Innovation in Small Business: Essence Drink Case Study

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Innovation in a small business context
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Table of Contents
Introduction......................................................................................................................................3
The range of venture types that might be considered entrepreneurial.............................................3
Assess the impact of small businesses on the economy..................................................................4
Determine and assess the key aspects of an entrepreneurial mind-set............................................6
Examine the different environments that foster or hinder entrepreneurship...................................8
Conclusions....................................................................................................................................10
References......................................................................................................................................11
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Introduction
The report would assess the various aspects of entrepreneurship where the business of Essence
Drink of UK has been selected for critical analysis. Thus based on the business case the issues
and impact of small business towards the economy and the aspects of entrepreneur’s mindset
while planning for the business is been discussed. The environment that would make an
entrepreneurial business grow or get hindrance from other businesses are been discussed. So the
issues that would make the business prosper and grow like leadership, culture, innovation,
technological edges etc are been analyzed herein as well.
The range of venture types that might be considered entrepreneurial
The ventures which are new and are based on ideas those differentiate one business from another
business of same segment. An individual who starts to operate a venture taking the risks while
gathering money by themselves or from a bank as a lone to start is an entrepreneur.
Entrepreneurship exists in all business sectors of economic activities so its not limited to any one
sector or business. As in the case the brand of Essence Drink of Akshay Kumar was successful
for its new drink launch of Mango Lassi product which was rapidly growing in its first two years.
However, from the third year there was an influx of competitors who took away a large chunk of
market share. Therefore the brand recruited me as the junior brand advisor to find out what is
needed to boost the sales of the Essence drinks again for the kind of growth it had seen in last 2
years.
The brand won’t let its premier product go like the Lassi so new innovative products are to be
introduced which would give the UK consumers an essence of Indian style drinks which would
be innovative for the business market and the consumers alike. The distribution capacity, team
work, taste of the product, healthy content of the drink was the most attractive part of the new
product. This innovation was new for UK market and it succeeded. The invention and innovation
has a huge distinction to be understood for the best business outcomes. Invention in the business
cases would mean the introduction of a brand New product or devise while innovation is the act
of making changes in an already existing product or ideas by making changes. Thus although it
sound similar but the words carries entirely two different meanings. As Innovation is to design
and create something new while the innovation is the process of making ideas turn into realities
(Fisher, 2019).
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The case in hand suggest that the business innovated the product of mango lassi in the new
market of UK which is a prevalent drink of choice for many in Indian Subcontinent. Thus it’s an
existing product which was new in the UK market but was existing. The innovations has to be
done along with inventions if needed by to ensure that the UK market gets a new taste with an
extended product line of Essence drinks. Hence, the brand need to introduce new product range
where it can be an innovation or invention based on the competition it is facing in the UK
markets (Surbhi, 2019).
The entrepreneur is the leader here in this case where I am the one who brings out new ideas to
present for his consideration. The people in the team may also get the needful market feedback
and propose something new and innovative that enhance the product line and give back the
business its growth and stability in the long run. The environment in the organization has to be
made such that all have faith on me and can give me ideas which I may consider. The culture of
product tasting such as new drink tasting and surveys can be conducted across a small group to
get an idea of how successful that combination would be. So here the team work can produce
different taste as a part of the innovative experiments which would make the business have
different scope to find the most needed ones for the business. The environment of culture and
innovation is such that it fosters the business product line expansion. In such a venture of
entrepreneurial start up the innovation is the key to its business growth and stability as in this
case where the competitions are high to make the business think of new line of product
(Claessens, 2019).
However, new product making and distribution needs money so the business has to venture into
such ventures that ensures that it is taken well by the consumers and are well priced for the
competitors to lose their edge in the markets. A culture of innovation has to be developed in the
business as the business of the sector is fast changing so the adoption of new product lines is the
only way that may help the growth and stability in the long run (Zacca et al, 2015).
Assess the impact of small businesses on the economy
The small businesses are those which employs lesser than 500 employees in manufacturing and
100 for traders. Small businesses re key for any economy as they provide jobs and creates
products those are the businesses that values the size and processes of such enterprise for its
contribution in the economy of the nation. The businesses with 20 to 499 people are more likely
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to stay and for five years and more over the ones which are lesser than those. Hence the certainty
of stability and growth is less for small businesses due to its size and inability to have a larger
market expanse and thus share. The US government has introduced tax cuts along with other
developing economies. The deduction of 25% on the taxes for 5 years or more is the normal
trend where the government aids the entrepreneurs to set up the business and grow so that they
become stable while its 20% for the employees of those businesses which are small. This
encouragements by the government to work in a Small and Medium Size business so that they
get the employees and the needful boost in form of tax cuts to encourage entrepreneurs to start
businesses in the market. This shows how important the business of small size is needed for the
economy. The 3% of successful small business employers gives 25% of the work force the
employment (Amadeo, 2019).
The employment of the resources and thus utilizing the assets to its fullest using the new
technologies gives the business the opportunities to create new products and services in a market
for the best market outcomes.
