Business Report: Innovation and Commercialization for Essence Drink

This report provides a comprehensive analysis of innovation and commercialization strategies, focusing on the case of Essence Drink. It begins by differentiating between invention and innovation, emphasizing the value and importance of innovation to an organization. The report explores how innovation is embedded within leadership and organizational culture, detailing different types of innovation, including incremental, architectural, radical, and disruptive approaches. It also examines the 4 P's of innovation (Product, Paradigm, Process, and Position) and offers recommendations for Essence Drink's product development, including idea generation, concept definition, and market analysis. The report further discusses the background and problems of the company, the importance of using a commercial funnel, and matching goals with resources and capabilities. It also addresses value analysis in the context of frugal innovation, summarizes the impact of the company's ideas on stakeholders, and outlines techniques for testing the effectiveness of new products, including desk research and product development. The conclusion summarizes the key findings and recommendations, highlighting the strategic importance of innovation for business success.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Difference between invention and innovation............................................................................3
Value and importance of innovation to organization..................................................................4
Innovation in the organization are embedded with the leadership and culture...........................5
Different type of innovation........................................................................................................5
Innovation P's..............................................................................................................................6
Recommendation for essence drink............................................................................................7
Part 2 ...............................................................................................................................................8
Background and problem of the company..................................................................................8
Importance of using commercial funnel.....................................................................................8
Match the goal with resource and capabilities ...........................................................................9
Value analysis when frugal innovation used...............................................................................9
Summarized about the idea and its effects on stakeholders........................................................9
Techniques for testing effectiveness of drinks..........................................................................10
Resources which are needed in innovation ..............................................................................10
Desk research ...........................................................................................................................11
Product development.................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The innovation is basically implementation of thoughts which is being for the first time as it can
goods and service. This is a process of replacing a better things on the place of previous one to
add the value (Lehtimäki and et. al., 2019). The commercialization is defined as knowledge and
invention for any particular person or any business. This report will evaluate the difference
between invention and innovation. The different type of innovation are also discussed in this
explanation of 4P's of innovation are done with the recommendation for the essence drink is
presented. Further more background of company with the problems are discussed. Importance of
commercial funnel with the capabilities of the solution. More over the tools that Essence drink
will use to protect the intellectual property needed for new product.
MAIN BODY
Difference between invention and innovation
Invention is basically happening of a particular thought related to product or any kind of
service which is not being developed before (Kim, Park and Paik, 2018). In inventions the idea
or thought is being developed to perform particular task without any inspection. In any kind of
inventions the creative is important aspect because without creativity the invention is completed
and only creativity is not proper invention. This is just a creation of idea physically this idea is
unique and also not used in the past. This can be anything just a sample of product made or
development or any new structure in the company. The thing which is developed with certain
invention then they are provided a security patent to just check whether the inventions are
original or not.
Innovation is said to be conversion process of the idea into successful commercialized
development and in this it encourages making use of it more (Wardle, Baum and Fisher, 2019).
As we can also say that innovation is completed when the real outcome come to the people who
are going to use them. The innovation is done to use the idea and further implement in reality.
When the product innovation then it will provide better value then a non innovation. The
innovation product uses to provide higher level of satisfaction to the customer.
Basis Innovation Invention
Meaning This is happening with the Invention is basically processing of

development of thoughts to improve
the product which provide a new
experience to its users (Chan and
Srivastava, 2019).
idea which is implemented for a
product for first time.
Concept To kept within the business and
perform the activities innovation is
very important. With the help of
innovation the brand become different
and specific in the market place. With
the hep of this company can grab the
competitive benefits.
The invention is a first time use
method to produce and develop the
commodity in the market. The
invention is done for any purpose
either it can be development of any
product and services or any production
style.
Occurs This is happened to resolve the issue
which is act as a beerier in the
particular industry. The product is need
to develop in the existing market.
When the idea and thought is being
tested out and then make use of it in
effective manner.
Activities In the innovation process all the
function of the business are involved in
the process of innovation.
Main task and duties are done for the
invention in research and development.
Concerned
with
The innovation is done for the variety
of commodity of the business.
The inventions are totally concerned
with specific product or service
(Turay, 2017).
Value and importance of innovation to organization
The innovation plays a great role in every business to improve the performance in the respective
market. In every sector the business uses to face lots of competition in which they have to
perform well to retain their customers and provide better quality of products (Turquety, 2019).
Every business must innovate its products regularly to attract the customers and develop a better
image in front of others in the market. The innovation is important because:
Loyal customers: The business is being more sustainable when they have a strong and loyal
customers who are always wanted to purchase the products and services of single brand and also

