Innocent Drinks Retail Promotion - Business Plan Example

Running Head: Entry Market Plan Entry Market Plan [Institute’s Table of Contents Table of Contents 2 Introduction to Innocent Smoothies 3 Theoretical Issues involved in Entry Market Plan 4 International Marketing Concepts for Innocent Smoothies 7 Importance of Micro and Macro Level for Innocent Smoothies 9 Literature Review 11 Principal Issues surrounding Innocent Smoothies 13 Recommendations based on Current Statistics for the Entry Market Plan 14 References 18 Introduction to Innocent Smoothies Drinks, beverages, and juices are the primary choices an individual seeks for on numerous occasions. Scores of organizations on local and international basis exits that fulfils the need of thirst for millions and billions of people in the form of producing carbonated drinks, fresh fruit juices and many more of the same kind. While looking amongst those plentiful companies, Innocent Drinks is one of the organizations, based in UK that initiated with the preparation of smoothies, and diversified their business into healthy food and drinks (Innocent, 2012). From the historical data of the organization, it has come to observation that although Innocent Drinks did not initiated its business to a very long time back in comparison to their competitors, yet it has skyrocketed in its fame and recognition and turned into an international brand. Besides, its expansion reveals the fact that Innocent Drinks not only have its sales limited to UK, but has also reached the realms of Ireland, Sweden, Finland, Denmark, France, Belgium, Germany and various other places. The company launched itself in the latter years of 1990 and saw a rapid boost in their sales, which made them the market leader of UK smoothies (Miller, Vandome and John, 2011, pp. 1-5). Innocent Drinks commenced their business with smoothies as their principal product, which comprised of natural and fresh fruit and juices; however, with the skyrocketed popularity of smoothies, Innocent Drinks broadened their horizons and now provide a wide range of products under its brand name. Some popular flavors of smoothies presented by innocent Drinks include strawberries and bananas, mangoes and passion fruit, kiwi, apples and limes, and several others. Apart from smoothies, Innocent Drinks also present a number of juices, kids’ smoothies, kids juicy drinks, fruit tubes and vegetable pots (veg pots) as their specialties (Sahlman, 2004, pp. 2-6). Innocent Drinks established with a core value to make their products exclusively pure with no added concentrates and very fresh ingredients. Indeed, creative culture amongst the entire workforce has also been an imperative and fundamental aspect that Innocent Drinks has not only developed but also sustained in order to prolong their core brand values (Sahlman, 2004, pp. 2-6). From the previous assessment, it has come to enlightenment that smoothies would be the prime product while expanding to the dome of Switzerland. This is because according to the current statistical records, Innocent Drinks sells above two million of smoothies on a weekly basis. This means that Innocent Drinks has prevailed over a significant share of the UK market of smoothies (Miller, Vandome and John, 2011, pp. 1-5). Therefore, the glowing image of Innocent Drinks in the smoothies market creates a beneficial opportunity for them to spread out their business and enter into the market like Switzerland. Theoretical Issues involved in Entry Market Plan The changing and shifting trend towards healthy food consumption in the UK and several other parts of the globe in the contemporary world of today gave swift rise to the demand for smoothies and other fresh fruit drinks. This is a leading factor that persuaded Innocent Drinks have its business operations of smoothies in Switzerland. In the today’s fast-paced world, the awareness and knowledge concerning added ingredients in food and drinks has also escalated amongst masses. In fact, according to some schools of thoughts, it has come under consideration that the inhabitants of Switzerland have preference over having tasty and healthy foods, which increase the likelihood of demands of smoothies, as it is purely made from fresh ingredients. Even after having an inclination towards smoothies, yet the studies also present the fact that Swiss people are not early adaptors to anything that comes new in the market. In fact, the residents rather attempting for a new product, like to witness how the new product is being perceived by other people (Krosinsky and Robins, 2008, pp. 143-145). Therefore, Innocent Drinks by promoting their core values of business processes, their way of making smoothies that involves sustainable nutrition, ingredients, packaging, and production could be a leading factor that can catch the attention of the Swiss people. This use of fresh and natural fruits that have no preservatives in the products creates an edge for Innocent Drinks to cater such a marketplace. Besides, the fresh and natural fruit extracts used in smoothies even ensures premium quality of the smoothies for Innocent Drinks (Krosinsky and Robins, 2008, pp. 143-145). Another aspect that has come to examination is that Switzerland is very strict in labeling its laws, rules, and regulations. This means that any new company or product that initiates its business processes in Switzerland has to follow the rules and laws severely pertaining to packaging of the products, which states that the information placed in the