Innocent Marketing Report

Only available on StudyMode
  • Download(s) : 186
  • Published : December 5, 2010
Open Document
Text Preview
Group 3.3
Mr. Ward-Perkins
2010-2011

Marketing MAnagement

INNOCENT ON THE FRUIT JUICE MARKET

Galina Kozlova
Hadrien Le Bris
Julien Leignel
Nicolas Levannier
Raphaël Montero
Roxane Penne

TABLE OF CONTENTS

I. INNOCENT CONTEXT IN FRANCE

A. A FEW WORDS ABOUT INNOCENT
B. FRUIT JUICE MARKET PRESENTATION
C. ATTRACTIVENESS OF THE MARKET
D. CUSTOMERS NEEDS AND BENEFITS
E. TOUCH POINTS

II. THE EXTERNAL ENVIRONMENT OF INNOCENT

A. MICRO-ENVIRONMENT ANALYSIS (PORTER’S 5 + 1 FORCES)
B. MACRO-ENVIRONMENT ANALYSIS (PESTEL)
C. OPPORTUNITIES AND THREATS OF THE MARKET

III. ANALYSIS OF THE COMPETITION

A. SEGMENTATION AND TARGETING
B. POSITIONING
C. COMPETITOR’S STRATEGIES
D. MAPPING
E. MARKETING MIX OF INNOCENT SMOOTHIES

IV. RECOMMENDATIONS

A. STRENGHTS AND WEAKNESSES OF INNOCENT
B. INNOCENT HAS TO PLAY ON PRICE
C. AND IMPROVE ITS BRAND AWARENESS
D. NEW MARKETING MIX
E. CONSEQUENCES OF RE-POSITIONNING

REFERENCES

I. INNOCENT CONTEXT IN FRANCE

A. A FEW WORDS ABOUT INNOCENT

Innocent is an English company created in 1998 and was the first to enter the market of smoothies. The company leads the European market and got €145 million profit in 2008. Currently, the Coca-Cola Company holds 58% of Innocent’s capital.

In 2005, Innocent began to sell its products in France and market penetration was quick. The company has also a strong ethical commitment. Their leitmotiv is to become the earth’s favourite little food company.

We use the value chain (concept developed by Porter) to understand how Innocent adds value to raw materials and sells smoothies to customers.

Value chain of Innocent:

* Support activities provide services to primary activities during all the value chain.

* Primary activities enable the company to launch the product on the market.

PRIMARY ACTIVITIES

B. FRUIT JUICE MARKET PRESENTATION

Smoothies, nectars, milky, concentrated and pure fruit juices belong to the fruit juice market. In France, where 1.651 million litres were sold, fruit juice sales increased by 4% in 2009. 44% of French people drink fruit juice every morning and 64% of them drink it at least once a day. By far, orange juice is the best selling juice and holds 50% market share. (Appendix 1).

Pure fruit juices have the most important market share, followed by concentrated juices and nectars. Regarding smoothie, it remains a niche market (0.5% market share).

Sales of fruit juices per category in France in 2009

Product| Sells in volume (millions of litres)| Market share| Sales in 2009| Pure juice| 719| 43.6%| +6.50%|
(including smoothies)| (8.9)| (0.5%)| (-15.3%)|
Concentrated juice| 536| 32.4%| +3.38%|
Nectar| 396| 24.0%| +0.72%|
Total| 1.651| 100%| +4.0%|
 

Reference: Unijus (http://www.jusdefruit.org/Default.aspx?lid=1&rid=46&rvid=163)

There is no unique production process as fruits come from different countries and do not follow the same process of transformation because it depends on the nature of the fruit juice. Basically, the supply channel looks like the one presented below.

Many producers bring to the farm their yield. Then, the fruit is transformed (pasteurization, addition of water, sugar…) and is bottled (beverage industry). Next, fruit juice is distributed to wholesalers, to foodservices and to retail stores and reaches the consumer.

C. ATTRACTIVENESS OF THE MARKET

The fruit juice market is saturated and the degree of maturity is high. However, fruit juice is a fast consuming good people buy every week; it allows some innovation and new offerings. Smoothie is an example of innovation in the fruit juice market. It appeared in the 50s and has got a lot of success over the past years. The smoothie sales grew by 285% in 2008 mostly because they respond to the current obsession of people – eating healthy, plain and...
tracking img