Innocent Drinks: Simon Edwards, Alexia Faure, Giorgio Rodoni, Charitha Kalamulla Waduge, Joy Seanehia

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Some of the key takeaways are that Innocent Drinks was founded in 1999 and has since become a market leader in the UK smoothie market, commanding a 63% market share. It has also expanded its product line beyond smoothies.

Innocent Drinks was founded in 1999 and initially produced a range of smoothies and fruit juices. Since then it has turned over more than £76 million. It commands a 63% share of the £111 million UK smoothie market.

Innocent Drinks ensures good collaboration with its main distributors like Asda, Tesco, Sainsbury's and Starbucks. It also trials distribution with other partners like McDonald's, bringing up controversal discussions.

INNOCENT DRINKS

Simon Edwards, Alexia Faure, Giorgio Rodoni, Charitha


Kalamulla Waduge, Joy Seanehia
Introduction
 Innocent Drinks was founded in 1999
 Produces a range of smoothies and fruit juices
 Since being founded, it has turned over an excess
of £76million
 Commands a 63% share of the £111million UK
smoothie market
Should we give up our jobs to make these
smoothies?
The Marketing Process
INNOCENT DRINKS
SITUATION ANALYSIS
5 C Analysis
 Company.
 Innocent Drinks’ main area of focus is high quality
smoothies.
 Innocent is also trying to expand its target market by
implementing a new range of products.
 The image innocent tries to give to the general public is of
an ethical, enviromentally friendly business.
 Their products are of high quality standards, prices are
therefore relatively high.
5 C Analysis
 Collaborators
 Innocent ensure good collaboration with its
distributors, (the main ones being Asda, Tesco,
Sainsbury's and Starbucks)
 Recently a trial for distribution has also been made
with McDonalds, bringing up many controversial
arguments.
5 C Analysis
 Customers
 Over the last 18 months Innocent’s turnover has doubled
(from £17m to £35m).
 Innocent’s target market are people from a middle to high
class background.
 People are globally becoming more health conscious,
giving even more potential to Innocent drinks.
5 C Analysis
 Competitors
 Innocent is currently one of the leading firms in the
smoothie market, its main competitors are Gerber, PJ
Smoothies and Drink Express.
 Despite having similar ranges of products these firms
do not share the same market segment.
5 C Analysis
 Context – 1
 Political aspects
 The firm’s awareness for environmental issues is key factor.
 Innocent Drinks is also active when taliking about charity,
they donate 10% of their profits every year.
 Economical aspects
 Due to the economic crisis Innocent is trying to offer
promotions on particular products.
5 C Analysis
 Context – 2
 Social aspects
 Innocent tries to be appealing to the customer by offering
high quality products, being ethical and by having an
extremely friendly approach to the customer.
 e.g. 5 portions of fruit/vegetables are reccomended per day,
by consuming an Innocent “veg pot” and an innocent
smoothie, this 5 a day would be fulfilled.
Social Marketing Model
5 C Analysis
 Context – 3
 Technological aspects
 Innocent has no big premises under this aspect, they instead
try to keep it as simple as possible.
 In the future this could however be a potential problem,
other firms could for example offer products of the same
quality at lower prices.
INNOCENT DRINKS
MARKETING STRATEGY
Segmentation
 Segmentation is the division of the market into different groups
within which members share similar needs and requirements.
 This division is based on the demographics, psychoanalysis and
behavioural aspects of populations.
 Its aim is to allow customer needs to be focused on and design
efficient marketing mix to fit different segments. It also helps unveil
growth opportunities as they identify new customers.
 One way in which Innocent exploits different market segments is by
offering a range of products targeted at different groups. (e.g. Kid
smoothies, superfruit smoothies etc.)
Targeting
 Following segmentation, targeting determines
which segments are appropriate depending on their
needs.
 What makes a segment desirable can be its
profitability, competition, size, growth rate etc.
 Innocent drink’s target market is the young, urban
professionals.
Positioning
 Positioning allows one product or good to be
differentiated from another.
 This has to be done to give a competitive advantage
to the business.
 To implement this strategy the business should
have a unique selling point (usp)
 Innocent has done this with its diverse range of
100% natural products.
Perceptual map of competing products

Innocent drinks

Ribena

P&J smoothies
INNOCENT DRINKS
MARKETING MIX
Marketing mix Model
Product
 Product range consists of smoothies, thickies and
fruit flavoured drinks known as juicy drinks.
 All of these products share a unique selling point in
that they are all made from 100% pure crushed fruit
and remain ‘unadulterated’.
 Seasonal smoothies; launch of a new flavour for
spring, summer, autumn and winter. Guest smoothie
introduced every 3 months also to keep customer
interest in the brand and act as a method of test
marketing.
Price
 A premium price is charged for the product of £2
(for 250ml).
 In contrast, PJ smoothies retail for 99p
 Innocent justify this pricing, as they use pure fruit
juice whereas PJ use juice from concentrate
Place
 Refusal to add preservatives means a short shelf
life of only 14 days for Innocent’s products.
 This requires an exceptionally slick system of
distribution.
 Today, Innocent drinks are sold by over 4,000
independent retailers, as well as all of the major
supermarket chains.
Promotion
 Novel ways of attracting attention to Innocent’s
products, including an annual festival, the Supergran
Campaign and regular newsletters and gifts to
customers who have signed up to the Innocent
family.
 Use of word of mouth as a promotional tool.
 Use of advertising campaigns
 Total advertising expenditure in 2006 was £6m – up
from 1m the previous year.
INNOCENT DRINKS
IMPLEMENTATION AND
CONTROL
Implementation and control

 As the changes in the market and the environment become


more significant, Innocent drinks needs to redesign a product
or make new ones.
 Changes made to the smoothies:
- new recipes -> introduced as a “special guest”
- reflecting the current season -> “seasonal smoothies”
- larger 1L cartons
- developed smoothies “for kids” (March 2005) with
special packaging, and made them available in schools. Free of
“bits”
Customer Feedback
 In order to keep track of customer needs and
preferences a customer feedback service has been
introduced on the Innocent webpage.
 Moreover, a free dial customer line has been
introduced; customers there can express any
queries on Innocent products.
New Product Introduction

 The veg pots


- a meal that gives you 3 portions of veg
- tasty recipes (with new ones often)
 The veg pot and smoothies can be very well associated as they
provide the 5 portions of fruit and veg needed a day
 Distribution: making the products available in more and more places:
supermarkets as well as coffee shops,
Harrods
museums and cinemas
Creating customer appeal

 The Innocent foundation (created in 2004):


10% of the profit made by Innocent drinks goes to this charity
 Innocent creates a special relationship with their existing
customers.
 On the web site the consumer can find:
- where the drinks are on offer
- health questions answered by a doctor every week
Conclusion
Summary
 We have looked at how Innocent uses marketing to
establish their brand name in the European market.
 This was done by following all of the key stages in
the marketing process model.
Conclusion and Speculation
 Currently, Innocent is prospering in the market by
its effective use of marketing
 In the future, Innocent must continue to uphold
their corporate values in order to maintain their
existing customers as well as attracting new
customers in what is becoming an increasingly
ethical market.

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