Report: Innovation and Commercialization Strategy for Essence Drinks

This report analyzes the innovation and commercialization strategies of Essence Drinks, a UK-based company initially selling mango lassi. Facing declining sales, the company needs to innovate by introducing new product variants (orange, salted, and strawberry) to compete in the market, attract a larger audience, and increase sales. The report explores the 4Ps of innovation (Product, Process, Position, Paradigm) and the innovation funnel, detailing steps like investigation and concept development. It also examines how organizational vision, leadership, culture, and teamwork shape innovation, emphasizing the importance of clear goals, positive leadership, and a collaborative work environment. Furthermore, the report highlights the differences between innovation and invention, and the significance of protecting knowledge and intellectual property.

Innovation and
commercialization

INTRODUCTION
Innovation and commercialisation is an important element in the organisation. It
involves creating new ideas and it also involves creation of new and unique products in the
marketplace. Innovation comprises of process which involves identification of new ideas and
thoughts that can be in the from of device and different methods. Where as commercialisation
involves launching new goods and services that an organisation will be producing in the market .
Under this report the organisation taken is Essence drinks which is situated in the United
Kingdom. The owner started selling only one drink which is healthy mango lassi in the market
place. After some period of time the business started facing decrease in their sales. Which needs
be addressed with the launch of new and innovative products. The report will highlight 4p's of
innovation and it will also examine the usage of innovation funnel which is required to form the
ideas. Later part of the report deals with various tools that an organization uses in order to retain
and protect knowledge and intellectual property (Ajagbe and et. al., 2015).
P1.Defining innovation and it's comparison with invention.
Innovation is an complex procedure that involves translating of ideas or invention in the
from of good and services that focusses on creating value. In order to innovative an idea needs to
be replicable in terms of economic cost and it must be focusses on satisfying different need and
wants of consumers. The entire process is aimed at generating higher amount of value from
customers by application of collected imagination, initiative and information by individuals.
Essence drink is currently proving a healthy mango lassi drink the UK market for the past two
years and now due to factors such as changes in customer preference, market demand and other
factors. The organisation needs to use innovative ideas in there products in order to facilitates
market in better way and this will also assist them to enhance the number of their sales. In order
to do so they need to launch new and different variant in their current product which is mango
lassi (Brown, 2016). They will introduce new variants such orange, salted and strawberry. It will
help the business in different ways such as-
Assists in competing in the market- As there are various other competitors in the
market that are offering healthy drinks and using different promotional tools to increase their
market share. Introduction of new product variants will help the business to compete with the
rivalry and they will be capable to grab the attention of the huge consumers thus it they will be
competent to maximise their sales and market share in the economy.

Able to attract bigger audience- As the business have been selling a single product for
the past two years in the market. This have resulted in decrease in their customer base and have
also effected their sales. By adopting innovation in the business they will be able to attract their
larger number of audience and it will help them to convert potential customers into customer and
will also help to retain them as loyal customers (Chun, Chung and Bang, 2015).
Assists in increasing sales- By enabling innovative products and processes in the
business the organisation will be capable to grab the attention of the audience as well as by
adoption of various promotional tools they can generate interest among customers for their
products so that customers add new products in their purchase list and thus the business can
increase their sales.
Therefore, innovation plays an crucial role in the business it assists businesses in
attracting larger number of audience and also assists in retaining their market position. The
process of innovation is complex it involves improving the current range of product or making
changes. Essence drink is making changes in the business by launching new flavour in health
drinks. Where as innovation includes creating new product or process which are offered by
businesses for the first time in the market (De Prato, Nepelski and Piroli, 2015).
Difference between innovation and inventions:-
Bases of comparison Innovation Invention
Meaning It involves enabling
development in the current
product.
Includes creation of new
product or process in the
business.
Required skills Technical, marketing and
strategic are required under
this.
Only scientific skills is
required under this.
Concept The process involves practical
execution of new ideas.
It includes working with the
existing ideas.
Activities It is spread across the overall
business.
Only research and
development department is

