Report on Innovation and Commercialisation Strategies for YOYO Drinks

This report provides an in-depth analysis of innovation and commercialization strategies within the context of YOYO Drinks, a company that has experienced rapid growth. The report begins by differentiating between innovation and invention, emphasizing the importance of innovation for organizational success, and identifying the driving forces behind change within YOYO Drinks. It then explores different types of innovation, including incremental, disruptive, architectural, and radical innovation. The 4Ps of innovation (Paradigm, Product, Process, and Position) are examined as a framework for driving innovation within the company, followed by an overview of the new product development (NPD) process and the innovation funnel. The report also touches upon frugal innovation and concludes with recommendations for YOYO Drinks to improve its product offerings and increase sales, highlighting the importance of meeting customer needs and staying ahead of competitors.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1 Explanation of the Innovation...................................................................................................3
3 Different types of innovation ...................................................................................................6
4 4Ps of innovation......................................................................................................................8
5 New Product Development and Innovation funnel ..................................................................9
6 Frugal innovation and Recommendation................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation refers to the change in the things like operations, technology and products of
the company and bring new changes in them in order to increase the sales of the company and
demand of their products. This innovation in the business is being done to satisfy the demand
and need of the customers. This assignment of the innovation and commercialisation is based on
the YOYO drinks company, which was started about three years ago. This gain the rapid growth
in the company and its drinks (Henttonen and Lehtimäki, 2017). This assignment will help to
explain the difference between innovation and invention. This will also include the importance of
the innovation in the organization. Further more different types of the innovation also going to be
explained with the help of this file. 4Ps of the innovation is also going to be explained. Further
more use of innovation funnel in launching the new product will be defined. Lastly
recommendation will be given that can help YOYO drinks to make improvement in their drinks
to increase its sales.
MAIN BODY
1 Explanation of the Innovation
Innovation — Innovation can be referred as to bring new ideas and changers in their
business activities and their existing products or services. This innovation in the business help
the organization to get success and increase their profit margin in the market as compared to the
other competitors in the market (Henttonen and Lehtimäki, 2017). There are different factors that
push the change and innovation in the business of the YOYO drinks like thinking, customers
demand, market trend, courage, intellectuality and differentiating are the might be the driving
forces of the bringing innovation in the business of the YOYO drinks. For example if YOYO
drinks make changes in their existing range of drink like launch new flavoured lassi then it will
be innovation in their product and services.
Invention — Invention can be referred as the to invent, create, and build some something
new in the organization and its products or services. This the actualization process of a new ideas
and thinking consider in to action. This is the process to bring changes in the market by
developing new products and services in their business. For exemplar if YOYO drinks launch its
new product range of food items like that can be invention for the company and in the market.
Difference between innovation and Invention
Innovation Invention

 Innovation is the first step to bring the
new product with having the new ideas
and different approach towards he
YOYO drinks company.
 This is the process of adding value to
the existing product range of the
company (Eberhardt and et.al., 2017).
 This is based on the practical
implementation of the new ideas on the
products an services.
 For the innovation YOYO drinks
company will require the set of
marketing, technical and strategic
skills.
 This innovation is occurred when, the
need is arise to make improvement in
the existing product and services range.
 This innovation is concerned with
combination of number of products
and process of YOYO company.
 Whereas invention deals with the bring
new products and services which is
totally different from the existing
product range
 This is the process of creating and
develop new products and services in
the company for the customers (Datta,
Mukherjee and Jessup, 2015).
 As compared to the innovation,
invention is based on the concept of
original ideas and work on the theory.
 For invention new services, products in
the market, YOYO drinks will require
the scientific skill.
 This occurs when scientist strikes new
ideas.
 This invention is concerned with only
single process or product.
In this way Innovation is different from the invention. As the YOYO drinks need to make
innovation and make changes in their existing products of drinks. This need of the innovation is
occur when the sales and demand of their existing mango lassi has been decreased in the market
as compare to their competitors.

2 Value and importance of innovation
Innovation plays the important role in every organization as its helps to make
improvement in the existing product range of the company (Eberhardt and et.al., 2017). This also
helps to provide the better connection with the market and helps to identify the new market
opportunities. Another importance of the innovation in the YOYO drinks are:
Grow in leaps and bounds – Innovation will help the YOYO drinks company to grow
easily in the,market. Whether YOYO drinks is new start-up, but if it is innovative regarding to
their products and services, this will help th company to grow more and in very short period of
time in the market. As the the market share and demand of the YOYO drinks become low from
the last year, then the innovations in their lassi and drinks in the market will help the company, to
increase its demand and can attract more customers toward the the innovative products. This will
help YOYO drinks to increase the growth in the market (Dutta and Folta, 2016).
Stand out with competitors — Another Importance of the innovation in the YOYO
drinks company is, innovation can help the company to stand out with their competitors in the
market and can also be grown more than their competitors (Mollick and Robb, 2016). If
company brings innovation techniques and ideas in their company, make changes in their
existing range of drinks which is mango lassi, then it will help the company to attract more
customers for the innovative products. YOYO drinks again increase their market and profit as
compared to the previous years. This condition will help YOYO drinks to stand with their
competitors by delivering the innovative drinks every time.
Meet customer need – As the demand of the Mango lassi by the YOYO drinks is being
decreased because the company is not able to fulfil the demand of the customers and can not
satisfy them with their need. If company and its management apply the new and innovative ideas
in their existing drinks range then it becomes possible for the company to fulfil the demand of
the customer and can also be possible that, company can easily satisfy the needs of the customers
regarding the drinks by making improvement in their drinks and providing new flavours.
Attract the best talent — This innovation in the YOYO drinks company, not only help
the management of the company to increase its sales, growth in the market, stand with their
competitors, but all these thins by innovation in the company attract the new talent in the
company as well, who can help YOYO drinks company to bring more innovative ideas with

