Preview

VIThit

Good Essays
Open Document
Open Document
5317 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
VIThit
Enterprise & Development Take Home Exam
Q1 (1)
Micro Analysis
The optimum method for analysing Innocent Drinks micro environment is by utilising Michael Porters 5 forces model (Porter, 1980).
Threat of existing rivalry
Existing rivalry is a substantial threat to Innocent Drinks. The intensity of current rivalry is high. There are numerous rivals already within the smoothie/juice industry in the UK each with loyal fan bases, and similar market share meaning profits are shared and there is difficulty for Innocent to dominate.
Innocent have significant competition in this market from PJ, store own brands and all other smaller smoothie companies. PJ were their main brand competitors as they were the only others selling premium smoothies. Their brand reputation and established innovations within similar markets meant they are a strong rival to Innocent. In the US, the rivalry is even stronger. Odwalla is the largest and most established brand and was bought by Coca Cola in 2001. Odwalla would have the financial might and commercial clout of Coca Cola, one of the world’s most successful beverage companies backing them through heavy marketing, advertising, powerful competitive strategy and lower pricing. All of which would give Odwalla a weighty competitive advantage over Innocent, making the threat of Odwalla perhaps too strong for Innocent to compete with.
However, innocent did enjoy reasonable success in Ireland. Furthermore the estimated small market size in Europe would suggest that perhaps the threat of existing rivalry might not be as intense and something Innocent should/are considering.
Bargaining power of Suppliers
Bargaining power of suppliers is high. Innocent Drinks initially struggled to find a manufacturer for their product. Back in 1998 there were no manufacturers set up to create the fresh smoothies Innocent wanted. While the existing manufacturers could adapt, many would only do it for large profitable, well established companies like main



References: Baron, R.A and Shane, S.A (2007). Entrepreneurship: A Process Perspective. Cengage learning. Brassington, F and Pettitt, S (2006). Principles of Marketing. Pearson Education IndexMundi, (2011). Unemployment rates in the United Kingdom. IndexMundi [online]. Available at: . [Accessed 3rd December 2013] IndexMundi, (2013). Inflation rates in the United Kingdom. IndexMundi [online]. Available at . [Accessed 3rd December 2013] Mintel (2002). Smoothies- UK, Market Intelligence Food and drink. Mintel [online]. Available at < http://www.reports/mintel.com> [Accessed 3rd December 2013] Available at. [Accessed 4th December 2013] Porter, M.E. (1980) Competitive Strategy, Free Press, New York Whipple, J. M., & Frankel, R. (2000). Strategic alliance success factors. Journal of Supply Chain Management, 36(3), 21-28. Zarella, D (2009). The Social Media Marketing Book. O Reilly Media

You May Also Find These Documents Helpful

  • Good Essays

    Weaknesses – They had a narrow line of products with only three flavours, which were relatively unknown in Canada. Although sales increased steadily, they incurred some major costs in to import the fruit concentrates from foreign countries, costs for bottle and its label, labour and admin costs and also to distribute the drinks to local convenience stores…

    • 609 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The main customers of Serve Up Smoothie will be college kids who want to avoid the freshman 15, or who just want to maintain a healthy lifestyle. Our smoothies will offer everything from vegan, to almond milk substitute, to extra protein, with all natural ingredients and no sugar added. Our company plans to have a wide range of ingredients from fruit and vegetables, to fat free dark chocolate for the people who like a bit of a sweeter taste. With 32,000 students attending the University of Iowa and an additional 75,000 permanent residents in Iowa City we will target around 50% of these people who enjoy smoothies and 25% who want to maintain a healthier lifestyle. As of September 29, 2015, there were 884 Jamba Juice store locations globally (Russell, 2015).…

    • 455 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Jungle Smoothies has been the leader in the smoothies industry for many years. It has several franchised locations in 10 different states and all have similar financial performances. Their top competitors are Jamba Juice and Tropical Smoothies. In recent months, Jungle Smoothies has been experiencing a decline in their profits. As member of the New Product development committee, an assignment was delivered to investigate the original problem that lead to the decrease in profits. The committee performed several interviews with…

    • 2407 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    * Industry factors - Innocent had to find manufacturers willing to forego the more logistically difficult and expensive process of making their drinks without added ingredients.…

    • 1641 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Jamba Juice

    • 1168 Words
    • 5 Pages

    If it harnesses this brand image, it could experience significant success and growth by adopting a related diversification strategy and creating a new product line of warm nutritional drinks such as tea, chai, or herbal coffee. This strategy would be appropriate given the noticeably unattractive nature of the smoothie market. Knowledge of food-creation processes, relationships with suppliers, and excited, friendly employees would be key success factors in this strategy. Management would need to develop focus testing procedures in order to ensure both the existence and specific locations of demand for these products. Marketing would need to work with management to assess potential target markets and determine if these warm beverages are more suitable for current customers or new customers. These new products would likely be high-margin and fairly expensive, so Marketing would need to create an advertising campaign that makes theses new products attractive despite their price. Operations would need to determine which suppliers to partner with in this new endeavor and negotiate for long-term contracts in order to alleviate the concern of increasing materials costs. As these new products catch on, Operations should also implement a mass customization system which would give consumers flexibility in choosing and altering their products. Finance would need to need to obtain financing for these new…

