Marketing Innocent Smoothies and the Potential Threats Essay Example

competitors). Therefore, own label smoothies have capitalized on the market share by offering a cheaper option.

Supermarkets have reduced the space available for Innocent smoothies due to the increase in their own label products. The reason for this is that supermarkets make more money from their own label products. As a result, if branded products like Innocent want shelf space, they have to pay more when competing against own label products. However, customers generally prefer branded products because of their brand loyalty, awareness, associations, and perceived quality. For instance, customers specifically visit Sainsbury's to buy Innocent smoothies. If Sainsbury's does not stock them, these customers will go to a different supermarket instead. To attract customers, Sainsbury's strategically places the best-selling smoothies in prominent locations. Additionally, Innocent's higher price makes them more appealing to retailers because they generate higher profits. All these factors contribute to the positioning power of Innocent products and enhance the value of their brand.

Brand Identity, Loyalty and Equity

Design plays a crucial role in the product, influencing its appearance, functionality, and composition (Brassington, F. Pettitt, S. 2007). Innocent faces the challenge of differentiating their product from own label and other smoothie brands. Establishing a strong brand identity is essential for Innocent to persuade consumers to pay a higher price for their smoothies.

The brand name of the products, 'Innocent', implies positive intentions and that the products themselves are beneficial for one's health. The packaging of the products is lively, distinctive, and uncomplicated, which aligns with the brand name. On the front of all Innocent products, there is a depiction of a round piece of fruit as an angel, establishing a connection between the image

and the name, thereby enhancing brand identity. Innocent has effectively increased brand worth through association, perception, and reputation.

According to Gummesson (2003), the green relationship focuses on how a company handles environmental and health concerns in the products it offers. Innocent Smoothies, in their online statement, express their goal of becoming a sustainable business that has a positive impact on the environment. Coddington (1993) affirms the importance of environmental marketing as a necessary strategy. Innocent Smoothies fully embraces this strategy, enhancing the value of their smoothie products and establishing a reputation for environmentally-friendly goods.

Innocent is dedicated to contributing to society by giving 10% of their profits to charity. They also prioritize sustainability in their production process and meticulously choose the best ingredients for their products. These factors impact consumers' decision-making, as they are aware of the repercussions of their choices. However, consumers' purchasing behavior is also affected by their financial capacity, which has gained significance since 2007.

The manufacturers are now tasked with convincing budget-conscious consumers that it is still crucial to maintain a healthy diet (Alarcon, C. 2008). Consequently, consuming an Innocent smoothie can be viewed as an expression of personal values. By presenting Innocent smoothies as both eco-friendly and a superfood, they have effectively appealed to numerous UK consumers who aspire to adopt a specific way of life (Refer to appendix C for more details on consumer preferences). This environmentally-aware strategy has distinguished them from generic store-brand products by establishing a distinctive brand and cultivating customer loyalty.

When Coca-Cola bought a 60% stake in Innocent, there was a perception that Innocent's founders had "sold-out," resulting in a negative response from consumers (Macalister, T. Teather, D. 2011).

Despite attempts by Innocent to keep this information hidden from the public, as it goes against the values associated with the brand, the fact remains. In addition to concerns about the association with Coca-Cola, smoothies have also faced criticism regarding their impact on dental health. According to Adams, S (2012), surveys indicate that half of five-year-olds show signs of enamel damage caused by the acidity in drinks like smoothies. However, despite these challenges, consumers still view smoothies as a healthy option, and the focus on providing children with a nutritious diet benefits Innocent. Recent sponsorship of the London Olympics also serves to realign Innocent with its original values and reminds consumers of the brand's core principles.

In order to maintain a competitive advantage, businesses must innovate and cater to the changing needs of customers (Brassington, F. Pettitt, S. 2007). Innocent Smoothies has extended their line of smoothie products by introducing new options such as juicy drinks, kids smoothies, kids juicy drinks, and vegetarian pots. These offerings have been marketed under one overarching brand to instill trust in these new additions. The launch of these products aligns with the current societal trend towards healthier eating habits promoted by the government's campaign advocating for five servings of fruits and vegetables per day.

Innocents has capitalized on their reputation as a wholesome choice by aligning with the Food Standards Agency's suggestion of including five portions of fruits or vegetables in one's daily diet (BBC news. 2011). This strategic move has enabled them to meet the evolving preferences of consumers who are becoming more knowledgeable and seeking healthier alternatives. Consequently, Innocent has crafted a brand that consumers are willing to pay

a premium for. The deep connection they have forged with consumers from day one is unmatched and not easily replicable (Bainbridge, J. 2006).

BIBLIOGRAPHY
Adams, S. (2012) Healthy' smoothies not so innocent for teeth, says dentist. [Online] Available at: http://www.telegraph.co.uk/health/healthnews/9013144/Healthy-smoothies-not-so-innocent-for-teeth-says-dentist.html [Assessed on 6/03/12]. Alarcon, C. (2008) Own-label brands could benefit from smoothie slow-down. MarketingWeek, [Online] Available at: http://www.marketingweek.co.uk/own-label-brands-could-benefit-from-smoothie-slow-down/2063315.article [Assessed on 6/03/12]. Bainbridge, J. (2006) Sector insight: Smoothies-five-a-day helper. Marketing. [Online] Available at: http://www.marketingmagazine.co.uk/news/608623/ [Assessed on 6/03/12].