involved in this.
Consideration Involves focusing on mixture
of various processes and
products.
It focusses only on a single
product or process.
P2.Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
A business vision provide an insight about business goals. These goals helps in
encouraging the individuals who are working under organisation to work more efficiently and
effectively so that they can complete their responsibilities in the workplace on proper time
period. In context of Essence drink they have to clear their vision that is to provide healthy
drinks to market and increase there market share through grabbing the attention of the more
number of targeted customers. The business leader should be focussing on finding ways through
which they can face the different challenges in the market and they should understand the
business culture which will help them in treating the employees as per the culture (Fuertes-
Callen and Cuéllar-Fernández, 2014). The also tent to focus on enhancing the team working
skills of their employees by encouraging them to work in teams and these aspects can be
elaborated below-
Organizational vision: It includes establishing a clear image of the organisations
objectives and goals in the mind of the people who are working for them. The vision of the
Essence drink is to sell healthy drinks in the market and increase the market share of the business
by using their innovative formula and distributive capacity. By launching different and new
variants such as orange, salted and strawberry the business is focussing on addressing the market
demand of healthy and favoured drinks so that they can encourage their main motive of business
which is promotion of health drinks.
Leadership: leaders have different roles in the business such as they tent to assist in the
vision establishment process and then they pass the related information to different member in
the organisation in order to realize the vision. Leadership is an complex process which involves
enabling coordination and handling conflicts among the members who are working together in
the workplace. Therefore, positive leadership will include providing regular support and
feedback to their employees along with counselling so that employees can work efficiently in the
different processes of the Essence drink organisation (Hang Do and et. al., 2014).

Culture: The culture of the business involves rules, policies and several procedure that
the business is currently following in the workplace. The organisation should be focused on
establishing an environment that does not discriminate which will foster positive work culture
among different members of the business as the business is treating them equally in the business.
By enabling positive environment it will foster team work which will result in creation of
creative ideas that will be discovered by employees while working together.
Teamwork: This is considered as an key component into the enterprises because this
concentrate upon motivating staff of the firm to perform together as well as attain the
organisational targets effectively. For facilitating the innovative and unique thoughts into the
work area the workers can be in a group by this enterprise can accumulate unique ideas as well
as these outcomes can be provided into the innovative ideas formulation and moreover this can
provide new goods or services invention within business procedures (Hemphill, 2014).
For motivating creation within business organisation, the consultant of innovation can
formulate an surroundings that will includes adaption of several process like brainstorming that
will aids in formulation of innovative ideas. This includes the efforts of employees that can be
placed in expanding the requirements of clients as well as work in groups for attaining the
objectives of the firm in efficacious way. Also, staff advices from workers in context with the
modification into work area circumstances that will allow innovative consultant in obtaining
more information as well as it will assists in developing innovative, creative ideas (Ismail et. al.,
2015).
P3.4Ps of innovation and explain the use of the innovation funnel .
The 4p's of innovation can be elaborated below-

I llustration 1: 4PS- EXPLORING THE INNOVATION SPACE
(Source: 4PS- EXPLORING THE INNOVATION SPACE, 2015.
Product- It include the product that are being offered by business to their customers.
The organisation tent to adopt innovation in their product in order to attract larger number of
audience by offering them new and innovative products. Even the customers gets more attracted
towards new product tat comprise new features. It is also important to involve innovation the
product in order to satisfy the changing needs and wants of customers. By launching new
variants in the current product the Essence drink will be capable to grab the attention of the huge
number of clients. (4PS- EXPLORING THE INNOVATION SPACE 2015).
Process- It involve different activities that are associated with creation of product and
also in the delivery of product from business to customers. The business will planning the entire
process of launching new product variants as it will involve changes in the process that are
associated with the product creation. Along with it the promotion process of the new variants
also need to planned which will require business promoting their products with the use of various
platform such as social media.
Position- It includes establishing a specific position of organisations product in the mind
of customers. As the people in the United kingdom are more fascinated towards the healthy
products. By enlightening the new features of their health drink variant the business will be able
to attract their audience. Also this will help them in addressing the demands of customers and it
will also help them to secure a more strong and stable position in the mind of customers.