them. All the talent in the company will also help to achieve the target of YOYO drinks to attract
more customers and increase the sale of their products as compare to their competitors.
All these factors of the innovation can influence MR. Bond to turn their YOYO Drinks to
innovative company in order to increase the sales of their drinks and profit of the company.
3 Different types of innovation
There are different types of the innovation approach that can help the YOYO drinks to
make improvement in their existing drinks by innovation in them (Mollick and Robb, 2016).
This will help the company to increase its sales by fulfilling the need and demand of the
customers. Different types of the innovation are:
Incremental innovation – One of the most common approach of innovation is
Incremental innovation approach. In this company only make innovation n their existing product
by utilizing the existing resources and technology to provide the value to customers like
changing in design, features etc. almost most of the company are engaged with this.
YOYO drinks can apply this, incremental approach of the innovation, as by changing the
design of the drink bottle and also to change in their flavours as well (Hossain and Kauranen,
2016). For example, recently YOYO drinks provide the mango lassi, then instead of this they can
make change in flavour by Guava lassi, strawberry lassi etc., as according to the season. This
will help the company to increase its sales as it will deliver every time something new in their
lassi.
Pros
 This approach is easy to implement by the YOYO drinks.
 This is less expensive, that company do not have to pay more to bring innovation in their
products.
Cons
 This approach only focus on the small changes in the products.
Disruptive Innovations — Another approach of the innovation is Disruptive innovation
approach. This is the time-consuming but stealth approach of innovation. In this disruptive
approach new technological changes and process is being change as according to the change
market trend in the current situation. This is stealth in nature until unless new technology arise in
the market.

YOYO drinks can also apply the disruptive approach of the innovation, as by changing
the technology to produce lassi. It may possible that, older techniques make taste not so good
that decrease the demand of the Mango lassi. By changing technology in production YOYO
drinks can get help to increase its sale of their products.
Pros
 One of the advantage is that, it is stealth in nature, do not have to make change every time
(Fini and et.al., 2018).
 It gives the sustainability to the innovation and ideas.
Cons
 This approach is time consuming, require lot of time to establish the innovation. This approach is very expensive to apply, as not possible to apply by smaller companies.
Architectural Innovation — This innovation approach of architectural innovation
includes the learning, skills and knowledge of overall technology which is being used in the
company to make improvement and then apply on the different market (Vanhaverbeke and et.al.,
2017). This innovation approach is beneficial for the company as it attract the new customers and
helps to acquire the new market as well. This approach may help the YOYO company to acquire
the new market by learning new skills and knowledge by innovation in their product range.
Radical Innovation — This radical innovation include the research and development
with the aim of creating and developing new products, services, technology or techniques to
deliver the best and quality and innovative products all the time. This called the radical because
the invention of the new products can may change the market place structure as well.
Illustration 1: Types of innovation

4 4Ps of innovation
As innovation is deal with, to make improvement in the existing products and services of
the company by new ideas and thinking. In this to make innovation in the products and services,
4Ps of the innovation can help the company (Yun, 2017). This can be referred as the innovation
mix tool that will help the YOYO drinks company to make innovation in their different elements.
This tool also help to identify in which element innovation can be done. This innovation mix
consist four elements, which are:
Paradigm — This paradigm is concerned with the innovation in the specific innovation
category. This referred as the achieve the specific target of the company. In his YOYO drinks
will target and focus on the investment opportunities which is being delivered in the market. This
paradigm is a planned process that the organisation faces the challenges of being taken the
innovative ideas. This paradigm will help the YOYO drinks company to identify their jobs in
term of facing the challenges and threats. This also help the company to make a plan and set
target to make innovation of the mango lassi of the company to increase the sale.
Product — As product are the main item, which is being offered and deliver to the customers.
This is valuable to the company if their product range help it to increase the sales and profit in
the market. In this, the main product of the YOYO drinks is its mango lassi, but the demand of
the mango lassi from the last past years has been affected and sales has decreased. In the case
YOYO drinks, company will target to launch the new product of lassi with the change flavour
which can be Guava lassi or can be strawberry lassi. Company will launch new flavour as
according to the change season.
Process — This is the process, through which company deliver their products to the customers.
This is very important for the company to make innovation in their process to reach and deliver
the products to the customers (Yun, 2017). For this, YOYO drinks make improvement in the
process by applying the different techniques like to increase the suppliers, who can bring fresh
fruits to the company to produce fresh lassi and can easily and very short time they can deliver
the lassi to their customers. This will increase the sales and profit of the company.
Position — This is the final position where any company wants to reach with the help of the
innovation and commercialization in the company. In the case of the YOYO drinks, company
wants to reach at the position b y delivering the best quality and flavoured lassi to their