packaging of the product must come under three languages. This makes it difficult and curbing for the small organizations to enter into such market. However, with respect to Innocent Drinks, they respect the cultures and legacy of every civilization, thus they would ensure that the rules and law of the country does not come under abiding (Switzerland, Karrer and Arnold, 1989, pp. 7-10). Innocent Drinks have altered their brand image based on their unique selling point that has the prime focus on natural ingredients as one of the most premium brands when talked about smoothies, juices and other healthy foods, in terms of its pricing. In addition, they seek to carry on this strategy in the region of Switzerland as well. This is because; Switzerland is a state where its occupants believe in high living standard, thus making them price insensitive. Additionally, they prefer quality of food rather than being price conscious. Although, being a premium brand with a relatively high price in comparison to its competitors, created a low customer base in the district of EU, but this would not be the case in Switzerland. In fact, by having price insensitive customers in Switzerland, this creates a massive opportunity for Innocent Drinks to maintain their high values and offer the customers with most fresh and natural ingredients food and drinks in return (innocent, 2012). Innocent Drinks pursues the ethical values and put the values of Corporate Social Responsibility (CSR) into practice. By being socially responsible in the corporate world can come under elucidation with the fact that Innocent Drinks makes use of bottles that completely come from the process of recycling and salvaging and are environment friendly. Furthermore, records also enlighten the information that Innocent Drinks papers for its labels are also processed and recycled. This is one of the strategies implemented by Innocent Drinks that offers better working atmosphere for the workforce, which lead to augmented and improved efficiency of the labors (Denison, 2009, pp. 118-120). Innocent Drinks have widened its product development with respect to smoothies and they are trading more than thirty smoothies using the mainstream channels at present time. Indeed, the foods and drinks that promote healthiness and wellbeing of the people that even gets the advocacy of governments and health organizations have been the center of attention for Innocent Drinks. This is a prominent and constructive strategy, which if implemented in the realm of Switzerland would prove to be useful and effective. This is because it would provide a competitive edge over the local organizations that offer the customers with a limited range of smoothies’ selection (Baker and Michael, 2008, pp. 180-182). From various studies, an important aspect pertaining to sales and brand loyalty has come under notice that interesting and attractive artwork on the packaging of the product increasingly becomes a source of attraction for the customers. This is because children get easily attracted to artworks that represent fascinating images. Whilst looking at the product line of Innocent Drinks, they have several options of smoothies for the young people, particularly the kids, therefore, the alluring artwork on the packaging provide evidence to be effective in terms of their sales in the Switzerland (Trott, 2008, pp. 414-416). Apart from having numerous opportunities of emerging markets and global expansions, yet Innocent Drinks might encounter a common threat and that is the difference of culture and language. Cultural difference is one of the most widespread issues that the organizations on an overall basis might face while becoming a global image. However, studies expose the piece of information that language has demonstrated to be conducive and auxiliary to the success of Innocent. Nevertheless, Innocent Drinks might have to face a little difficulty for success with the local cultural differences while expanding its business operations. International Marketing Concepts for Innocent Smoothies Innocent Drinks is a corporation that has its operations not only restricted to United Kingdom but also has spread over to several other countries of the world. They got this enthusiasm and interest of expansion as one of their products that is smoothies made them successful in their home country (Innocent, 2012). Innocent Drinks works on a universal platform with a prime purpose that states “make natural, delicious food and drink that helps people live well and die old” (Innocent, 2012). Through this message, they want to communicate to the people that all the foods and drinks made at Innocent Drinks are purely made from the fresh and natural ingredients. Furthermore, they not only focus on providing mouth-watering and appetizing taste but also on nutritionally positive foods and drink that helps the people in maintaining a healthy body than ever before. With this purpose of keeping people mentally and physically fit, they intend to develop a healthy society (Abbing, 2010, pp. 20-22). Innocent Drinks have developed their core values which comes under practice by the workforce to every country they launch the business operations. These values represent what they are, how things come under application internally, and what they yearn for. Be natural, be entrepreneurial, be responsible, be commercial and be generous are the leading values that they believe in and put into practice. Innocent Drinks have always been dissimilar from others, which