Sales, Purchasing & Marketing

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Sales, Purchasing & MarketingMarketing Strategy for a New Consumer Drinks ProductKeri Cummings 200839204

Founded in 1999, Innocent Drinks began with 3 different products on sale; 11 years on, they have 36 successful products being sold as far away as Paris, Salzburg and Copenhagen.Starting out with 3 employees, the company has grown to 250 taking over 77.5% of the UK smoothie market and it’s not surprising as the products are sold in over 10,000 differentretailers. Currently the number of products sold is in excess of two million per week. Launching ‘the big knit’ campaign allowed them to broaden the market they target as 25p perbottle with a knitted hat goes to AGE UK. With a fantastic portfolio, this company is strong enough to support a new consumer drinks product that will be entered into the watersubsector. This business report summaries the current competitors, customers and products that Innocent Drinks have and propose a marketing mix to allow Innocent Water to bebrought to the market successfully. It will be targeted mainly at those consumers who already believe in the persona of Innocent Drinks and its brand values of ‘little tasty drinks.’Innocent water will sit along side premium brands of bottled water and will aim to spread sales across Innocents current markets.Current Company Context ReviewTo ensure the product is launched in the best way, a review will be conducted of the current competitors toInnocent Drinks.CompetitorsWith regards to Innocent Drink, those aiming for a similar brand persona would be ‘Ella’s Kitchen’, ‘happymonkey smoothies’ (although both only available in the UK), ‘Naked’ and ‘Odwalla’. Along with Innocent Drinksthese brands try to appeal to the more health conscious consumers and draw them in with the natural lookingappearance.Both ‘Ella’s Kitchen’ and ‘happy monkey smoothies’ have ‘jumped on the bandwagon’ as they released theirproducts several years after realising the success of Innocent Drinks and the psychology that is used. ‘Happy littlemonkeys’ worked hard to attract children to their product using the colour schemes, whereas it was the smallchild sized cartons and the content that appeals to the parents. This is similar to Innocent Smoothies for kids asthe iconic styling of the cartoon will stand out on a shelf.The main competitors within the subsector, who have similar brand awareness as Innocent Drinks, would be ‘thiswater’ and ‘The feel good drinks co.’ Both companies work hard to use ethically sourced goods and do not addsugars or preservatives. However, neither has introduced a still water that would sit alongside competitors suchas ‘Volvic’ and ‘Evian’. First bottled in 1938, Volvic is tapped from a source in France that has passed through anearby volcano, giving it unique mineral content. Bottled at the source means this water is regarded as one ofthe purest in the world and is never touched by human hands nothing added or taken away. This unique sellingpoint allowed Volvic to grow and the brand, now owned by Groupe Danone, now sells in Europe, North andSouth America and Australia. Similarly French, Evian was first bottled in 1826 and the company became public in1859. Evian water is portrayed as a luxury brand of water and therefore is drunk by many of the rich and famousmaking is easy to launch in the USA in 1978. Also owned by Groupe Danone, this may be why Volvic were such asuccess in the USA as Groupe Danone already had an existing awareness of consumer needs and traits.‘ Ella’s kitchen’ is aimed at the parents as the product is for younger children; done through clever advertising ofthe health benefits of giving young toddlers fruit drinks.‘PepsiCo’ have just launched a new ‘Tropicana Smoothie’ range, in a bid to strengthen the governments’ effortsto boost the 5-a-day campaign. Running a new product line alongside government proposals will dramaticallyincrease the sales for ‘Tropicana’ as the public can be easily influenced by government statistics. The reason that‘Tropicana' felt safe to branch out into a new market is their experience, brand image and dedication toproviding excellent fruit selection and exceptional blends. Innocent drinks may not have as many yearsexperience as ‘Tropicana’ but their brand image is enough to ensure that branching into a new sector of thedrinks market would be successful.‘Naked’ and ‘Odwalla’ are both over 25years old, and both began life in the US. ‘Naked Juice’, owned now byPepsiCo Products, has recently introduced its products into the European market due to the rise in the numberof consumers purchasing such products. Although this market is becoming more saturated, consumers continueto believe that drinking a fruit smoothie will help them stay healthy. For example, ‘Naked Juice’ admits on theirwebsite that they use the easiest advertising campaign – ‘a person holding a ‘Naked Juice’ with a big smile on hisor her face.’ Such like Innocent Drinks, they claim to be a ‘no added sugars and no preservatives’ fruit drink.The particular subsector that is being targeted is saturated with products as most drinks companies producewater. However, many water companies will work within an area of a country. The aim of Innocent water wouldbe to introduce it into all the countries that the other Innocent drinks are in.Company Competitors

