Innocent Drinks

Innocent Drinks

1. Introduction

This study shall analyze Innocent Drinks, which has been cited as one of the fastest turning British companies on record ( Phelvin and Wallop, 2008 ; Reynolds, 2013 ) . This shall be done by giving a brief overview of the Innocent Drinks, transporting out a SWOT analysis in order to find its chances and possible challenges, every bit good as carry oning a PESTEL analysis in order to find the impact its assorted environments have had and will perchance hold in the hereafter. A cultural analysis shall besides be performed, as civilization has been proven to hold an influence on a company’s public presentation ( Kotter and Heskett, 1992 ) . Based on these analyses, recommendations for Innocent Drinks shall be suggested and decisions drawn.

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2. Overview

Innocent Drinks was founded in 1999 by a group of three friends – Adam Balon, Richard Reed and Jon Wright – following a positive response to the gross revenues of their smoothies at a music festival ( Innocent Drinks, 2014a ; Rubin, 2010 ) . It has grown since so from its little start as a stall set up at the Jazz on Green festival in London to go Europe’s best selling smoothy, with its merchandises being sold in several European states, a gross of over ?213.5 million as of 2012, and a consistent addition in market portion over the old ages ( Innocent Drinks, 2014a ; Reynolds, 2013 ; Rubin, 2010 ) . Its mission is “to do it easy for people to make themselves some good – and that making so should savor good too” ( Rubin, 2010, p. 1 ) . Its values are to be natural, entrepreneurial, responsible, commercial and generous ( Innocent Drinks, 2014d ) . The guiltless promise is that it “tastes good ; does good” , and this is fulfilled through its usage of tasty healthy merchandises which are sustainably sourced, and through giving 10 % of all its net incomes to charity ( Innocent Drinks, 2014c, n.p. ) . The company’s merchandise scope is divided into four classs: smoothies, juices, kids’ merchandises ( including kid’s drinks and fruit tubings ) , and nutrients ( Innocent Drinks, 2014b ) .

3. SWOT Analysis

The SWOT analysis below high spots the strengths and failings of Innocent Drinks, every bit good as the chances available to the company and the possible menaces it could confront.

Strengths

Innocent Drinks has experienced strong consistent growing over the past old ages. Harmonizing to Reynolds ( 2013 ) , Britvic Soft Drinks reported that Innocent Drinks was one of 2013’s large victors, with a growing in its one-year value gross revenues by more than 35 % . It was besides a patron of the London 2012 Olympics, and following this, its gross revenues volume experienced a important addition of more than 60 % . It besides has a broad scope of merchandises and is continuously increases the figure of merchandises in its scope ( O’Reilly, 2014 ) , and this enlargement scheme helps increase its client base and gross revenues volume. Its recent partnership with Coca-Cola, which involved Coca-Cola purchasing the bulk of its portions, has besides enabled it to leverage on Coca-Cola’s selling, purchasing and media power, every bit good as its wealth of experience and available capital. It was besides through this partnership that it was able to go the official smoothy of the Olympics ( Neate, 2013 ) . Innocent Drinks has besides won several awards, including an award from the Healthy Food Guide in 2011 for its Caribbean veg pot, another from the World Juice Award in 2011 for the best new merchandise ( its Apple Juice ) , and another for best packaging ( for its decanter ) , assorted awards from the Brand Index Buzz, CoolBrands Award, and the Grocer Gold Awards ( Innocent Drinks, 2014e ) . These awards greatly enhance trade name consciousness and client perceptual experience. It is besides seen as a company with strong ethical values, and topped the list of Social Brands in 2012 ( Innocent Drinks, 2014e ) . This is besides really good for the company, because strong moralss and environmentally-friendly policies and actions can be a beginning of reputational, fiscal and competitory advantage for companies ( Markley and Davis, 2007 ) . The thoughts, accomplishments, committedness and dedication of the laminitiss every bit good as the staff of the company is besides a cardinal strength of Innocent Drinks, and is one of the grounds behind its growing and enlargement over the old ages. Innocent Drinks has experienced strong consistent growing over the past old ages. Harmonizing to Reynolds ( 2013 ) , Britvic Soft Drinks reported that Innocent Drinks was one of 2013’s large victors, with a growing in its one-year value gross revenues by more than 35 % . It was besides a patron of the London 2012 Olympics, and following this, its gross revenues volume experienced a important addition of more than 60 % . It besides has a broad scope of merchandises and is continuously increases the figure of merchandises in its scope ( O’Reilly, 2014 ) , and this enlargement scheme helps increase its client base and gross revenues volume. Its recent partnership with Coca-Cola, which involved Coca-Cola purchasing the bulk of its portions, has besides enabled it to leverage on Coca-Cola’s selling, purchasing and media power, every bit good as its wealth of experience and available capital. It was besides through this partnership that it was able to go the official smoothy of the Olympics ( Neate, 2013 ) . Innocent Drinks has besides won several awards, including an award from the Healthy Food Guide in 2011 for its Caribbean veg pot, another from the World Juice Award in 2011 for the best new merchandise ( its Apple Juice ) , and another for best packaging ( for its decanter ) , assorted awards from the Brand Index Buzz, CoolBrands Award, and the Grocer Gold Awards ( Innocent Drinks, 2014e ) . These awards greatly enhance trade name consciousness and client perceptual experience. It is besides seen as a company with strong ethical values, and topped the list of Social Brands in 2012 ( Innocent Drinks, 2014e ) . This is besides really good for the company, because strong moralss and environmentally-friendly policies and actions can be a beginning of reputational, fiscal and competitory advantage for companies ( Markley and Davis, 2007 ) . The thoughts, accomplishments, committedness and dedication of the laminitiss every bit good as the staff of the company is besides a cardinal strength of Innocent Drinks, and is one of the grounds behind its growing and enlargement over the old ages.

