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innovation and commercialization of an organisation


In this assignment, the innovation and commercialization of an organisation are discussed in the context of Essence Drink.  Essence drink is a UK based company which has started to sell healthy mango Lassi for two years. The company has developed rapidly in theses two years due to its distribution capability and innovative formula, but the sales of the company fall when the company had entered into the third year. Therefore, the founder of the company is going to introduce some new innovative drink for his company. Before introducing some any new innovative product, the company should discuss a different form of innovation(Boons, et al., 2013). The 4p's of marketing that is aproduct; price, place and promotion are also explained in this assignment. The company will also apply innovation funnel and frugal innovation in the organisational context. Therefore, in this assignment, the commercial funnel and new product development will be discussed to commercialise the innovation process. An innovation business case will be developed, and a budget will be estimated for the company. At last, the tools of protecting the knowledge and intellectual property will be interpreted in the particular company context.

Task 1: Explanation of different types of innovation

1.1.The 4Ps of innovation and the use of innovation funnel to examine the shape of ideas

The company, Essence drink wants to increase the volume of sales of its product. Therefore, the company should follow a different form of innovations to increase its sales (Jiménez-Jiménez & Valle, 2011). The different form of innovation will be discussed in the following section.

1)      Disruptive innovation: Another name of disruptive, innovative innovation is stealth innovation. This innovation applies the new process and technology to the company.

2)      Radical innovation: When considering the type of innovation, the radical innovation is the innovation that involves creating revolutionary technology and establishes new industry also.

3)      Incremental innovation: The incremental innovation increases the value of the customer and utilises the existing technology.

4)      Architectural innovation: Architectural innovation is overall technology, skills and lessons that are applied in the different market of the product.

To increase sales and to increase the profit of the business, the company can implement some effective sales techniques. Those are

Process innovation: This innovation is the process of changes in the methods in which they are delivered and created.

Paradigm innovation: A mental model frames the activities of the organisation. This innovation changes that model.

Product Innovation: This is the changes of companies' product.

Position innovation: position innovation is the changes of the context of the introduction of the product.

The 4P’s of innovation is going to describe in this section. Those are as follows.

Product: in the 4P's of marketing, the first component is the product. A product fulfils the need of the customers (Singh, 2012). Before marketing any product in the market, the company should ensure the fact the product is unique by its feature.

Price: After having the proper information about the product, the company can set its price. The demand, supply and profit of the company will be dependent on the price determination of the company.

Promotion: The next step of innovation is the promotion of the product. There are many things included in the promotion steps like social media marketing, video marketing, email marketing, public relation and advertisement (Lee, et al., 2010).

Place: The last step of innovation is to put the right product in the right place. The company has to choose the right place to convert the potential customers into an actual customer.

The company should follow the product innovation process to increase the volume of the sale and profit margin because when the company starts to offer a better quality product the sale of the product will increase naturally.

1.2.Development and use of frugal innovation in organisational context

The lifeblood of the business is sales and sales-related revenues. The company may take the possible innovative ideas are as follows.

Get social: The Company should engage its audience via social media to create a compelling interaction between the business and public. The company's social media persona will be driven by the partner with a reputable online marketing firm.

Sponsor community events: The Company should achieve the marketing opportunities that can offshoot all partners’ companies growth. To create a greater visibility of its brand the company will be the partner with business in its immediate market.

Become a resource: The Company has to be the resource for their valuable customer. Therefore, the company can increase its sell. For this cause, the company must also deliver client guidance, information and support.

Essence drink may take eight significant steps to derive an innovative and new drink. Those are as follows.

1.      Be first to market and find the price-inelastic and latent demand.

2.      For operating profit growth, the company has to reshape the portfolio.

3.      To delivery of operating profit growth, the company has to link the performance of the function.

4.      Don't get trapped by the balance of power; the company should tackle it.

5.      The company should create a value-creating mid-term strategy to its retail partners.

6.      Make targeted and efficient use of commercial investment.

1.3.Interpretation of innovation funnels in an organisational context

To take an idea from concept to reality by converging to a particular product is the aim of any process and product. In a manufacturable and economical form, the product can meet a market need.

