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 Lassis drink is a savory or sweet drink made in India make it from buttermilk or
yogurt mix with water.

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 For Essence Drinks, it is now very important to offer new products to its customers.
The company also needs to consider that the company didn’t forget or remove the
real taste of the lassis. As mentioned before, for the new products, Essence Drinks
can introduce new range of flavoured lassis for it, such as Blueberry Lassi, Peanut
Lassi and Mint Lassi. Here are some of the strategies Essence Drinks could undertake
for the promotion of its products:
Advertising: Essence Drinks could utilise advertising methods like billboard hoarding,
leaflets and magazine publication for the introduction of its products. The company
could also promote its products through offering products at moderate costs.
Sales promotion: Essence Drinks could also promote its products through sales
promotion. Essence Drinks could promote its products by sponsoring local sports
events and could also promote its products on business seminars by giving free
products.

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Technical risk: Introducing new products can put the companies ahead in the market
but it also brings several technical risks. New product development requires new
technologies in the production house, which brings several other requirements in the
company such as training programs for the usage of the machineries.
Increased costs: New product development is a very costly procedure for any
company. In the development of new products, several information are required such
as evaluation of the product, evaluation of the market, researching the competition,
identification of the target market, pre-launch trials and many more. All these process
requires money to be done and brings budget pressure on the company.
Failure of the products: New Product Development requires huge sum of money
from the management. The risk associated with new product development is very
high as there is risk arising from zero tolerance to failure of the products. There is
always a possibility that some of the new flavoured lassis might not be appreciated or
liked by the customers, which might lead to complete failure.

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1. Building the team: before creating a portfolio for the new products, leaders of the
company had to develop a team who could work on it. The problems arise in the
development of a plan and making a meaningful contribution.
2. Handling conflict: Ego between the workers can lead to confrontations. Handling
the conflicts between the workers needs resolution skills in the workers. If the
conflicts between the workers are not handled properly, the workplace culture could
be affected and could also impact the productivity of the new products. The main
challenges in front of the leaders come in the creation and implementation of a
formal process for the conflict resolution.

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Profit: It is one of the most important KPIs. Essence Drinks should analyse both net
and gross profit margin to have proper understanding about the return from the
product.
Cost: Measuring the cost associated with the product is a best way to reduce and
manage the cost.
Day Sales Outstanding: It can be achieved by accounting the total receivables and
dividing it up with the number of total credits sold and then multiplying the time
frame days. The lower the DSO number is, the better the company is in collecting the
accounts receivable.
Customer satisfaction and retention: every organisation wants its customers to be
happy. Making the customers happy helps in bringing new customers. Essence Drinks
could use surveys to get the customers satisfaction scores and percentage of
repeated purchase. It will also help in understanding the market position of the
product.

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Unit Tests: The manufacturing unit of the essence drinks could go for unit test when
the product is in the manufacturing process. It will help the company to see whether
the product is able to complete its discrete tasks or not.
Test Case: This test will help the Essence Drinks to understand the outcomes from the
products. The main objective of this technique is to find all the possible situations
which might not have been considered during the product development process.
Environmental testing: After the development of the product, it is very important to
analyse what impact does it bringing to the environment. The management of the
Essence Drinks must identify every type of environmental impact coming from the
manufacturing of the product.
Sales figures: The first quarter sales figure will help the Essence Drink to identify
whether the product will be a hit or fail in the market. Identifying the market
response towards the product will also be evaluated through the sale figures of the
company.

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 From the above table, it could be identified that Essence Drinks could make profit
of £0.30 per unit. As the company has targeted to sale 10000 -12000 units of drinks
for its first quarter, it could be calculated that the company would be able to make
profit of approx. £3500in its first quarter.

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Patents: It will protect the inventions and improvements to the existing inventions
(utility, plant and design).
Copyrights: It will protect the expression of the ideas in the artistic, musical works
and literary such as TV advertisement ads.
Trademarks: It is the words, symbols, devices or the images which Essence Drinks
would apply to its products through which customers would be able to identify the
source.
For our company we choose copyrights because it is best for our new product
development.

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