The company overview
Three ambitious friends, Richard, Adam and John graduated from Cambridge University into professional employment. In the summer of 1998, they spent six months testing various juice recipes on friends, trying to find a successful product. They spent £500 on fruit and tested their recipes on individuals at a London music festival, marking two bins ‘yes’ or ‘no’ and placing a sign next to them reading: “Do you think we should give up our jobs to make these?”. At the end of the day the yes bin was full. They gave up their jobs the following day and Innocent Drinks was formed (innocent, our story)
The creation of this company was difficult for the three friends who had no money, they asked their friends for rich
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Swot analysis
Strengths:
Innocent is a leading player in the UK’s smoothie market since 2004, which has total revenue of £16.7 million during the fiscal year ended December 2004 (Innocent, 2006). Drawing upon Financial Times (2006) it can be suggested that the company’s strong commitment to new product development and its ability to respond quickly to trends in flavors has set the benchmark within healthy drinks for product innovation.
The company has been able to produce strong marketing campaigns in order to secure a loyal customer base through tactical use of communication channels. The company has invested a total of £3.4 million in marketing during 2005 (Mintel, 2006), which involved a promotional mix using different communication channels. The highlights of company’s marketing campaigns include national sampling road-show; free live music festival called Fruitstock; and short TV campaigns during July and November 2005 (Independent, 2006).
There is growing concern for green issues, corporate social responsibility, global warming and ozone depletion in today’s world than ever before. The manufacturing companies are constantly confronting environmental pressure groups in order to improve their wastes and recycling capabilities (Lynch, 2003). Innocent has been recognized for its initiatives in ethical procurement, bio-degradable packaging material, reduction in emissions, and creation of innocent foundation
In the nineties Juicy Fruit was a struggling brand. It was failing to keep the rhythm with sugar-free products that were promising breath freshness, intense mint flavour, a sexier new format and a larger pack. Excel and Dentyne Ice had become market leaders, with always new flavours and by heavily spending on advertisement. Both were growing fast. Juicy Fruit was a boring and old-fashioned sugar stick with a flavour that didn’t last enough. In 1992 it had launched a sugar-free tab with the TV support. In 1998, it had launched the “Value Price Proposition”. It was
assuage any guilt they might feel about consuming mass quantities of unnecessary, disposable goods by dutifully tossing these items into their recycling bins and hauling them out to the curb each week”. (Westervelt, Amy. "Can Recycling Be Bad for the Environment?" Forbes. Forbes Magazine, 25 Apr. 2012. Web. 5 Dec. 2015). So why is the reason that companies are starting to “Go Green”? Its clearly obvious that the change in America from an industrial country to a environmental country has taught big business how to market environmentalism in mass quantities of their product. The strategy of the consumption-environment mindset are increasing rapidly. If this trend of buying without thinking does not slow down, with problems like not shifting priority from consumption to being environmentally aware, things will certainly worsen. On the topic of green marketing, people often see that green marketing refers to the advertising of objects or products with environmental characteristics to them (Like the Nestle bottle, for example). Terms like “Environmentally Friendly”, “Refillable”, and “Recyclable”, are some of the things people associate with green marketing. In reality
Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of
The Affordable Blended Smoothie, Inc. will be producing a healthy non-alcoholic product. As more families and the society continue struggle to maintain healthy lifestyles, the new beverage comes at the right time in remedying the situation. The new energy drink will be suitable to all classes of people regardless of their age, educational level, income, gender, or ethnic affiliation. However, we will be able to employ targeted marketing where the marketing strategies for the company will be directed to rising middle class in Virginia (Wit, 2010).
Marketing and promotion: The aggressive marketing and promotion is strength to the company from several years. It has implemented many successful advertising and promotional strategies over the time which includes new format of UK stores “Brighter look”, “Your M&S” slogan, “Quality worth every penny” etc.
The organization further strengthens its daily sustainable products procurement policy while improving its offer ecological service by adopting solutions in waste disposal and optimizing energy consumption: in just one year, Staples recycled over 63 million ink cartridges (only in the US). Moreover, the company has worked hard to develop over 8000 products with positive environmental characteristics. Staples understands that a successful business is not just about its turnover and profits. It must therefore ensure that all of its employees, suppliers and partners comply with ethical and environmental
Increasing international growth and commitment to the environment and their employees are major strengths for the company. Growth opportunities are present in the organic market, which is projected to grow 9% (Scott-Thomas, 2012), and the smoothie market, which will see a potential growth of 1.6% through 2013 (Technomic, 2012). Some of the weaknesses facing the company are its narrow target market in the organic product industry and lack of traditional advertising. Major competition from Odwalla and Naked Juice are threats to growth and the volatile market for fruit and other natural ingredients may cause unpredictable price increases and as well as an unpredictable future. Also, shifts in popularity of the trendy organic product movement may cause a decline in future revenues. However, both the smoothie and the organic/health food markets are growing rapidly and Clif Bar can secure a larger share in these markets with the introduction of Simply Clif.
Tulloch faced a challenging task to get these products ‘of the ground’. She wondered what the campaign should entail, which distribution and pricing strategy would be the best, how to maximize the current marketing budget, and how many units would need to be sold in order to recoup the
The industry can be very susceptible to environmental issues together with other manufacturers. With the advent of campaigns toward saving the environment and “going green”, the society is now more concerned with how the industry’s wastes and other by-products are being managed. Using recycled materials and recycling one’s wastes can affect the industry’s over-all image as an environmental advocate.
products, have attracted a lot of customers throughout the world. The company has a huge
The team quickly shifted and reevaluated the goals of our project and began to design a wide array of other research possibilities. The Team decided upon using the OfficeMax Green Office catalog to put together a set of specific product recommendations that contain prevalent information such as SKU number, pricing, and why it’s a green conscious product. The recommendations are to be a core component of the educational phrase of the project. The list of recommendations are based on and an expansion of a simplified list of environmentally-preferred products offered in the Bear Buy purchasing system at UC Berkeley. The team selected products that were the most environmentally preferable by looking into their recycled content, waste generation, third party certifications, and other metrics. With small roadblock surpassed, the team is ready for the next phrase of the project and Spring
In 1999, three university friends, Richard Reed, Adam Balon and Jon Wright established what was soon to be called Innocent Drinks. Soon after, they introduced their first smoothie into the market, at a stall in a London music festival. In fact, consumers where asked to throw their empty bottles in cans marked “yes” and “no” to determine if the three business men should continuous selling their product, the majority agreeing “yes”. After numerous name changes that ranged from “Fast Factor”, “Hungry Aphid” and “Nude”, the business came to be known as “Innocent Drinks”.
The market for energy drinks, sports drinks and vitamin-enhanced beverages has changed a lot over the years and will continue to see changes well into the future. The underlying drivers of change include changes in growth rate (decrease) and innovation. Worldwide dollar sales of alternative beverages grew by more that 13% annually between the year 2005 and 2007, however, it slowed down to about 6% between 2007 and 2009. One might argue that the reason for this decline is the impact the ongoing recession has on the beverage industry. Beverage producers continue to maintain their optimism for the industry regarding future prospects that will be brought to fruition by innovation in brands, flavors, and formulations. These are the facets that they believe will support their premium pricing and volume increases.
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
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.