Innovation, Commercialization & Business Strategy: Essence Drinks

This report provides a comprehensive analysis of innovation and commercialization strategies, using the Essence Drinks Company as a case study. It differentiates between invention and innovation, highlighting the importance of innovation for organizational success. The report examines how organizational vision, culture, leadership, and teamwork shape innovation and commercialization. It explores various sources of innovation and methods to foster a culture of environmental innovation. The 4Ps of innovation (Paradigm, Position, Product, Process) and the innovation funnel are used to evaluate and shape innovative ideas. The study also delves into frugal innovation and its utilization within the firm, emphasizing cost reduction and efficiency. Furthermore, the report discusses the importance of the commercial funnel and the new product development process. It includes a business case analysis of Essence Drinks, incorporating STP analysis and various tools used by the organization to drive innovation and commercial success. The report concludes by summarizing the key findings and their implications for Essence Drinks and similar organizations.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Importance of innovation to organizations in comparison with invention...........................1
P2. The ways in which organizational vision, culture, leadership and teamwork can shape
innovation and commercialization..............................................................................................2
M1. Different sources of innovation and the ways organizations can foster culture and
environmental innovation...........................................................................................................3
P3. 4P's of innovation and the innovation funnel to examine or shape the innovative ideas.....4
P4. Development in frugal innovation and the ways in which they are utilised within the firm 6
D1. Analysis of the ways in which innovation is developed, embedded and measured.............8
PART2.............................................................................................................................................8
P5 Importance of commercial funnel .........................................................................................8
New product development processing .......................................................................................9
P6 Innovation business case of Essence drink..........................................................................10
STP analysis..............................................................................................................................11
P7 Tools used by organization..................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is a repetitive procedure of matching the requirements and desires of the
customers to various abilities in order to fulfil the gaps of the information about the products ,
their conception, design, marketing and several other procedures. Commercialisation introduces
innovated goods and services within the market space to become successful in nature
(Geissdoerfer, Vladimirova and Evans, 2018). This report will include differentiation of
invention and innovation in the context of Essence Drinks along with 4P's of innovation in order
to understand their roles and functionalities. Apart from this, the study will also highlight the
concept of new product development procedure in detailed format to go through its
commercialisation innovation according to the case study that has been given about the
innovation of the Essence Drinks Company.
MAIN BODY
P1. Importance of innovation to organizations in comparison with invention
Invention of any product basically refers to the conception and launching of new product
and services within an organization. The concept of invention deals with the creativity and
production of the firm while the innovation conception refers to the modifications within the
inventing products and services. In innovation, no entry of new product has been takes place,
only improvement of existing products have been done by the establishments (Diaz Abrahan and
Justel, 2019). Basic differences between invention and innovation has been described below:
Invention Innovation
 This is related to preparing new
products and launch new services.
 Invention starts the company with its
newly introduced products and
services.
 It enhances the value of the firm.
 It requires knowledge base abilities.
 It depends on the theory concept of the
 It is about making new things from
existing products.
 This process can be done for the
enhancement in the productivity of the
firm.
 Innovation deals with latest trends and
prepares the products into modified
version.
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goods.  Marketing and strategical skills are
required.
 It is based on the practical implications
into the product.
In context of Essence Drinks, the invention done by the establishment was the healthy
mango lassi into the market of UK which achieved dramatic rise in sales of the firm in their first
years. But when the company enters into their third year they feel decrease in the demand of the
product as the company requires innovation strategy in order to sustain within the UK market.
With the case study, it has been identified that companies requires time to time management of
their products and services with the latest trends of the business world (Karaca, Daştan and
Çalmaşur, 2021). All firms are started with the conception of invention but runs through the
innovation only. Innovation is the ultimate thing that exhibits the rival power of the Essence
Drink Company in front of their competitors.
