Innovation in YOYO Drinks: A Report on New Product Development

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Part A
Name of the student:
Name of the university:
Learner’s note:

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Table of Contents
Introduction......................................................................................................................................3
Meaning of innovation.....................................................................................................................3
Difference between innovation and invention.................................................................................3
Importance of innovation to YOYO drinks.....................................................................................4
Different types of innovation...........................................................................................................4
Pros and cons...................................................................................................................................5
4 p’s of innovation...........................................................................................................................6
Rationale for choosing innovation by YOYO drinks......................................................................7
New product development process..................................................................................................7
Innovation funnel.............................................................................................................................8
Frugal innovation with example......................................................................................................9
Benefit to YOYO drinks..................................................................................................................9
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
Growth in an organisation is the most crucial thing and it is being anticipated by the management
through the help of modifying the existing products and services (Beugelsdijk and Jindra, 2018).
For this, innovation works as the most essential thing, which helps in improving the existing
products. Based on this, the research shall focus on the aspects of innovation through which
YOYO drinks can modify their mango lassi. The research will also highlight the importance of
innovation using new product development process.
Meaning of innovation
Innovation is regarded as the process of converting the new ideas and concepts into finished
goods or services. The main aim of innovation is to add value to the product, which customers
want to avail (Chan et al., 2016). Therefore, innovation is the main factor for the growth of the
organisation. Thus, the organisation should think and work on how innovation could be set in.
For this, it is necessary that they should focus on gathering information, which will help in
setting the much-needed innovation within the products that the organisation is offering.
Difference between innovation and invention
The difference is stated below:
Innovation Invention
Invention is regarded as occurrence of new
product or idea which not been made before
Innovation is the implementation of idea in the
production process for the first time
Creating new product Adding value to the product or service

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Generally a new idea Implementation of new idea through practical
means
Deals with scientific skills Deals with marketing and strategic skills
Connected with single products only Connected with a combination of various
products and process
Activities are limited to research and
development department
Activities is spread across the organisation
Table 1: Difference between innovation and invention
(Source: Learner)
Importance of innovation to YOYO drinks
YOYO drinks being indulged in the food and beverage industry, innovation plays a crucial part.
This will help them to develop new ideas through which YOYO drinks can develop new ideas in
such a manner that it cannot be replicated by the competitors (Estrada, Faems and de Faria,
2016). For this, the price strategy should be developed by using fair pricing strategy, which will
be the basic source for overcoming competitive advantage. Thus, YOYO drinks should improve
their production process and bring in more flavoured lassis, which will be liked by the
customers. This is because innovative lassis could help YOYO drinks to take back their place in
the food and beverage sector of the UK.
Different types of innovation
There are four different types of innovation. These are:

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- Incremental innovation
- Disruptive innovation
- Architectural innovation
- Radical innovation
Incremental innovation
Incremental innovation is regarded as one of the most common form of innovation (Joe, 2017). It
helps in utilizing the existing technology and teds to increase the value of the customers
expectation level. For instance, adding feature or removing some features is regarded as the
incremental innovation.
Disruptive innovation
This type of innovation involves application of new technology or a certain process to the current
market structure of the company (Holgersson and Wallin, 2017). However, it might be stealthy
in nature as the new technology might be inferior to the existing technology. The newer
technology might be expensive in nature and difficult to use. For instance, Apple’s Iphone is a
disruptive innovative product.
Pros and cons
The pros for incremental and disruptive are:
- Both helps in disruptive and continuous development which leads to perfection
- Incremental innovation creates disruptive innovational effects which helps in creation of
new effects and helps in collection of good small ideas

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- The unmet needs are being met which will have a cascading effect on the possibilities of
growth
- Both the innovation style is sustainable in nature which helps to complete the work
effectively
The cons of incremental and disruptive are:
- Both the prices can be very much costly and time consuming in nature
- Too much investment can make the business run out of money if they are unable to
market the products on time which will be providing them with the required revenue
- When the business fails to produce a low cost innovative product using the disruptive
style, then they would not have enough return which will lead to greater loss (Hannigan,
Seidel and Yakis-Douglas, 2018)
- Lastly, the risk can be very much high if the quality f the new product is poor
4 p’s of innovation
The 4 p’s of innovation are:
Product
Product is considered as the main thing, which helps in satisfying the needs of the customers.
This also helps in forecasting of sales.
Price

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Price refers to the value that the customers will pay for availing the product. For this, the
management should determine the price keeping in mind about the quality and standard of the
product. However, the price should be not be higher.
Promotion
Promotion is the most important element, which helps the company to sell the innovative product
in the market. It helps the organisation to make the target some specific markets and develop
channels through which the products will be promoted (Estrada, Faems and de Faria, 2016).
Place
This refers to the market where the product will be sold. This is selected based on the targeted
customers. Transportation plays a crucial part here.
Rationale for choosing innovation by YOYO drinks
It can be seen that YOYO drinks already exists in the markets of the UK food and beverage
industry. Thus, they should be engaged in product, price and promotion strategy and eradicate
place. The main reason is that they need to develop new products i.e. more flavoured lassis as the
existing companies are also selling the same product (Dangelico, 2016). Therefore, the new
product requires new pricing strategy, which will allow YOYO drinks to regain the market
position. This is very much important as they might incur a slight hike in making charges.
However, the managers should design pricing strategy, which would be competitive in nature.
Lastly, YOYO drinks should also focus on developing new channels of promotion, which will
help in promoting the products. For this, YOYO drinks should focus on social media promotion
and various other means of online promotion.

