BA (Hons) Business Studies
Word Count: 2,729
Index
Introduction 3
Evaluation 4 Macro Environmental Analysis 4 PEST Analysis 4 Political 4 Economic 4 Socio-Cultural 4 Technological 5 Environmental 5 Legal 5 Porters 5 Forces 6 Threat of Entrants 6 Power of Suppliers 6 Power of Customers 6 Threat of Substitutes 6 Competitive Rivalry 6 Internal Analysis 7 Resource Analysis 7 Physical Resources – 7 Financial Resources – 7 Human Resources – 8 Intellectual Capital – 9 SWOT Analysis 10 Core Competencies 11 Primary Activities - 11 Inbound Logistics 11 Operations 11 Outbound Logistics 12
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They are:
Threat of Entrants
This constitutes a very large threat to Innocent because they simply produce fruit drinks which could be easy to copy; however there are already two strong brands competing in this sector: Innocent and Tropicana.
Power of Suppliers
Innocent aims to purchase only from accredited suppliers and therefore limits their flexibility to obtain products. This enables suppliers to dictate price, leaving Innocent vulnerable market fluctuations.
Power of Customers
Customers have influence on Innocents decisions because a two-way flow of communication is encouraged as part of brand development. Instances relating to Innocent supply of drinks to McDonalds, and Coke’s investment in the firm have led some debate towards Innocents true intentions towards ethics.
Threat of Substitutes
There is a significant threat of substitutes from the soft drinks companies, however the positioning of Innocent is aimed at a health conscious customer therefore companies find it difficult to rival it in that product class.
Competitive Rivalry
The FMCG market is highly competitive with some of the World’s largest organisations existing within the soft drink sector. Innocent’s combination of ethics and healthy produce allows the business to have a unique position over market rivals but their size limits their capability to compete.
Internal Analysis
By undertaking an internal analysis we are able to understand Innocents
"Cooley Distillery: The Independent Spirit of Ireland" is a "David and Goliath" case surrounding Cooley Distillery, which is the only independently owned Irish whiskey distiller in the world. Located in Ireland, the company has managed to survive strong competition in the oligopolistic category of Irish whiskey in the global spirits industry for 25 years. The non-listed public company has remained a niche player despite gaining a staggering reputation for quality and innovation in its offerings. One of the biggest problems faced by the company is that in all these years, Cooley Distillery has never managed to pay any dividends to its 290 shareholders and John Teeling, the founder and chairman
The soft-drink industry capitalizing on creating the best product. Each product has a different taste, formula, and color to entice the consumer. It is important for the product to remain innovative in order to keep the consumers interested. The suppliers can easily differ, because they do not hold much value or put
As the name suggests Honest tea is a brand that produces 100% organic iced teas, aimed at the health conscious. In this assignment I will attempt to, identify the target market, conduct a situational analysis as well as set SMART communication objectives for the brand.
Boston Beer’s strategy is primarily focused on growth through differentiation. The sources of its competitive advantage can be classified as a company that provides high quality beer with unique flavors, a market driven approach, and a very efficient contract brewing strategy.
I’ll consider this issue in the case study of underage drinking. The under 18s add demand to the market for alcohol; they seek to acquire what others seek to supply. They seek to fulfill what they believe to be a sensible appetite having exercised care, skill and judgement in terms of the type, quantity and price of alcohol they require. They believe their objective to be reasonable and rational. Therefore they contribute to the efficient operation of the market. The U18s are seeking to satisfy their present appetite whilst paying less regard to the externalities of this preference; this is rational and reasonable in their view. They can afford to do so and probably exclude themselves from the risks of such consumption. Similarly the action of the supplier is both rational and reasonable in their eyes expanding their market and excluding themselves from any responsibility for the customers’ subsequent behaviour.
Provide the following discussion based on the conclusion of your test: If you conclude that there are less than sixteen (16) ounces in a bottle of soda, speculate on three (3) possible causes. Next, suggest the strategies to avoid the deficit in the future.
Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.
Together with the usage of green sources to power the factory, these factors raise up the prices of a chocolate bar to the average of $5. It enhances the brand’s value and good image in people’s observation. Even though their prices are more expensive than other competitors’ prices, Theo still has a loyal following of organic chocolate customers. However, it does a very little traditional advertising. Therefore, in order to maintain the loyal customers and attract new consumers, Theo Chocolate is partnering with local and non-profit organizations that promote their company. Joseph Whinney understands that “Having the ingredients and the quality of the product is the most important thing. And then Fair Trade is the secondary message” (Lindell, par. 19), people concern about the taste, the quality, and the organic food. Besides that, Joe believes that people also care about how a company treats its employees and decide whether they wan to to do business with that company or not. Therefore, combining the two strategies is a good way for Theo to promote itself and build brand value inside customers’ minds.
Innocent Drinks has grown and matured extensively since first establishing in the late nineties. In 2000, UK supermarket giant, Waitrose began selling Innocent smoothies, further extending its distribution line (Innocent Drinks,2015). Seven years later, the company appeared on Sunday Times Fast Track 100, which represents the fastest growing businesses in the UK, placing 40th . In relation to the development of the products, Innocent Drink innovatively introduced an array of products from a wide variety and range. Having only sold smoothies, they now sell juices of an array of flavors as well as a range of flavored water. In addition, Innocent transitioned into the food industry when they began selling portions of vegetables in 2008 (Innocent,2015). They also introduced a range of juice for children, expanding their demographic. In addition, Innocent Drinks saw global expansion over the
Portland Drake Beverages (PDB) had acquired Crescent Pure, a non-alcoholic, all natural energy enhancing and hydrating functional beverage. Having organic ingredients as the bases of Crescent Pure beverages made the perfect acquisition for extending the PDB organic brand to more markets. These multiple attributes made the drink an attractive product for the consumer, but the necessity to position it, sparked a debate. Some people wanted to market it as an energy drink, while others wanted to market it as a hydrating drink. The VP of marketing, Sarah Ryan, thought that although Crescent Pure fit both of these categories, there was an alternative option. The third option would be to position the new beverages as healthy drinks, this would be a broader market positioning strategy, one that a transcendent product like Crescent Pure, could fulfill. The concern was to simultaneously position the drink in the most lucrative market, while also ensuring that the drinks attributes aligned with the market consumers’ needs.
United Beverages’ CEO is debating with his department heads on the course of action the company is going to take in the future. Their flagship product, GangBuster, has been highly successful for the past 5 years. However, they have been thinking of entering the market for Energy Drinks for kids. Paul Diaz also comes up with a revolutionary idea of the dual-drink, having two separate flavored drinks in a bottle and being able to mix both flavors. Due to the limited resources of United Beverages, they have two weeks to decide whether to expand their portfolio or not?
Innocent Drinks was started by three friends in 1999 that developed premium smoothies that contained 100% natural fruit with no water or added sugar. The aim was to provide people with quick ready-to-go and healthy food and drink options. The company is now one of the best-loved and fastest growing businesses in Britain. The highly successful Innocent Drinks sells $2 million smoothies per week across Europe, building a 72% market share in the 8 years since they were founded (Anne 2008). They give 10% of their profit to charity and continually participate in fund-raising activities such as ‘The Big Knit’. Throughout the years, Innocent has managed to
Hirotaro Higuchi, became CEO of Asahi Breweries in 1986. His primary focus was to increase profit by incorporating a top down, decision- making management approach. Through efforts of enhancing the company’s functionally, Higuchi was prepared to disburse the necessary
Brand name is very critical and it should be consistent with what the company is trying to deliver and how it wants to be perceived by customers. By establishing brand name as “innocent”, the company is trying to convey the message of being pure.