Paradigm- In the process of introduction of changes the main focus of business should
be on creating a positive environment and addressing their employees about the importance of
change and enlightening them about the result of the changes that will help the business in
increasing their performance. The business should also involve their employees in the entire
process so that a feel of association can be generated among them which will help and motivate
them to work more efficiently in the business processes (Kutvonen, Savitskaya and Salmi, 2014).
Innovation funnel
It comprise of various steps that are focused on development of products. The focus of
the funnel is to develop ideas and then convert the same into products and services that can
effectively satisfy the needs and wants of customers. The process comprises of collection of
certain ideas in the beginning phase and taking few out of them in consideration in the later part.
These ideas are further used in the process of concept development. In order to capture and
implement new ideas Essence drink needs innovation funnel which comprises of certain steps
that can be elaborated below-
Investigation: The fist step of the process involves collecting information in order to
gain knowledge about market. Then it involves collection of different ideas which are based on
the collected market information which will help business in acquiring ideas. For collecting
information the Essence drink can collect information from a number of sources such as from
external and internal sources. Which will involve collecting information from a range of factors
such as establishing research from different institutions and employees. Thus, the process
involves analysing market information in order to find opportunities that can be taped by
organisation that can facilitates launch of new product or a range of new products. For this
innovative consultant should have the ability that involves converting ideas into realities
(Mazzarol and et. al., 2014).
Development: In the initial stage of the process the data or information was collected
from different sources. Then the data is being screened which comprises of comparing range of
selected data in relation with the overall organisation goals and objective in order to find t about
the relevancy of the collected data. It will also involve risk and return assessment along with
the business objectives. Under this step the business try or test different ideas in their target
market in order to measure their effectiveness in the actual market settings. Along with it the

business also take the step that lead to resource allocation so that required resources can be
allocated and business can capture market opportunity in smooth manner.
Shipping products: This step comprise of selection of appropriate ideas which can
fulfil the organisations goals and objectives. Along with it involves introducing new ideas which
an organisation do in order to meet the customer needs and wants. This helps the business in
testing their product in the actual marketplace before introducing the same in the market on a
large scale. It help in reducing the level of risk that is associated with the launch of new product
in the market.
P4.Developments in frugal innovation and how it is used in an organisational context.
Frugal innovation process involves reducing the cost complexity that is being associated
with a particular product. The concept assists the business in responding to issue such as limited
resources that can be either material, institutional or financial it helps the business in using these
constraints in the process of creation of new ideas or in finding ways to solve such issues.
Therefore, it assists business in the development of product and service and also in making the
product and services available to customer across the market. Along with it also involves
removal of those feature that are not adding value in the production process that is done in order
to reduce the cost which is associated with these non value adding features of production
process. The practices associated with frugal innovation are related with rising market. That is
because of the reason that the innovative procedure tent to produce output which is focused on
fulfilling the market special needs and wants. It also involves producing affordable products and
services in the market so that every section of the society can be taped by business. In the order
to make the product affordable the business will remove the use of plastic cups in the serving
process and will include eco friendly cups which will help the business to reduce overall cost
associated with the production and delivery of their products (Mohannak and Samtani, 2014).
As the Essence drink is serving customer in the UK market where customer tent to
favour health drinks and competitor are offering certain flavoured drinks that tent to attract
customer on a larger extent. In order to compete and attract larger number of customers the
business will launch variant in their current product. They will also focus on producing these
variants at an affordable prices to customers so that they can cater different customers in the
market in an effective manner. By offering the product at affordable prices they will be able to

attract more customers and will be able to increase their sales and also increase their market
share.
P5.The importance of the commercial funnel and the application of new product development
processing for commercialisation of innovation
Commercial funnel can also be expressed as purchase funnel. It describe the journey of
an consumer in relation with purchase of particular product or service. It initiate with awareness
and ends with purchase of a particulate product or services. It also plays the role of revenue
funnel therefore, it describes several ideas that are related with the initial stage. Under this stage
the number of customer associated are high in number and the number gets reduced during the
stage of purchase. It also includes creating awareness among the customers and identification of
different problems. Further they try to find solution for the problems. (Robertson, 2014).
After this the funnel involves adoption of various steps in order to create interest in the
minds of customers for their new product offering. It will help the company in engaging greater
number of customers. The essence drink is currently only providing one specific product in their
business they were able to sale their healthy mango drink in the market on a good scale due to
their innovative product but the sale tent to reduced in the third year. In order to deal with the
reduced sale of their product they are offering new variant in the market to solve the problem of
leas flavour and variety in products. Under the commercial funnel the main motive of the
business is to generate interest among customers for their product offering so that they consider
the organisation product in their purchasing process.
In the new product development process Essence drink will face certain types of risk
and challenges. The initial stage will comprise of challenges such as challenge of increased cost
which will be require in development process of their innovative product. The NPD process
involves element such as generation and screening of ideas. In order to generate idea the business
will use certain external and internal sources in order to generate ideas. The further step of the
process involve concept testing in order to see the relevancy of the ideas generated in the upper
stage with the organisational gaols and objectives. The next step involves is business analysis
and product development that can be done by reviewing the sale, cost and profits that are
attached with the new product ideas. Where as the product development involves physical
development of product to ensure that the selected idea can be converted into physical form. The
last part the process involves Essence drink testing the new product in the actual market in order

