Introduction to Marketing
External (MACRO) Environment...
Page 4, 5, 6
Segmentation, Targeting and Positioning...
Page 7, 8
The Marketing Mix...
Page 9, 10
Page 11, 12
Page 13, 14
Innocent Drinks is a UK based company founded in 1999 whose primary business is producing smoothies. The three college friends Richard Reed, Adam Balon and Jon Wright were the ones who came out with the idea; they were just three graduate students from Cambridge University who were working at advertising and consulting business at the time. They managed to save £500 to spend on fruits. They then to got a stall in a London festival and sold their smoothies there, were People were asked to put their empty bottles in a 'yes' or 'no' bin depending on whether they thought the three should quit their jobs to make smoothies. At the end of the festival Richard, Adam and Jon found the yes ‘bin’ completely full of empty bottle so the next day the three went to work and resigned; and this was when they all started their journey in becoming one of the most popular smoothies in Europe (mainly in UK). An innocent smoothie uses 100% pure and fresh fruit in all their smoothies. They like to refer this too ‘fresh baked bread or floppy white bread’ as an example of what you would prefer more. Innocent also makes superfruits smoothies, thickies that are pro-biotic yoghurt based drinks, smoothies for kids, orange juice, vegetable pots, and fruit tubes for kids. As you can see innocent smoothies have a wide range of options in order to satisfy all their customers’ needs/wants as they target markets is basically anyone. Innocent Smoothies sold some stake to the giants Coca-Cola for £30 million in April 2009. ‘Innocent, which markets itself as eco-friendly and distributes drinks in vans made to look like cows, has sold a minority stake of between 10% and 20% to Coca-Cola in order to raise funds so it can expand into Europe’. (http://www.innocentdrinks.co.uk)
External (MARCO) Environment
The macro-environment is all the factors that are external to the company. An organisation’s proximate macro-environment includes companies that supply components and raw materials and other services. This also includes company’s agents and distributors and its competitors. One of the main reasons why marketers need to audit what is happening in the external environment is to determine the number and strength of each factor. Strategies and performance reviews can help owners and managers use the macro environment factors to create a competitive advantage for their respective companies. When investigating on wider factors it is referred to as the company’s external marketing audit. This process is also referred to as environmental scanning. The marketing audit is an integral part of the company’s strategic marketing planning system. The model used to by marketers to audit the external environment in known as the PEST analysis (also known as PESTLE or STEP). The full listing for PESTLE is: Political, Economical, Socio-cultural, Technological, Legal and Environmental. (Lancaster / Reynolds 1991) Here is PEST in a little more depths:
Current taxation policy, future taxation policy, the current and future political support, grants, trade bodies, funding and initiatives. Economical,
Overall economic situation, Strength of consumer spending, current and future levels of interest rates, inflation and unemployment, specific taxation policies and trends. Socio-cultural,
Demographics, Lifestyle patterns and changes, Attitudes towards issues such as education, corporate responsibility and the environment, Social mobility, Media views and perceptions, Ethnic and religious differences Technological,
inventions, new discoveries,...
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