Innovation and Commercialization of YOYO Drink: A Strategic Report

This report examines the innovation and commercialization strategies for YOYO Drink, a UK-based company facing declining sales of its mango lassi. The report analyzes the application of a commercial funnel, proposing new flavored lassi products (orange, pineapple, and litchi) to meet changing customer preferences and capitalize on the growing market for healthy drinks. It includes a market overview, financial projections, and explores various funding sources, techniques for product testing, and tools for protecting intellectual property. The analysis further applies an innovation funnel to guide the new product development process, evaluating the role of frugal innovation in the organizational context. The report concludes with recommendations for YOYO Drink to successfully launch and commercialize its new lassi flavors.

Innovation and Commercialisation
Contents
Introduction......................................................................................................................................4

Background of YOYO drink :.....................................................................................................4
Problem in a company :...............................................................................................................4
Application of commercial funnel :.............................................................................................4
New drink proposed :...................................................................................................................5
Marketing opportunity of new drinks and how it need stakeholders needs :..............................5
Overview of industry :.................................................................................................................6
Financial projections....................................................................................................................7
Estimated total revenue for an enterprise....................................................................................7
Sources of Funding available to Yoyo drink...............................................................................7
Techniques for testing product in a market :...............................................................................8
Tools for protecting the intellectual property right:....................................................................8
Analysis and application of innovation funnel............................................................................9
Evaluating the role of frugal innovation in organisational context...........................................11
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................13

Introduction
As the time pass the customer taste and preference are also changing accordingly. The success of
an organisation complete depends on customer needs and demand if the organisation fulfil this
they achieve success in a market. In order to meet the demands of customer it is very necessary
that a proper market research of the market should be done and new innovative product should
be introduced as per the market demand. This study will discuss about why innovation is
important for an organisation. The study will also use innovation funnel in order to show that
how it affects the process of innovation. It will also highlight the sources for funding and
techniques in order to analyse the effectiveness of the new product in a market.
Background of YOYO drink :
Yoyo drink is a UK based company. The company has entered market with a mango lassi
and has seen a huge success in first 3 years. Due to the innovative formula company is able to
gain a large share of market due to its drink which is mango lassi.
Problem in a company :
But as the company enters it fourth year a sales has decreased gradually. The reason
behind this is that a large number of competitors has entered the market due to which the sales of
a company has been decreased.
The company wants to introduce new product in a market but does not want to move
away from lassi.
Application of commercial funnel :
There are 4 steps in a commercial funnel :
Awareness : At this stage the customer become aware of the product offered by the company.
The customer become aware by social media marketing, content marketing, email campaign etc.
If the customers find the product of a yoyo drink useful from them they will buy it
immediately. Therefore our team has made a promotional content which will help in order to
gain the attention of customers(Hajsadeghi and et.al., 2016).
Incentives : At this stage customers use to do comparison between the product provided by
different companies. Therefore a company should provide a reason to the customer to get
attracted toward them.

In order to do so our team has decided to provided all the benefits related to product
which will help the customer to make informed decision. In order to attract customer towards the
product the company will provide a free stuff with the drink such as healthy bites.
Lead : This is a stage at which the company can make lead of their social media fans, email
subscribers and people visiting store(Sales funnel, 2019).
Our team has decided to make the lead using social media platform. The customers has to
share the picture of drink along with their friends.
Close : The company should try to built a close relationship with their current customers.
Our team has planned to provide various coupons and offers to our existing customers.
Such as loyalty card a customer can use it to get 30% of on purchase of flavoured lassi ie.,
pineapple, orange and litchi flavoured lassi.
New drink proposed :
The new product which the company has planned to introduce in a market is other flavour lassi
such as orange lassi, pineapple Lassi and litchi lassi. The drink will be low sugar as to promote
good health.
Marketing opportunity of new drinks and how it need stakeholders needs :
The drink industry is stable for the past five years. The industry is gaining the attention
of the customers. And has been proved successfully in gaining the market share. The company is
generating euro 1.3billion with the annual growth of 0.1 %.
The demand for healthy and natural products are increasing in a market. The people are
becoming more aware about their health(Briggs and et.al., 2017).
According to a research and consultant firm it has been found that healthy drinks are in
demand about 89 % of global consumers are in found of healthy foods and drinks. The customers
are searching for healthy drinks and food in order to improve their health.
However it can be said that with increase health awareness by the customers. The concept
of healthy lassi with flavour of orange, pineapple and litchi has a good opportunity in a market.
Overview of industry :
Food and beverage industry is the fastest growing industry in UK it is largest
manufacturing sector in UK. The industry has proved to be strongly hold its position during the
recession time. And has been continued in maintaining its position in UK manufacturing. The
industry has exported about US$ 27.2 billion in year 2017 and is growing at a rate of US$ 1.7
billion per year. It is a sixth largest sector in UK. And UK holds second position globally in this

sector. Food and drink business has generated revenue of about Sterling 243 billion and has
resulted in creation of 800,000 jobs in year 2017.
The competition in an industry is increasing both internally as well as externally.