to test their efficiency. After this the organisation will commercialise the product that means
actually launching the product in the market (Schot and Steinmueller, 2016).
P.6 Build an Innovation Business Case for Essence Drinks, including ways to access funding.
The current market in UK economy comprises of consumer that prefer different flavour
and healthy drinks. Essence drinks is been in the market for a period of two years and have been
focusing on selling a single product which is mango lassi. They were able to increase their sale at
higher extent due to their innovative and distributive capacity. After the span of two years their
sale decreased. The market analysis have depicted that people are getting more attracted towards
other competitors who are selling different flavours which resulted in loss of customer base in
the company. In order to cope up with the situation and to actively address the needs and wants
of customers the business will introduce different flavour such as salted, orange and strawberry
in their lassi offering. It will help them to attract larger customer who tent to have different taste
preferences and it will also help them to attract customers who prefer healthy drinks as the
current market customers are more attracted towards health drinks.
As the business is offering variants in their products they will be able to increase their
sales and will to able to retain their position in the competitive market. In order to launch new
flavour of lassi in the market the business will require investment that will be required to produce
and introduce new product variants. The organisation will use two different ways in order to full
fill their fund requirements firstly they will acquire loan from the bank and secondly the owner
will self fund the remaining of investment requirement in the business. The owner can take
money from friend and family to invest in the business and they can also invest their saving in
the business. In order to promote the product they will use social platform such as Facebook and
Instagram as the cost involved in using these platform is less as compared with other platform
and it reaches to high number of customers (Tsai, 2015).
According to the case study that the organisation facing problem of decrement in sale
cause of lack of interest of people. To maximize the sales of it, the management of the company
can make innovation in its existing product by launching it in different kind of flavours. For this,
it required fund to make innovation and they can use different sources like acquire loan from
bank and capital venture etc. With the help of it can develop new product according to the
demand of the consumers and fulfil their needs. It will be helpful for increasing the sales and
maximization of the profit and productivity.

P7.Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property.
For carrying out as well as saving the intellectual property an organisation needs to
develop themselves as per the legal regulations. For align with protective intellectual property
and knowledge Essence drink require to use this following tools:
 Patents: It is a government authority and licence confirming a right or title for set period,
especially the sole right to exclude others from making, using or selling an innovation.
This is assistive for essence drink, in this company protect its new invention and
interventions. This is effectual in rising the existent inventions. There are different 3
kinds of patents such as utility patent, plant patent as well as the design patent.
 Trademark: It is a recognizable sign and symbol which which help in identifies products
and services of a specific source from those of others although trademarks used to find
out services which are usually called service marks. In essence drink, trademark define as
the root of aware being marked within their effective clients. This aids consumers to find
out the goods into the similar sector. Within products, trademark are used in various
forms such as in names, sign, images and many more forms.
 Copyrights: It is the legal right of owner of intellectual property. Essence drink is
expected to design their services through legal patent as this help the company to stay
protected. Copyrights helps Essence drink to set up a national record as well as assist the
capitalist to sue infringer in federal court. Copyright refers to the legal right of the owner
of intellectual property. This means that the original creators of products and anyone they
give authorization to are the only ones with the exclusive right to copy.
From the above analysis, it can be analysed that patent is and effective intellectual property tool
which can be beneficial for Essence Drink to provide protection its existing and new nominative
products. A patent provide its owner with the right to exclude others form from exploiting the
patented technology, including, for instant, making, using or selling the patented inventions. The
company can protect its data in following ways. By collecting data in lawful and fair manner. For
collecting the data there is mention saving time period for personal data is to be established by
the businesses. Data collected ensures that company is using it to meet the legal transaction of
essence drink. Adequate training to employees should be provided for collecting the data.