1.0 Marketing Strategy and TOWS analysis
1.1 Marketing Strategy
Innocent’s marketing strategy focus on emotional messaging and charity to establish an ‘ethical’ brand image rather than its product. For instance, the new strap line ‘Taste Good Does Good’ aims to highlight they want their product to taste good but at the meantime do people some good by 10% of business profit given to the charity which helps to establish their ethical brand image.(Marketing Magazine, 2013) 1.2 TOWS Analysis
Recession- Due to the European debt crisis in 2011 is the most urgent crisis facing the global economy which causes a decreased in disposable income(Forbes, 2011), people will try to questioned every non-essential purchased and as Innocent product are considered more expensive compare to others therefore their sales could be affected negatively. Own label threats- Since the global financial crisis in 2007, own label has gained up to 13% of market share and create an encroaching threat to Innocent. (Levy, 2011) Own label brand such as Sainsbury, Tesco has positioning theirself as low cost alternative which is a good option for consumer that suffer with budget constrain and declining consumer confidence after the recession. Coca-cola buys stake- The US drinks giant; Coca-cola has bought an 18% stake in Innocent smoothies in 2009 for 30 million pound and has now upped its shareholding to 58%. (BBC News, 2010) Innocent’s moral and ethical stance has bought into question as they always advocate helping people live well and die old. Opportunity
Health awareness trend- According to the World Health Organization (2013), more than 1.4 billion adults, 20 and older , were overweight and synonyms with the increasing consumer health awareness(Food Manufacturing, 2013) has created a great opportunity for Innocent as their smoothies are made up of 100% pure fruits with no sugar and concentrated added. Pay more attention to CSR- According to Miester (2012), public are now paying more attention to cooperate social responsibility and consumer are ever concerned with where products come from creates opportunity to Innocent because they constantly emphasis to take responsibility for the impact of their business on society and the environment. Government Policy- Due to the high percentage of people in UK are having obesity, the government is now launching series of action including Change4Life programme to encourage people eat and drink healthier. (Gov.UK, 2013) This creates opportunity for Innocent as the people are now more educated about health issues would therefore demand for healthy option.
Product Quality- The main strength of Innocent is the quality of their product. Each smoothie is made up of 100 percent pure fruit but not concentrates. In addition, Innocent favor to get their fruit supplies from certified suppliers, thus they pay a premium for certified fruit which guarantees the quality of their product. (Innocent, 2014) This helps them to differentiate them against competitors. Diversify Product Range- Product diversification also strengthen Innocent. Their product line is now included juices, purees and veg pots which able to help them to gain market share and capitalize in more market.(Innocent, 2014a) Product diversification also helps them to be less affected by changes in consumer taste. (Comrie, 2013) Ethical – Ethical brand image is one of the main strength of Innocent. They look out of the environment and emphasis on sustainability. Their product bottle is made up of 100 percent recycled plastic they help them to save over 1000 tones of packaging. They hope their packaging has the lowest impact to the world around us. (Innocent, 2013b) Weaknesses
Pricing strategy- Innocent pricing strategy which charged higher price than their competitor might be weaknesses for their company.(Mail Online, 2011) This may put off some price sensitive consumer reluctant from buying their product in favor of their competitors. High...
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