Innovation and Commercialisation Business Plan for Essence Drinks

This report analyses the concepts of innovation and commercialisation within the context of Essence Drinks, a UK-based company facing declining profits. The report proposes innovative strategies, focusing on the development of a vegan lassi using fermented and probiotic fruits, packaged with Sanipolymers technology for extended shelf life. It differentiates between invention and innovation, highlighting the importance of innovation for organisational growth, leadership, and culture. Furthermore, the report discusses various forms of innovation, the four directions of change, and the 4Ps of innovation, explaining how these support the capability and management of innovation. The innovation funnel is presented as a tool for developing innovative ideas, and the report outlines the next steps Essence Drinks should take to launch their new product. A business case is developed, considering stakeholder needs, testing techniques, resource requirements, and intellectual property protection. Ultimately, the report aims to provide a comprehensive strategy for Essence Drinks to regain profitability and competitive advantage through effective innovation and commercialisation.

UNIT 8
INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 ...........................................................................................................................................1
1. Explanation of the difference between invention and innovation...........................................1
2. Value and importance of innovation to organisations and how this can be enclosed within
the organisational leadership and culture at Essence Drinks......................................................3
3. Forms of innovation and the four directions of change an organisation can take. Explain the
4Ps of innovation and how this supports capability and management of innovation.................4
4. How Innovation funnel helps in developing innovative ideas ...............................................5
Frugal innovation, providing examples of different approaches used by other organisations....7
5. Explain and recommend the next steps Essence Drinks should go through to derive a new
and innovative drink....................................................................................................................7
PART 2 ...........................................................................................................................................7
Background to the company and the problem.............................................................................7
Explain the importance of using the commercial funnel to provide a solution to the problem
highlight in strategic capability for the solution that your proposing:........................................8
A summary of the new idea for a new drinks product and how it would meet stakeholder
needs............................................................................................................................................9
Techniques for testing the effectiveness of the new drinks produce and where this will fit into
the process.................................................................................................................................10
Resources required for proceeding with the innovation business case ....................................10
Evaluate the different tools Essence Drinks could use to protect the intellectual property rights
of a new drink............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation and commercialisation refers to conversion of unique thoughts and ideas into
profit generation. Innovation refers to carrying out new that helps in doing modifications in the
existing product so that huge base of customers are to be attracted towards it. Commercialisation
defines as a process of launching a new business in market to attain profitable results (Awni &
et. al., 2019). It is useful to maximising customer base and gain competitive advantage within
marketplace. This report is based on Essence drinks that is leading company in UK started two
years ago with the one drink i.e. mango lassi and earns a huge amount of profits but in recent
years they face downfall in generating profits. To overcome this issue Mr. Akshay wants to do
innovation in their lassi using fermented and probiotic lassi that contains real flavours of fruits
which shows perfect blend of fruits with yogurt that makes a lassi perfect. In simple terms it
launch a vegan lassi by using multiple fruit pulp. This report completes in two parts where first
part demonstrate concept of innovation and invention along with their importance and four Ps of
innovation that support management to do innovation effectively. It also explains innovation
funnel to properly launch the innovative lassi in market place. In their second part it present
business case that is useful to determine sources of funds, intellectual property right so that
essence drinks attain high profitable results in marketplace.
PART 1
1. Discussion on the difference between invention and innovation
Innovation
Innovation in commercialisation state the introduction of new ideas within goods and
services by a person or an organisation for generating more profitable results (What is business
innovation?. 2020). It shows modification in existing products and services that looks new and
useful to attracts number of customers so that high profitable results are attained by company. In
case of Essence Drinks, Mr. Akshay needs to focus done innovation in in their lassi by using
fermented and probiotic fruits that generally looks like vegan pulp. In this company also use a
technology of purify lassi so that it should be preserved for around 10 days. This technology
denotes Sanipolymers that would purify the lassi within steel can for impoverishing the
durability period.
Invention
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Invention refers to a creation or making something new within company by generating
ideas or manner to present to customers. It demonstrate process of engineering methods that
helps in developing product procedures (Why Commercialise?. 2020). Hence it needs scientific
logics for deep analysis of customer requirements. In case of Essence drinks firm includes the
Sanipolymers technology that is based on scientific logic and used to attracts customers because
this technology would purify the lassi and also enhances its durability so that users would
consumes it for around 10 days.
Distinguish between innovation and invention
Basis Innovation Invention
Definition  It define as a concept of
adding value to goods with
the execution of unique
thought. In this mainly
strategic and marketing
skills are required.
 This terms reflects the
creation of whole new
product that means
products and services are
being invented without
copying any other idea. In
this scientific skills are
needed.
