Innovation and Commercialization: Report on Essence Drink's Strategy

This report provides an in-depth analysis of innovation and commercialization strategies, using Essence Drink as a case study. It explores the importance of innovation compared to invention, the impact of vision, leadership, culture, and teamwork on innovation, and the application of the 4 Ps of innovation. The report also examines the use of the innovation funnel, frugal innovation, and the application of the NPD process for commercialization. Furthermore, it discusses the development of an innovation business case, ways to access funding, and the protection of intellectual property. The report covers various aspects of innovation, from product and process innovation to paradigm shifts, and provides a comprehensive overview of strategies to foster creativity and drive commercial success. The report is well-structured, covering key concepts and providing practical examples to illustrate the concepts discussed.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Importance of innovation in comparison with invention..................................................1
P2 Impact of Vision, leadership, culture and team work on innovation and commercialization
................................................................................................................................................2
LO2..................................................................................................................................................3
P3 4 p's of innovation and use of innovation funnel to shape innovative ideas.....................3
P4 Frugal innovation and its use in organisational context....................................................5
LO3..................................................................................................................................................6
P5 Importance of commercial funnel and application of NPD processing for
commercialization..................................................................................................................6
P6 Innovation business case for the organisation and ways to access funding......................9
LO4................................................................................................................................................11
P7 Tools that organisation use to protect intellectual property............................................11
CONCLUSION..............................................................................................................................12
RECOMMENDATIONS...............................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation refers to creative ideas, new thoughts for doing a work or it means value
addition in the product. Apart from this innovation includes new ways of doing work. The
present study is done on Essence drink, a London based company that provide that offers various
drinks. Initially introduced Mango Lassi that has increased its sale in the UK market but now it
wants to bring some innovation and bring Mint Lassi in the market. An in-depth study is done on
impact of vision, leadership, culture and teamwork on innovation and commercialization. In
addition to this the study will discuss about 4 p's of innovation and use of innovation funnel that
influence innovation. There is frugal innovation that has been discussed in detail. Furthermore, in
the present study a business case is discussed that includes ways to access funding. In addition to
this Intellectual property has been discussed in detail.
LO1
P1 Importance of innovation in comparison with invention
Innovation is applying better solution to meet the new requirement and existing marketing
needs. Innovation is something original that innovator originate using his own mind. Invention
is the process of improving product or machine or it is the unique or new method device or
composition.
Difference

Innovation is the major contributor to the growth of Essence drink. A smaller scale
company can grow if it make advanced products like Essence drink is introducing Mint lassi for
increase in its sales to meet the demand of new customers. On the other hand, invention contain
risk as it deals with creating or introducing a new, that may or may not be liked by the potential
consumer, it will hinder growth of company rather than increasing growth (Manzini and
Lazzarotti, 2016).
Innovation deals with practical implementation of new ideas. For example, Essence drink
will apply all the technical ideas and practical skills to create Mint Lassi. On contrary to
this invention needs scientific skills that will cost huge to the company. For this company have to
hire expert from outside who charges high amount of fees. This will increase the cost of firm. So
innovation is better than invention in the context of business cost.
Innovation is spread across the organisation, as it is done on existing products, so it will
increase participation of each and every employee in the organisation and that will increase
motivation among the employees of Essence drink. On the other hand, invention is limited to
R&D department because it needs lots of scientific research, that do not involve members of
other teams and department.
Innovation is done various existing product so it is the source of generating higher
revenues in short time. For example, Essence Drink can introduce changes in its other product
also apart from introducing Mint Lassi. On the other hand invention is done for single product as
it contain huge cost and is less beneficial for Essence drink(Rosca, Arnold and Bendul, 2017) .
Innovation sometimes is not enough to satisfy the need of consumers, A product needs
more value addition and changes. . On contrary to this invention can highly satisfied the need of
potential consumers, as the invented product contain more extra and advanced features as
compare to innovative product.
P2 Impact of Vision, leadership, culture and team work on innovation and commercialization
Vision- If the objective and vision of the company is specific, measurable, achievable,
realistic and timely then there will be a clear picture of where Essence drink wants to do research
and development. The clear vision also helps in identifying the product or process that needs
advancement and value addition. The vision of essence drink are;