Failings

Innocent Drinks is still a turning trade name, and has comparatively less visibleness than other fruit juice trade names. It besides faces strong competition from Tropicana Products, a division of PepsiCo which is more popular, being the UK’s figure one juice trade name. When PepsiCo launched its smoothies range in 2008, Richard Reed, one of Innocent Drinks’ laminitiss, stated that their rival “is regarded as one of the most fiercely competitory on the planet. They have launched smoothies this twelvemonth and we are their target” ( Sibun, 2008, n.p. ) . Tropicana besides has the advantage of “60 old ages of experience in fruit choice and first-class blends” ( PepsiCo, n.d. , p.1 ) . Innocent Drinks’ monetary values are besides higher than that of other trade names, and this can forestall some sections of the market from buying their merchandises, and besides give rivals an upper manus. Additionally, there have been criticisms sing its ethical claims ( Phelvin and Wallop, 2008 ; Sibun, 2008 ) . Furthermore, Innocent Drinks major market is the United Kingdom, and the strong trust on this market leaves it susceptible to economic every bit good as other challenges faced by this market. Although it has expanded across Europe, its enlargement was reported as “an expensive decision” , with the company entering considerable losingss from 2008 to 2011 following the enlargement ( Anderson, 2012, p. 1 ) . Innocent Drinks is still a turning trade name, and has comparatively less visibleness than other fruit juice trade names. It besides faces strong competition from Tropicana Products, a division of PepsiCo which is more popular, being the UK’s figure one juice trade name. When PepsiCo launched its smoothies range in 2008, Richard Reed, one of Innocent Drinks’ laminitiss, stated that their rival “is regarded as one of the most fiercely competitory on the planet. They have launched smoothies this twelvemonth and we are their target” ( Sibun, 2008, n.p. ) . Tropicana besides has the advantage of “60 old ages of experience in fruit choice and first-class blends” ( PepsiCo, n.d. , p.1 ) . Innocent Drinks’ monetary values are besides higher than that of other trade names, and this can forestall some sections of the market from buying their merchandises, and besides give rivals an upper manus. Additionally, there have been criticisms sing its ethical claims ( Phelvin and Wallop, 2008 ; Sibun, 2008 ) . Furthermore, Innocent Drinks major market is the United Kingdom, and the strong trust on this market leaves it susceptible to economic every bit good as other challenges faced by this market. Although it has expanded across Europe, its enlargement was reported as “an expensive decision” , with the company entering considerable losingss from 2008 to 2011 following the enlargement ( Anderson, 2012, p. 1 ) .

