The business economics is a field of study which is applied in study of different factors like market related changes, financial, organizational and others. The report will state about the business of Innocent Drink that sells smoothies from fresh juices. Further it will state the non- traditional way of doing business of Innocent Drink Moreover, it will highlight the behavioral economic theory of Nudge and also state about the decision of selling Innocent to Coca- Cola is right or not. The report will outline the environmental analysis of Innocent Drink. It will highlight the strengths and weakness of Innocent Drink along with the opportunity and threats. The report will suggest some recommendations for Innocent Drink related to threats of the business.
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TASK: A
Non-traditional way of doing business
The non- traditional ways of doing business helps the business making its business model different from its competitors. This is based on new and unconventional marketing methods. This non- traditional way of doing business of the company is use innovative methods so that able to reach target audience with a new way and capture the interest. The customers also take non- traditional advertising as more authentic and relevant. The Innocent Drink use non-traditional ways of marketing that are as follow-
Guerrilla marketing- The innocent Drinks use guerrilla marketing camping to attract the customers or public in more personal and unforgettable manner. These way uses by the company in public areas in the form of print and online. By using this, the company get lots of benefits such as it is cost effective method for doing advertising, it help to increase brand awareness of innocent drink as the company effectively communicate the message to wide audience which help the company to stand different from its competitors (Nufer, 2021). There are some disadvantages of it to Innocent sometime it can be irrelevant or can make controversies which impact brand image.
Social media marketing- Marketing through social media by Innocent is a non- traditional way of doing business. These days, social media plays important role in getting the attention of customers for the product and help in getting business popular and grow. With this, the Innocent effectively attract number of customers. For this the Innocent post humored content, it engages more customer base and indirectly increases customers for the Innocent Drinks. The benefits in several ways like increasing brand image and generating finances through engaging more traffic and increasing sales as well as some disadvantages like it is time- consuming and sometimes the image of company suffer due to unfavorable comments. Innocent have proceed to Face book and Twitter and have a 9th largest following in the UK (Fafa, 2022). The company also has blogs and YouTube videos. The company believes it is a better way to communicate and engage with the customers.
Content marketing- The innocent uses content marketing for its Innocent Drink business. In this the company creates an authentic and relevant content that help the business to attract potential customers towards its drink products. It can be in the form of blogs, social media post, emails and videos (Ho, Pang and Choy, 2020). The advantage of this strategy is that when a business publishes information publicly with a good research, it is seen as more trustworthy. More authentic and relevant information grab attention of more customers and will buy more products from the company. The disadvantage is it is a long process and benefits from this can`t be get immediately.
Email Campaigns- The email marketing helps the business to effectively communicate with its customers. It is a powerful medium to connect and build a strong customer base. It not only helps in increasing sales but also build brand image of the company. The Innocent provide information of new product or smoothies to its customer with the help of email, this lead to engage customers with the company (Olson et al., 2021). With the help of email, Innocent can gather data about customers, these help to create good promotions for the customers. It helps the Innocent to get the feedback from the customers so that innocent address the problems related to taste of its drink and make some corrections so that satisfied the need of the customers.
Company website- The innocent Drink uses website marketing for its business, it is a procedure involves promoting company website on the Internet. The main objective of this marketing to increase the visits to company`s website. The advantage of this marketing strategy is that it help innocent to do marketing for its product to increase access to target customers with cost effective manner. The disadvantage of marketing through company website is that it is time-consuming.
TASK: B
Use of Nudge theory to evaluate selling decision
The Behavioral Economics Theory, Nudge is applied to influencing and motivating change in people and groups. It is utilize to understand the current influences how people behave and change the influences that are unhelpful. This theory is related with the design of choice, which impacts the decision that people make (Hortal, 2023). Designing of choice is based on how people think and make decision rather than how authority believes people think and make decision. In other words, Nudge is a way to influence and manipulate choice of people to make particular decisions.
The unhealthy food and unhealthy diet leads to several diseases like diabetes and heart disease. Unhealthy diet is the reason of overweight which is a risk factor and cause of death in human beings. The government also take some initiatives to bring changes in people`s health behavior like bring change in diet, reducing habit of smoking and increasing physical activity for keeping a healthy life of people (Kwan et al., 2020). There is a method used to influence change in behavior known as Nudge Theory. The theory introduced by Richard Thaler and Cass Sunstein in 2008.