P2. The ways in which organizational vision, culture, leadership and teamwork can shape
innovation and commercialization
Commercialization is a concept that deals with financial gains of the Essence Drinks firm
with the help of launching new products and services within the business world. It includes
sales, accounting, marketing and customer support (Mare, De Nicola and Miguel, 2021). This
concept enables the establishment in dealing with marketing status and planning. The points that
are discussing the criteria of innovation and commercialization of the firm are:
A) Vision: The vision of the Essence Drinks Company is to describes the product
innovation and the ways in which the commercialisation of the innovated product i.e.
mango lassi have been done. The vision of the firm is the only thing that defines the
company growth and innovation range after which commercialisation can be done
through easy format.
B) Culture: Different companies having diversified culture like in Essence Drinks
Company, the firm offers healthy flavoured drinks to their users. Culture basically
defines the methods through which the product will going to be innovated and in what
terms the commercialization of products and services gets affected.
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C) Leadership: Leadership is a common and continuous procedure in order to lead the
teams and group of people by the specialists in order to achieve a common goal. With the
help of leaders and its effective leadership qualities, Essence Drinks is able to run
fruitfully and leading in the market space, and hence it describes that they are highly
efficient enough to maintain its position in front of its tough competitors (Zhao and Cui,
2021).
D) Teamwork: Teamwork leads the growth of the firm and thus increases the productivity
of the Essence Drinks Company offered products i.e. mango lassi in the market of UK.
Effective teamwork contributes in the commercialization of the innovated product. As
the team work enables to bring new and innovative ideas as more people are engaged
into enhanced innovations.
All these points enables the firm to shape the organization commercialization and
increase the innovation within the firm. Hence, both the factors such as commercialization and
innovation are highly important in increasing the company productivity and in meeting their
objectives.
M1. Different sources of innovation and the ways organizations can foster culture and
environmental innovation
- Different sources are:
1. Unexpected innovative ideas generate more profits and increase its growth.
2. The ways through which firm fit innovation system in its process.
3. Market structure defines the ways in which innovated products gets launched.
4. Demographics decides that where and which product should be innovated within the
market.
5. Necessity defines the requirement of the innovation of goods.
6. New knowledge about the market gives ideas about the innovation.
With the help of following all the above sources of innovation, firm can able to develop
their cultural and environmental innovation. Although innovative culture can be drawn out by
rehearsing it with according to the set market regulations (Arundel, Bloch and Ferguson, 2019).
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P3. 4P's of innovation and the innovation funnel to examine or shape the innovative ideas
Innovation mix is basically managing the sources of innovation in a way to improve the
innovation success rate while reducing the risks that are involved with the creation of the goods
and services within the organization.
C) Paradigm: This element uses the creativity to improve the ways of enterprise
proficiency. Paradigm establishes what organization have to do to make necessary
changes and innovations in their existing services and products (Dawson and
Andriopoulos, 2021).
D) Position: This is most important area of innovation in which the establishment decides
the ways of frame out the product in front of the market place. The factors includes
workforce, public, customers, etc.
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4P's Of Innovation

E) Product: This step evidences the structure in which the firm makes their products better
by utilising innovation techniques. Increase in the product development enhances the
successful addition in the productivity of the firm in terms of designing.
F) Process: Process deals with supply function of the goods and services, workflow within
the firm, hiring and recruiting people are all comes under the consideration of this step.
Process involves all the steps for product development.
The 4P's are efficient enough to build and enhance products and services in a better
manner. It thus describes the questions related to the products offered by the firm along with
their answers as well with detailed discussion with different steps (Vanhaverbeke and et.al.,
2017). All the 4P's has covered all the areas that includes concerns within the innovation
procedure. In context of Essence Drinks, the firm should engage in the product modifications in
the form of innovation. The company should include sugar free lassi along with the involvement
of various other diversified flavours such as strawberry, chocolate, vanilla, pineapple and mixed
fruit. The sugar free beverage provides better and healthy options for the health conscious
people along with lower down the risks of illness or diseases. This is the most appropriate way
to convert their existing product i.e. lassi into better and healthy option with the involvement of
innovative techniques.
Innovation Funnel is able to expound the procedure to develop the process and product.