Occurrence  This occur when company
enhance their profit and
customer base. For example-
in essence drinks Akshay
wants to innovate their lassi
to generate high profits.
 This occur when unique
idea is operated in
individual person mainly
scientist.
Examples  Essence drinks offer mango
lassi and now they innovate
their lassi with fermented
and probiotic fruit pulp in a
sanipolymers steel can that
automatically purify the
quality of lassi so that it is
 In case of Essence drinks
invention is shown in their
cans that contains
sanipolymers technology
which is totally new to
serve healthy lassi to
customers that generate
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effective for around 10 days. high profitable results.
2. Importance of innovation to organisations and reflects organisational leadership and culture at
Essence Drinks
There are several importance of innovation that is effective for Essence drinks are
presented below:
 Fulfils needs and requirements of customers- Innovation is very useful for enterprise
because with the help of this company generate new ideas for modify the current products
as per customers demands (Weng & et. al., 2018). This helps Essence drinks in attracting
large base of customers by doing innovation in regular lassi using sanipolymer
technology and probiotics and fermented fruit pulp. This innovation is done by company
manager by researching customers taste and demands so that more profits are attained by
business.
 Reinforcing brand name- Innovation in products and services helps business
organisation to grow brand image in competitive market position. In case of Essence
drinks, Mr Akshay thinks to innovate their lassi to attract large base of customers and
creates values of lassi in the customers eyes.
It is very crucial to Essence drinks to emphasis on culture and leadership at the time of
doing innovation in the products because it helps in shaping innovation and commercialisation in
effective manner. Leadership and culture of Essence Drinks are presented below:
Organisational leadership
Leadership refers to an ability that individual or group of people contains to guide
followers and various members within organisation. In terms of Essence Drink leader follows a
transformation style of leadership at working place. This style is effective to make flexible
environment at workplace that is useful to encourage staff towards innovation in products as per
customers demands (Fini and et. al., 2018). Currently, customer are highly indulged towards
their health and according to this they have their meals and drinks. Due to this Essence drinks
need to do innovation in their lassi using probiotics and fermented fruit pulp that shows perfect
blend with yogurt along with sanipolymers technology in lassi preserved steel cans. This lassi is
highly healthy for every type of people even for diabetic people because in this lassi only natural
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sugar is added that is not much harmful to people who are diabetic. Hence it increase company
profitability and sustainability in rival market.
Culture and teamwork
Essence drink adopts the friendly and participative culture within their organisation as it
is very effective to develop changes in products and services effectively and efficiently. In this
culture every employee have share their views without any hesitation that reflects several ideas
to innovate lassi. It encourage staff member to done their task appropriately so that high
profitable results are attained by company. Therefore doing innovation in products and services
it is very essential for Essence drinks staff members to work in a team as it helps in completing
targets on time. In this leader assigned role to team members as per team mates capabilities that
achieves the overall goal on time.
3. Forms of innovation
Essence drinks manager need to examine various forms of innovation so that appropriate
form is to be examined. Forms of innovation are presented below:
 Incremental innovation- This is most ordinary kind of innovation in which organisation
utilise technology and increase values to customers in existing market. In terms of
Essence drinks if company use this form of innovation then they do small modification in
current product to attract customers.
 Disruptive innovation- It defines the innovation done in sophisticated products and
services that are effective for attract broader market. If Essence drinks adopts this form of
innovation that they use expensive products to attract huge market.
Hence as per above forms of innovation Essence drinks adopts incremental form of
innovation because they do modification in lassi to attract customers and maintain market
position in UK.
Four directions of change
 Transformational change is that when company focus on reshaping the business
processes and strategy that shows shifts in culture of working. These denotes to
unexpected changes in market. Currently people of UK are health conscious and prefer to
eat and drink healthy. This is unexpected change in market due to which Essence drinks
do changes in lassi by using probiotics and fermented fruit pulp with sanipolymers
technique in their preserving steel cans.
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 People- centric change are essential for Essence drinks to do changes effectively in this
company hire new talents so that resources are used effectively and profit generation is
more.
 Structure change are do in Essence drinks because at the time of innovation is to
essential to follow division al structure so that tasks are bifurcated as per specialisation
(Varadarajan, 2018).
 Remedial change is arise in Essence drinks when Mr. Akshay examine the change in
customer demands. To fulfil their demands company do modifications in their lassi and
get quick success in marketplace.
4 Ps of innovation
 Process- It defines greater automation in manufacturing process. It is related to
optimisation of resources in producing products. Applying this innovation in food and
beverage sector means optimising in manufacturing products. It support management for
securing the cost of company at the time of doing innovation and also support capability
of company to done the targets in optimise manner. In this manager of Essence drinks
focus on modifying the production of lassi that offers health benefits to customers.
