Consumer Protection and Smoothie Brand Innocent

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Question 1

* Trading Standards ensure “consumer safety and that fair trading and quality standards are maintained” (Brassington & Pettitt, 2006, p. 83). * Legislations enforced by Office of Fair Trading (OFT).

* Pressure groups e.g. Advertising Standards Agency (ASA). Pepsi complained to ASA about Innocent. * Rulings – Department of Health ruled that smoothies can count as two of the RDA of fruit and vegetables.

* UK economy situation and trends affect company’s costs e.g. energy costs and cost of ingredients * Taxation - A capital tax gain encouraged investor Maurice Pinto to fund the company. * Inflation affects price of product.

* Industry factors - Innocent had to find manufacturers willing to forego the more logistically difficult and expensive process of making their drinks without added ingredients. * Consumer confidence index

* Import/export ratios
* Market routes and distribution trends
* Production level

* Business ethics - 10 percent of profits goes to the Innocent Foundation which carries out good causes such as post-tsunami regeneration. Innocent also ensures its fruits are ethically grown in acceptable work conditions for fruit pickers. * Health awareness had risen in the UK through NPO advertisements making consumers more health conscious. Innocent capitalised on this by highlighting key health benefits to their products like their contributions to consumer’s Recommended Daily Amount intake and that they were 100 percent fruit. * Consumer attitudes became significantly more health-conscious. Innocent recognised this and created their unique smoothies made of 100 percent fruit to meet consumer demands. * Consumer buying patterns - Innocent realised consumers would be willing to pay premium prices for their products because they contained nothing but high quality fruit (sourced under regulation by Rainforest Alliance). They also created product variety to increase consumer choice. * Brand image – Innocent created a trusted brand by varied affirmation of health benefits with subtle and uniquely humoured communication easily identifiable with the product containing only natural ingredients. * Advertising and publicity - TV adverts and posters helped the company grow faster and strengthened the brand image.

* Innovation
* Waste removal/Recycling - Innocent introduced the first 100 percent recycled plastic bottle. Their bottle labels are also 25 percent recycled. * Manufacturing advances

* Consumer protection laws - Innocent’s “products have to conform to safety laws” (Brassington & Pettitt, 2006, p. 80) * Industry-specific regulations - Innocent’s “manufacturing processes are subject to pollution controls” (Brassington & Pettitt, 2006, p. 80). * Competitive regulations

* Employment Law – e.g. employee contracts.

* Ecological – Identified ways to reduce resource wastage. * Management style - The founders give employees the flexibility to work in areas of their interest. * Staff attitudes are testament to the brand values, being good to people and the environment. * Staff morale is consistently high due to friendly and rewarding work environment. * Customer values – Innocent offers healthy products and puts a lot of effort towards communication and interaction e.g. blog membership website where they also receive valuable feedback.

Question 2
A SWOT analysis looks critically at the strengths, weaknesses, opportunities and threats of a business or project and sorts them out systematically. It emphasizes certain internal and external aspects that are advantageous or disadvantageous to the accomplishment of a goal and helps those involved develop strategies towards realising this objective.

Strengths * Leading smoothie brand – Innocent currently own 77.5% of the smoothie market....
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