The 4Ps of Innovation are explained as follows:
Product: The product is Mango lassi in this case where the business is thinking to expand its
product line so as to grab the lost market share due to competitions. So the way the product is
been taken by the people in the market is the key to the business success. The benefits that the
product gives to the end users and the quality of the contents are key for its business
development.
Price: The price of the mango lassi product is such that it is affordable by the consumers who
wish to taste a new product. However, the competitors have come in with the same product in the
same price lines which has made the business loose its consumers as in the case. Nevertheless,
the pricing is one big factor that drives consumers depending in their disposable incomes. The
price of the product is well decided and maintained which gave it the growth in the first two
years. However, with the advent of new competitors the pricing has to be kept competitive as
well which gives it the capacity to compete in the local markets (Gërguri‐Rashiti, et al., 2017).
Place: The UK market is new to taste the healthy drink from India like Mango lassi which have
the taste that’s exquisite and it’s a very healthy product for all ages. The side effects of such
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health food consumption is none compared to other carbonated soft drinks in the same market.
Thus the launch of such product in that place was a good idea which may give me a clue to
include more such healthy Indian beverages for the mass to gain back the lost share and improve
the stability with product line expansions.
Promotion: The promotion of the brand is important so that the people gets to know the product
and the brand reaches the target markets. So based on the target market, population, age group,
and taste for media views are considered for the promotion where the choice of media and cost is
of prime importance. The issue of healthy drink for the Mango Lassi product is one of the key
component that is been propagated along with the innovative new products that may come in
with tie to get back the lost market share. Hence the purchase frequency. Loyalty, new consumer
addition for market growth are part of the promotion activities in business and is a key aspect of
business marketing (Anthony, 2013).
The fugal innovations that is product with least cost but high margin is a good choice for the
business which gives it the needful economic stability for the long run. So the innovations in the
context of Essence would let it recover the market and help it to gain new market and added
product lines which would make the business more stable and competent if the product shows
the sign of people’s choice. A drink like Indian Aam Panna, a drink which has the green mango
flavor added with rock salt and flavored with few Indian spices which is very tasty and have a
great medicinal property like digestive aid, purifier of blood and helps to keep the kidneys clean
may be launched which cost less to make but is a wonderful product of Indian taste which the
British market would take. Such innovations or similar stuffs can be added to the business
product line to make it stable and growing in the long run. This would be likely for the business
to grow and develop its product lines and thus keep up with the market with new innovations in
the business product offerings (Evans et al. 2017)
Determine and assess the key aspects of an entrepreneurial mind-set
The entrepreneur’s ability to understand the business and extend the business markets with
products and services for stability and growth is the key to their development of the venture. The
entrepreneur should be open to ideas and be able to read and resolve the new needs of the
businesses and keep its market growth on by keeping the old consumers and developing new
ones for development (Kahn et al., 2013). So the new product development is the most important
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and challenging aspect of the day that bothers the business the most. The new product
development is one that the business puts a lot of efforts on to develop. To develop a new
business that has all the elements of products and services as per the consumer’s wants. The case
of Essence is one which succeeded in its first launch of mango Lassi but failed to stay due to new
entrants in the market. The business entrepreneur should have understood the new developments
and acted accordingly to keep the market share with new product development. I was been
recruited where the business wished to develop the business by gaining the old market share and
gaining the new ones with new product development. This has made the product innovation
prime for the business sustainability.
So the offerings of comprehensive product development and distribution strategy is prime for the
new product to succeed. The new ways of the business demands that I experiment with my new
innovation of the UK market of Aam Panna or the Crushed unripe mango powder based drink
with various Indian spices. This product can be developed as it is new for the UK market but is
very popular in the Indian Subcontinent. The feasibility of such drink in the UK market where
the taste is different and the climatic conditions are not as that in India so a research of how well
the drink would serve the purpose has to be surveyed before the final decision of new product
development. The business was losing its market share which had to be improved so the
financials for the new product development had to be cost effective where innovation was the
best way since no new things were developed in the process (Prajogo, 2016).
For the business of Essence, it performed well in its first two years which gives it a great repute
for banks to issue lone while the business may also include the profits earned in the past 2 years
to start the new product. Nevertheless, the new products acceptability was more important for the
business to be confident to take the necessary risks. The risk of bank loan and the ability to
distribute in the markets was of primary importance which made the business confident to invest
in that field. Thus the business may apply for leans citing its past figures and developments along
with its ability to distribute that makes the market supply steady may help the cause of funding.
The brand may go public as well but in that case it won’t be an entrepreneurial business
anymore. The tools available in such case is a survey which may include people of UK from its
diverse population of all age groups and sex so that a good understanding of the flavor for the
new product is understood (Teece et al. 2016).
