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Analysis Of The Innocent Smoothies Communication Marketing Essay

3503 words (14 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Analysis of the innocent smoothie’s communication can be done with its clear focus on the campaign that has been carried out in order to hit the maximum number of market sales.

The UK juice as well as smoothies1 market is fiercely spirited as well as has grown considerably in recent years, largely due to changes in consumer require for healthier drinks, supported by an augment in the number of suppliers as well as the variety of drinks obtainable. (Gilbert SC et al. (2004))

‘Increasing fruit as well as vegetable utilization is a state precedence. Cancer as well as coronary heart illness report for 60% of all untimely deaths. A key characteristic of the UK Government’s avoidance plan to decrease deaths as of these diseases is action to get better diet as well as nutrition. […](Gilbert SC et al. (2004))

‘Current recommendations are that everyone should eat at least five portions of a variety [of] fruit as well as vegetables each day, to reduce the risks of cancer as well as coronary heart disease as well as many other chronic diseases. Yet average fruit as well as vegetable consumption among the population in England is less than three portions a day. Consumption tends to be lower among children as well as people on low incomes.’2 (Gilbert SC et al. (2004))

The Government has identified two main barriers which prevent people as of consuming more fruit as well as vegetables. The first is access as well as availability, i.e. whether people have access to the right excellence of fruit as well as vegetables locally, as well as at an affordable price. The second barrier is attitude as well as awareness. The Government has made considerable efforts to communicate the message to the population, because changing habits in terms of food consumption will have a important longer-term benefit on the national costs of healthcare.

2.       Application of Theories to Practice

The theories can well be used to practice keeping in mind the business plan and looking at the Ansoff matrix theory seems to be the one that is applied to great extent by the innocent smoothies. In order to drive home the significance as well as reinforce the importance of regularly consuming fruit as well as vegetables, the Government has introduced a ‘Five a Day’ programme, which, amongst other things, focuses on a national school fruit scheme (raising awareness in schools across the UK) as well as a national communications programme to inform the population about the importance of eating five portions of fruit as well as vegetables every day. (Bates CJ et al. (2000))

The total UK juices as well as smoothies market is valued at £1.4billion3, with growth of 7.9% in 2007, following 16.7% growth in 2006. According to the TNS research, smoothies account for 9.3% of the market, with total sales of just over £130 million per annum. This was the fastest growing sector, with market growth of 37.6% year on year. The largest types of drinks, by market share, are juice drinks as well as those which are made from fruit concentrate. These represent 31.9% as well as 35.5% of the market respectively. However, annual growth in these has been low; juices drinks have remained at the same level year on year as well as juices made from concentrate have grown at just 2.2%.

Again according to the TNS research, the number of people buying juice drinks as well as smoothies has remained stable, with shoppers tending to buy drinks less often but spending more when they do make a purchase. (Bates CJ et al. (2000))

There is much jargon used in the drinks industry as well as manufacturers have to exercise care so as not to mislead consumers about the content as well as nutritional value of drinks being marketed.

A smoothie is a drink which is produced by blending the whole fruit as well as a juice drink is where the juice has been extracted from the fruit. So, a smoothie contains the whole fruit including the skin. 100% pure fruit smoothies contain no other additives. Nutritionists point out that the key difference between a smoothie as well as a juice drink is that with a juice drink some nutrients which would be present in the skin as well as the pulp are missing. These nutrients would be present in a smoothie as it contains the whole fruit.

A high proportion of fruit drinks are made from ‘fruit concentrate’. The ‘concentrate’ is made by taking fruit juice as well as heating it through a process in order to evaporate off the water content. This reduces the overall content volume as well as makes it easier to ship around the world. When it is manufactured back into drink form, water is added so that the juice returns to its original strength. Nutritionists believe that concentrated juice drinks are not as healthy as those made from pure fruit ingredients.

Freshly squeezed juice drinks are made from juice which has been locally squeezed into the bottle, i.e. at the point of bottling. Therefore, the fruit has not been tampered with in the same way as concentrated juices as well as, as a result; these juice drinks will retain their original nutritional content.