promote the products to other to increase the customer base. When the brand is continuously
adding some value to its products then customers are also being engaged with that brand. When
the business get to know the importance of innovation then they are effectively enhanced the
sales and profit as well (Szücs, 2018).
Unique selling proposition: The business in the market have some uniqueness to get success in
the market. The uniqueness is also tends to act as an innovation which is not gone before by any
other company in the market. The unique selling proposition is something that is different and
need to grab the market effectively.
Competitive advantages: The market condition of current market is very unpredictable so to
capture the competitive benefits the business must innovate its products and services. Every field
is having lots of companies which are offering same kind of commodity in the market, and they
want their products can grab more customers (Feng, Shi, and Kang, 2017).
Enhance brand value: When the innovation uses to take place regularly in the business then
customers also value more to any customers. The business in the market are now not providing
their products to all the customer rather then this they are targetting on particular set of people
who are interested in that kind of commodity and having a desire to buy that specific products.
Innovation in the organization are embedded with the leadership and culture
Essence drink is having such leaders and culture who are continuously trying to innovate
their commodity on regular basis and also support the employees to provide their thoughts and
ideas (Ambos and et. al., 2021). The employees creativity and innovative mind set used in the
production process to create more effective products. The main product of Essence drink is
lassis, so they are trying to modify that product according to the taste and preference og the
customers of the Essence drink.
The leaders of essence are continuously using their creativity in the production and trying
to enhance the production and its sales regularly. They are having mission to develop the brand
who have a favourable value in its targeted market (Ang, 2018). Leaders are trying to achieve the
long-term goal and for that they are more concern about the completing short-term goal which
will contribute in the bigger target. The leaders in the Essence are putting their 100 percent in the
task they are doing and also motivate the people under them to perform the same. With this the
employees under such leader are more focus and also think innovative and creative.

Different type of innovation
There are number of innovations which are done by the companies in the market and each are
using some different type of innovation to differentiate from others (Janjić and Rađenović, T.,
2019). Types are explained below:
Incremental innovation: This type of innovation is more common in the current market where
business uses to enhance the value of its brand towards the customers by the same type of
technologies and tools. The business can use this type of innovation practises in the current
market with a minor change in the existing commodity so that customers are attracted towards
that and the brand value get increased.
Architectural innovation: This is type of innovation which is used by the company when they
need to grab new customers in the new market. For this they are launching their existing tools
and technology in the another market (Krishnakumar, 2017). The risk ratio is less because they
are only using the same method is used.
Radical innovation: This is innovation which is completely new in the market. The business are
trying to launch the new tools in the new market place to attract the new customers. In this
innovation the risk chances are higher because the company is entering the new market with new
products so the success and failure chances are half.
Disruptive innovation: The business who are using this type of innovation used to come in the
existing market with a new and creative things. This is one of the effective style because the
customer of every company wants something new regularly. With the help of innovation in the
existing market customer are more engaged with the brand and new customers are also want to
buy their commodity.
This is basically the main innovation type which is mostly used by every business who
needs to innovate in the market. From this Essence drink should undertake the incremental type
of innovation because the brand want to focus to its lassis, and they need to put some more value
to its brand so that more customer are attracted towards the product. Incremental innovation also
states the same as per the need of the company.

