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1.Introduction
Following a 30% downturn in the UK smoothies market and a significant decline in market share, Innocent have commissioned a report evaluating the UK smoothie market that recommends a marketing plan for the Smoothies product range in the UK for the next two years.
The objective of this report is to inform Innocent of the status of the current climate, and propose options to grow sales and market share.
2. Methodology
This report is compiled primarily from secondary research. Quantitative data will be sourced from business databases such as Mintel and qualitative data will come from sources such as BBC Online.
A wide range of comparative data will be used to ensure a balanced report. A PESTEL analysis will be used, however not in the acronymic order. A SWOT analysis of the current Innocent business will be used.
The Analysis of data will inform the recommendations given.
3. Analysis & Findings (Part 1)
3.1 Economic Factors
Gross Domestic Product (GDP) 2004 – 2009
The graph below shows the development of GDP for the period Q3 2004 to Q3 2009.
(Direct Gov, 2009)
GDP fell from a steady 2 – 3% into a rapid decline in 2008 and to a low point of -5.5% in 2009. This decline in GDP reflects the reduced demand for goods and services both in the UK and worldwide. The resulting increase in unemployment and decline in consumer confidence had an adverse impact on business performance.
Consumer confidence is a key indicator for any business as this will impact buying decisions.
The luxury goods sector will be impacted harder as consumers focus on essentials such as fuel, food and clothing. Personal debt levels have reduced as a consequence of the consumers lack of confidence in the employment market. To stimulate growth in the economy the Bank of England has reduced interest rates (see appendix 2) to the lowest levels for decades however, consumer confidence still remains low as unemployment continues to grow (see appendix 1) and consumers are
Following a 30% downturn in the UK smoothies market and a significant decline in market share, Innocent have commissioned a report evaluating the UK smoothie market that recommends a marketing plan for the Smoothies product range in the UK for the next two years.
The objective of this report is to inform Innocent of the status of the current climate, and propose options to grow sales and market share.
2. Methodology
This report is compiled primarily from secondary research. Quantitative data will be sourced from business databases such as Mintel and qualitative data will come from sources such as BBC Online.
A wide range of comparative data will be used to ensure a balanced report. A PESTEL analysis will be used, however not in the acronymic order. A SWOT analysis of the current Innocent business will be used.
The Analysis of data will inform the recommendations given.
3. Analysis & Findings (Part 1)
3.1 Economic Factors
Gross Domestic Product (GDP) 2004 – 2009
The graph below shows the development of GDP for the period Q3 2004 to Q3 2009.
(Direct Gov, 2009)
GDP fell from a steady 2 – 3% into a rapid decline in 2008 and to a low point of -5.5% in 2009. This decline in GDP reflects the reduced demand for goods and services both in the UK and worldwide. The resulting increase in unemployment and decline in consumer confidence had an adverse impact on business performance.
Consumer confidence is a key indicator for any business as this will impact buying decisions.
The luxury goods sector will be impacted harder as consumers focus on essentials such as fuel, food and clothing. Personal debt levels have reduced as a consequence of the consumers lack of confidence in the employment market. To stimulate growth in the economy the Bank of England has reduced interest rates (see appendix 2) to the lowest levels for decades however, consumer confidence still remains low as unemployment continues to grow (see appendix 1) and consumers are
Bibliography: Bank Of England. (2009). Retrieved 10 23, 2009, from Bank Of England: http://www.bankofengland.co.uk/ BBC Brassington, F., & Pettitt, S. (2006). Principles Of Marketing (4th Edition ed.). Pearson Education Limited. Cottrell, S. (2008). The Study Skills Handbook (3rd Edition ed.). Palgrave Macmillan. Direct Gov. (2009). National Statistics Online. Retrieved 10 23, 2009, from National Statistics Online: http://www.statistics.gov.uk/cci/nugget.asp?ID=12 Direct Gov Dodds, A. (2009). Recessionary Strategies for Food and Drinks Companies. Business Insights. IRI Infoscan. (2009, 02 21). Innocent Press Release. epos sales four weeks to 21/02/09 . Innocent. Kemsley, D. (2006). Targeting the Healthy Consumer. Business Insights. Mintel Group. (2009). Market Re-Forecasts: Food and Drink: 2009: Smoothies. Retrieved 10 23, 2009, from Mintel Oxygen: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=227765/display/id=447522#atom0 Mintel Group Mintel Group. (2008). Smoothies, UK, 2008, Broader Market Environment. Retrieved 11 6, 2009, from Mintel Oxygen: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=227765/display/id=423951#hit1 PricewaterhouseCoopers Solomon, M. R., Marshall, G. W., Stuart, E. W., Mitchell, V., & Barnes, B. (2009). Marketing, Real People, Real Decisions. Pearson Education Limited. Solomon, M., Bamossy, G., Askegaard, S., & Hogg, M. K. (2006). Consumer Behaviour, A European Perspective (3 ed.). Sweney, M. (2009, 4 6). Innocent drinks sell stake to coca cola. Retrieved 11 13, 2009, from Guardian.co.uk: http://www.guardian.co.uk/business/2009/apr/06/innocent-drinks-sell-stake-coca-cola 7 Appendix 1 (Direct Gov, 2009) Appendix 2 (BBC, 2009) (Mintel Group, 2008) Above shows the distribution of UK spend in advertising within the smoothie market