will support to implement idea in a cost-
effective way.
Product development- This is the stage in which new product is finally developed.
Essence Drinks is able to deliver the varieties of drinks to their customers with an innovative
approach.
Test marketing- In this stage, a company is required to offer some samples of the new
product to the customers so that they can be able to analyze or test whether the products are like
or not by their customers.