 Product- It facilitate the activity of process innovation optimising and improving quality
of products and results. It is crucial aspect because without it no other Ps are working
(Gabriel, 2019). In case of Essence Drink Mr Akshay emphasis on modify the lass to
smart vegan lassi for enhancing market share and generate more profits. Due to this
company also attain competitive advantage in marketplace.
 Position- This define position that Essence drinks secure by doing innovation in lassi. To
maintain position company can do modification using probiotics and fermented fruit pulp
with sanipolymers technology in their preserving steel cans. This develops loyal
customers and profitable results in marketplace.
 Paradigm- It represent changes that are framed by Essence drink to maintain success in
marketplace. It is followed by company to develop productivity in rival market and enjoy
increment in profit margin by take appropriate decisions as per situation raised in market.
4. How Innovation funnel helps in developing innovative ideas
Innovation funnel
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It is associated to develop tools and processes for organisation that add some value in
business entity. The main role of innovation is to identify the areas within products that does not
fulfil customers needs and shown modification (Yildiz, 2020). This funnel emphasis on
innovation and in case of Essence Drink this funnel is presented below:
 Assessment of Opportunity- It is first stage that states Essence Drink need market
research so that they properly determine the importance information regarding
product they offers to customers in market. In this they use questionnaires method so
that opportunities in market is to be effectively analysed by Essence drinks.
 Ideation Process- In this stage several ideas are to be generated to inhale the
opportunities available in market. It is useful for Essence drinks that maximise the
reach of customers so that competitive advantage is to be attained.
 Conceptualisation- In this step different concept are integrated by using advertising
to maintain the profitability of business. This process shows overall involvement of
marketer in the product so that they deliver awareness regarding products to
customers (Kelly and Kim, 2018). It helps Essence drinks to enjoys large base of
customers.
 Benchmarking- In this stage Essence drinks focus on examine several ideas and
concepts on the basis of firm objectives so that improvements are done accordingly in
offered products. This impact directly on proficiency and productivity of company
along with their position in market.
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 Go or No go and launching- In this step Essence drink take decision regarding and
launch of new product in market. Therefore they try to distinct their position in rival
market by providing benefits to customers as per their requirements and needs.
DefineFrugal innovation, providing instance of various approaches used by other organisations
Frugal innovation refers to a type of improvements that is useful to remove complexities
and excess of cost in products and its production. It support eliminate non essential activities in
producing products that are mainly durable in nature. The main purpose of frugal innovation is to
offer affordable innovation to people so that people people are feel free to bifurcate the issues
and this is beneficial for business in attracting large base of customers (Stojčić, Hashi and
Orlić,2018). In terms of Essence Drinks, Mr Akshay wants to earn huge profits at this time it is
essential to offer products to customers in economic price so that huge base of customers are to
be attracted and company will gain more profitable results.
There are different approaches which are used by other organisation to develops sales for
their innovation for example- MOMA foods used social media marketing approach to attracts
large base of customers for their innovative products as it helps company to sustain for longer
time period. For example- Britvic is the company that adopts human relation approach to
introduce and famous innovation in market. HR approach helps in recognising needs of
customers so that innovation is done accordingly.
5. Explain and recommend the next steps Essence Drinks should go through to derive a new and
innovative drink
By evaluating the above information based on innovation and commercialisation it is to
be recommended that company now focus on developing business plan so that innovation is to
be done effectively and company will attain more profitable result by maintaining their market
position.
PART 2
Background to the company and the problem
Essence drinks is a drinking company that offers mango lassi to their customers since last
two years. The founder of Essence drinks is Mr. Akshay Kumar and he enjoys high sales in
company due to their innovative formula and distribution capability. After two years of trading
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Mr Akshay noticed that the sales of company is decreasing rapidly because of numerous
competitors are entered in marketplace. To solve this issues firm focus on doing innovation in
lassi for maintaining position in marketplace and retain huge base of customers for more time
period.
Vision of Essence Drinks is to generate more profits by attracting number of customers
with the innovative fermented and probiotic fruit pulp lassi with sanipolymers technology in
their preseving steel cans.
Mission of Essence Drinks is to acquire more customers who are health consious and also
love to drink tasty beverage.
Explain the importance of using the commercial funnel to provide a solution to the problem
highlight in strategic capability for the solution that your proposing:
Commercial funnel define as an aspect of purchasing capacity that helps in setting the
path of innovation effectively and efficiently (Ercan, S. and et. al., 2020). For Essence drinks it
is a condition of recognising market condition so that huge base of customers are attracted
towards it. In terms of Essence Drinks Mr. Akshay focus on commerialise their innovation that is
fermented and probiotics fruit pulp lassi that looks good because it is a type of healthy drink that
is also durable for 10 days because of technology fits in this innovation. This funnel includes
several stages such as awareness, opinion and considerations so that different customer
preferences are to be analysed. Hence it helps in presenting positive results in favour of
company.