It helps to describe the complete process to build and meet market requirements of goods and
services according to the customers needs and desires. Funnel of innovation is one of the source
to refine the whole system while doing products innovation along with the launching of the
innovative goods in front of other competitors (Cohen, Quinn and Roth, 2019).
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Innovation Funnel

The above diagram illustrates that the innovation funnel consists of three major steps in
the journey of modified goods and services offered by the firm. The first stage describes the
collection and gathering of information about the product innovation and collection of more
innovative ideas along with development of various opportunities for more product innovation.
Such as the Essence Drinks company collects the ideas related to the modification within the
lassi with considering various opportunities for product creation within the market place of UK
according to the requirements of the general public (Melkas, Oikarinen and Pekkarinen, 2019).
Next stage interested about the segmentation of the gathered ideas that defines reviewing of the
collected thoughts. Under this stage the Essence Drinks segregates the fruitful and considerable
ideas along with rejection of non relevant thoughts that are unable to adopt by the firm. And the
last step includes the final selected content which must present the organization services in
proper manner and meet all the objectives and final intentions of the Essence Drinks for which
the business has been launched by Akshay Kumar. With the help of this funnel the organization
is able t stand out in front of their other competitive establishments in most successful
demeanour.
P4. Development in frugal innovation and the ways in which they are utilised within the firm
Frugal innovation is the activity through which the organizations reduces the complexity
and the cost of goods involved within their production procedure. This act basically refers to the
removing of non-essential attributes from a indestructible product in order to sell it in other
market places (Ackers and et.al., 2017). The frugal innovation could be classified on the basis of
circular economy, the makers movement, open innovation, social innovation, shared economy
and the co-creation.
In context of Essence Drinks Company they can cut down their unnecessary costs so that
their goods and services could become more competitive and also able to contribute effectively
towards the economy of the UK. The firm can also start utilising the advanced technology in
order to manufacture or modify their products along with doing some changes within the
packaging techniques.
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The major role of the innovation in the context of the organization that has been done by
the Essence Drinks Company in their health drinks business can be highly profitable if it could
be utilised within it. The business group of the firms could easily put on the surveys and collects
the feedback from the respondents along with gathering of knowledge with respect to the
products and services offered by the firm. The frugal innovation system enables the organization
to cut down the unnecessary costs. The feedbacks that have been collected by the establishment
could be utilised to highlight the ways in which they could cut down the costs of production at
various diversified levels. The business could also be settle down with the assistance of different
outlets and offering of innovative drink which are more healthier than previous one along with
providing their consumers better and more flavour options will definitely enables the Essence
Drinks Company to sell their products in different market place in most appropriate manner.
D1. Analysis of the ways in which innovation is developed, embedded and measured
In the Essence Drinks Company innovation is highly necessary as in its third year of
functioning company requires innovation in its existing old product i.e. Mango lassi in order to
do certain modifications into their juice types. In terms of innovation it has been identified that
the drink requires necessary changes such as introduction of sugar free lassi in order to offer
drinks which are beneficial for health conscious people along with all other because of its huge
amount of benefits regarding well-being (Pekkarinen, 2019 ). Apart from this, the firm can also
introduce various flavours in order to make their product most efficient and favourable for the
customers.
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Frugal Innovation

Irrespective of the innovation, certain modifications in the company existing process is
required with some serious concerns because the modifications are done according to the market
requirements and analysing the upcoming challenges. Although the firm sometimes without
even judging and evaluating trends, company produces different flavours of drinks so that the
consumers gets attracted by the company innovation and tries their maximum to get in touch
with the company products.
PART2
Background of the Essence drink
Essence drink is the energy drink provider in the Britain market from last two years and
people are liking the product very much in the initial time further in this year the people shift
their product preference and choice some alternative product (Fernández-López, Calvo and
Rodeiro-Pazos, 2019). The issue behind this is the product as Essence drink have not made any
kind of modification and change in the existing product. People in the current marketplace want
that their product get updation on regular basis so that they are also attracted towards the brand
as well as product. To work on this issue Essence drink must be entered again in the market with
a modification that is trendy in the market and people also like that.
