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Essay on Innocent Drinks Case Study

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INTRODUCTION Three friends from the Cambridge University, Richard Reed, Jon Wright and Adam Balon founded the innocent drinks in 1998. All the three were in their respective fields of work and working for different companies after they graduated in 1994. Reed worked for an advertising agency, while Balon and Wright worked for different management consultants. The three friends always had an idea about starting a company of their own and in 1998 they founded the innocent drinks after an intense market research and testing their product. THE EARLY INNOCENT Reed, Balon and Wright organised events in London like the used to organise in Cambridge such as a music festival called Jazz on the Green in 1997-1998. Though they were in different…show more content…
A placard by the stall read "Should we give up our jobs to start a smoothie company?" and beside it, they put two bins with the labels "YES" or "NO". The bin with label "Yes" overflowed and the bin with lable "No" with a negligible count of bottles. THE ACTION PLAN Everything was set but main concern was pricing. PJ which was then a main competitor, sold their 330ml smoothies made of concentrate for a lesser price when compared to innocent's 250ml. The solution came when a designer suggested that a 250ml bottle can be risky but marking as INNOCENT can be sustainable. Initially the branded the drink as Fast Tractor in honour of their farming collaborator. Another issue was the finance from the conventional sources which were reluctant to invest. They would need at least £235,000 to add to their own invest of £45,000 to cover the costs and operational losses for 12 months period. But, if it works out, then they would at £1 million profit by year five. Despite their enthusiasm and impressive CVs, the business angels deterred by their lack of experience in this market sector. However, they managed to get an appointment with Maurice Pinto, a private investor, who agreed to invest £235,000 for a 20 percent share in the company. The investment was made in January 1991 and three months later, the first stock of smoothies was delivered from Nottingham. The brand name was "Innocent" reflecting the founders' belief in the purity of the their
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