Importance of commercial funnel to Essence drink
The commercial funnel is termed as one of the prominent tool for Essence drink because
it support in taking decisions based on innovation. It is also useful to create awareness in
customers to generate interest towards purchasing the products. It is useful for developing
customer decision making that helps company to generate profits and revenues. This also useful
to develop the market position so that market share and growth of Essence drinks is maximised.
Frugal innovation is defined as a concept where businesses are respond towards the
different limitations that are related to the business whether they are linked with material or
financial aspects (Şen, 2020). In terms of Essence drinks manager need to focus on doing
innovation by using their resources in such a manner that match the goals effectively. In this
company employees are highly skilled but there is a shortage of financial resources that creates
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risk to company in completing innovation effectively. With the help of frugal innovation
company creates products with lower cost that create valued of offerings in efficient manner that
delivered the practical solution to customers. For Essence Drinks using frugal innovation is
highly crucial to turn the innovation for lead the market because it provide sustainable success
path to company in competitive marketplace.
A summary of the new idea for a new drinks product and how it would meet stakeholder needs
The new idea is generated within mind of Mr. Akshay after decline in the sales of mango
lassi. The innovation is done in their lassi that is highly healthy and tasty for the people who love
to drink healthy beverage and lassi. In this lassi Mr. Akshay use fermented and probiotic fruit
pulp that shows perfect blend with yogurt along with sanipolymers technology in their steel
preserving container for enhancing the durability of fermented probiotic lassi.
Satisfaction of need from innovation- Essence drinks is focused on satisfying customer
needs and for this they produce an innovative lassi. This distinct lassi is totally different from the
competitor lassi that helps in fulfilling the needs of customers so that firm acquire remarkable
position in market for longer time period (Thakur, Cabrera DeCarolis and Boni, 2018).
Opportunity in market- Food and beverage market is one of the crucial market in
present time because now market is working for help customers so that their craving are being
fulfilled effectively. For Essence Drinks innovation in lassi helps in strengthen market position.
This also attracts number of investors because by this innovation they enjoyed high returns.
Competitive edge- It is crucial for company to invest in such project that includes low
cost but meet market goals effectively. In case of Essence drinks the main motive is to gain high
market share by attracting customers and make a brand loyal. By using innovation in lassi
company gain competitive advantage in marketplace.
Target market- For Essence drinks target market are those who are highly health
consious and love to drink some healthy drink along with enjoy the unique taste of yogurt. With
this innovation company can attracts number of customers specially young ones (Liyanage and
et. al., 2019).
Strategy- Essence drinks use penetrate pricing strategy to sell their products to
customers. It is effective to retain customers and develop market position (Oderanti and Li, F.,
2018).
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Promotional strategy- Essence drinks adopts the use of social media marketing and
traditional marketing so that they create awareness related to their products and maintain high
brand position in marketplace (Jarchow and Röhm, 2019).
Techniques for testing the effectiveness of the new drinks
In order stay align with the business case Essence drinks is required to analyse
effectiveness of their business case so that they can develop appropriate insight and get success
over their rivals and business objectives. The company is planning to introduce a new verity of
lassi along with some innovation in its outer can which is having technology of self purification.
In this manner the company is required to analyse regarding various dimension of their
succession. For this several tools can be used by the organisation which are elaborated as under:
 Return on investment metric: This is defined as one of the most prominent technique
that can be used by Essence drinks in order to examine effectiveness of their innovation
introduced within their products. Return on investment is of two types such as resources
and financial returns (Zhou and et. al., 2018). In this manner analysing return on
investment could be helpful for Essence drinks to understand value of their innovation
and its inclination with profits and sustainability.
 Leadership metrics: In this manager of Essence drinks try to emphasis over behaviour
of employees in context of innovation. This would be easier for employees to adapt
innovation and work in that manner only so that appropriate results and outcomes can be
undertaken.
Resources required for proceeding with the innovation business case
Funding for market research
There are numerous methods that can be used by Essence drinks to get funding in order
to execute their market research. Some of these sources are elaborated as under:
Bank loan: This is referred as the source of fund in which loan can be taken by the bank
so that to fulfil funds requirement in order to execute market research appropriately. This is a
secured method which can be used by Essence drinks as this is associated with fixed rate of
interest and do not have any chances of failure and frauds.
Venture capital: Under this method various people are added which are called venture
capitalist and they invest their own money in order to earn higher profits. Under this a loan
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