made them unique and diverse (Innocent, 2012). As they possessed the capability of being an entrepreneurial, this encouraged them to seek for new opportunities at all times. Social Responsibility is another aspect that Innocent Drinks take care of as healthy community and environment is of key emphasis. Feedback system is also of imperative concern for Innocent Drinks, which makes them stand firmly in every part of the world where they operate their business functions (Innocent, 2012). Learning and development at Innocent is of prominent significance that differentiates Innocent Drinks from others in the market. Innocent Drinks promotes their employees at every corner of the world to play a leading part in the success of their business. This is because Innocent limelight and strive on recruitment, regulation, discipline, expansion and retention of its employees. Moreover, they also accentuate on committed, competent, and high performance employees, and thus, they plan and organize various learning programmes for their staff members that can help them, enhance their skills (Jones, 2008, pp. 8-10). Importance of Micro and Macro Level for Innocent Smoothies From the evidences, it has come to an observation that with respect to their structure, the most essential components for Innocent Drinks is their employees, information technology, environment, and capital. However, their functional operations that takes account of the production, technical, fruits and ingredients, logistics, marketing, business delivery and commercials also plays a eminent role in the success of their business (Innocent, 2012). Micro and macro level structure are of great importance as it helps the organization develop and grow their businesses according to the local and international standards that can increase the market share of the organization. Nonetheless, Innocent Drinks are already running its operations in several countries, hence providing them with the experience to deal with local marketplace and competitors (Pfeffer and Salancik, 2003, pp. 6-10). Political, economic, socio-cultural, competitive, and environmental factors that constitute the macro environment or external environment surrounding the business play an influential role in either the success or failure of the business. Studies also exhibit that Innocent Drinks makes continuous assessments of such environments that can lead them to have correct and productive decisions that can provide benefit to both the company and the society (Pfeffer and Salancik, 2003, pp. 6-10). The economic environment depends upon various aspects that comprise of recession and upturn in the economies of the country. The recession periods makes the economies of the country poor, due to which the organizations do not have any option except to decrease their price of the products. Whilst looking at Innocent, they have an opportunity to have their manufacturing unit in UK only. This would create an option for the Innocent to have low prices of smoothies while selling in Switzerland, as the price difference of the local currency to that of UK currency would lower the cost of production (Thompson, Martin and Thompson, 2010, pp. 395-397). From the analysis of the political environment, the fact has come under attention that government policies have defined very strict rules of trading standards and producing high quality standard products. Furthermore, standards’ concerning the advertisements of the products also creates great pressures for the companies. This interference of government and regulations leaves an impact on to various sections of Innocent Drinks, but their pure, fresh and natural fruits used in smoothies lower the pressure on Innocent Drinks. This is because health has become a factor that is coming under support by the government and health organizations, which Innocent Drinks can make the most from it. The competitive environment provides with the detail that Innocent have several competitors present on local and international business. At the same time if looking at the Swiss market, it has come to notice that Innocent does not come across numerous competitors. Even the comparison of the pricing strategies reveal the fact the competitors have their products in relatively high prices. The price factor can become a source that leads Innocent to grab more customers in conjunction to their unique selling point of presenting the smoothies with natural ingredients, as the customers are now health conscious than the previous times (Euromonitor, 2011). From the micro level that consists of the internal environment of the organization comes under definition from the strengths and weaknesses of the organization. Innocent Drinks with smoothies as their specialty have made them a successful food and drink company that focuses on their talented and competent workforce, makes maximum use of technological resources and provides a safe and healthy working environment that leads to better and healthier products (Choi and Gray, 2010, pp. 52-55). Literature Review Innocent Smoothies have elucidated the piece of information that the entire structure of Innocent including people working here, its environment, production, technology, marketing and every operational function comes under consideration as the most important aspect for them. This is because the competent and highly skilled employees add great value to the success of the organization. Their talented team of recruited staff makes certain that everybody is working towards