Innocent drinks company

INTRODUCTION

Innocent Drinks Company is the fastest emerging and favorite fruit smoothie brand producing company in UK .They sold their products in supermarkets, coffee shops and various other outlets. The team from three founders has expanded over 250 people and has grown from zero to 80% market share in UK and has a turn over more than £ 100 million every year and sells two million bottles of smoothies every week. It functions through eight fruit offices across Europe i.e. London, Paris, Amsterdam, Copenhagen, France, Brussels and so on.

The founders Reed, Balon and Wright started their business in 1998 after finishing their course in Cambridge University by engaging people's opinion whether they should quit the jobs to make smoothies by throwing empty bottles in "Yes and "No" bins at a festival and "Yes" bin was full . Thus their base of their business is being accountable to the customers. Their vision is "To be the Earth's favorite little food company".

In 2008, it aquired 36th position in the Sunday Times Fast Track 100 list in UK i.e fastest sales growth company and its the only company that appeared 5 years consecutively in the list with a growth rate of 89.14% Pa.

VALUE PROPOSITION

"A customer value proposition is the sum total of benefits a customer is promised to receive in return for his or her custom and the associated payment"

INNOCENT DRINKS CORE VALUES

"Create a business we can be proud of" i.e. by being natural, entrepreneurial, responsible, commercial and generous.

VALUE PROPOSITION OF INNOCENT DRINKS THAT DRAWS CUSTOMERS

Value for money

As per Kotler (1996) "when a consumer buy a product, they exchange something of value (the price) to get something of value (benefits of having or using the product)". Innocent drinks use Value-based pricing rather than Cost-based pricing i.e. their price is customer driven. As per Innocent drinks website states that their prices compared to market is much cheaper than that of homemade. To make a litre of strawberries & bananas and their mangoes and passion fruits recipe one of their staff Lucy T went to a leading supermarket and bought the exact amount of ingredients as per their market research they proved that their products are cheaper than of homemade and showed the comparison through graph. They also display offers going on supermarkets so that their customer's gets the best deal.

Healthy Drink

"Innocent drinks mission is to make it easy for people to do themselves some good and to make it taste nice at the same time".

All their products are healthy i.e. Smoothies and Orange juices are 100% whole crushed fruits and pure, its enriched with vitamins, fibre and phytonutrients. A veg pot provides 3 portions of vegetables. These products do not contain a any preservatives, added sugar, additives or stabilisers.

They stated in their website that on 7th April 2009 ,The Department of Health revised the smoothie portion guidelines i.e. their 2 portion includes 80g of crushed fruit or vegetable and 150ml of pure juice. As per Department of Health(2000) findings they claimed that, in a day by eating minimum 5 different portion of fruits and vegetable mix, people can minimise the risk of heart diseases and cancer by 20% .Innocent smoothies contain at least 5 fruits as per the graph.

According to Thomas at Marketing magazine (2009), Innocent has added another product in its case i.e. Innocent squeezes and has launched Orange juice to compete with Tropicana apart from that they launched seasonal winter smoothie to fight the chill weather. (Thomas, 2009)

BEST FRUIT USED

Innocent drinks emphasis on buying fruits from those countries and suppliers who are bound with International Labour Organisational standards. For example the Rainforest Alliance i.e farms that follows highest ethics by looking after their workers and the nature as well as pays good price for the fruits. The farms that are not certified, innocent has its own standards to employ them.

Apart from that in 2007, a three year program called "Get Closer to fruit program" was launched to work out a way to get right results for the workers, staff and planet.

PACKAGING AND DISTRIBUTION

In 2007, in packaging, Innocent drinks is the world first to achieve 100% recyclable and renewable packaging and follow sustainable packing policy.

  • Material per pack used is least and low on carbon footprint.
  • Material that has wide sustainable waste management option availability.

As per the article by Raine the packaging news 2006, due to their innovative designs its eye catching. Surface design wraps have a word that educate or stimulates a response. Thus initiate communication with the customer. For example Innocent kids range packs has a window for the mom's to count the portion of fruits dispensed. Product packing is clever as its stands out unlike other brands as bottle is with only one band colour.

Independent distributers make 40% of its distribution in UK and other countries thus they believe in developing personal relationships with the stockists. As per just drink editorial in December 2007 it states that Coca Cola Co will handle the smoothie sales in Sweden and other European markets.

PROFITS SHARED

10% of their profit is donated towards their own charity that funds development projects in the countries to buy fruits. Founded in 2004, their vision is to make futures for the world's deprived people . Apart from this their projects includes:-

Buy one grow one tree- To aid rural Indian communities it's a project wherein more than 86,000 to be planted.