P5 Importance of commercial funnel
The commercial funnels is the term of marketing which explains the potential of
customers to buy the product or services in this process of buying behaviour of customers are
determined (Kelly And et. al., 2019). This concept is important because this assist to know the
current buyers thought when they are having at every point while purchasing their commodity.
With this knowledge the Essence drink can effectively invest in the right market activities and
the channels. There are different stages of the funnels which are had to be undertaken by the
Essence drink to attract the customers the four main stages are:
Awareness: The primary stage is known as awareness because here the Essence drink will go to
aware the people about the new product they are going to bring in the market. For this Essence
drink may use the social media platform, TV Ads and many more (Imrei and et. al., 2020). The
company will make use of that tool where the targeted customers are highly active so that
awareness can be easily done.
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Interest: When the targeted audience are being aware about the new product that Essence drink
is going to launch in the market. Then they are identifying the people who are being interest to
buy the new product of Essence drink (Jiao, Wu and Lu, 2020). While developing the interest
Essence drink can use the STP framework to know the segmented people in the market. When
they are creating interest in that time the company focuses on the needs and desire.
Decision: Further when the customers in the market are making a decision to buy the product of
Essence drink. In this stage the audience is converted in the existing customers with the
campaign used by company so that customers want to buy the product of Essence.
Action: when the customers made their decision to buy the product of Essence drink then the
company provide them the way through they can make their action of purchasing the product
(Lasso and et. al., 2020). Either customer buy the product or not the deal is not lost forever so
the Essence have to make sure that company should stay at the top in the mind of its target
customer base.
New product development processing
As the Essence drink is going top launch an new kind of drink which is sugar free and available
in difference flavours so this process of developing the product have different stages which are
involved in Essence drink are:
Idea generation: The process of developing the product are included the idea generation in the
primary task in this research regarding the new product (Bendi and et. al., 2018). This is done
keeping in mind the needs of the customers to develop the product which is needed by all the
targeted people in the market. The R&D department uses to work for knowing the desire of
existing and new customers.
Idea screening: In this different ideas which are developed by Essence are figure out to select
the best from them. In this essence will carry on with that product which is more beneficial for
the company in profitability.
Concept development and testing: In this stage the attractive ideas are being developed in the
particular concept. In this Essence drink will explain that how they will make use of sugar free
drinks in their existing marketplace (Efrata, Radianto, Marlina and Dewi, 2020).
Marketing strategy development: When the company know what they are going to change in
their product then they make a marketing strategy for the current market. There are three parts in
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this strategy where the company describes the target market, outline of price which is earlier
planned and long term sales of the company (Franceschelli, Santoro and Candelo, 2018).
Business analysis: In the stage of the business analysis the attractiveness of the new drink which
essence drink is going to launch. In this the sales and cost related to the new product are being
checked.
Product development: When the new products is evaluated as per its cost and sales in the
existing market then the product development is done as per the need of customers in the market
in this level the essence drink is going to produce the product with no sugar content in the drink
and also make use of different flavours in the drinks (Lee and et. al., 2019).
Commercialization: For this product the essence will make use of price penetration strategy to
attract its customers as there are different competitors in the market and it becomes more
important to lower the price and offer the target customers in the market so that more customer
get attracted towards the brand.
P6 Innovation business case of Essence drink
Executive summary
In this the new product with innovative idea is being determined with the help of marketing plan
so in this the new product of Essence drink is sugar free energy drink available in different
flavours. The STP analysis is undertaken with the marketing opportunities are also evaluated for
the new product and the budget is prepared and the ways the company can used to raise the fund.
Mission: To enhance its customer base and profitability with the sale of the newly lunched
products.
Vision: To develop the brand image in the beverage industry to the best sustainable company in
the market.
Need: The current need for the Essence drink is to introduce sugar free drink in the market to
satisfy the customer needs in the segment market (Mousavi and Bossink, 2017). The
enhancement of the quality of the product assist to increase the potential market and source of
earning for the business. Drink with no sugar are being preferred with the people as the current
market trend is moving towards the fitness, and they need the products which are sugar free and
give energy.
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