The Innocent Drinks Case Study
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
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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