Opportunities

A turning involvement in healthy feeding and healthy life styles in general ; and runs such as the five a twenty-four hours run present important chances from Innocent Drinks, peculiarly as their merchandises are chiefly made from fruits and veggies ( Bainbridge, 2013 ; Briggs, 2014 ) . Bainbridge ( 2013 ) notes that as fruit juices and smoothies count towards the mark of devouring 5 fruit and vegetable parts a twenty-four hours, they create a marketable wellness benefit. The fruit juice and smoothies market is besides a popular and mature one, with a survey by Marketing Week uncovering that 88 % of respondents had drank fruit juice or smoothies within the old six months ( Bainbridge, 2013 ) . Bainbridge ( 2013 ) besides notes that growings in the demographic ( households, ABC1s and 16-34 twelvemonth olds ) which are above-average consumers of such drinks besides lend support to the growing of this industry in general. A turning involvement in healthy feeding and healthy life styles in general ; and runs such as the five a twenty-four hours run present important chances from Innocent Drinks, peculiarly as their merchandises are chiefly made from fruits and veggies ( Bainbridge, 2013 ; Briggs, 2014 ) . Bainbridge ( 2013 ) notes that as fruit juices and smoothies count towards the mark of devouring 5 fruit and vegetable parts a twenty-four hours, they create a marketable wellness benefit. The fruit juice and smoothies market is besides a popular and mature one, with a survey by Marketing Week uncovering that 88 % of respondents had drank fruit juice or smoothies within the old six months ( Bainbridge, 2013 ) . Bainbridge ( 2013 ) besides notes that growings in the demographic ( households, ABC1s and 16-34 twelvemonth olds ) which are above-average consumers of such drinks besides lend support to the growing of this industry in general.

Menaces

Reynolds ( 2013 ) reports that additions in natural stuff monetary values have peculiarly affected the juice industry. Climate alteration issues can besides hold a considerable impact on the supply of fruit, which in bend can impact Innocent Drinks’ juice and smoothie production. Barron ( 2009, p. 2 ) notes that Innocent Drinks “has been made progressively cognizant of utmost conditions conditions such as higher than mean temperatures, drouth and hurricanes” . These earnestly affect its ability to, and easiness of, sourcing peculiar fruits. There have besides been inquiries sing the purported wellness benefits of its juices and smoothies, and these uncertainties can hold an impact on client perceptual experience and gross revenues volumes if non efficaciously addressed ( Hodgekiss, 2013 ; Mintel, 2010 ) . Reynolds ( 2013 ) reports that additions in natural stuff monetary values have peculiarly affected the juice industry. Climate alteration issues can besides hold a considerable impact on the supply of fruit, which in bend can impact Innocent Drinks’ juice and smoothie production. Barron ( 2009, p. 2 ) notes that Innocent Drinks “has been made progressively cognizant of utmost conditions conditions such as higher than mean temperatures, drouth and hurricanes” . These earnestly affect its ability to, and easiness of, sourcing peculiar fruits. There have besides been inquiries sing the purported wellness benefits of its juices and smoothies, and these uncertainties can hold an impact on client perceptual experience and gross revenues volumes if non efficaciously addressed ( Hodgekiss, 2013 ; Mintel, 2010 ) .

The information from this SWOT analysis, every bit good as the PESTEL analysis below, shall later be used as a footing for recommendations for Innocent Drinks.

4. PESTEL Analysis And Analysis Of Innocent Drinks’ Competition

The PESTEL ( Political, Economic, Social, Technological, Environmental and Legal ) model is framework for analyzing the macro environment in which an administration operates. Analyzing an environment utilizing this model enables an administration to place, understand and accommodate to relevant external factors, and to be after for any effects environmental tendencies can hold on its schemes and activities ( Johnson, Whittington and Scholes, 2012 ) .