    • 1168 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Innocent drink

    • 1221 Words
    • 4 Pages

    “Innocent drinks” is company that selling famous drinks in The United Kingdom which started by 3 Cambridge students in 1999. This is a drink that makes with 100 percent pure and natural fruit juice. Smoothies are the primary product of “Innocent drinks” and people are aware of it due to its healthy image. The company provides different product range and the distribution of channels covered most of the supermarkets, coffee shops and etc. For every year “Innocent drinks” will donate 10 percent of their profits to charity and this called The Innocent Foundation. This foundation has helped a lot of people. This report will analyses the process of “Innocent drinks” from 1999 to 2013.…

    • 1221 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Innocent Drinks was start by three young people, Richard Reed, Adam Balon and Jon Wright, who graduated from Cambridge. In 1998, they started to make smoothie and sold in a music festival in London. The consumers were ask to throw the empty bottles to two bins, “yes” or “no”, to let the consumers decided whether three of them should keep making smoothie. After the festival the bin of “yes” was full so the next day they resigned to it. Now, the company “Innocent Drinks” has become the…

    • 2144 Words
    • 9 Pages
    Best Essays
  • Good Essays

    Ela Macbeth Essay

    • 928 Words
    • 4 Pages

    (Discuss the ideas developed by the text creator in your chosen text about the conflict between pursuing a personal desire and choosing to conform)…

    • 928 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Final Marketing Plan

    • 1080 Words
    • 5 Pages

    The situation analysis for Acai-A-Vie soft drink is that Acai-Blend Juice’s strongest competition is presented by large discount/membership stores; Costco and Sam’s Club. According to their websites, they are selling drinks that claim to be produced from up to ninety percent of the Acai fruit such as the Braz A Vie distributed by Costco or Frut A Vie that can be found at either Costco or Sam’s Club for approximately seventeen dollars for a twenty-five ounce bottle (Costco, 2010), (SamsClub, 2010). Another competition that is present is the internet. With the advances in technology, consumers are now able to shop and compare prices online from different vendors. Costco and Sam’s Cub alone can destroy any possibilities for Acai-A-Vie soft drink’s success due to their reach through their member-based clientele and large quantity purchases. The use of technology is the next best option: the Internet where consumers can find bargain prices for equal or similar products. Any of these or a combination of them can ultimately be the worst competitor that Acai-A-Vie soft drink would face.…

    • 1080 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Boost Smoothies Bar

    • 2928 Words
    • 12 Pages

    It is probably the largest chain of smoothie bars in UK and they also provide snacks along with the fruit juices and smoothies (Mercer, 2007). The major strength of this chain of Smoothie bars is that it is an established brand in UK and provides a comprehensive range of snacks and smoothies. But owing to the rising prices of smoothies, they have not managed to achieve the same growth in revenues and have been expensive to the liking of many. What they have been doing is to expand their product line rather than cutting down costs to capture a larger customer segment (yelp.co.uk, 2014). This is where we can excel as we are focusing on providing quality smoothies and fruit juices at affordable prices by keeping moderate profit margins to cater larger customer segments. Our strategy is to increase profit through more and more customers rather than through high prices or profit margins. We will also be catering home delivery for gaining competitive advantage in the local Fulham…

    • 2928 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Jamba Juice

    • 730 Words
    • 3 Pages

    Society is one of the key factors that business needs to take a careful analysis to create an efficient strategy. During economic regression, consumer shopping trend has been changed quickly. Young consumer experiences on new thing, new place or new setup instead go to favorite smoothie store. Consequently, JJ implemented creating tastier smoothies that utilized new raw ingredients to increase their loyal customers.…

    • 730 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Landi, Heather. "Focus on Value." Beverage World 129.4 (2010): S4-S10. Business Source Premier. EBSCO Web. Quinsigamond Community College, George I. Alden Library, Worcester, MA. 17 June 2010.…

    • 1779 Words
    • 8 Pages
    Best Essays
  • Better Essays

    Innocent Drinks was started by three friends in 1999 that developed premium smoothies that contained 100% natural fruit with no water or added sugar. The aim was to provide people with quick ready-to-go and healthy food and drink options. The company is now one of the best-loved and fastest growing businesses in Britain. The highly successful Innocent Drinks sells $2 million smoothies per week across Europe, building a 72% market share in the 8 years since they were founded (Anne 2008). They give 10% of their profit to charity and continually participate in fund-raising activities such as ‘The Big Knit’. Throughout the years, Innocent has managed to sustain a creative work culture and stay true to their brand values. Their skilful recruitment of staff ensures that people working for them share the same vision for the company thus are driven to success. Another strategy that has been a success for them is their branding using straightforward and simple approach with friendly and cute labels and commercials (Jonathan Salem 2009). To raise their funds and expand further, their ventures with big companies such as Coca-cola have been a great step in expanding the business into Europe. The aim of this piece of work will be to analyse the success of Innocent Drinks by using the Competing Values Framework and PESTEL analysis to ascertain the future prospects of the company over the next few years. This will be done by looking at all the different aspects of the company and how they contribute to its success.…

    • 1632 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Fruit Juice Industry

    • 2396 Words
    • 10 Pages

    Many of these companies not only make fruit juice, but have products like water, sodas, alcoholic beverages, vegetable juices, and other beverages. These make the entrance difficult for new companies, especially small ones that can’t compete with the low prices.…

    • 2396 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Coca Cola Project Report

    • 9708 Words
    • 39 Pages

    We undertook our Research in Coca cola Hindustan, a leading Bottler and Marketing partner of the beverage. During the project, we had worked on the topic “A comparative study of soft drinks”.…

    • 9708 Words
    • 39 Pages
    Good Essays

Related Topics