Big Knit Choir- Charity to help the aged and their concerns by knitting bobble hats, it raised more than £200,000 in 2008

Microloan Foundation- In helps women through training and loan. It helped setting 12 business cooperatives in Malawi in 2007.

ETHICS

As per their website it states that "We sure aren't perfect, but we're trying to do things right". They majorly concentrate on five simple elements on ethics, they are:-

Keeping things natural -only 100% pure fruits and vegetables are used.

Responsible ingredients -healthy drinks

Sustainable packaging- 100% recyclable and renewable bottles and cartons

Resource- efficient business-Business done with conjunction with Mother Nature by focusing on reducing carbon footprint.

Sharing the profits- Each year 10% of their profit goes to the foundation.

Employees-They have been voted the best Graduate employers in UK in 2009 as the recruits were trained well and in the end of last year their first line of orange juice was introduced.

Apart from this in individual level company helps employees to be aware towards environment by thinking before travelling by plan, to use alternatives to fossil fuels and so on.

Suppliers-They are covered with certificates if not company has its own set of standards to do business with them and since most of them are individual distributors that maintain a personal touch and responsibility that flows mutually in terms of quality.

Since political and economical changes influences prices of Fruits, materials and so. For example change in percentage of VAT. In Sunday Telegraphs per Armistead, 2009,Innocent Drinks has made an attempt to compel the HMRC to remove tax on smoothies stating that under British Tax rules, consumers pay no VAT on "essential food and drinks". Since smoothies have fruits and has healthy properties should be considered for tax exemption. In this economic recession where banks are going through a credit crunch making customer hesitant to buy products, Innocent is trying proactively to help consumer not to pay VAT and making their products affordable to reach all the market segments rather targeting their high end segment. (Armitstead, 2009)

SOCIO CULTURAL ENVIRONMENT

As per Mitchell stated that company gets its work life balance talent rich people from diverse cultural background, ages are encouraged to deliver change.

Due to face passed lifestyles and time constraint of people to eat and cook nutrient food company is promoting is products on its nutrients factors and utilising governments 5- day campaign as an opportunity to promote its products.AS per the 8th survey conducted by them in 2008 it showed that 78% of consumers were now aware of the benefits of 5 portions and women were more in aware 15%.

TECHONOLOGICAL ENVIRONMENT

As per the article by Raine ,Packaging innovation and technical development to reduce carbon footprints and produces 100% renewable and recyclable packs to fit the shape and size.(Raine ,2009)

VALUE ADDITION

As per Germain 2009,people in mid twenties with money, eating unhealthy due to fatigue, time constrains and laziness. Innocent drink's target customers were like them. To make things better they made smoothies to gratify the 5-portions programme which is encouraged by government.

Ethically branding of their product represents their personality to be natural i.e. being self and honest with innovative and simple packaging that's harmless to nature and that's also their product line. Very innovative and interactive website.

They are environmental conscious company by buying fruits from certified farms as well as focusing on the reduction of carbon footprints.

Mode of transportation of their fruits is by boats or rails as saves fuel.

Market segmentation is through Facebook, Twitter, linked in and blogs i.e they targeted consumers.

Free food and drinks in innocent office displays frequency marketing program. Customer is rewarded due to their frequent buys. (Kotler and Armstrong 1996.)

In 2007, "FruitStock" free concert was organised and in 2008 they had a village fete thereby adding more variety.

CONCLUSION

Innocent drink's steady success is due to their personalised relationship with their employees, suppliers and customers. Their innovative product and their packaging uniquely stand out among its competitors. They have gone beyond traditional market strategies of 4 Ps by using ethics. Their product mix and value adding marketing i.e. starring their own employees is unique. Reaching customers through banana calling and friendly way of greeting when they visit their office delights them. Their ethical way of doing business that is however was in limelight because of the partnerships between McDonalds and Coca-cola as it left some customers unhappy, however they have stated their decision was based on the survey. However it has all the potential to again retain its position as they have won best awards in new product, marketing, customer service, marketing, Growth strategy and innovation."Being good enough, is not good enough - give customers a reason to be faithful." Graham Roberts-Phelps

REFFERENCING AND BIBLIOGRAPHY

  • HOOLEY, G., SAUNDERS, J., PIERCY, N. 2004. Marketing Strategy and Competitive Positioning. Third Edition.Harlow, Essex: Prentice Hall
  • KOTLER, P. 1997. Marketing Management Analysis, Planning, Implementation and Control. Eight edition. Harlow, Essex: Prentice Hall.
  • KOTLER, P. ARMSTRONG.G 1996. Principles Of Marketing. Seventh edition Harlow, Essex: Prentice Hall.
  • KOTLER, P. ARMSTRONG.G 1996. Principles Of Marketing. Seventh edition. Harlow, Essex: Prentice Hall.