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The care has to be taken where the business takes the risk in a calculated manner where the
launch and withdrawal if it fails is easy and the same assets may be further used for other
products development and production. Such flexibility in the business helps the business
managers to keep up their competence in the open markets. Hence the survey, production and
distribution costs has to be pre-calculated where the manpower engagement for the different
product has to be planned as well. Therefore, once the business is done developing a new product
it is ready to launch it. Hence, the way the business would improve and develop the needful base
for its new product would ensure its sales and recapturing of the market that it has lost and also
get new members in who may find the new innovation attractive (Visnjic et al., 2016)
Such plans and execution is useful for the business for its future aims and objectives. This not
only makes the business effective again. The way the new product is accepted, the demands and
supply along with the margins for the product all matter for the business to keep the new product
developed in the market and thus based on it grow. The product distribution, offers for free trials,
advertising the medicinal qualities of the product and its refreshing capacities should draw
people toward the product. If the product is loved by the consumers then they would adopt it.
Further, the business has to monitor the age group, the sex or the demography of the people who
are more likely to taste their products again has to be identified and the promotional campaigns
needs to be designed in the same manner. So the profits that the market is giving, demands and
the consumer’s feedbacks are key for the business to improve the product and also launch the
same in the markets so that the business understands the current aspects of product greatness and
improve upon them (Vargas, 2015).
So the ways to improve the product line or make new products from the old ones are been made
by the business so as to keep the market share up and give the consumers a diverse choice of
beverages of different taste and medicinal values to the UK markets. Hence the innovation of the
Aam Panna in this case may draw Lomon based citric refreshers from India like Nimbo Pudina
Drink which too have the medicinal values along with good nutrients that gives instant
refreshments to the body. The ways that the business of Essence can develop its market share
and grow further is with addition of well developed and tested products with the ability to launch
and withdraw depending on the demands from the consumers. No loss making can be allowed
for such business in such short period that it cannot sustain for the long term.
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Examine the different environments that foster or hinder entrepreneurship.
The environment in which the business works is called the Entrepreneurial Environment where
the factors like Political, social, economic, Social, Technological and legal factors affects it the
most. This is PESTLE which is been discussed below for small and medium sized business like
the Essence.
Political: Political environment of UK and its stability would make the business take a risk of
new product development and distribution. If there is a political unsteadiness then it affects the
business and society equally making the business have problems. The political aspects can be a
boon for business or a hindrance based on where the business is standing. The business which
are based on the economies which are stable have more ability to stabilize itself and its offerings
in the long term which is not if it’s volatile.
Economic: The conditions in which the economy is in, makes the business gain the needful
qualities to price or develop a product that the consumers can buy and consume. If the economy
is bad the income of the consumers won’t get diverted towards such products but they would
rather save money due to the sinking economic factors in the market. Hence the economy of UK
is good which may encourage the entrepreneur like Akshay Kumar to invest more and take the
needful risks for its future growth and stability.
Social: The social climate is such that determine the taste of the people where it suggest if the
people are open to new tastes or are conservatives in product selection. The UK market is diverse
and have a great deal to offer to the people and thus make profits for the business in the long run.
The economic resources like the bank loan can only be accessed where the economy is good and
helps the development of the policies of expenses and earnings for a business. The social
disapproval for the taste that essence plans to launch may be a reason why it should conduct a
survey of tasters before the launch to keep the venture risk free (Wheelen et al., 2017)
Technological: The new age technologies has helped the businesses to get the consumers cone
closer to the business which enables services which have least of human interference. However,
in this case the technology can be of great use to manufacture the product at a low cost and have
the promotion of the same to a larger audience and get the consumer feedbacks in real time. This
helps the business to grow and prosper in the long run. The environment also gives the needful
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motivation to people to go and find out new ventures for themselves creating more and more
entrepreneurs in the process.
Environmental: The way the business is using the natural resources, the carbon footprint, the
ways of disposal of wastes and the use of natural resources like oxygen and water are all under
the environmental factors of business. The business has to take great care to make the businesses
competent so that they can be environmentally viable in the age of people’s concern to earn a
good repute and thus develop its brand as an environment friendly business.
Legal: The legal aspects like the business size and taxations on them, production laws, labor
laws like various aspect of business laws are for the legal aspect of the business. The flexibility
of the business operations should have such that it have all its aspects covered under legal
obligations. The regulatory functions has to be followed and needs the needful legal provisions
as per the UK laws being implemented in all aspects of business operations. Therefore, this may
be of great importance which may hinder the business or let it grow as per the use of legal
frameworks by the business.
Conclusions
The business however has to take care that it retains its knowledge and data with itself where the
data systems and integrations among the stakeholders are simple and easy to operate with the
modern day technology. So the business has to develop the needful criteria of product
development and distribution for the market consumption and promotions for the best business
outcomes. However, the readiness to get the product back in case of a fall in the business market
too has to be ready which is the second line of control for the business since its ideas and
business plans are unique which gives such small business the edge in such a competitive market
of UK. The innovation would thus enhance the Essence business stakes in the market share and
sustainability efforts with new adoption of product lines in the future.
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References
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