There are three different challenges involves in manage the development funnel (Smith & Sen, 2004). The first challenge is to narrow the funnel neck – the generated ideas must be resource focused and screened on the most attractive opportunities. The second challenge is to widen the mouth of the tunnel – the organisation must access the information to increase the number of new process ideas and product and expand their knowledge base (Bonazzi & Zilber, 2013).

There is two models innovation funnel. Those are

Model 1: in this model the company bets on a single project. It is a top-down model common in entrepreneurial and small.


Figure 1: Innovation Funnel for Single Project

(Bonazzi & Zilber, 2013)

Model 2: This model is technologically intensive and larger. The company will rely on their research and development group to generate ideas for product and technologies.


Figure 2: Innovation Funnel for Multiple Projects

(Smith & Sen, 2004)


1.4.The role of frugal innovation in an organisational context

The process of reducing the cost and the complexity of the product is called the frugal innovation. To remove the unnecessary features from the product is mainly the target of frugal innovation.

Redesigning product to serve users, reconfiguring value chains and discovering new business models are main components of frugal innovation(Zeschky, et al., 2014). The innovation involves either tapping or overcoming organisational resource constraints to create the more inclusive market.

It is an extreme case of innovation. For an environment of extreme cost and resource constraint, new applications are innovated for this innovation. The information about the fact that is how a company organises frugal on an organisation purpose will be tiny if the phenomenon of frugal innovation is described from a product perspective.

Task 2:  Interpretation of the process required to commercialise innovation

1.1.Importance of commercial funnel

Another name commercial funnel is purchase funnel. The commercial funnel demonstrates the journey of the consumer towards the purchase of a service or product(Zhang, et al., 2012). There are five steps of the commercial funnel; those are – awareness, opinion, consideration, preference and last of all purchase.

Essence drinks is a health drink company of UK. The company was started two years ago with only one health drink that is mango Lassi. Because of its distribution capability and innovative formula the company has achieved an intense rise in sales of the product (Rasmussen, 2010). As the company enters into the third year, the sale of the company decreases drastically because the consumers of UK like to drink various flavoured Lassi. Therefore, the consumers of UK become attracted to these enterprises health drink which offers the various flavoured drink (Cooper, 2002).

To solve this problem the company has to offer health drinks with different flavour. The quality of the health drink also should be superior. The company can introduce drinks with following features

·         Available in various flavour

·         Tasty

·         100% fat-free

·         No taurine and caffeine

·         Highly nutritional and natural

  There may be many types of risks created when a company wants to introduce to a health drink in the market. The starting of a new product may take a long time; this increases the cost of the product. In the case of a commercial funnel, the company have to make sure that the consumer should be aware of the product properly otherwise they will not be interested in buying the product. If the consumer became aware of the product, they will consider the product in their preference list and purchase the product.

The company has to analyse the value of the product when it wants to introduce the product into the market. Every company wants to reduce the cost of their product. For this purpose, the company will remove all the unnecessary features of the product, and this will reduce the cost of the product and maximise the profit.

1.2.An innovation business case for an organisation

Essence drink can pick up an innovative idea to raise the sale of the company. The company can personalise the healthy drink and shipped the drink to the door of the customer. The company can also use digital marketing to advertising the product(Boons, et al., 2013). The consumer will be more attracted to the product when they can order it from home and can receive the product at home. UK based Essence drink will offer the customer the health drinks at door of the customers.

If the company wants to launch a new product, the company may launch drink with different flavour. The health drink with different flavour may attract the consumer who wants to diversify their taste.

One of the best promotion tools for the product is advertising. Advertisement defines any paid promotion or communication of the product. Five decisions of advertisement are amission, money, message, media, and measurement (Lee, et al., 2010). By advertisement, many consumers can become aware and attracted to the product. There may be many types of an advertisement; those are direct marketing, print media, broadcast media and internet.

The company, Essence drink can apply environment testing for testing the effectiveness of the new product.