Innovation P's
There are four P's which can help Essence drink to innovate its products in the market:
Product: The product P of innovation is focussed to create an identification and make the
difference in the Essence drink. The essence drink are having an efficient start up where people
are willing to buy the product so when they create some kind of difference then they it will be
beneficial for the value of the brand.
Paradigm: In this the Essence drink will explicate what type of change is need for the company
and which are the ways to implement that in the company. In this company also identify that the
change which is going to take place that must be profitable. As the Essence drink wanted to
launch a new Variant of its lassis product so also the discussion and implementation is done with
this P.
Process: in the process P the company innovate the manner to distribute its product in the
market. The Essence company will go to modify its process, and they are distributing their
product through online as well as physical stores. With the internet selling of Essence drink
customer are more willing to buy the products (Janjić and Rađenović, T., 2019).
Position: In this P of innovation its identify the segment in which they are offering their
products. So Essence drink is offering its products to the people who are highly involved to buy
the food and beverages and try the new things in the market.
Recommendation for essence drink
The company is going to expand its range of products and for that they should follow a
procedure which help in growth of the company.
Idea generation: Before going any change their must be an analysis which will identify the
market and requirement of customers. With these customers are also engaged with the company
and this also help to know about the market in which the idea is going to be used. Essence should
check whether the demand of similar product are favourable or not.
Concept definition: It becomes more important to determine the design and quality that the
product have when the customer will use it. When the customer will make use of it then they are
able to know about the innovation within the product.
Market analysis: After deciding the product the market analysis is done to know the condition of
the market.

Product development: The products are developed with the respective desire of the customers.
As the customer base of Essence drinks need some new so to provide them new the company
will launch a new variant in the lassis products (Ang, 2018).
Commercialization: The new product of Essence drink must be come in the market with the
proper marketing campaigns and other activities the product is being lunched. The company will
also use different pricing and product strategies so that customer is highly attracted towards the
brand.
Part 2
Background and problem of the company
Essence drinks is a product which is retailer of drinks, the company has started working from 3
years back and offering the product of lassis which is one of the main product of this brand. The
brand needs to launch a new range of its product that is mango lassis (Silvestre and Ţîrcă, 2019).
The product has it own USP that is traditional touch all its drink are come with Indian touch to
provide some different flavour and specify itself from other. In the start-up phase company has
cover wider area customer yet in the third year suffers a lot and its customer base is also get
impact with that. The competition is also raises in the market so this become difficult to handle
all things together therefore to handle this situation company need to take some steps.
Importance of using commercial funnel
Commercial funnel is a tool which assist company to identify, qualify to the buyers in
this process there is no process from aware the customer to the purchase stage. With the help of
this process as it uses to visualize the customer journey from the primary stage to the end.
To starts the sales of the Essence drink company will undertake the following steps with funnel
approach as under:
Awareness phase: In the starting the awareness regarding the brand become more important
because without awareness no one is able to purchase the products (Ornarowicz, 2020).
Interest phase: When the customer base of Essence drink is being aware then brand uses to
create interest related to the brand.

Evaluation phase: In this phase the company uses to review the interest of the customers and
compare its product to previous one.
Decision phase: Further after the evaluation the customers uses to take the decision to buy the
product and put that in the cart.
Purchase: When the selection and decision are taken then customer is going to purchase the
product.
Revaluation: After selling the contracts is reconstructed the customer in the market are being
more connected with the product.
Repurchase phase: when the customers are being familiar then they will purchase the product
again and again.
Match the goal with resource and capabilities
The Essence drink have all the required resources which are needed to make the mango
lassis as per the market analysis and preference of the customers (Gurjar and et. al., 2020). The
company is trying to perform its best to get success in the market with new products with
retaining its previous product range. Company has taken different process to identify the taste
and preference of the customers in the current market. They also make use of commercial funnel
way to effectively sale the new drink product in the market successful. Essence can also modify
its previous lassis drink with some kind of innovation by adding healthy substance such as
vitamins, Minerals etc. the risk is also their because the company is launching new product and
its can fulfil the needs of the customers.
Value analysis when frugal innovation used
The Frugal innovation is type of innovation which is developed accordingly to the needs
of the customers in the middle-class people (Hossain, 2021). In this segment there are different
corporates that are involved which are following frugal innovation to enhance the sales. The
Chotukool is one of the biggest example of frugal innovation who used this type of innovation to
increase its sales in the market. With the help of this type of innovation the additional price is
being cutted out and product is offered at the real price which actually customer wanted.