ARTICLES

  • ARMITSTEAD, L. 2009. Innocent, the healthy drinks maker, has launched an audacious attempt to force the HMRC to remove the tax on its smoothies. http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/5141209/Innocent-seeks-VAT-exemption-for-smoothies.html edn. United Kingdom: Telegraph (11 December 2009)
  • RAINE, T. 2007. Profile: Stuart Allen, Innocent Drinks. http://www.packagingnews.co.uk/news/637139/Profile-Stuart-Allen-Innocent-Drinks/ edn. United Kingdom: Packaging News. (11 December 2009)
  • RAINE, T. 2007. Profile: Stuart Allen, Innocent Drinks. http://www.packagingnews.co.uk/news/637139/Profile-Stuart-Allen-Innocent-Drinks/ edn. United Kingdom: Packaging News. (11 December 2009)
  • THOMAS, J. 2009. Innocent to broaden portfolio with more food products. http://www.marketingmagazine.co.uk/news/878304/Innocent-broaden-portfolio-food-products/ edn. United kindom: Marketingmagazine. (11 December 2009)

WEBSITES

  • Innocent Drinks Official LinkedIn 2010. [WWW] http://www.linkedin.com/companies/innocent-drinks ( 11 December 2009 )
  • BBC NEWS 2009. [WWW] http://news.bbc.co.uk/1/hi/uk/7986901.stm (11 December 2009)
  • Innocent Drinks Official Website 2010. [WWW] http://www.innocentdrinks.co.uk/us/?Page=our_story (11 December 2009)
  • Fast Track Sunday Times 2008. [WWW] http://www.fasttrack.co.uk/fasttrack/leagues/dbDetails.asp?siteID=1&compID=1378&yr=2008 (11 December 2009)
  • Innocent Drinks Official Website 2010. [WWW] http://www.innocentdrinks.co.uk/careers/business/purpose/ (11 December 2009)
  • Innocent Drinks Official Website 2010. [WWW] http://www.innocentdrinks.co.uk/value/ (11 December 2009)
  • Innocent Drinks Official LinkedIn 2010. http://www.linkedin.com/companies/innocent-drinks. (11 December 2009)
  • Innocent Drinks Official Website 2010. [WWW] http://www.innocentdrinksforhcps.com/research.php (11 December 2009)
  • Innocent Drinks Official Website 2010. [WWW] http://www.innocentdrinks.co.uk/AGM/innocent_annual_report_2007.pdf (11 December 2009)
  • Diet .Co.UK. 2009 . [WWW] http://www.diet.co.uk/fair-trade/innocent-drinks.html (11 December 2009)
  • Innocent Drinks Official Website 2010 [WWW] http://www.innocentdrinks.co.uk/AGM/innocent_annual_report_2007.pdf (11 December 2009)
  • Diet .Co.UK. 2009 [WWW] http://www.diet.co.uk/fair-trade/innocent-drinks.html (11 December 2009)
  • Growing Business 2007. [WWW]http://www.growingbusiness.co.uk/innocent-drinks-richard-reed.html (11 December 2009)
  • Innocent Drinks Official Website 2010 [WWW]http://www.innocentdrinks.co.uk/AGM/innocent_annual_report_2007.pdf (11 December 2009)
  • Innocent Drinks Official Website 2010 [WWW] http://www.innocentdrinks.co.uk/us/ethics/ (11 December 2009)
  • Canadean News 2009 [WWW]http://www.canadean.com/News/Beverage_Industry_News/ItemId/738.aspx (11 December 2009)
  • We Dream Business [WWW]http://wedreambusiness.org/index.php?id=235 (11 December 2009)
  • Innocent Drinks Official Website 2010 [WWW]http://www.innocentdrinks.co.uk/us/ethics/ (11 December 2009)
  • Real Business 2009 [WWW] http://www.realbusiness.co.uk/search_tags/4895721/jamie-mitchell-managing-director-innocent-drinks.thtml (11 December 2009)
  • Innocent Drinks Official Website 2010 [WWW]http://www.innocentdrinks.co.uk/us/ethics/resource_efficient/our_carbon_footprint/ (11 December 2009)
  • Your Brand Channel 2009. [WWW]http://www.yourbusinesschannel.com/show/ideas/1037/marketing-strategy-from-innocent-do-you-really-know-your-ideal-customer (11 December 2009)

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