Innocent Company Analysis

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Innocent
Company Analysis

Table of Content

Front sheet1

Table of Content2

Executive summary3

Introduction

Internal analysis

1.1 Mission, core values, and vision

1.2Value Chain Analysis

1.3Positioning Map

1.4Success & Survival factors

1.5Miles & Snow Adaptive Strategy

External analysis

2.1Segmentation Analysis

2.2Porter’s five forces

2.2Industry Life Cycle

2.3PEST Analysis

2.4Benchmarking analysis

SWOT Analysis

3.1Recommendations

Executive summary:

Introduction
This report is an analysis about the company: Innocent Ltd. This company started its way in 1998 by three friends Richard Reed, Adam Balon and Jon Wright and produces healthy drinks and food. Their current market share in the UK is now 78%.

Internal Analysis
The analysis of the company is started by the internal analysis that broadly examines the marketing practices, the values of the company, the value chain of the company, the positioning in the market, the vital success and survival factors and lastly the Miles & Snow adaptive strategy. The company’s mission is to create a healthier lifestyle of the population by their products in order to ‘live well and die old’. This is supported by their vision that states that they want to become the earth’s favourite little food company and according to one of their values; creating a business they can be proud of. Moreover, as part of the internal analysis, a Value chain analysis has been carried out for Innocent Ltd. The value chain analysis identifies primary and support activities critical for the company’s success. Factors of the companies value chain within their primary and support activities seem very promising and are significant in the success of Innocent Ltd; their current market share of 77.5% can support this. Nevertheless it is crucial that the company preserves consistency throughout their activities in order for them to sustain profitability, thus maintaining competitive advantage. Based on the positioning map, Innocent found and filled a gap in the market and is free from its competitors based on quality and price. It is a premium product, however customers are willing to pay for this premium price due to its quality. In order to survive in the industry, it is vital for the company to maintain their innovative and creative marketing campaigns by taking customer preferences into account. In order to succeed, international markets for a huge opportunity for the organization. Due to this international expansion, the company could start to make more use of economies of scale, which increases the margins. The analysis have shown that organization can be seen as a prospector, due to the fact that they have changed the industry or actually started an industry, of healthy smoothies. They are continuously pro-active rather than re-active.

External Analysis
To move on with the External Analysis of the company, starting with the segmentation analysis. This shows that Innocents customers are mainly located in North-Western Europe and countries such as Austria and Switzerland. Based on the demographics, people that buy innocent are between 18 and 40 years old that are business people, mothers, on-the-go people and sports people that mostly come from the AB socio-economic group. The customers identify themselves with the brand and are as well believers and strivers. Their behaviour shows that they are enthusiastic and image seekers (because they find it cool to drink innocent). The porters five forces analysis shows that the competitive rivalry, buyer power and threat of substitutes form the biggest threat for the company. Potential entrants and supplier power are identified as a lower threat due to the fact that it costs a lot of money in order to compete with companies such as Innocent and enough suppliers are present that offer...
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