The TNS research concludes that fruit juices are consumed across all age groups, although they are becoming more important within the younger groups.

According to research undertaken by Visuality4, 86% of purchases of juices as well as smoothies are planned, with the remaining 14% being purchased on impulse. In the case of impulse purchases, shoppers are heavily influenced by in-store displays, advertising as well as promotional offers.

The Visuality research identifies a high level of brand loyalty, with 60% of respondents buying the same brand of juices as well as smoothies each time they shopped. A quarter of respondents preferred not to buy drinks at all if their usual brand was unavailable. However, 89% of shoppers said that they would be willing to consider the supermarket’s own label varieties, if available.

The UK’s best known smoothies are under the ‘Innocent’ brand. The business has been a major success story as well as now has a market leading position in the UK, with annual sales of around £130 million. Its growth has been significant, as well as the company has achieved considerable successes in the ten years since its launch.

In 1998 three friends embarked on an idea that was to put the word ‘smoothie’ on the map. Richard Reed, Adam Balon as well as Jon Wright met when they were students at Cambridge University as well as had always thought about running their own business.

Innocent Drinks began life selling as of a stall at a music festival in London. Richard, Adam as well as Jon had developed a number of fruit smoothie recipes as well as spent £500 on fruit for the event. They had asked for customer feedback by returning empty drinks bottles in bins to answer the question ‘Should we give up our jobs to make these smoothies?’ One bin was marked ‘yes’ as well as the other marked ‘no’. By the end of the event the ‘yes’ bin was full. Based on this success, they all gave up their jobs so they could concentrate full-time on developing the Innocent Drinks business.

Innocent has built its reputation on recipes containing 100% pure fresh fruit. No sugar, water or any other additives, just pure fruit. As of its original smoothies in 250ml bottles it has now extended its range to include 1 as well as 1.5 litre cartons, smoothies for kids in addition to ‘thickies’ (a low-fat pro biotic yoghurt with oats, fruit in addition to honey).

The business has gone as of strength to strength in addition to has been a Sunday Times Fast Track 1006 business in the last four consecutive years.

3.       The communication Strategy

The strategies applied by innocent smoothies are loud and clear, it is the aim to communicate with the customers in such a manner in order to map the products on their mind and heart.Annual sales topped £10 million in 2003 in addition to had grown to more than £100 million by 2007. Today, more than 2 million Innocent smoothies are sold each week. The company’s workforce has grown as of the three founder members in 1998 to around 250 today. (Department of Health (1989))

A significant product development was the introduction of its kids smoothies in March 2005 in addition to there are now four flavours available. A key stage in the development of the kids range was the agreement, in September 2006, by 550 schools in the UK to stock the drinks at a subsidized price, providing school children with affordable access to healthy fruit drinks.

The company now has a range of 30 different recipes, distributed via leading supermarkets, coffee shops, and other national retailers in addition to numerous other foods in addition to drink outlets around the UK in addition to the Republic of Ireland. (Department of Health (1989))

In 2007, Innocent took a major decision to run a trial to sell its kids smoothies in McDonald’s outlets. Its motives were driven by research which suggested that children, in particular, were failing to take their recommended daily intake of fruit in addition to vegetables. So, on the basis that a large number of families visit McDonald’s outlets, Innocent decided to run the trial with the burger chain. As a result, Innocent received considerable negative press about their association with McDonalds, despite the fact that market research that they undertook prior to the trial indicated that 74% of people thought that it was a good idea. (Department of Health (1989))

4.       Creative Ideas

Innocent smoothie’s products are never behind due to the innovative and creative ideas by its team and have been ruling the market since last 4 years. It has built its reputation on healthy drinks made as of natural ingredients. But the Innocent brand means much more than that. It has built an image of the ‘innocent family’, communicating regularly with customers, continually seeking their views as well as ideas for new recipes. (Bates CJ et al. (2000))

Due to its success story, its focus on healthy food consumption as well as its ‘quirky’ brand image, Innocent has enjoyed much media attention, which has helped to build awareness as well as create a unique brand identity for the business. As the market has become more competitive, Innocent has had to invest more money in advertising. (Bates CJ et al. (2000))

Its customer base is diverse, as of children to the elderly, students to senior executives, the health conscious to those who just love the taste of a fresh fruit smoothie. Its highly visible brand has quickly established a very loyal following as well as at August 2007; the Innocent range of drinks enjoyed a 71% share of the UK smoothie market.