Political

Political factors which affect Innocent Drinks include opinions and guidelines by the Department of Health, the Ad Standards Authority, Trading Standards and the Office of Fair Trading. For case, the Department of Health changed the 5-a-day guidelines to let smoothies which contain all comestible parts of the fruit used, or which contain 100 % pure juice to number as two parts of the 5-a-day ( The Telegraph, 2009 ) . The guidelines by these bodes besides affect even apparently minor inside informations. For case, Innocent Drinks had to contend with trading criterions when it wanted to alter ‘use by’ to ‘enjoy by’ on its merchandises, as portion of the image they aimed to picture ( Gubbay, 2011 ) . Political factors which affect Innocent Drinks include opinions and guidelines by the Department of Health, the Ad Standards Authority, Trading Standards and the Office of Fair Trading. For case, the Department of Health changed the 5-a-day guidelines to let smoothies which contain all comestible parts of the fruit used, or which contain 100 % pure juice to number as two parts of the 5-a-day ( The Telegraph, 2009 ) . The guidelines by these bodes besides affect even apparently minor inside informations. For case, Innocent Drinks had to contend with trading criterions when it wanted to alter ‘use by’ to ‘enjoy by’ on its merchandises, as portion of the image they aimed to picture ( Gubbay, 2011 ) .

Economic

There are several economic factors which influence Innocent Drinks. These include the economic state of affairs in the states it operates in, peculiarly United Kingdom every bit good as some European states, revenue enhancement policies, and other market and industry factors. For case, Levy ( 2011, n.p. ) reports that smoothie gross revenues fell by a 3rd as they were deemed “too expensive for credit-crunched Brits” . The Food and Drink Innovation Network ( FDIN ) ( 2010 ) besides report that following the recession, Innocent Drinks suffered significantly, with the gross revenues of its smoothies falling by 29 % in 2008 and 2009. There are several economic factors which influence Innocent Drinks. These include the economic state of affairs in the states it operates in, peculiarly United Kingdom every bit good as some European states, revenue enhancement policies, and other market and industry factors. For case, Levy ( 2011, n.p. ) reports that smoothie gross revenues fell by a 3rd as they were deemed “too expensive for credit-crunched Brits” . The Food and Drink Innovation Network ( FDIN ) ( 2010 ) besides report that following the recession, Innocent Drinks suffered significantly, with the gross revenues of its smoothies falling by 29 % in 2008 and 2009.

Social

Social factors which affect Innocent Drinks include consumer attitudes and purchasing forms, the growing of its mark demographics, and assorted wellness runs such as the 5-a-day run. A turning involvement in healthy feeding and projected growing tendencies for its chief demographic nowadays considerable chances for Innocent Drinks in the United Kingdom every bit good as in Europe in general. Social factors which affect Innocent Drinks include consumer attitudes and purchasing forms, the growing of its mark demographics, and assorted wellness runs such as the 5-a-day run. A turning involvement in healthy feeding and projected growing tendencies for its chief demographic nowadays considerable chances for Innocent Drinks in the United Kingdom every bit good as in Europe in general.

Technological

Technological factors include invention sing new production methods and merchandises, every bit good as the packaging for its merchandises, recycling, and other tendencies and progresss in fabrication. For case, Innocent Drinks had been working on increasing the per centum of recycled plastic used to fabricate its bottles ( as it was antecedently made from 50 % recycled plastic ) . It increased this to 100 % in 2007, and is continuously looking for new ways in which it can understate its impact on the environment through technological progresss in fabricating its packaging ( Innocent Drinks, 2007 ) . Technological factors include invention sing new production methods and merchandises, every bit good as the packaging for its merchandises, recycling, and other tendencies and progresss in fabrication. For case, Innocent Drinks had been working on increasing the per centum of recycled plastic used to fabricate its bottles ( as it was antecedently made from 50 % recycled plastic ) . It increased this to 100 % in 2007, and is continuously looking for new ways in which it can understate its impact on the environment through technological progresss in fabricating its packaging ( Innocent Drinks, 2007 ) .