The innocent drink sell its 10 to 20% share to Coca- Cola in 2009 which was in 2013 the 90% shares are owned by Coca- Cola. As the innocent drink is a business and operates for the purpose to earn money instead of it uses business strategies that are ethical and sustainable. The Innocent earned money from the deal of Coca- Cola and get an advantage of Coca- Cola popularity. It helped Innocent to make money by using the advantage of popularity and extent of sale of Coca- cola products. But the decision of selling its part of business is not right due to several reasons. The Innocent drinks make smoothies using natural ingredients like fruits and the Coca-Cola produce carbonated drinks. As now- a day’s people are more health conscious, They prefer healthy products rather than unhealthy products, it is loss for Innocent because it is known for its fresh smoothies made of natural ingredients, the company lose its brand reputation. The drinks that offer by Coca-Cola are responsible for weight gain as it use more sugar in its soft drinks. The Innocent use green and ethical policy for selling its products in terms of fresh juice and recycle plastic bottles to fulfill its responsibility towards the environment and society, but selling business to Coca- Cola is a criticism for company as it is not use good policy to sell business such as it use sugar in drinks, doing advertise to attract kids for the product, not using eco-friendly packaging (Ngugi, O'Sullivan and Osman, 2020). The decision of selling business to Coca- Cola is not good for Innocent as it bring both brands down. The Innocent good brand reputation and satisfied customers with a good market share help the business to achieve its goal of high profit as the drinks offered is highly demanded. The decision of selling to Coca- Cola is quite dissatisfactory and not good.
TASK: C
PESTLE Analysis of Innocent Drinks
The PESTLE analysis helps in evaluates the external business environment in which innocent drinks operates its businesses, it is aids company to identify changes which affect the business in the future. These are as under-
Political- The political factors are related to the rules, regulations and guidelines by government for food and drinks. The guidelines are related to food safety and labeling for meeting the standard level by the food and drink manufacturer (Chigangaidze et al., 2023). In UK the other political factor include Brexit that have impact on innocent dinks like trade agreement and possible opportunity like new market access and threats like trade tarrifs that rise from these.
Economic- The economic factor include taxation that impact on profits of Innocent drinks. The economic condition of UK impacts on the innocent smoothies and juices sale because of its high price and availability of low price substitutes. Because of this, import of raw material become expensive, it also impact on cost of sale, if prices of food rise.
Socio-Culture- The factor include in this like change in consumer taste, it helped innocent to become successful because of its natural ingredients and expensive price. The innocent efficiently understand the increasing interest of consumers related to health consciousness and readiness of consumer to pay high price for this.
Technological- The technological factors included new procedure, method and techniques of production like recycling. The Innocent is trying to search new ways to reduce plastic impact on environment and presently it uses 100% recycled plastic for bottles (Innocent Swot and Pestle Analsis, 2024). Another technological factor is social media that help Innocent in connecting with its customers.
Legal- The legal factors include taxation, law for health and safety and food manufacturing that must obey by Innocent. Due to Brexit, there are substantial changes in legal framework. The legal issue also includes financial reporting. The Innocent have to follow all government legislation regarding safety laws.
Environmental- The environmental factors are important for innocent because it is dependent on natural ingredient and its commitment towards sustainability. The reduction of carbon footprint by Innocent helps in reducing the impact of climate change that impact on harvesting of vegetables and fruits. An improvement in production processes and resources use, Innocent able to reduces water uses and wastages.
Brand reputation for quality and innovation- The innocent offer high quality smoothies made from fresh fruits, with a storage life of 8 days. They make deliver services regularly as results the brand has benefit of zero waste (Pereira et al., 2021). It has 32 kind of label which changes in 3 months. On the packaging a joke is written and adds a extra ingredient on bottle like ‘0 x Plastic Duck’. It helps Innocent in creating brand reputation with innovation.
Big market share- The market share of innocent is very huge. In UK, it is No. 1 Smoothie brand. In domestic market, it has 63% market share. Innocent has 7000 outlets and it sales 1 million smoothies each week.
Efficient Management staff- The staff and management personal of Innocent is highly experienced and possess all previous market knowledge. The company has a efficient and skilled workforce that help the company to grow and succeed.
Strong Customer relation- Innocent has good relation with its customers. It has ‘open door’ policy to motivate customer to visit the head office. Innocent encourage customer to call the ‘Banana Phone’ where customer provide ideas, opinion to enhance Smoothie product, it helps to satisfied customer needs.
Weakness
High price- One of the weaknesses of Innocent is that it charges high prices for its smoothie products. The customer with low income can`t afford to buy Innocent Drink.
No proper segmentation of market- The Innocent for its product only targets young children adults in the market. The company not serves the needs of elderly consumers. For the satisfaction of all age customer, innocent make some focus.
