Innocent Smoothies Are Coming to Japan

2923 WordsJul 12, 201812 Pages
Introduction Innocent is a well-established smoothie and health food company in its home market of the UK and has had success in moving into various markets in the European Union. With the added partnership with global brand Coca-Cola, it could be said that Innocent is in prime position to begin its expansion into new markets globally. This report will note the benefits and potential risks of entering the chosen market of Japan based on research and theoretical analysis. Japan was first chosen due to initial research showing that it was one of the most health conscious countries in the world, with the lowest obesity rates. Further investigation showed their links with Coca Cola, and a gap in the market for ‘off the shelf smoothies’,…show more content…
Many Asian governments prefer foreign companies to have a local partner (Gesteland and Seyk, 2002), which can cause difficulties through cultural clashes, however, the well established presence of majority shareholder Coca Cola could allow Innocent to skirt around that issue and work with a partner with guaranteed similar goals. To ensure a comprehensive analysis of the attractiveness of Japan’s market (specifically Tokyo’s), further research was done using the aid of ‘Porters Five Forces’ framework (Porter, 1980)[Fig 1]. Threat of Entry & Competitive Rivalry: There is an obvious gap in the market for smoothies the way Innocent offer them, although currently smoothie bars are popular (demonstrating the demand for smoothies), there are no off the shelf options, even though, in the daily commute, professionals may not have time to stop and wait for their freshly made smoothie. With regard to other store bought drinks, there is surprisingly little competition, with the closest being dairy based smoothies and pure juices (popularly tomato & grape). There are few 100% juice smoothies in the market, none of which are available pre-packaged. There is always the chance of these smoothie bars adding a ‘to go’ option, but at the present time, Innocent would be the only one sold in convenience stores. Power of Suppliers: The suppliers of fruit outside of Japan are plentiful, many of which Innocent already has existing deals with

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