Environmental

Innocent Drinks is affected by assorted environmental Torahs such as those sing the C impact of its packaging constituents, the usage of recyclable/renewable stuff, etc. Innocent Drinks has focused on detecting ways in which it can cut down wastage and its C impact on the environment, in footings of packaging, transit of goods etc. Although it has faced some challenges sing this, as reported by Phelvin and Wallop ( 2008 ) and discussed below under the cultural analysis, it however makes considerable attempt to cut down any negative impact it has on the environment. In 2013 for case, Innocent Drinks save over 1000 metric tons of plastic by seting its juice decanter on a diet, and besides makes usage of 100 % Forest Stewardship Council certified stuff for its cartons ( Innocent Drinks, 2014f ) . Innocent Drinks is affected by assorted environmental Torahs such as those sing the C impact of its packaging constituents, the usage of recyclable/renewable stuff, etc. Innocent Drinks has focused on detecting ways in which it can cut down wastage and its C impact on the environment, in footings of packaging, transit of goods etc. Although it has faced some challenges sing this, as reported by Phelvin and Wallop ( 2008 ) and discussed below under the cultural analysis, it however makes considerable attempt to cut down any negative impact it has on the environment. In 2013 for case, Innocent Drinks save over 1000 metric tons of plastic by seting its juice decanter on a diet, and besides makes usage of 100 % Forest Stewardship Council certified stuff for its cartons ( Innocent Drinks, 2014f ) .

Legal

Innocent Drinks has to follow with assorted Torahs including consumer protection Torahs, industry ordinances ( such as those outlined above ) . Legal issues such as competition Torahs besides influence factors such as amalgamations and acquisitions, as in the instance with Innocent Drinks’ partnership with Coca-Cola ( Macalister and Teather, 2010 ) . Innocent Drinks has to follow with assorted Torahs including consumer protection Torahs, industry ordinances ( such as those outlined above ) . Legal issues such as competition Torahs besides influence factors such as amalgamations and acquisitions, as in the instance with Innocent Drinks’ partnership with Coca-Cola ( Macalister and Teather, 2010 ) .

Table 1 below shows Innocent Drinks’ public presentation compared with other taking drink companies.

Table 1: THE BRITVIC SOFT DRINKS REPORT: Top GROCERY, CONVENIENCE AND IMPULSE BRANDS

Beginning: Reynolds ( 2013, p. 1 )

It can be observed that Innocent Drinks recorded the highest per centum addition in the group, therefore demoing a strong growing potency. However, it should besides be noted that Innocent is a comparatively new company and is besides is a rapid growing stage. It may hence be slightly disputing to keep such high growing degrees over clip.

5. An Analysis Of Innocent Drinks’ Organisational Culture

A figure of surveies have revealed that there is a important relationship between an organisation’s civilization and certain facets of its public presentation ( Kotter and Heskett, 1992 ; Rashid, Sabasivan and Johari, 2003 ) . Harmonizing to Kotter and Heskett ( 1992 ) , administrations with civilizations where accent was on leading at all degrees and cardinal managerial constituencies ( i.e. employees, clients and stockholders ) performed well better than companies who did non hold such cultural traits ( the former experienced a 682 % gross addition on norm over a period of 11 old ages, while the latter experienced 166 % ) . It is hence of import to see the civilization of a company when measuring its public presentation. In order to measure Innocent Drinks’ organizational civilization, Deal and Kennedy’s ( 1999 ) typology of corporate civilizations shall be used. Deal and Kennedy ( 1999 ) outlined four chief classs of company civilizations based on the grade of hazard involved in the activities of the administration, and the velocity at which the administration and employees obtain feedback sing the success of their strategies/ventures. They note that these two factors have an impact on the development of cultural elements in an administration and how these act upon the company’s employees. The four classs are: the procedure civilization, bet-your-company civilization, work-hard/play-hard civilization and tough-guy/macho civilization ( Deal and Kennedy, 1999 ; Mullins, 2010 ) . Figure 1 below illustrates these classs:

Beginning: Revenaugh ( 1994, p. 20 )

The procedure civilization is characterised by low hazard and decelerate feedback, and this leads employees to concentrate on how they do things ( i.e. the procedure ) , instead than what they really do. Although rather bureaucratic, it can really be effectual when order and predictability is needed ( Mullins, 2010 ) . The bet-your-company civilization is characterised by high hazard and low feedback. In such administrations, due to the nature of the feedback, it can take a long clip before the success or failure of determinations becomes evident. Examples of companies with such civilizations are oil companies and investing Bankss. The tough-guy, butch civilization is one which is characterised by high hazard, speedy feedback sing actions taken, high fiscal bets, and intense force per unit area and velocity. Examples of such administrations with this type of civilization include constabulary sections, infirmaries and the amusement industry ( Deal and Kennedy, 1999 ; Mullins, 2010 ) . The work-hard, play-hard civilization is few hazards, speedy feedback and merriment and action. In such a civilization, there is a “high degree of comparatively low hazard activity” ( Mullins, 2010, p. 741 ) . Deal and Kennedy ( 1999 ) point out that a considerable figure of sales-driven administrations have this civilization. Such administrations are extremely dynamic, customer-focused, and topographic point a high accent on squad work, as it is the squad that produces the volume ( Deal and Kennedy, 1999 ; Mullins, 2010 ) . It is of import to observe though that non all companies will fall purely into these four classs, and some may be characterised by a blend of more than one, such as Bankss for case. However, it still provides a utile usher for understanding the civilization of an administration, and taking stairss to maximize the benefits of such a civilization, every bit good as manage the challenges such a civilization poses.