and practicing the same vision and mission (Holt and Cameron, 2010, pp. 6-8). Additionally, they highly motivate their employees by providing the staff rewarding benefits, packages and a friendly working atmosphere so that optimum output comes as a result. Besides, their sustainable creative brand culture of the organization is the prime object where the proficient employees severely follows the core brand values of the company makes it strong, competitive and thriving (Holt and Cameron, 2010, pp. 6-8). With regard to the Swiss marketplace, statistics signifies that this market makes maximum use of technological advanced and innovated products and services. Therefore, Innocent Smoothies have developed a custom that uses the modern day technological innovations from its production and recycling procedures that can augment their product efficiencies and communication can come under betterment. This adaptation to technological advancements especially from the communication point of view that designates the company exercises technology for their advertising. This remarkable and incredible use of technology has a tendency to boost its sales to paramount levels (Watson, 2010, pp. 119-121). Innocent smoothies are very meticulous pertaining to their fruits as they buy fruits from all over the world, as they promise to give the customers the products with sustainable, fresh, and natural ingredients. Moreover, their sustainable production involves being creative by using the natural energies that helps reducing the waste production and recycling of bottles. By using the creative strategy of using recycled products in their manufacturing, it helps them increase their brand values, which aid in increased sales (Denison, 2009, pp. 118-120). According to one of the aims of Innocent smoothies, they emphasize, “We want our packaging to have the lowest possible impact on the world around us” (Innocent, 2012). This means that Innocent smoothies make their best effort to use least material of their packaging and that should be a recycled material rather than new products. This way they try their best to use the carbon related materials as less as possible. Brand image and sales comes under boost as consequence of it (Denison, 2009, pp. 118-120). Evidences have indicated that Innocent smoothies have been actively participating in charities, donations and fund-raising activities from a long time. This is because; providing support to people that has complete dependency on subsistence agriculture, is also an imperative objective of Innocent smoothies that they implement. This constant practice of corporate social responsibility adds to their success and hence creating an image for Innocent of having an environment where social responsibility comes under promotion (Mellor, Coulton and Chick, 2008, pp. 160-162). Principal Issues surrounding Innocent Smoothies The marketing mix adaptation that has the fundamental characteristics of pricing, promotion, place, and product are foremost and chief to the success or failure of the company. Relating to the marketplace of Switzerland, Innocent Drinks intends to have smoothies as the fundamental product due to the high demand of smoothies in the marketplace. This is because health is becoming the most important factor for the inhabitants of Switzerland and healthy foods and drinks consumption have increased over the period of instance. Numerous sources of information has also presented the idea that the market of drinks, principally the smoothies is still not mature in Switzerland, thus leaving an immense occasion for Innocent to launch its smoothies in this market with relatively very few competitors (Euromonitor, 2011). As discussed, Swiss people are not price conscious and pay more attention to healthy foods and drinks. Therefore, the high pricing of the Innocent smoothies would not create any hurdle in the sales in the Switzerland. This is because; Switzerland is relatively immature market with respect to smoothies and with the promotion of healthy and natural fruits, as its ingredients would provide evidence for high sales in Switzerland (Pickton and Masterson, 2010, pp. 409-410). Moreover, Innocent smoothies are free from alcohol contents, which is a prevalent source for attracting the adults as well. Another aspect that can also be of pivotal importance is that prices can also come under fluctuation with the fact that the production unit remains in the home country (UK) and comes under import to Switzerland. This would also create a price difference from the exchange rates (Pickton and Masterson, 2010, pp. 409-410). The factors of place for Innocent smoothies are the best to place on the ends of aisle of supermarkets. Supermarkets are the place where a significant proportion of the residents visit, therefore, by placing the wide range of flavors of smoothies on the aisle of the supermarkets would create a good option to catch the attention of the mass group of individuals. Restaurant is another useful and fruitful option to have smoothies in their menu list. This would facilitate Innocent Drinks to make promotion of their healthy smoothies, as having a smoothie that represents natural ingredients would also encourage the people to consume healthy foods on a more regular basis (Shakespeare, 2011, pp. 295-298). Promotion of Innocent smoothies can reflect the core value of the company that it provides its customer the healthiest drink that has no preservatives or alcohol contents and contains only fresh fruits. Advertising