5.       Media Strategy

If a business would like to taste success one way or other media will play key role if its services are rendered. The publicity that is done through media if is done with innovative concepts, similar is the aim of innocent smoothies they have used media to a professional extent in order to stay on top of the UK markets. (IRI (Information Resources Inc) (2008))

The UK supermarket chains are the largest retailers, by market share, of juices as well as smoothies, with the following supplying the largest quantities: Morrison’s, Tesco, ASDA, Sainsbury’s, Somerfield as well as Waitrose. In-branch promotions are chiefs to driving sales as well as to persuading consumers to switch brands as well as try new products.

But more recently in the UK, specialist retail outlets selling their own juices as well as smoothies have been opening, fuelled by the message to the population to eat as well as drink more healthily. Two such brands are Boost Juice Bars as well as Crussh.

The Boost Juice Bars8 brand came into existence in 2000 in Australia, when mother of three Janine Allis became frustrated at the lack of healthy options for her as well as her children. She was inspired following a trip to the US, where juice bars (similar to coffee shops) were becoming popular. (IRI (Information Resources Inc) (2008))

Boost Juice Bars now have more than 200 outlets around the world, including in the UK, in Manchester, Sheffield, Essex, Nottingham as well as Oxford. Boost sells a range of juice-based drinks as well as smoothies, although its range has extended into the hot drinks market, with a range of drinks as well as soups, such as Hotchocana, which is a creamy hot chocolate drink blended with banana. It has also introduced a selection of healthy wraps (sandwich fillings wrapped in a soft flatbread) to its menu.

Crussh9 is another specialist retailer of its own branded drinks. It opened its first store in London in 1998 as well as is now the UK’s biggest smoothie chain, with 23 outlets, in central London as well as at Blue water shopping centre in Kent.

Recognising that smoothies as well as juices have more seasonal demand, Crussh also sells its own branded range of soups, porridge as well as coffee, as well as sandwiches, wraps as well as toasties (toasted sandwiches using ciabatta bread).

The challenge for all fruit juice as well as smoothies’ retailers, as well as manufacturers, is that in the UK demand is seasonal. This, together with the unpredictability of the British weather, has resulted in a trend emerging of opening fruit juice bars at indoor sites, such as shopping centres as well as airports. In addition, specialist retailers have moved into selling food as well as hot drinks to cater more for all-year-round demand.

PJ Smoothies10 claims to have founded the UK’s smoothie market in 1994. The company began when its founder, Harry Cragoe, discovered the fruit-based drinks in California. On his return to the UK, Harry got together with Patrick Folks as well as decided to produce their own smoothie drinks. (IRI (Information Resources Inc) (2007))

The brand was originally called Pete & Johnny’s as well as was acquired by PepsiCo in 2005. According to IRI Info scan, its market share has reduced to 13% (year to September 2007), largely due to the dominance of the Innocent brand in the market. However, PepsiCo has decided to reposition the brand plus is determined to win back market share.

Other key brands offering juice as well as smoothie drinks include Coca Cola, Robinsons, Ribena, Ocean Spray as well as several smaller organic producers. In addition, the high street retailers are attacking the market with their own branded lines, including M&S as well as Tesco.

Jamba Juice11 is a US-based manufacturer as well as retailer of its own branded range of smoothies as well as juices. At the end of its 2007 financial year, it had an extensive network of more than 700 stores across the US, including in excess of 500 stores that were company-owned as well as operated (the remainder operating as franchise units, but carrying the Jamba Juice brand as well as range of products).

6.       below-the-line Communication

Communication play a vital role in any organization, innocent smoothies will also rely on the communication strategies in order to make the process of marketing clear according to the current market situation.

