•Chapter 1 Perceptual Map
•1.1 Axes of Perceptual Map
•1.2 The Marketplace
•Chapter 2 The Marketing Mix
•Chapter 3 Segmentation
•3.1 Demographic Segmentation
•3.2 Geodemographic Segmentation
•3.3 Product Diversification
•3.3.2 Young Children
Innocent owns over 60% market share of the smoothie niche market (appendix 1), and are currently looking to expand into the volume juice market.
To show Innocent’s position in the market in relation to niche and volume competitors.
To use the marketing mix to assess the challenges faced when expanding into a new market.
To advise Innocent on how to segment their market.
1. Perceptual Mapping
Perceptual mapping is a strategic management tool used by companies to communicate the correlation between marketplace competitors and the criteria used by consumers when making purchase decisions. It looks at the current strengths and weaknesses of each company and is used to understand a company’s position in the marketplace.
Innocent is placed on the perceptual map along with three competitors of the beverage industry:
•Minute Maid Co
1.1 Axes of the map
The vertical axis of the map represents the price that consumers pay for the product. This is an important aspect to consider when planning for product positioning. It is assumed by customers that a higher price equals better quality. In the smoothie market quality can be categorised in terms of the amount of fruit evident in the drink. This is not only because the smoothie is consumed as a drink but also as a healthy alternative to a light snack. The horizontal axis of the diagram illustrates the fruit content.
1.2 The Marketplace
Innocent and PJ Smoothies are at the higher end of the market with an emphasis on quality. The fruit content is an important attribute to this segment of the market as today’s society is more health conscious than ever. The UK population have been driven by trends towards healthy eating; in particular the Government’s campaign to ensure the population eats at least 5 portions of fruit and vegetables a day. Consumers use smoothies to meet this daily requirement.
Until recently Minute Maid was the juice used by the fast food outlet McDonalds as part of their meal deals to appeal to a wider market and promote wellbeing. This was a strategic move for Minute Maid in terms of competition as McDonalds is a global brand, however, as there was nothing unique about the product and no emphasis on quality it did not inspire customer loyalty. Innocent can offer total quality and a promise of 100% fruit which is the unique selling point that has driven their success and built a large customer base.
The shelf life of the beverage reflects the quality of the fruit content and freshness of the ingredients used. Innocent has the shortest shelf life consisting of 2 weeks which shows that this is an important attribute, whereas Just Juice which is 100% concentrate has a 7 month shelf life. PJ’s is slightly longer (4 weeks) than Innocent as it uses an ultra violet treatment system which extends the shelf life of the product. Minute Maid has an expiry of 6 months which again reflects the importance of this attribute.
The price of the Innocent smoothies out of the four shown above is the highest. The majority of this cost goes towards producing the drink rather than packaging which many other smoothie companies do not produce. PJ smoothies are very similar to the Innocent products however the price structure is slightly lower. This is because the brand is targeted at a younger, less affluent consumer. Less emphasis is placed on the naturalness of...