Opportunity
To increase market share- Innocent caters its customers with healthy drinks. The government also tries to make people aware about healthy drinks and diet. It is good opportunity for the Innocent to work with the government, it will help Innocent to achieve its objective. As consumer becomes more health conscious, it is opportunity for business to increase more market share.
Threats
Competitors-The Innocent have threat from its competitors like’ Tropicana’. The company also offering healthier juices like smoothies in market at a low price, it lead to decrease some market share of Innocent. The market share of Tropicana increases in past few years with more variety. The Innocent range of product is small, it is threat because people like to taste new products.
Weather threats- The changes in weather are a threat for business that uses fruits for the business. The cyclone and storm affected the growth of fruits and its supply chain (Innocent Swot and Pestle Analsis, 2024). It is a big damage for Innocent, it lead to impact supply chain of fruits. Hence, supply of Innocent drinks affected.
Difference in language- The role of language in success of Innocent Drink is important as the company use funny and little lines written on the bottle of drinks. Sometimes, it is considered as a threat because difference in language lead to communicate wrong message when it is not translated well.
Every company has to face some risk in the business. For Innocent Drink, competition, weather changes and language difference is a risk because this factor is a barrier for the company`s success and it also lead to decrease market share hence revenue and profits.
Recommendations
Some recommendations are as follows-
The Innocent Drinks should add more varieties to its current product range as in today`s time the customer likes new product with new taste. It also helps the company to give a tough fight to its competitors.
The Innocent should make its drink product while keeping in mind the taste and preference of all age group people because recently it is not producing drinks for elderly people.
The company should decrease price for its products so that everyone in market with different income group can enjoy the drinks (Ghicajanu, 2021).
Innocent Drink do business globally, it should give consideration on writing funny jokes with little stories. It should keep in mind that any faulty or incorrect message is not interpreted by the customers of other country due to difference in language because it can harm the reputation of the business.
Conclusion
As expressed, the report is based on the Innocent Drink business. The report is stated non- traditional way of doing business of Innocent Drink such as Guerrilla marketing, content marketing, social media and so more. The report stated about the decision of selling part of Innocent Drink to Coca- Cola using Nudge theory of behavioral economics, it helped to motivated change in people. The report contained PESTLE of the company to know the external factors that affect the environment of business. It also highlighted strengths like market reputation, big market share, efficient management staff and weaknesses such as high price. The report also contained potential threats like competitors, weather threats, language barriers and opportunity like increase market share with the help of government for the attainment of company goals.
References
Books and Journals
Chigangaidze, R.K., Mafa, I.H., Simango, T.G. and Mudehwe, E., 2023. The relevance of Ubuntu in disability: A political, economic, social, technological, legal, and environmental (PESTLE) analysis. In Ubuntu Philosophy and Disabilities in Sub-Saharan Africa (pp. 18-29). Routledge.
Fafa, K., 2022. Social Marketing campaigns and User Experience: A case study of Innocent Juice Company.
Ghicajanu, M., 2021. Application of SWOT technique in business management. Annals of the University of Petros?ani. Economics, 21(1), pp.161-168.
Ho, J., Pang, C. and Choy, C., 2020. Content marketing capability building: a conceptual framework. Journal of Research in Interactive Marketing, 14(1), pp.133-151.
Hortal, A., 2023. Evidence-based policies, nudge theory and Nancy Cartwright: a search for causal principles. Behavioural Public Policy, 7(2), pp.333-352.
Kwan, Y.H., Cheng, T.Y., Yoon, S., Ho, L.Y.C., Huang, C.W., Chew, E.H., Thumboo, J., Østbye, T. and Low, L.L., 2020. A systematic review of nudge theories and strategies used to influence adult health behaviour and outcome in diabetes management. Diabetes & metabolism, 46(6), pp.450-460.
Ngugi, I.K., O'Sullivan, H. and Osman, H., 2020. Consumer Behaviour in Food and Healthy Lifestyles: A Global Perspective. CABI.
Nufer, G., 2021. Innovative digital guerrilla marketing. International journal of innovation, management and technology: IJIMT, 12(3), pp.40-44.
Olson, E.M., Olson, K.M., Czaplewski, A.J. and Key, T.M., 2021. Business strategy and the management of digital marketing. Business horizons, 64(2), pp.285-293.
Pereira, L., Pinto, M., da Costa, R.L., Dias, Á. and Gonçalves, R., 2021. The new SWOT for a sustainable world. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), p.18.
Online
Innocent SWOT and Pestle Analysis. 2024. Online. Available through: <https://www.termpaperwarehouse.com/essay-on/Innocent-Swot-And-Pestle-Analsis/125939>