It appears Innocent’s days of virtue are ended. (IRI (Information Resources Inc) (2007))

in excess of the precedent eight years, the smoothie cluster – which completed millions of pounds away of squashing as well as bottling fruit – has turn out to be one of the UK’s most important soft drink brands, selling further than Oasis or Sprite.

Trade sales turn up 140 per cent previous year to hit £96m, carrying blameless into the “Top 100” grocery brands intended for the initial time as it enlarged its smoothie variety as of person bottles keen on one-litre cartons as well as kids’ drinks.

However the group, which has built its people-responsive brand by promoting “natural products”, seems in risk of estranging a number of of its faithful clients. Additional than a few smoothie drinkers have been angered at the group’s topical conclusion to get on a six-month check business kids’ smoothies in 80 McDonald’s eateries.

“What were you imagining of – McJuice, McSmoothie or McDollar?” criticized one incensed swallower previous week on a blog on balminess’s website. “McSell Out,” inscribed a second. “An additional group of hippy entrepreneurs sells out . . . immediately approximating corpse structure. You presently misplaced one more client,” objected a third.

Adam Balon, individual of Innocent’s three co-originators as well as its “Chief Squeezer”, speaks the conclusion to retail smoothies during the fast-food series was not engaged calmly. “McDonald’s is a lure intended for enormous quantities of censure,” he admits.

Mr Balon quarrels blameless is performing in kids’ greatest interests. “It’s improved that a kid will drink a smoothie than a fizzy cola.” IRI (Information Resources Inc) (2008)

7.       Direct and Digital

The direct and digital impact on the market and the growth for smoothies has been successful to great extend. People in the modern marketing world are so much careful about the diet that they may take, they want to know about the product that they may be using, it is therefore totally relying on the use of proper slogans and motives that should be clear to the customer both directly and digitally.

It anticipates selling concerning £25m of kids’ smoothies this year, almost three times to the extent that previous year, as well as expects to be hoarded in as many as 1,350 schools by the end of the year – up as of at present five schools preceding year.

Clients have to not be surprised that innocent needs to advertise its kids’ drinks throughout a international fast-food chain, known that its drinks have been on the shelves of Starbucks in the UK as well as Ireland for additional than four years. (Bates CJ et al. (2000))

It courage’s 21 dissimilar sorts of fruit as well as has 25 diverse drinks formulas as well as Its mainly out of the ordinary produce is a coconut on or subsequent to a little island in Indonesia easy to get to merely by ship. Trades of its Detox smoothie, holding bananas, pomegranates, oranges, blueberries are increasing the greatest; it has its individual YouTube channel. Its head office is known as Fruit Towers plus it is imploring the rule to cut taxes on fruit juices as of 17.5 per cent to 5 per cent. It has almost 70 per cent of the UK smoothie bazaar a campaign can not always guarantee a product’s or service’s success guarantee as it has to be the standards that needs to be improved from time to time according to the market trends and requirements.

8.       Campaign Evaluation 

The campaign of innocent smoothies was not a bad idea however along with campaign there are some additional points which innocent will need to keep in mind in order to overcome the credit crunch and the market trends that are changing dynamically. (Swan G (2002))

The innocent smoothies will have to keep an eye on the prices and the market conditions as people are cutting their expenses in order to deal with the current credit situation it has affected their household expenses as well. No one will go for a smoothie, no matter how good it is for health, will prefer a fizzy drink at the end of the day if the price suits their budget.

New trends and new packages on deal buys shall be introduced by the innocent smoothies and this deal should be available at least for a year or two so that people continuously buy the innocent products this will make them used to these products and they will not change the buying trend even after the deal buy promotions are taken off from the market. The innocent smoothies will have to think about the joint campaigns again and again keeping in mind the modern age of markets that are effected by the credit crunch and recession, as this will help enable them to reduce costs of campaigns by sharing it with the with the other group who is joint member in the campaign as this will divide the cost between them helping both to cut down the costs. (Swan G (2002))

In the crate of dental health, it is obvious that entire, pounded as well as juiced fruits current a alike danger in hypothesis. In finale, the dietary profits presented by smoothies far offset any dangers, as well as a revision of the 5 A DAY criteria is justified.

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