For developing an innovation business case, the company should estimate a budget for the entire business.

Estimated total expenses of the company

Type of expenses


Manufacturing expenses


Raw material expenses


Labour expenses


Management expenses


Marketing expenses





Estimated total revenue of the company

Name of the product

Price of the product

Quantity of the product

Revenue from single type of product

Mango Lassi

$ 2



Orange Lassi

$ 2



Pineapple Lassi

$ 3



Litchi Lassi




Plain Lassi

$ 1.50



Total revenue



Therefore, estimated total profit of the company may be – (Total Revenue – Total Expenses)

                                                                                          = ($2800 - $1800)

                                                                                            = $ 1000

1.3.Appropriate techniques available to test, iterate and improveinnovation business case

A company selling drones as the size of smartphones introduces its product into the market. The drone can take selfish and can be controlledwith the phone. Hence, the selfie lovers find a new and better way of taking selfies. The prototypes are tested, and first products are sold eventually. If the customer feedback comes with issues, the effectiveness can be easily understood. Since the product is unique, the customers will have to come back to the shop for grievances or feedbacks.

1.4.Critical Evaluation of Innovation overcoming challenges to develop successful innovations

The sole aim of the innovation is to improve any existing methods or products. In this given context the innovation is done by introducing various new flavours.  As they fight face initial problems with new flavours, however, one or two customers will be satisfied with it. The idea will be to push the sales of the new products along with the old favourites. In this way, though the initial sales will not be high, it will create the field for future income.

Task 3: The range of methods for protecting ideas and understand their advantages and disadvantages

3.1.Different tools used by organisations developed to retain and protect knowledge andintellectual property

Essence drink can develop and protect knowledge and intellectual property by using three fundamental tools. Those are as follows.

Patent: In the case of any invention, the patent is the property right of the inventor. For 20 years after filling the date of application, the patent is non-obvious and useful inventions(Zhang, et al., 2012). In any country where protection is sought, patents are meaning and territorial that one must apply for patent protection.

Trademark: An expression, design or sign that identifies services or product of a particular source is called is called trademark. It usually refers a logo or brand. The company can also attain trademark for a tagline, captions and business name.

Copyright: In the case of some creative works like computer programs, films, artistic works, sound recording and music, copyright is a bunch of rights. The copyright is granted only for the owner to reproduce the material (Gallié & Legros, 2012).

The company can protect the knowledge of the organisation by using data protection policy. The company can protect data by following some steps. Those are

·         It is to be ensured that Dada will be used and collected lawfully and fairly.

·         Appropriate preservation period for personal data is to be established.

·         Personal data of the company should be used to meet the company's legal fulfil and operational activities.

·         All staff of the company should be provided adequate training for personal data.

·         The company should review the guidelines and procedures of data protection regularly.

The company, essence drink can protect its IP right by protecting its IP in the UK from where the company source product and do business. The company should identify which things might be eligible for trademark or copyright (Gallié & Legros, 2012). The company may also take some legal steps for their employees to protect the intellectual property right so that they cannot share the personal technology of the company to outside. By this procedure, the personal data of the company can be protected.


This assignment is going to evaluate the method for protecting ideas and understand the disadvantage and advantage of the ideas of Essence Drink. Essence drink is a UK based company which sells only healthy mango Lassi. However, the company now wants to introduce some new innovative drink to raise its quantity of sell. The company should have knowledge about the types of innovation and the process to apply it to introduce any innovative product (Rasmussen, 2010). The company should adopt some innovative ideas like frugal innovation and innovation funnel to process the innovation. Therefore, for processing of commercialization and innovation, the application of new product development has been discussed in the context of Essence Drink. The company wants to invent a new product but do not want to move away from Lassis. Therefore, the company, Essence drink wants to differentiate Lassi instead of only mango Lassi like orange Lassi, pineapple Lassi, litchi Lassi, etc. A new product will develop a business case and a budget. Last, of all, the tools to protect the intellectual property and knowledge of the company has been discussed in the context of Essence Drink.


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