Product

 

Innocent drinks are a consumer focused product, offering a healthy high quality smoothie that has been successfully embraced by the market. The characteristic of being the first with such features allows Innocent to have high demand related to the constant seek of healthier lifestyle by the population. Being a first mover in the market has more that pulling a high initial demand when ramping up the sales volume ahead of the rivals; it estimulates the loyalty of the customers that connect with the brand , plus contributes for the reap cost advantages in paralel with economies of scale and the lerning effect throught time.

All production process is focused on what the brand means to the customer, therefore, there is an extreme care on every constituent of the drink priming for the healthiest, tastiest raw products.

 

“Our 100% pure fruit smoothies: No added sugar. No concentrates. No funny business.” (Innocentdrinks, 2015 [online])

 

 

Price

 

“Innocent drinks has created a strong brand since its launch in 1999 by ensuring it has understood the tastes of drinkers and constantly innovated in product development” (DataMonitor Study Cases, 2004).

 

These smoothies require high quality fresh fruit, which is rather expensive, and high volumes that contibute for the price increase. That being said, we stand before a premium product, in which its price is quite high, compared to the rest of its substitutes in the market. There is this need for a disruptive business model, having in mind that otherwise, using low price penetration, the demands of the end of the market would not be satisfied. Thus, this pricing decision is based on the belief that such attribute is an indicator of its quality and consumer trust. Also, emphasizes the success of the brand and elevates its status. The consumer is taken to recognize that value and price as fair for what he will consume. Nevertheless, if the producers were willing to decrease the end selling price, that could be translated in poorer quality fruit or concentrates and would consequently have ethical implications on the supply chain, in order to achieve that lower raw product's price. 

To reach the maximum profits margin and benefits, they rely on a modus operandi that establishes excellent relationships throughout the supply chain. This, allied with price constriction strategies, never discarding the quality requirements, is the key for their large margins, making this product’s price value-based, instead of cost-based.

 

Innocent competitors only choice is to try to provide a very similar product at a identical price, under the consequence of hampering their product, making Innocent drinks offer pretty untouchable and hard to differentiate from. 

 

 

 

Promotion

 

"Create a business we can be proud of" i.e. by being natural, entrepreneurial, responsible, commercial and generous (DataMonitor Stusy Cases, 2004).This is the idea that Innocent Drinks wants to show the world.

 

Advertisement is fundamental for the promotion of this brand. Promotional activities like visiting the company for the day, community projects, strong communication and promotional activities or competitions are examples of the investments in that matter.

 

 

Music Festivals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TV adverts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mini-movie TV advert competition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Place 

 

For Innocent drinks, it’s all about being in the right place at the right time. All the effort is applied into being able to reach the target. At the beginning of the business their main strategy to penetrate the market was through samples given in strategic spots and events. In the present day, Innocent opts for being available in various supermarkets and different restaurants and shops; as Mcdonalds, Greg’s, among others.

Innocent Drinks also focus their market availability in populational centres where the price and healthy philosophy can be matched by the customer.

When a new idea for a product comes along, instead of going big, using the actual success they own in the existing market, they start small so they test properly the new possibilities and then, select the ones they consider worthy. "we continue to start small with any new initiative we embark upon, (...) it allows us to be more entrepreneurial - we can test ideas quickly and without breaking the bank. (...) Basically, we beg and borrow to get a test away cheaply, and then invest in the ideas that work" (Germain D., 2009).

 

Being an entrepreneurial firm, after the success of the Innocent smoothies, they continued to come up with loads of ideas and new projects. Even though they had their ‘start small’ strategy, some of those pilot ideas were starting to gain some market power abroad. This was an turning point to Innocent in that they had to make the decision to focus on one project rather than starting to invest everywhere.

Having the opportunity to opt for the investment abroad or focusing on new product releases, they followed the expansion strategy, coming across with the tactical decision of choosing Europe or the US. Measuring the US versus Europe wasn’t easy; American market is big, only one currency and language and they already had a good response by the retailers. In Europe, although it hadn’t those advantages, had the added advantage of keeping their supply chain network, something not possible to do in The US where they would have to set a whole new chain. This is one example of their deep reflexion and very planed strategy on how to place themselves on the market.