Financial projections
Total expenditure of Yoyo drink
Type of expenditure Cost
Manufacturing expenditure 650£
Cost of raw material 450£
Labour expenses 350£
Management expenditure 200£
Expenditure associated with promotion of new drink 100£
Total 1750£
Estimated total revenue for an enterprise.
Name of good Cots of product Quantity of item Revenue from single
product
Pineaple lassis 2£ 250 500£
Orange lassi 3.5 200 700£
Litchi lassi 1.5 400 600£
Total 1800£
Estimated total profit of company : (1800-1750) = 50 £
Sources of Funding available to Yoyo drink
The different sources from where the business owner of yo-yo drink can raise funds for
facilitating innovations are :
Government grant : An entrepreneur of Yo-yo drink can seek financial assistance from the
government,
family and friends : Business owner of the Yo-yo drink can obtain funds from the family
Debt : In context of Yoyo drink, an organisation can use debt financing for fulfilling their
requirement of money for facilitating innovation. An enterprise can sell bonds to investors.

Equity : An entrepreneur of Yoyo drink can invest their own money for fulfilling the needs of
funds in order to innovate(Douglas and et.al., 2018).
Venture capital :It is basically finance where investors provide money to newly established
business venture. Such types of investment are made by banks or other financial institutions.
Financial investors and banks make investment with the purpose of earning high rate of return
(Weyrauch and Herstatt, 2017).
Among the different sources of funds an organisation can utilize equity source as it is
less risky and does not consist of extra charges.
Techniques for testing product in a market :
Approach the target market : The company has decided to test the product to the target audience.,
the target audience for the company is all the categories which is children, youngsters and people
above years. But mainly the company is trying to target the customer who are more health
conscious. Therfoere the product will be tested in the target market. In order to do so we will ask
the existing customer about the new product(Gibson and et.al., 2017). This will help to know
that whether customer will like the product or it need some improvement.
Qualitaitve research : The opinions of an expertise will be taken in order to find out that if the
product is healthy for people. Any suggestion by the expertise will help in improvement at early
stage.
Building ongoing relationship : The company will ask customer to be a part of this project. And
will ask for providing feedback. It will help the company to make additional changes in lassi as
per customer requirement.
Tools for protecting the intellectual property right:
Patents : In order to get patent right yoyo drink will file an patent application. Patent grants a
property right to an inventor.
Trademark : Trademark can be defined as a word, symbol, design or phase which is used in
order to distinguish the products and services of a company from others. The yoyo drink has
conducted a research in order to make sure that similar trademark does not exist already.
Trade secrets : yoyo drink has a trade secret in order to achieve business advantage. For example
the company has its secret behind producing the lassi.
These tools will be proved beneficial for the company in order to protect intellectual
property right. It will help the company to gain competitive advantage and stand out of its
competitors. This will help the company to protect its product by others according the law such

as right to use, import, make and sell the product. It will stop the others from making, selling and
importing same product.
Analysis and application of innovation funnel
An innovation describes the different phases involved in the development of new product
or services. The complete procedure of new product development begins with broad range of
inputs. In relation to the Yoyo, main objective of organisation behind innovation is to cater the
requirements of customers and to meet the expectations of their clients.
The mouth of funnel : In this step a large number of ideas is gathered. As the large number of
ideas leads to large number of solution. In the first activity widen the mouth of funnel, as this
phase, Yo yo drink needs to increase its knowledge and gather the information about the needs
of customers. Marketing team in an organisation is required to conduct research as it will provide
firm an ease in developing the understanding about customers needs as well as demands (Wang,
2017).
Our team has collected a data about the current trends in the market by doing market
research. The team has collected data about the competitors in a market and current trends by
taking help of institutes and other companies in the same field, by universities connection. The
research has provided us many valuable information(Tran and Ravaud, 2016). The team has also
tried to extract information from within the company. For this the team has interviewed
professionals from different department such as operation manager, marketing manager, finance
department manager etc., to know the problem in depth.
Narrowing the funnel : After collecting all the information and listening to ideas of all the team
members. We have screened the ideas which is best among all. In order to do so we have match
the ideas with the organisational goal i.e., the main motive of an organisation is to introduce new
product but they do not want to move away from lassi. Therefore keeping in mind this motive we
have segregated the ideas(Morrison and et.al., 2019).
To make sure that selected projects deliver on the objectives anticipated when the project was
approved. This activity will help an enterprise in developing the ideas about the development of
new product.
Narrowed part of funnel : In this phase the product evaluation and testing is performed. If the
testing went well than the product is introduced in a market. Therefore our team has tested the
product by taking help of various professional in the company and has also taken the use of

customer by offering free drinks to them in order to check that whether the customer are liking
the product or not.
The management in an organization need to analyse as well as screen the idea of new product
development. It is a phase where an enterprise need to capture on most of opportunities.