Having briefly described these four classs and based on the information available on Innocent Drinks, the company can be said to hold a work-hard, play-hard civilization. While it is characterised by a high degree of activity, much of it is low hazard. It is besides sales-driven, has a strong squad civilization, and a merriment, informal attack to transporting out its activities and associating with the populace ( Innocent Drinks, 2014a ) . However, a cardinal challenge of this type of civilization is that employees can perchance trust on the good public presentation of a squad to conceal weak personal public presentation. Another challenge is that a focal point on volume can hold a negative impact on quality ( Mullins, 2010 ) . Innocent Drinks has accordingly been accused of doing misdirecting claims sing its environmental and ethical certificates ( Phelvin and Wallop, 2008 ) . Phelvin and Wallop ( 2008 ) reported that while Innocent Drinks leads its clients to believe that it imports the fruit and so makes the drinks in the UK, and that its fruit is ever transported by by route or rail because this uses less fossil fuel than air/road conveyance. This is non the instance, as the drinks are really made elsewhere in Europe, and transported in lorries to the UK for bottling. Innocent Drinks nevertheless argued that the company had non intentionally attempted to misdirect clients, but had merely stopped advertising where its drinks were made since it moved its production abroad, and had failed to update this information on their web page.

6. Recommendations And Decision

Having carried out these analyses of Innocent Drinks from assorted facets, this subdivision shall utilize the consequences of these analyses to offer recommendations to Innocent Drinks. Subsequently, decisions shall be drawn.

From the SWOT analysis, it can be seen that Innocent Drinks demands to work on altering their sourcing schemes, peculiarly from countries affected by such inauspicious conditions conditions. Innocent Drinks could besides work with its providers to transport out certain farm patterns that will understate the impact of these conditions such as re-afforestation, mulching techniques, shade direction, improved drainage systems etc. ( Barron, 2009 ) .

Innocent Drinks’ partnership with Coca-Cola was a good scheme, sing the competition it faced from PepsiCo and the demand for enhanced selling in order to hike its trade name visibleness and market portion. It is nevertheless of import that it preserves its key values which have endeared it to clients, and besides maintains its repute as an ethical, environmentally friendly, societal trade name. This issue of Innocent Drinks keeping its trade name values has been a peculiar concern for clients following its coup d’etat by Coca-Cola ( Cohen, 2011 ; Macalister and Teather, 2010 ) . As such, attempts need to be made to convert their stakeholders that they will stay loyal to their values.

Based on the analysis of Innocent Drinks’ civilization, it can be observed that there is a demand to pay attending to non merely squad public presentation, but the public presentation of persons every bit good. This can be done by guaranting that squad leaders allocate specific undertakings to assorted members of the squad and keep them responsible for each of these undertakings. Furthermore, in studies on the team’s activities, the part of each single member can besides be highlighted, in order to avoid societal idleness.

There besides needs to be an increased accent on transparence. This is because the find that Innocent Drinks is non making what it claims to be making can take to feelings of misgiving from clients and other relevant stakeholders. As such, it is necessary to maintain the information unfastened to the populace on their web sites or other similar topographic points up-to-date, and guarantee that attempts are made to make what the company claims it will make. It should besides take to efficaciously turn to the accusals that its smoothies are high in calories/sugar and are non needfully every bit healthy as they are purported to be, due to the processing methods used.

Innocent Drinks can besides look into the possibility of spread outing into other continents such as Asia and Africa, in order to contradict the effects of possible inauspicious market conditions in Europe. However, a comprehensive cost-benefit analysis would necessitate to be done foremost, in order to find how executable this would be.