 To being the market leader in beverages.
 To expand the product line and business with continuous innovation.
Leadership- A leader is the person who inspire other persons to do a particular task and
also encourage others to bring new ideas (Rosca, Arnold and Bendul, 2017) . The process of
generating new ideas will help in increasing skills and knowledge of the team members and
employees. These skilled employees will use their skills in innovating existing product, as a
result of which cost of product will be reduced simultaneously improve the quality.
In shaping the innovation in essence drink, leadership plays and important role. The role
of leader to motivate their employees to think creatively and out of the box that help the
workforce to give their innovative suggestions. The innovative idea was developed by the leader
and put a big picture of the vision in front of the employees.
Culture- Culture of the organisation have huge impact on innovation and
commercialization. For example, if a company is running its business in a particular region and
want to introduce innovative product in the new region, culture impacts the area of innovation.
For this purpose company may hire its employees from its home country itself . The newly hired
people know culture of the home country more than other people , so it will become easy for
them to analyse the market condition and things related to the innovative product (Leliveld and
Knorringa, 2018) . The stable culture help the company to do innovation and take the risk with
the new product. The culture of the organisation is innovative culture and the workplace foster a
culture that motivate employees to be innovative.
Team work- This factor has always played an important role in innovation, as team
work help in reducing the workload of the single person and helps in bringing more innovative
ideas. In a team all the member will perform different functions to innovate a product for
example if A B C are the team members for doing innovation in a particular product then A may
bring new ideas, B may make plan for innovation and C may execute the plan. This will lead to
reduce the time and individual effort and make more effective innovation (Knorringa and
et.al.,2016) . For carry out the big picture of innovative ideas required effective team work that
help in shaping the innovation as per the leadership vision. In the innovation of essence drink
different teams are working their role for the desired outcome such as; production team, finance
team, marketing team, etc.

LO2
P3 4 p's of innovation and use of innovation funnel to shape innovative ideas
The 4Ps model in innovation is developed by John Bessant and Joe Tidd that also provide
a powerful tool to analyse the innovation. This model include 4 main categories; Product
innovation, Process innovation, Position innovation and paradigm innovation.
Product – The first thing that comes into the mind when thinking about innovation is the
things that a company offers, that is product or service which fulfil the need of customers.
Product is something that satisfy the needs and requirement of people and a company always
want to add value that is innovation to improve product. For example, Essence drink is
introducing new flavour in the Lassi that is Mint Lassi in place of its existing product.
Process- It includes the way in which the product will be delivered and produced. Apart
from this it includes new ideas and methods of doing work (Dahlan, 2019). For example it will
include improved fixed line telephone service. In addition to this process improvement includes
improved retailing logistics and new methods of supplying and distributing the product.
People- Innovation need various new ideas which are generated by people. Thus from
generating the new ideas till its execution there are involvement of people and their mind. For
the purpose of innovation company can take experts from within the organisation as well as from
outside the organisation. It depends on the nature of innovation and affordability of the Essence
drink that which option is best for the company. For example if Essence drink will hire people
from outside the organisation then it would be costly for it but they can take advantage of highly
technical people (Dahlan, 2019). On the other hand if Essence drink will take internal assistance
then it would cost less to the organisation but company can not take advantage of technical and
scientific assistance.
Press- Press refers to the condition and situation in which person operates functions. It
includes resources , best practices and organisational culture. If the organisation has adequate
resources than company can foster creativity and innovation very smoothly. In addition to this if
culture of Essence drink allows free communication among the employees and each level of
management than new thinking and ideas can be generated easily (Hong, Cheong and Rizal,
2016).
Innovation funnel

The innovation funnel is the process of converting the thought or idea into reality and
taking all the steps to implement the plan of innovation in reality. Like shape The main aim of
innovation funnel is to generate as many ideas as possible and refining those ideas then
converting into a small plan. This results in creating funnel like shape from many ideas to few
ideas. It is an excellent tool that prioritize ideas and applying the best and suitable one.
Following are the steps that helps in creating innovation funnel-
The Mouth of funnel- In the first step organisation needs to generate as many ideas as
possible based on knowledge and experience. For this purpose, Essence drink can collect
information from institution and partners. In addition to this it can also do research on strategies
used by the competitors.
Narrowing funnel- The ideas developed by the organisation will be scrutinised and a list
of information is prepared that is useful for generating new ideas. The scrutinisation will be done
on the basis of matching ideas with goals (Hong, Cheong and Rizal, 2016).
Narrowed part of the funnel- Now the particular idea will be selected on the basis of
priority and will be applied on the product and introduced to the market. In this stage, on the
basis of preference one idea is chosen for implementation.
Application of the innovation funnel at Essence Drink:
In the very beginning every member generate many ideas regarding Essence Drink and
collect many information from different institution and do some research on the competitors.
After the idea generation, organisation skim the generated ideas and scrutinisation has been
Illustration 1: Innovation Funnel

