Corporate Communication - Innocent Smoothies

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Corporate Communication
EOK A

Written by
sascha

Examiner
Trine M. Østergaard

Submission Date
10/5/2012

Pages
19,9 NP

Agenda
Introduction3
Problem statement4
Method4
Corporate Culture5
Corporate Identity5
Corporate Image and Reputation of Innocent6
Innocents Corporate Brand8
Analysis of Innocents stakeholders9
Issue management11
Scanning the environment12
Stakeholders and issue management14
Evaluation of the issue15
Innocent: Selling out of core values?16
Turn disadvantages to positive opportunities18
Conclusion19
Bibliography20
Books & Articles20
Online references21
Appendix22
The Corporate Identity Mix (Figure 1.)22
AC2ID (Figure 2.)22
AC3ID (Figure 3.)23
Fombrun’s Reputation Model (Figure 4.)23
Gray & Balmer’s Reputation Model (Figure 5.)24
The Corporate Branding Tool kit (figure 6.)24
The power-interest matrix (Figure 7.)25
The salience model (Figure 8.)25
Stakeholder communication: from awareness to commitment (Figure 9)26
SWOT (Figure 10)26
DESTEP (Figure 11)27
Position-importance matrix (Figure 12)27

Introduction
In a globalized world, companies are faced with fierce competition from its competitors, and in order to survive in the given industry, it is essential that companies develop and formulate sustainable issue- and crisis response strategies. They are an integral part of corporate communication which can be defined as “a management function that offers a framework and vocabulary for the effective coordination of all means of communication with the overall purpose of establishing and maintaining favourable reputations with stakeholder groups upon which the organization is dependent.“ (Cornelissen, 2011, p. 5) It was the UK which first enjoyed the taste of Innocent smoothies as the company introduced its products in 1999. In 2003, the UK government realized that obesity was becoming a problem, and as a result launched the 5 a day campaign which aimed to make UK citizens eat more fruits and vegetables. This interlinked with the trendy Innocent smoothie and its brand “no added anything” and as a result, Innocent remains to have a dominant position in sales of smoothies in the UK. However, as the recession arose, Innocent found itself in a challenging position due to inflation on fruits and a change in consumers’ habits such as deselecting luxury goods like the Innocent smoothie. (p.2) In addition, Innocent has also received huge criticism of its lack of a sustainable company strategy, and due to clever business decisions from its competitors, Innocent felt it necessary to make the strategic move to sell 18% and then an additional 40% of its shares to Coca-Cola. However, this move was not welcomed by its stakeholders and the media, as debates as to whether Innocent had sold out on its core values and ethical policy, as a desperate attempt to globalize its products. This put Innocent in a pressurized situation, and made several attempts to restore its reputation through several communication strategies. Therefore, it is important to look at how Innocent used its issue response strategies in order to understand Innocent’s strategic considerations and to identify areas where it failed to communicate and address its stakeholders’ needs appropriately. There remains doubts whether Innocent is able to regain its corporate image, as the products promoted by Coca-Cola is linked to poor health and obesity. Therefore, the question remains as to whether Innocent has been slaughtered by Coca-Cola and this will be critically discussed in relation to issue-response management. Problem statement

An analysis and discussion of Innocent’s use of issues management in relation to Coca-Cola buying shares.

Method
To make a critical analysis of the problem statement, we have found it necessary to apply several models, in order to demonstrate the issue response strategies that Innocent used, and subsequently...
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