In decision, it can be observed that Innocent Drinks has considerable possible to turn and be a market leader in the industry. However, there are a figure of failings and menaces which need to be managed and perchance get the better of. The recommendations outlined above, while non thorough, can function as a usher for Innocent Drinks determination shapers and could potentially heighten its client base, market place and its overall profitableness.

Mentions

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Innocent Drinks ( 2007 ) Our trade name new 100 % recycled plastic bottles. Available at & lt ; hypertext transfer protocol: //www.innocentdrinks.co.uk/blog/2007/september/our-brand-new-1 & gt ; Retrieved 28th October 2014.

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Innocent Drinks ( 2014e ) . Awards we have won. Available at & lt ; hypertext transfer protocol: //www.innocentdrinks.co.uk/us/press/awards & gt ; . Retrieved 28th October 2014.

Innocent Drinks ( 2014f ) . Bing sustainable. Available at & lt ; hypertext transfer protocol: //www.innocentdrinks.co.uk/us/being-sustainable/packaging & gt ; Retrieved 28th October 2014.

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PepsiCo ( n.d. ) . New Tropicana Smoothies will hike 5-a-day attempts. Available at & lt ; hypertext transfer protocol: //www.pepsico.co.uk/our-company/media-centre/news-and-comment/new-tropicana-smoothies-will-boost-5-a-day-efforts & gt ; . Retrieved 28th October 2014.

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Reynolds, J. ( 2013 ) . Innocent gross revenues projectile over 35 % , says Britvic Soft Drinks Report. Available at & lt ; hypertext transfer protocol: //www.marketingmagazine.co.uk/article/1176838/innocent-sales-rocket-35-says-britvic-soft-drinks-report & gt ; . Retrieved 28th October 2014.

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Sibun, J. ( 2008 ) . Not such a smooth drive for Innocent.The Telegraph, 2nd August 2008 [ Online ] . Available at & lt ; hypertext transfer protocol: //www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2794173/Not-such-a-smooth-ride-for-Innocent.html & gt ; Retrieved 28th October 2014.

The Food and Drink Innovation Network ( FDIN ) Remark on Coca-Cola’s Purchase of Innocent. Available at & lt ; hypertext transfer protocol: //www.fdin.org.uk/2010/04/comment-on-coca-colas-purchase-of-innocent/ & gt ; Retrieved 28th October 2014.

The Telegraph ( 2009 ) . Smoothies count as two of five fruit and veg per twenty-four hours. The Telegraph, 16th September 2009 [ Online ] . Available at & lt ; hypertext transfer protocol: //www.telegraph.co.uk/foodanddrink/foodanddrinknews/6197202/Smoothies-count-as-two-of-five-fruit-and-veg-per-day.html & gt ; Retrieved 28th October 2014.

The Innocent Drinks Case Study The Present Innocent Drinks was founded in 1998 by a group of people that, first and foremost, wanted to work together. The specific idea rose from that desire, and the way that the 3 founders of Innocent Drinks work together is a key aspect to understand how the company’s decision making process works, and how the company got to where it is. After 6 years of existence, Innocent Drinks is at a crossroad.

The three founders of the company need to choose if they are to take the growth or the harvest path, and in case they choose the first option, if they should expand internationally or internally with new product lines. These two different growth paths reflect two different visions of the company: is it a smoothies distributor or a company that makes certain food products that “give people a feeling of healthiness”? Options for the Future

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I believe that expanding the product line will enable the company to capitalise on the great brand thatit has built: customers love Innocent smoothies; the brand has a hip image, its products are perceived as of great quality. These values could probably be carried to new products such as ice creams and frozen yoghurts. Other points to consider with this option are price strategies and supplier contracts, as greater volumes would be in negotiation. Although there is a risk of not knowing exactly what the demand is for these products, some “inspiration” could be drawn from what has been done by Odwalla in comparable parts of the USA market.

The diversification of the product lines would provide some risk coverage against failed products and the possibility of experimenting with different product mixes, but the biggest risk of this strategy is the potential damage a failed product – or a bad one – could do to the Innocent Drinks brand equity. The expansion into other European markets would be directed to Sweden, Denmark, Norway, the Netherlands and France, as they are the best suited markets for…

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