Innovation and Commercialization Strategies for YOYO Drinks

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INNOVATION AND
COMMERCIALIZATION
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Contents
INTRODUCTION...........................................................................................................................3
DESCRIPTION OF THE INNOVATION AND HOW IT IS DISSIMILAR FROM
INVENTION...............................................................................................................................4
DELIBERATE THE VALUE AND SIGNIFICANCE OF NOVELTY TO
ORGANIZATIONS AND CLARIFY HOW SAMEER CAN TURN YOYO DRINKS INTO
AN INNOVATIVE COMPANY.................................................................................................5
PROVIDE AN OVERVIEW OF THE DIFFERENT TYPES OF NOVELTY WITH A
FOCUS ON DISRUPTIVE AND INCREMENTAL NOVELTY, AND EXPLORE THE
PROS AND CONS OF EACH APPROACH..............................................................................6
DISCUSS HOW NEW PRODUCT DEVELOPMENT (NPD) PROCESSES AND NOVELTY
FUNNEL CAN BE USED BY YOYO DRINKS TO DRIVE NEW INNOVATIVE
IDEAS/PRODUCTS TO MARKET...........................................................................................9
ANALYZE WHAT IS MEANT BY FRUGAL NOVELTY AND PROVIDE EXAMPLES OF
HOW ORGANIZATIONS ARE USING IT. ALSO, MAKE RECOMMENDATIONS ON
HOW YOYO DRINKS CAN BENEFIT FROM THIS CONCEPT.........................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
This assignment is prepared to analyze the role of innovation in the profit maximization for any
organization. Innovation is defined as creating effective changes in the existing product and
services or creating a new product to cater to the need of the organization. In part, one idea of
innovation and invention is discussed in detail with the help of a specific example. In the task,
two types of innovation are discussed along with the role of vision, leadership, and culture to
commercialize innovation. NPD and four 4P’are also discussed in the next parts and a business
plan is also proposed along with the ways to access funding and in the end, tools and techniques
used to protect the innovation are also discussed.
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DESCRIPTION OF THE INNOVATION AND HOW IT IS DISSIMILAR FROM
INVENTION
Being a brand strategy innovation consultant there is a need to suggest an effective strategy to
provide a clear understanding of the significance of innovation and its significance in
commercializing the products and the services in the market (Halbinger, 2018).
Innovation is the significant changes in the existing product or services with an aim to bridge
the gap in society. It can be done in multiple ways. It is the process of add new features in the
product in a way it can increase the profitability of the business.
The invention can be defined as creating a completely new idea. It is the process to give
physical form to any idea and earning profit from it. It is the identification of novel tools to turn
any ideas into process and offer a change in the perspective of the consumer (Tidd, 2018).
Innovation Invention
It is the process to translate the new process
into profit-making success.
It is the creation of a novel idea.
An example of innovation is the Amazon
scout, Google self-driving cars.
The examples of innovation are: designing a
new product, business model or trial product
Innovation is complemented by the invention. The invention is crucial to give physical form
to new ideas.
Novelty can be defined as the successful
utilization of new ideas.
It is the identification of novel tools to turn any
ideas into a profitable business and offer a
change from the perspective of the consumer.
This can be done investing more in research
and development.
This activity requires the effective use of
marketing methods and technical skills.
The idea of uniqueness is crucial for the organization, in promoting the culture of novelty and
awareness. It is important for the leadership in order to gain a competitive edge in the market and
it is also very important for the workforce of the organization to develop creativity and novelty in
the tasks they are doing and help the organization to attain market success.
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DELIBERATE THE WORTH AND SIGNIFICANCE OF UNIQUENESS TO
ORGANIZATIONS
Significance of organization, Innovation is crucial to translate the ideas into profit making tools
for any organization. It is the process to advance the existing product to increase the profitability
of the business. It increases the profitability, consumer base, brand image and brand worth for
the organization. YOYO drink is now producing mango lassi and facing a downfall of the
business. It can use different ideas to change the business model to earn profit from the business
(Halbinger, 2018).
Significance for leadership, the organization can add nutritious value in the product and offer a
healthy drink to consumers. It can also add new flavors to make the drink tasty; the addition of
preservative to increase the shelf value of the product is also a good plan. These are the
innovative ideas that can be used to make the drink tasty, attractive and healthy. Besides, some
changes can also be made in the packing and labeling of the product to make it lucrative for the
consumers (Tidd, 2018).
The idea of novelty focuses on the concept of total production and it is helpful in mitigating the
risks in the market method, process of product development and improves the growth prospects
of the business. YOYO drink can also use frugal novelty to maximize the profit margin, it can
remove all unnecessary expenses to form its business model and add excellence to them. The
organization can identify the needs of a diverse range of consumers and can divide it into
different categories; it can add the stabilizers in the mango lassi and expand the shelf life of it. It
can add healthy nutrients in the mango lassi and expand the shelf life of it and the health of the
consumers also (Wagner, 2016).
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THE DIFFERENT TYPES OF INNOVATION
Novelty is divided into two categories, technology, and market. It gives us four categories of the
novelty and these are: architectural novelty, radical novelty, incremental novelty, and disruptive
novelty.
Incremental novelty is the process in that organization with the use of technologies, improves
features, design, and excellence of the existing product in the existing market. The products and
services are improved only for the local markets.
Advantage
 It is suitable for the existing market, it is cheap.
 It promotes consumerism.
Disadvantage
 It is a narrow focus strategy
 It is a complex process (Wagner, 2016).