Summarized about the idea and its effects on stakeholders
Essence need to develop its product range with the new idea in innovative manner and it has
significant impact the stakeholders of the company. The company is willing to launch that
product which has its uniqueness and which not have face much competition in the market. The
idea of Essence drink is effective and able to enhance the sale and profit of the company as there
is no other company which produce this type of product (John, David and Mmereki, 2018).
When the company will earn more than stakeholder are also going to influence in positive
manner. Basically the employees, customers, owner, suppliers are the stakeholders of the
Essence drink company.
Techniques for testing effectiveness of drinks
There are number of aspects which can be used to test the effectiveness of new drinks are:
 Essence drink can undertake a sample to test the product which is provided to the
customer to use and further the reviews and feedback can be taken from them.
 When the sample product is being liked by the people then company can promote and
produce the products to serve the people. Yet there are any changes required as per the
feedback then it should be addressed by the company. Further completion of the change
Essence drink can relaunch it in effective manner (Xu and et. al., 2018).
 Essence drink can also use the ads to engage the audience and check the reaction when
the product is being actually launched in the market.
 When the feedback and reviews related to the products are positive then essence drink
should continue in promoting that product.
 The profits which is obtained from the new product is also calculated and checked its
margin after the production cost.
 The product effectiveness is also being checked by the Essence drink by giving the
product in the family and friends and further taking their review for the same.
Resources which are needed in innovation
Finance for market research

Creditors: This is basically peopled who uses to provide fund to the companies so that they can
perform their business activities like market research. The owner of the company must need a
favourable relation with this to get more fund (Hossain, 2018). This is an entity which uses to
degree of credit which uses to provide the permission to borrow the fund which is intended to
repay in near future. Essence drink can arrange required fund with the external people and repay
them then there is no need of it.
Bank: The companies also take the finance from the bank because this is one of the best way to
get large amount of fund whenever needed. The credit score of the company is being looked by
the bank so business must repay its all the liability on time for high credit score. Essence drink is
a growing company so the bank is one of the most effective method to grab the large amount of
investment without any issue. Yet the interest rate is quiet higher in the bank but the requirement
of the company can easily fulfil with this (Ambos and et. al., 2021).
Seed funds: In this the fund is used which is raise by the enterprise or any venture. This type of
fund is invested by owner of the business to investigate market the Essence can also use this
method to generate fund in the company.
Desk research
The Desk base research defined as the collection of the secondary information which is
evaluated earlier. This is the data which is identified by using internet, books, journal. This
research is determined with selling information, websites, newspapers, commercial publications
and many more. There are basically two type of research primary and secondary yet the desk
research is not to collect the information. In the beginning phase the desk research is being used
in the process of marketing research. The Essence drink can easily make use of Desk research to
know about the innovation success in the past. The price of the product are also evaluated and
reaction of the customers are checked (Feng, Shi, and Kang, 2017).
Product development
The product development refers to the process of developing the product with certain
kind of innovation in the existing product of any organization. The product development can be
anything either it will improve the quality of the product or improve the technology to produce

that product. There are different steps which are being undertaken to develop the product in this
business develop an idea then check whether that is effective or not. The concept is developed
for develop product in the particular market and then the development of product is done. Essene
also have to undertake this steps for effectively develop its product of Lassis in the market. They
are also wanted to develop the lassis product by adding some more quality in it which help to
improve the product in right way (Szücs, 2018). They can add some vitamins and minerals in the
lassis because the customer are more concern about the health so it will assist in growth of the
company. The essence drink can easily get the resource with the help of primary or secondary
any kind off resources.
Intellectual property rights
The company is try to launch another variant in the lassis product to attract the customer,
therefore this product must be unique. The company has the right over the product they have
developed to serve particular (Turquety, 2019). This is a right named ad intellectual properties
right that will help Essence drink to maintain its products uniqueness. The following are the way
to use this rights:
Trademarks: this is one of intellectual property which assist to identify the sign, expression and
design. This help to distinguish goods of a company with other companies in the market, this is a
kind of law which help to prevent unfair competition that are symbol, logo, design which are
differently created for every business (Turay, 2017). Essence drink also can make use of this law
so that its product and brand related things can not be exploited out and no other person can
make use of it. They can make a unique logo which is quite different from other in the market
and no one can copy that in the market.
Patents: This is a kind of law which is granted by any company for any kind of invention they do
this can be related to the product or the process that is provided to the people in new manner. For
the patent right the company needed to disclose the respective invention in the audience. The
Essence drink can patent right on their product which will help the audience to know about the
innovation they had with the respective products (Chan and Srivastava, 2019).
Trade secrets: This right of trading is also same as patent and trademarks as an intellectual
property right for the confidential data related to the product selling. This involves practises,