ConsumersThe market that is being targeted will be similar to what Innocent drinks already targets- health consciousindividuals. The consumers of the water market are either looking for a low cost drink on the go or for a liquid toconsume whilst exercising. Many who enter a shop to purchase a drink of water look for the most reasonableprice for the size of the bottle they are paying; this may be due to water being a basic human need so to manythey don’t consider it something they should spend a lot on. However as trends in food and drink become morepopular and pronounced, some consumers would prefer to carry a bottle of water that has a recognisable brandname, showing to others their personality through what they have purchased.Kids Smoothies comes in a small lunch box size cartoon and a large pouring cartoon.Innocent drinks felt it important to target a younger audience and so brought in a panel ofchildren who helped to choose the recipes. With each drink containing one portion offruit, the drinks are very attractive to parents who want to make sure their children arehealthy. Innocent also made sure the packaging was ‘fashionable’, keeping it simple andattractive to their target audience. Due to the popularity of the product it has a highmarket share and growth rate.Innocent drinks has branded itself as a high end smoothie through the costing of their currents products butconsumers will still pay over the odds for a small bottle, believing that it is good for them. This would beimportant in the launch of the new water; if the right source of water could be reached and bottled, containingenough minerals and vitamins, consumer consciousness can be targeted in the same way as other Innocentdrinks.Innocent Thickies were introduced ‘Just in case maxing out on dairy based treats is yourthing.’ Thickies were launched when Innocent drinks had a good hold in their market,however very little advertising was done for the product. It has a low market share incomparison to its competitors such as ‘Yazoo’ and ‘Frijj’ and due to little promotion; itsmarket growth is small.Superfruits smoothies were introduced during the mid 00s when consumers started tobecome more aware of what foods could benefit them after private dietary consultsannounced a group of Superfruits. Innocent drinks played off this cleverly and quicklydeveloped two different flavours containing whole pressed fruit and pure fruit juices thatboosted fibre and antioxidant intake. Playing off consumer conscious meant they had aquick burst off sales and they still have a high market share for their particular sector ofthe market but the growth of their sales have grown as consumers become moreintelligent against advertising campaigns.Existing ProductsKids Smoothies – little cartonsHighSmoothies – little bottlesAfter using orange juice in their smoothies for years, Innocent drinks decided to bring itout on its own. However, like the bottled water market, there are many companies whoproduce fresh orange juice but innocent claim that they are ‘setting the world’s finestorange juice free to pursue its solo career.’ Due to the competition of such brands asTropicana and supermarket own brand, Innocent’s orange juice has a small market shareand small market growth.Veg potsMarket Growth (%)Smoothies – big cartonsStarsAfter consumer research, Innocent found that a lot of parents wanted something healthythat they could put in their children’s lunchbox, which looked appealing enough for themto eat when their parents weren’t around. However as this product has only beenlaunched recently and that there are already existing products that fulfil this function, theproduct remains low in market share and growth.Question MarksKids Smoothies – big cartonsThickiesSuperfruits – big cartonsOrange JuiceLowSuperfruits – little bottlesFruit TubesCash CowsDogsHighRelative Market ShareLowInnocent’s most recent success has been the Veg pots that have been made ideal forlunch times. The Veg pots success is due to the fact that they are unique- a fast food mealthat looks attractive and contains three portions of vegetables along with whole grain.The high market growth is due to the simple advertising and the target at higher classbusiness personal as the product is available mainly in Waitrose supermarkets.The original Innocent Smoothie is how it all started and created the start of a new consumerwant. The Innocent Smoothie still continues to be one of Innocents best sellers and helpsthem hold 77.5% of the market share for smoothies. With a high market share and increasinggrowth, the smoothie will continue to be one of Innocent’s best sellers.

Product Marketing Mixbrand will most likely purchase a bottle of Innocent Water over a competitor; other sales will come from thosewho are curious to see if Innocent have produced a product that is of as high a quality as their previous products.A successful marketing mix ensures the right product is sold at the right price in the right place with theappropriate promotion. Presented below is a summarised marketing mix diagram and a short look into each ofthe marketing mix components that all focus around the central values of Innocent Drinks.Below is a mock up of how the labelling would look for Innocent Water bottles. To keep the new productconnected with the already popular branding, the label is very similar to that used on the smoothie bottles,however unlike the smoothie bottles, the background will be clear to help make the water look pure and natural.Along side other brands of bottles water, this label will stand out.ProductPriceFits with current brandMedium priceSimple, stylish & Eco appearanceIngredients:100% fresh spring water sourced from the rivers in theGrampian MountainsNothing added, nothing taken away.Priced between main competitorsHigh quality packagingPriced by qualityHumourous facts did you know?The Grampian Mountain range contains Ben Nevis,the highest mountain in Britain standing at 4,406ft.ValuesNatural - untouched by humansSophisticated - Stylish PackagingFun - Higher Class - Young at Heart*Prices sourced from Tesco.comPromotionLarge marketing campaignHigh awareness to target MarketWeak theory of advertisingReinforcing existing attitudesPlacementStart in the UKPlace in leading supermarkets500ml eSpread markets after market gain in UKwaterPriceProductTo enable Innocent Drinks to establish themselves in the bottled water market, the price will be similar to that oftheir competitors meaning Innocent Water will use a competition based pricing strategy.Core Product- To quench a thirstActual Product – A bottle of waterAugmented Product – Contribution to a charityHighInnocent Water will be a consumer product, bought by consumers for personal use. The bottle of water will be anon-durable product as it will be consumed quickly, will be widely available and there will be a minimum amountof comparison when lityHighWhilst this will be an up market bottle of water, compared toInnocent’s other products, the Product Line Length will be adownward stretch because the product will be lower in price thanInnocent’s Smoothies and Orange Juice. However, the quality willbe just as high as the other products in Innocent’s product profile.The quality will be ensured by sourcing the water from freshsprings and not adding or taking anything away from it. Fromresearch, this seems to be what has made potential competitorsso successful.These combinations of product strategies will ensure thatconsumer needs are meet. Those already loyal to the InnocentWhilst Innocent Water’s main competitor is Evian, with regardsto quality, it is important to consider other popular brands ofbottled water. As can be seen from the table left, there is a largegap between Evian and Volvic; Volvic is one of the most popularwaters in Europe, where Innocent will be pursuing a largeproportion of their market. Those who are already loyal toInnocent will not mind paying as much as they would for Evian if*Prices sourced from tesco.comthey believe the quality is good enough, however, it is importantfor Innocent to attract a range of new customers by having a competitive price to the leading brand. For a 500mlbottle of Volvic, the price varies from 0.50 up to 0.80 depending on where is purchased. It is felt the mostreasonable price for Innocent Water would be between 0.60 and 0.80 for a 500ml bottle. Sometimes if aproduct is too cheap it can put consumers off as they may believe the quality will not be very high, whereas ifthe price is above that of its competitor the quality will be assumed to be better. It may be a risk pricing InnocentWater above the price of its main competitor but it is believed it will pay off due to the brand loyalty andpersona that Innocent Drinks have already created.ProductEvianDeep River RockNestleVolvicIsklarPrice GBP per litre 1.10 1.02 0.40 0.39 0.70