customers as according to the lassi. Position is being made by the company by innovative ideas
and process in order to deliver the best lassi to their customers.
5 New Product Development and Innovation funnel
New product development is the process to take the ideas to develop any new thing,
products and services to market. This process set the series of stages to develop new product in
the and make improvement in the existing product. In this eights stages are included. Stages start
with idea generation and end with the introduction of the products. These stages are:
1. Idea generation is the first stage, in which YOYO drinks will come up with the
innovative ideas to make innovation in their range of lsssi to make improvement.
2. Then in second stage, different ideas are being filtered to select the best ideas to make
innovation in their lassi (Vanhaverbeke, 2017).
3. Next stage is to, define the concept as according to the technical feasibility, searching
new products and many more.
4. In next stage, strategic analysis is being done, to fit and align the ideas and concept to the
business target of the YOYO drinks.
5. In next stage of product tasting, sample prototype is create to taste weather the innovation
strategy by the YOYO drinks will work or not as according to set target.
6. In the sixthstage, innovative product which is guava lassi by YOYO drinks is being
launch the market and feedback will be taken from the different suppliers and
manufacturer.
7. In this stage the price of the guava lassi is being determined and finalise the marketing
plan.
8. In the last stage, guava lassi is being launched in the market along with detailed
introduction of the lass. Like its ingredients, is it healthy or not, etc.
In this new product development, innovation funnel will also help the YOYO drinks
company. This innovation funnel is the tool that will help the company to create the process of
innovation meet with the market need. There are different types of the ideas and thinking and
also the different types of the funnel that help to drive and process to ideas of the YOYO drinks
company to meet the objective and maximize the profit of the company by making innovation on
their mango lassi.

First step in the innovation funnel in case of the YOYO drinks is to collect the
information about the products. Then determine, how and which ideas will be best fitted to the
need and demand of the customers and to implementation. Then in the next stage, question come
in the mind of the management that which is the best supportable as according to the situation of
the YOYO drinks and fulfil the opportunities. At the end finally the idea will be implemented in
to action in order to increase the sales of the products.
6 Frugal innovation and Recommendation
Frugal innovation can be referred as the process of invention of the product and services
to the company with the help of the country's resources. In this different factors like politiocal,
economical and different factors will be considered which can affect the products and service of
the YOYO drinks. All these factors are also be helpful for the YOYO drinks by providing the
best resources. For example, good economical condition country will have low interest and
export import rate, then the YOYO drinks will bring raw material and fruits from the different
country to manufacture lassi (Aloini and et.al., 2015). Social factors of the country will help the
YOYO drinks to get the best skilled employees and if company fulfil the demand and need of the
customers, then customers of the country will help company to increase their profit, like if
Illustration 2: Innovation Funnel
(Innovation Funnel.2016)

company deliver the diet lassi to their health conscious customers then its will increase the
demand and profit.
As the people of the UK are very sophisticated, knowledgable and health conclusion, so
YOYO drinks can launch the new diet, low fat lassi to their customers, and also can produce
different flavoured lassi according to the season. This will help the company to increase its sales
as compare to the previous years and also help to increase the demand of their products. Aprt
from this, in the innovation approach YOYO drinks company can apply the architectural
approach of the innovation. This will help the management of the YOYO drinks to get learning,
knowledge, skilled required in innovation (Wang, 2017). If company innovate their product after
having detailed knowledge then this beneficial for the YOYO drinks to make innovation.
CONCLUSION
From the above study it has been concluded that, innovation and invention both are the
different things that innovation concerned with bring new feature in the existing product,
whereas invention is creating a new product range. It also been summarized that innovation play
vital role and can turn the YOYO drink to innovative company and will help to increase the sales
of the products. With the help of this assignment it has been concluded that, different types of the
innovation approach can help the YOYO drinks to make improvement in their existing lassi and
can produce some new flavour that can attract customer most. 4Ps of the innovation will help
YOYO drinks company to step by by step innovation in their drinks to bring perfect
improvement in their range of lassi. As this assignment deals with innovation and
commercialisation of the YOYO drinks, then the innovation funnel will help the company to
make innovation in their product of the mango lassi.

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Online