Disruptive novelty is also known as stealth novelty, in this process, new technology is applied
to the existing market due to their inferior nature and outcome. According to the Clayton
Christensen, disruptive novelty is the one in that the process and product are accepted by the
bottom layer or specific chunk of the consumers and then it transformed into a business model.
Advantage
 It offers cost-effective products
 Ideas are launched into newer markets, and they are derived by the needs of the
consumers.
Disadvantage
 It requires focusing on changing trends in the market that can be difficult at times.
 Consumer safety is the main concern with disruptive technologies (Cowen, and Shenton,
2017).
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Architectural, it is the novelty is applying existing technologies and ideas into a new market and
it is important as it is a low cost and risk strategy and give birth to the new consumer base in the
new market.
Advantage
 It is a low-cost strategy
 It is a low-risk strategy
Disadvantage
 It is complex in implementation
 The privacy of users is the main concern.
Radical is the strategy that adds a completely new dimension to the business. It gives rise to the
new industry and reduces the scope of prosperity for the existing companies or industries. This is
the reason that is called revolutionary technology (Cowen, and Shenton, 2017).
Advantage
 It creates revolutions
 It is easy to implement.
Disadvantage
 It is costly
 It is riskiest
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4PS OF INNOVATION AND ITS SIGNIFICANCE FOR THE ORGANIZATION
The model of four P’s is proposed to understand the nature of novelty and these four P’s are
significant as they support competence management.
Product novelty, the product novelty can be defined as launching a diverse range of products and
services in the market or adding some new features in the existing product. In the YOYO drink
the mango lassi can be innovated with the addition of new color, flavor, ingredients, and
preservatives (Gorodnichenko, et al., 2017).
Process novelty: it is the succeeding the process of producing the product, in novelty can be
defined as designing new process of for developing a wide range of products and services in the
market or adding some new features in the existing process of development. In the YOYO drink,
the mango lassi can create a new process of preparing mango lassi with the addition of new
color, flavor, ingredients, and preservatives.
Fig 1: 4 P’s of innovation
[Source: Gorodnichenko, et al., 2017]
Position novelty, this type of novelty can be defined as the process to target a specific group of
the consumer in the market and changing the product to meet the need of consumers. Position
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novelty is important for YOYO drinks; it can change the existing product as per the need of the
targeted group of consumers.
Paradigm novelty: this novelty is similar to the radical novelty and in this method; it gives rise
to the new industry and reduce to the scope of prosperity for the existing companies or
industries. This type of novelty is capable to create disruption in the market. YOYO drink can
add completely new features to the mango lassi and can add a preservative to increase the shelf
life of the product (Gorodnichenko, et al., 2017).
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NEW PRODUCT DEVELOPMENT (NPD) PROCESSES AND FUNNEL AND ITS
IMPLICATION FOR THE YOYO DRINKS
It is a novelty mechanism with that the resources are scanned as per the need of the products or
the services. In the new process development, a completely new process is developing to launch
the new product in the existing market. In the NPD, new consumer preferences are identified and
advanced technologies are used to create a product that can have a competitive edge in the
market.
YOYO drink can identify the needs of specific group of consumers and can cover the complete
market of drink and by preparing the lassi as per the need of consumers, can add some more
flavors in it, can label the product differently and attractively, it can make the product more
lucrative for the consumers, can change the ingredients of the product and in this manner it can
maximize the profitability of the business (Abdul Razak, et al., 2014).
Commercial funnel is the funnel of ideas, and in this method, a range of ideas are scanned to
change the manner in that product is prepared, or place in the market. The commercial funnel is
broad from the front and that shows, the list of investigations made to improve the excellence of
the products, as the width of funnel decreases in the size, it shows the use of effective
technologies and tools to improve the excellence of the product as per the changing needs of the
market.
There are several types of funnel
Wide mouth of the funnel, this funnel help in identifying the wide range of ideas that is useful to
meet the needs of the business and promote the growth of the business. For the YOYO drink, it
can use a list of ideas to improve the excellence and market reach of the products in the UK.
Narrowing segment of the funnel, the ideas are sorted in this process, as per their potential to
generate positive results for the organization. For the YOYO drink, it scans the list of ideas to
improve the excellence and market reach of the products in the UK and selects the relevant ideas
to improve the excellence of the product.
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A narrow segment of the funnel, in this method effective technology is used to improve the
excellence of the products, and this finally adopted method for improving the market penetration
of profitability of the YOYO drinks (Autio, et al., 2014).
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FRUGAL INNOVATION AND ITS ADVANTAGES FOR THE ORGANIZATION
Frugal novelty can be defined as removing all non-required features form the existing products in
the market and improving the excellence and the profit margin of the product. It is considered as
the most productive form of novelty in that the excellence of the product is improved
substantially. So, the frugal novelty can be defined as adding features in the product as per the
need of consumers and offering the products in a cost-effective manner. This strategy is useful in
meeting the needs of developing regions. It can be used for the benefit of YOYO drinks to
improve the profitability of the business. A frugal novelty index is also developed to assess the
capability of the organization to develop frugally. It is a cost-effective, productive and simple
form of novelty that encourages the organizations to cater to the specific needs of the consumers.
The following are the recommendations (Resnick, et al., 2016).
Fig 2: Commercial funnel
[Source: Wowak, et al., 2016]
 YOYO drink can also use frugal novelty to maximize the profit margin, it can remove all
unnecessary expenses to form its business model and add excellence to them.
 The organization can identify the needs of a diverse range of consumers and can divide it
into different categories.
 As per the categories it can add or delete the features in the product
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