Evaluating the role of frugal innovation in organisational context.
Frugal innovation can be defined as the procedure of minimizing the cost as well as
complexity of the good. It also includes eliminating or removing the unnecessary features from
the good, In context of Yoyo drink, the main objective of an organization is to redesign or to add
new flavours to drinks. Role of frugal innovation is to reconfigure value chain as well as help
firm in discovering new business models. It also includes utilising the business resources for
developing more inclusive market (Vanhaverbeke and et.al., 2017.). In context of yo-yo drink,
the main purpose of frugal inn ovation by an organization is to provide high level of satisfaction
to customers by providing them with new flavours of drink. It is frugal innovation which has
assisted yo-yo company in increasing the sale of its newly launched drink. In relation to yo-yo
company, marketing team in an organisation has utilised the social media which has provided
firm an ease in engaging with customers. In addition to this, an enterprise has form strategic
alliance with other firms which has assisted them in gaining the recognition in the market and
also helped firm in successful launch of new drink. Business entity has made huge capital on
investment which has supported an organisation in generating brand awareness that is very
much crucial for successful launch of new drink in the market.
Conclusion
The assignment help in understanding of basic idea behind innovation and
commercialisation. Innovation is very necessary for the companies in today era as to survive in a
market. The task has helped to know about the various sources of fund which can be used to
raise funds for the business. The sales funnel has been used in order to find solution the YOYO
drink problem. The study has also shown how innovation funnel can be used to generate ideas
and reach to the most successful and realistic innovation idea. In order to successfully launch the
product in a market with low cost a frugal innovation has also been used.

REFERENCES
Books and Journals
Briggs, A.D. and et.al., 2017. Health impact assessment of the UK soft drinks industry levy: a
comparative risk assessment modelling study. The Lancet Public Health, 2(1). pp.e15-
e22.
Cherrington, L.K. and et.al., 2018. Sources of Funding Transit in Texas [2018] (No. PRC 15-
11.3). Texas A & M University. Transportation Policy Research Center.
Douglas, N. And et.al., 2018. How the food, beverage and alcohol industries presented the
Public Health Responsibility Deal in UK print and online media reports. Critical public
health, 28(4). pp.377-387.
Gibson, S. And et.al., 2017. What can the food and drink industry do to help achieve the 5% free
sugars goal?. Perspectives in public health, 137(4). pp.237-247.
Hajsadeghi, S. And et.al., 2016. Effects of energy drinks on blood pressure, heart rate, and
electrocardiographic parameters: An experimental study on healthy young
adults. Anatolian journal of cardiology, 16(2). p.94.
Morrison, G.R. and et.al., 2019. Designing effective instruction. Wiley.
Teng, G. and et.al., 2019. Research Progress and Application of Ion Funnel Technique. Chinese
Journal of Analytical Chemistry, 47(1). pp.13-22.
Tran, V.T. and Ravaud, P., 2016. Frugal innovation in medicine for low resource settings. BMC
medicine, 14(1). p.102.
Vanhaverbeke, W. and et.al., 2017. The importance of connecting open innovation to strategy.
In Strategy and communication for innovation .(pp. 3-15). Springer, Cham.
Voorhees, C.M. and et.al., 2016. Discriminant validity testing in marketing: an analysis, causes
for concern, and proposed remedies. Journal of the Academy of Marketing
Science, 44(1). pp.119-134.
Wang, J., 2017. Structuring innovation funnels for R & D projects under uncertainty. R&D
Management, 47(1). pp.127-140.
Weiss, P. And et.al., 2019. Funding Sources and Perceived Financial Insecurity in Pediatric
Subspecialty Fellowship Programs. Academic pediatrics.

Weyrauch, T. and Herstatt, C., 2017. What is frugal innovation? Three defining criteria. Journal
of frugal innovation, 2(1). p.1.
Online
Sales funnel. 2019. [Online] Available through <https://www.marketingsolved.com/a-simple-
sales-funnel-for-any-business/>
Frugal innovation. 2019. [Online] Available through <https://fourweekmba.com/what-is-frugal-
innovation/>