need to be transported from Scotland to the bottling plant which will mean a small cost of transportation will bepassed onto the consumer.PromotionPromotion is the link between Innocent Drinks and thepotential consumer. By beginning with a large amount ofadvertising, Innocent can make consumers aware of their newproduct. Promotion campaigns should be kept similar to thosepreviously done by Innocent. The combination of highpromotion and middle market pricing will mean that Innocentis stuck between Rapid Skimming and Rapid Penetrationstrategies. The objective of rapid skimming is to capture thetarget market quickly with a reasonable price and largemarketing campaign. Rapid Penetration is when the price is setlower than the competitors and is like rapid skimming in that alot of promotion is done. These two strategies combinedshould allow for a successful launch for the ingMany bottles of water have blue labelling and the plastic that the bottle is made from is normally tinted blue tomake the water look more attractive. To make Innocent Water more predominant to those thinking ofpurchasing it, it is important that Innocent brand the product in the same way as their previous products to keptcontinuity throughout the Innocent Drinks should use the Weak Theory of advertising for the promotion of Innocent Drinks by maintainingawareness of the new bottled water product, reinforcing existing attitudes towards the brand and providereassurance of why the product is better than its competitors. Customers tend to repeat their pattern of thinkingand behaviour so by spreading brand familiarity and identification, Innocent drinks will retain customers.It would also be advisable for Innocent Water to support a charity, possibly buying incorporating Innocent Waterinto the big knit campaign that they already use. They could also sponsor sports events or teams to increaseawareness of the product.PlacementTo ensure that Innocent Water gains enough awareness, it will be placed alongside the already establishedproduct line in the UK to begin with. The bottled water market in the UK is not as saturated as mainland Europe;hence it will be an excellent location to launch the new product. Innocent Drinks are currently sold mainly inSainsbury’s, Tesco, Waitrose and Starbucks, so it seems suitable to place the bottled water alongside these,where consumers are already aware of what the brand stands for and so are more likely to purchase it. Oncethe market has been established in the UK it would then be possible for Innocent Water to be brought to theEuropean countries that the other products are in such as Ireland and Sweden.Purchasing and Sales ApproachesPurchasingInnocent Water will sit along side other bottled water brands in a supermarket drinks fridge, but willrecognisably stand out due to the iconic packaging that comes with the Innocent Brand. As the product is simplystill water, there is no need for product differentiation. As for the labelling it will contain different facts aboutthe source of the still water so late differentiation will take place for packaging. Production and packaging of thewater can take place in the same facilities as where the other products are produced. However the water willAs mentioned in the marketing mix, the competition for bottled is high. It is one of the most saturated marketsin the drinks market and therefore it is important that Innocent work to gain market share before searching forlarge profits. By gaining loyalty from consumers who will buy Innocent Water daily, a market share can beachieved. But it is important to consider that they will not achieve the kind of market share that they have withtheir smoothies as the bottled water market is so saturated.The price of the bottled water is mid range compared to its competitors and the reason for this was, again, toensure that Innocent Water gained a market share along side their main rivals.

channel.com/features profile.asp?pr id -5-a-day-effortshttp://www.innocentdrinks.co.uk/

A successful marketing mix ensures the right product is sold at the right price in the right place with the appropriate promotion. Presented below is a summarised marketing mix diagram and a short look into each of the marketing mix components that all focus around the central values of Innocent Drinks. Fits with current brand

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