done. Lastly the best idea selected and communicate with each and every member who is
responsible for working on this vision to perform the task on their best.
P4 Frugal innovation and its use in organisational context
Frugal innovation refers to a process to discover new business model and value addition
in the product in sustainable and economical manner for offering the product to those who are
unable to afford. It is used by business organisation for the following reasons-
Cutting funds and debts- Frugal innovation aims at best utilisation of scarce resources ,
which results in reducing cost of producing goods. That leads to decrease in cost of debts and
funds of the company (Aydin, 2018) .
Environmental constraints- Organisations use frugal innovation for reducing
environmental constraints like shortage of electricity, water and other resources so that
sustainable production and innovation can takes place. This will not only a contribution of a
company towards increasing the productivity but it is also contributing in sustainable
development of environment.
Encouraging new technology – companies uses frugal innovation to encourage the use
of new technology as , frugal innovation needs lots of research and development , that push
organisations to adopt new ways of doing work.
Fastest growing market – Companies use frugal innovation as these products are
demanded by highest growing market, that will result in increasing brand image of the company
in that market . Ultimately it results in growth of the product of the company (Van de Vliert and
Murray, 2018) .
Caring for rapidly ageing society- Organisation does not use frugal innovation only for
its own interest but it also focuses on the interest of the society, as the frugal innovation includes
healthy and organic products that company produce with the aim of offering these products in
the market.
Application of frugal innovation in Essence Drink:
It is basically provides importance of product and services by moving to lower level to
buyers as it reduces the cost of products that results in less complexity in production part of the
business in order to reach the potential customers as buyers usually avoid complex process to
purchase a product. Essence drinks with low cost by providing lassi drinks with the use of local
resources can help the company to reduce the cost of products in market. It is basically to

provide different products with respect to different preferences of the customers situated at
different geographical areas. It is a good strategy to use frugal innovation as it is best for doing
business by producing different products with the help of less complex functions and according
to the rules set up the government of that region.
LO3
P5 Importance of commercial funnel and application of NPD processing for commercialization
Commercial funnel- It is the process of delivering a product to the customer that starts
from sales lead and ends with deal transaction. The sales lead gathers various contact
information of the customers who need the product and ends with choosing customer and
completing the whole transaction for the settlement.
Importance of commercial funnel
Helps in choosing marketing strategy- Commercial funnel helps in choosing marketing
strategy or the method to communicate with the audience. Some marketers will focus on the
customers who are already in the decision section of commercial funnel . This will make easier
for them to attract those customers towards their product. So commercial funnel is essential for
understanding marketing mix that is needed by the company for its success.
Helps in relating the product to the customer- A company usually describe its product
or talk to their customer in such a way that it helps in identifying the section of sales funnel to
which consumer relates. This will help company in changing or adding the copy or the content of
the message so that it can relate more to the needs of consumers.
Helps in generating more sales- Once a company know how to relate with the customer
then it will be easy to create demand among the potential consumers. That results in increasing
sales and profit of Essence drink in long run. This will ultimately help in understanding how to
gain competitive advantage.
Application of new product development processing in commercialisation
New product development can be define as a process of developing and bringing new
service or product to the market. Innovative businesses prosper by understanding what is the

want of the marketplace and develop new products that are able to meet and exceed consumer
expectations.
Idea generation- The idea for new product development can be generated from internal
sources like ideas from employees, through SWOT analysis and market research. In addition to
this company can also go for market research for analysing the need of consumers and trends of
market for generating ideas.
Idea screening- It involves selecting those ideas which are required and discarding those
which does not come under the preference of NPD(Kelly, 2016).
Concept development and Testing- Now product developer will create a blueprint of
the selected ideas and this concept will be brought into small segment of the target market where
few consumers are there, for the purpose testing for taking feedback.
Business strategy analysis and product development- in this stage company will
finalize the concept and decide marketing mix and branding of the product. Once all strategies
are approved then product concept is transformed into actual product .
Test marketing- Under this customer feedback are taken and changes are made
accordingly.
Commercialisation- In the final stage company apply all the marketing strategies to
introduce the products in the markets. Know markets are decided and final decisions are made
(Kelly, 2016).
New product range at Essence Drink

Ingredients:
 Milk.
 Added flavours
 Mint
 Saffron.
 Ice
 Almond
Packaging
Essence drinks will use plastic disposal pouch for the new product, it will be easy to carry
and use as well as its very cost effective for the company.
Organic characteristics
The new mint lassi by essence drink is completely organic in nature as it is produced by
natural flavours and ingredients. It is also beneficial for the health of consumers.
Marketing

Essence drinks will use effective marketing strategies such as Hoardings, Newspaper ads,
social media etc, to promote their new product in the market. On the other hand, the company
will also offer some samples to the public in malls to promote the mint lassi.
Sales
The company will target mainly the retailers to sell its products to the local customers, in
order to increase the sales initially essence drinks will provide special discounts and offers on the
new product to grab the attention of the customers.
P6 Innovation business case for the organisation and ways to access funding
Executive summary
The present Business plan includes marketing objective of introducing Mint lassi .In
addition to this it also contain the objective and marketing mix of new product. Furthermore
present business plan includes brief discussion on STP and budget made for the introduction of
Mint Lassi in the market.
Marketing objective Objective of marketing of Mint lassi is to
create demand among potential consumer and
increasing sales by 15% of Essence drink by
the end of 2019.
Marketing mix-
Product
Price
Place
Company have decided to fulfill the demand of
consumer by introducing Mint lassi
Penetration pricing will be suitable for
attracting new consumers as it aims at lowering
the prices at initial stage and then increases the
price.
Here Intensive distribution method is decided
for distributing the product, as in this product
can be offered through various outlets which