Coca Cola and Innocent: an Innocent Partnership?
DQ 1 Week 7
Coca Cola and Innocent: an innocent partnership?
Introduction
Service or commodities businesses are always seeking to target a variety of segments that allows growth, it is essential for organizations to identify such markets and search for opportunities to exploit them for a chance to serve them. Nevertheless, restrictions exist in term of capabilities, resources and brand image that a company possess, therefore synergy with other companies may be sought out with different level of success. This paper, aim to discuss and discover what brought Pepsi‐Co organization interest upon a company that in appearance is at their antipode.
Coca‐Cola and Innocent: what interest?
It is public knowledge that the beverage giant Pepsi‐co had their shares of scandals and marketing mishaps as already discussed during our week 2 assignment. A market segment where the organization is lacking presence and weight is the healthy segment and the image of “Innocence” is absent from the corporation brand. The Innocent company Brand image is strong, compared to competitor in similar market segments, due to the name strength which implies in my opinion, strong ethics, transparency and stakeholders respect. Coca Cola, in perennial competition with Pepsi‐co, tries to gain market advantage, further eroded after the Pepsi “agreement to distribute Tampico Plus fruit‐flavoured beverage” (Beverage Industry, 2010). The acquisition of interests in a Company such as Innocent (The Guardian, 2009 & Beverage Industry, 2010) could prove an interesting market entry for the soft drinks giant as we shall not forget Coca‐Cola failed attempt to enter the European healthy drinks market. Since then the “company has tried to improve its UK image...” (The Independent, 2009) and as we read in Vrontis and Sharp, (2003) paper “Coca‐Cola is adjusting its approach (both at strategic and a tactical level) so that it can tap into these differences and provide the appropriate
Coca Cola and Innocent: an innocent partnership?
Introduction
Service or commodities businesses are always seeking to target a variety of segments that allows growth, it is essential for organizations to identify such markets and search for opportunities to exploit them for a chance to serve them. Nevertheless, restrictions exist in term of capabilities, resources and brand image that a company possess, therefore synergy with other companies may be sought out with different level of success. This paper, aim to discuss and discover what brought Pepsi‐Co organization interest upon a company that in appearance is at their antipode.
Coca‐Cola and Innocent: what interest?
It is public knowledge that the beverage giant Pepsi‐co had their shares of scandals and marketing mishaps as already discussed during our week 2 assignment. A market segment where the organization is lacking presence and weight is the healthy segment and the image of “Innocence” is absent from the corporation brand. The Innocent company Brand image is strong, compared to competitor in similar market segments, due to the name strength which implies in my opinion, strong ethics, transparency and stakeholders respect. Coca Cola, in perennial competition with Pepsi‐co, tries to gain market advantage, further eroded after the Pepsi “agreement to distribute Tampico Plus fruit‐flavoured beverage” (Beverage Industry, 2010). The acquisition of interests in a Company such as Innocent (The Guardian, 2009 & Beverage Industry, 2010) could prove an interesting market entry for the soft drinks giant as we shall not forget Coca‐Cola failed attempt to enter the European healthy drinks market. Since then the “company has tried to improve its UK image...” (The Independent, 2009) and as we read in Vrontis and Sharp, (2003) paper “Coca‐Cola is adjusting its approach (both at strategic and a tactical level) so that it can tap into these differences and provide the appropriate
References: Barney, J.B., (1995) ‘Looking inside for competitive advantage’, Academy of Management Executive, 9 (4), pp 49‐61. Retrieved from: http://sfxhosted.exlibrisgroup.com.ezproxy.liv.ac.uk/lpu?title=academy+of+management+executiv e&volume=9&issue=4&spage=49&date=1995 (Accessed: December13, 2012) Barnes, R., (2010), 'Battle of the brands ', Marketing (00253650), p. 16, Business Source Complete Available from: http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=bth&AN=55434184&site =ehost‐live&scope=site (Accessed: May 18, 2013) BBC (2011) Still 'Innocent ' despite Coca‐Cola deal: BBC RADIO [Online], Available from: http://news.bbc.co.uk/today/hi/today/newsid_9387000/9387619.stm (Accessed: May 16, 2013) Coca‐Cola acquires majority stake in Innocent smoothies (2010), Beverage Industry, 101, (5), p. 12, Business Source Complete. Available from: http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=bth&AN=53293274&site =ehost‐live&scope=site (Accessed: May 18, 2013) 'If Innocent Drinks sells a stake to Coca‐Cola, will it harm the brand? '(2009), Marketing (00253650), p. 24, Business Source Complete. Available from: http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=bth&AN=40085125&site =ehost‐live&scope=site (Accessed: May 18, 2013) The Independent: Business Analysis (2009) Slaughter of the Innocent? Or is Coke the real deal? [Online] Available from: http://www.independent.co.uk/news/business/analysis‐and‐ features/slaughter‐of‐the‐innocent‐or‐is‐coke‐the‐real‐deal‐1667412.html (Accessed: May 17, 2013) Sweney, M.. (6 April 2009) ‘Innocent drinks offer a taste to Coca‐Cola’, The Guardian [Online]. Available from: http://www.guardian.co.uk/business/2009/apr/06/innocent‐drinks‐sell‐stake‐coca‐ cola (Accessed: May 18, 2013) Vrontis, D., & Sharp, I., (2003), 'The Strategic Positioning of Coca‐Cola in their Global Marketing Operation ', Marketing Review, 3, (3), pp. 289‐309, Business Source Complete. Available from: http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=bth&AN=11013117&site =eds‐live&scope=site (Accessed: May 16, 2013)