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New product development process
This process of new product development helps the business to identify important methods for
launching a product or services (Ciabuschi, Dellestrand and Martín, 2015). It is developed to
increase the sales of the company. The process is described below:
- Generation of idea is the first step, which helps in creating new and innovative idea for
the current product. YOYO drinks should focus on generating new idea which will create
demand in the markets of their operation
- The concepts should be defined in an effective manner so that the products can be
specified to the customers and meet their needs
- Market analysis is very much essential so that the demands and condition can be analysed
easily. These things need to be analysed on first instance
- After analysing the market, the products should be developed so that customer can be
attracted easily
- Lastly, commercialisation should be done which will help in exhibiting the product in the
market (Joe, 2017)
Innovation funnel
The main aim of YOYO is to produce a type of product, which will satisfy the needs of the
customers. This innovation funnel helps the company to develop the innovation process through
a defend way. The innovation funnel can be used by YOYO drinks for bringing new and
innovative lassis in the market.
Investigation

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YOYO should concentrate on investigating the market before making any innovative product.
This will help them to analyse the competitors and the products that are prevailing in the market.
For this market research is very much essential (Chan et al., 2016).
Development
After investigation, the product should be developed which will be as per the needs of the
customers. For this, the flavour of lassis should be changed by lassis should be changed by
YOYO drinks.
Shipping
After, developing the products, it should be shipped to the customers so that it reaches to the
potential customers. It generally includes transportation process.
Frugal innovation with example
Frugal innovation is also known as frugal engineering. It helps the company to reduce the
manufacturing and production cost so that the complexities of production can be eradicated (Liu
and Atuahene-Gima, 2018). It will be very effective for any company to remove any feature
which are very much non-effective in nature. For instance, TATA motors have invented a car,
which is very cost effective. This product is known as TATA Nano.
Benefit to YOYO drinks
The benefit of frugal innovation to YOYO drinks are being stated below:
- It will help in reducing the manufacturing cost for the lassis
- It will help in product development

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- Useful feature of the mango lassis can be ignored
- Lastly simple manufacturing process can be undertaken
Conclusion
The assignment is dealing with innovation and its importance to the organisation. The research
has helped in recognition of difference between innovation and invention. Thus, it is highlighting
about the fact that innovation will help YOYO drinks to capture the markets again and generate a
higher percentage of revenue.

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References
Beugelsdijk, S. and Jindra, B., 2018. Product innovation and decision-making autonomy in
subsidiaries of multinational companies. Journal of World Business, 53(4), pp.529-539.
Chan, H.K., Yee, R.W., Dai, J. and Lim, M.K., 2016. The moderating effect of environmental
dynamism on green product innovation and performance. International Journal of Production
Economics, 181, pp.384-391.
Chen, Y., Wang, Y., Nevo, S., Benitez-Amado, J. and Kou, G., 2015. IT capabilities and product
innovation performance: The roles of corporate entrepreneurship and competitive
intensity. Information & Management, 52(6), pp.643-657.
Ciabuschi, F., Dellestrand, H. and Martín, O.M., 2015. Internal embeddedness, headquarters
involvement, and innovation importance in multinational enterprises. In Knowledge, Networks
and Power (pp. 284-317). Palgrave Macmillan, London.
Cucculelli, M., Le Breton-Miller, I. and Miller, D., 2016. Product innovation, firm renewal and
family governance. Journal of Family Business Strategy, 7(2), pp.90-104.
Dangelico, R.M., 2016. Green product innovation: where we are and where we are
going. Business Strategy and the Environment, 25(8), pp.560-576.
De Massis, A., Frattini, F., Pizzurno, E. and Cassia, L., 2015. Product innovation in family
versus nonfamily firms: An exploratory analysis. Journal of Small Business Management, 53(1),
pp.1-36.

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Estrada, I., Faems, D. and de Faria, P., 2016. Coopetition and product innovation performance:
The role of internal knowledge sharing mechanisms and formal knowledge protection
mechanisms. Industrial Marketing Management, 53, pp.56-65.
Hannigan, T.R., Seidel, V.P. and Yakis-Douglas, B., 2018. Product innovation rumors as forms
of open innovation. Research Policy, 47(5), pp.953-964.
Holgersson, M. and Wallin, M.W., 2017. The patent management trichotomy: Patenting,
publishing, and secrecy. Management Decision, 55(6), pp.1087-1099.
Joe, T. ed., 2017. Exploiting Intellectual Property to Promote Innovation and Create Value (Vol.
29). World Scientific.
Liu, W. and Atuahene-Gima, K., 2018. Enhancing product innovation performance in a
dysfunctional competitive environment: The roles of competitive strategies and market-based
assets. Industrial Marketing Management, 73, pp.7-20.