and marketing smoothies through different means such as print media, television commercials, billboards, and several others would help increase awareness and knowledge amongst masses about smoothies and its healthy nutritional contents (Pringle and Field, 2008, pp. 82-83). With repeated advertisements would escalate the recall memory at the time of making a purchase and would encourage the people to try smoothies. With the interesting and appealing packaging, Innocent smoothies would also grab the attention of the customers, particularly the young ones, who play an important role in buying decisions (Pringle and Field, 2008, pp. 82-83). Recommendations based on Current Statistics for the Entry Market Plan From the above analysis, it has come to strong observation that Switzerland is one of the persuasive marketplaces for Innocent Drinks to launch their smoothies due to scores of reasons. Even though they have been successful in the UK and many other European states, yet they should look into few facets for their sustainable growth and success of the smoothies in the market of Switzerland. Having the entire focus and concentration on the untouched demographics, accurate outlets for distribution of smoothies and the perfect channels of promotion would aid them in becoming the market leader in Switzerland as well. Although from the statistics, it has come to recognition that Innocent Drinks has established its brand image as a premium brand in terms of its price, and with comparison to the Swiss market where people are not that price sensitive; yet, Innocent Drinks can provide the customers with discounts on various occasions. For instance, they can launch various kinds of deals at the Christmas time or they can even sell their smoothies on the strategy of buy one get one free. Through the adoption of this kind of strategy, Innocent Drinks would be able to ensure brand loyal customers on a more long-term basis. The statistical evidences claim that the market preferences in terms of consumer taste evolves on a constant basis. Social change, ethical thinking, health fitness and many more are the examples that represent the changes happening in the society. Having a market analysis on timely basis would allow Innocent smoothies to be acquainted with the current changes going on within the culture. This would facilitate them to adapt to new changes and enhancing their operations and functions relatively. For instance, as the people are shifting towards a healthy life and giving more importance to being fit, ‘Innocent Smoothies’ can gratify and fulfill this need of the people by offering them with a wide variety of smoothies in Switzerland. The fast-paced world of technological advancement and innovations has shifted the trend of business operations and transaction with one another. Evidences also point out that Innocent Drinks purchase fruits from various parts of the globe (Innocent, 2012). In addition, Swiss people purchase their drinks and beverages from online specialty food and drink companies. This provides a huge opportunity for Innocent Drinks that with the use of hi-tech innovative systems, they can import larger amount of fruits of varied kinds to Switzerland. In fact, with the technologically innovated systems, they can even sell their smoothies to retailers from internet. Advertising is a leading aspect that can either boost the sales or halt the trading activity. Therefore, Innocent Drinks must profoundly concentrate on their advertising materials and promotional campaigns that must ensure that the correct message is coming under transmission to the customers. This is very crucial, as studies have demonstrated the information that at few instances, the advertising of Innocent has misled the customers (Bergh and Behrer, 2011. pp. 118-119). Therefore, they must develop advertising and promotional activities in such a way that must satisfy the public and complies with the local advertising standards. The above entry market plan can come under well conclusion with the verity that Innocent smoothies is a fruit drink that comes under preparation from the most fresh and natural fruits that has no preservatives as an addition. Innocent Drinks is a market driven organization that aims to have its operations in the region of Switzerland after capturing a substantial proportion of the UK market share. The strong and influential internal environment plays a considerable role in their success due to their skilled staff. The external or the macro environment is challenging ‘Innocent Drinks’ to uphold its brand image, but they are making their best endeavor to flourish their business through sustainability in their business processes. However, with the enhancement and improvement in few aspects such as marketing strategies as discussed and suggested in the above sections with respect to the local atmosphere of the country, Innocent Drinks would have great options to have a competitive edge over others. References Abbing, Erik Roscam. 2010. Brand-driven Innovation. AVA Publishing Baker and Michael, Baker. 2008. Product Strategy and Management, 2/E. Pearson Education India. Bergh, Joeri Van Den and Behrer, Mattias. 2011. How Cool Brands Stay Hot: Branding to Generation Y. Kogan Page Publishers. Choi, David Y. and Gray, Edmund R. 2010. Values-Centered Entrepreneurs and Their Companies. Taylor and Francis. Denison, Edward. 2009. Print and Production Finishes for Sustainable Design. Rotovision. 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