Table of Contents

Task 1...............................................................................................................................................3

Section 1: PEST Analysis............................................................................................................3

Section 2: Summary of the PEST analysis..................................................................................5

Section 3: References..................................................................................................................6

Task 2...............................................................................................................................................8

Section 1:.....................................................................................................................................8

Section 2: Summary of the Five forces model.............................................................................9

Section 3: References................................................................................................................10

Task 3.............................................................................................................................................11

Marketing Mix of Innocent Drinks................................................................................................11

Introduction................................................................................................................................11

Organisational profile of Innocent Drink..................................................................................11

Product.......................................................................................................................................12

Price...........................................................................................................................................12

Promotion..................................................................................................................................13

Place...........................................................................................................................................13

Conclusion.................................................................................................................................13

References..................................................................................................................................14

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Task 1
Section 1: PEST Analysis.

PEST analysis (political, economic, social and technological) refers to a management tool by
which an organisation can evaluate external factors that influence its operation(Kenton., 2020).
PEST analysis for the UK office of Carnival Cruises is constructed below:

Factors Impact Response by business

(high/medium/low)

Political-
High (Government may
 Post-Corona impose higher taxes on Carnival Cruiseshould convince
Taxation travel industry)(Ben2020). the government for not exposing
higher tax on them. Because,
after the pandemic ends, there
will be an economic recession.
Furthermore, it will be tougher
for the organisation to pay higher
taxes during that period.
 Passengers’ security High(the UK government
and safety gives new Guidelines Carnival Cruiseshould make the
regarding local and foreign government believe that they
travellers.) (Paul R. La give proper guidance to the
Monica 2020) passenger’s safety and security.
 Post corona laws
regarding foreign High (Travel ban from the The company should obey this
tourists acutely affected country government rule and co-operate
will reduce the amount of to get financial funding in future.
passengermassively)(Paul
R. La Monica 2020)

Economic-
High (Cruise ships will lose Carmival Cruise should reduce
 The potential their travellers much theticket fee to attract travellers.
negative impact of because due to corona
Corona. effect people will tend to
save money rather than
spending on travelling).
(Elizabeth 2020)

 Fluctuation in the Carnival Cruise should sort out

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 exchange rate. the currencies that will drop and
Medium (There will be give less effort(promotion,
fluctuation in the exchange extended service) on those
rate, and value of many country’s passengers.
currencies will drop).
 High Price of
marine fuel Carnival Cruiseshould reduce our
High (There is a reliable promotional offers to make a
prediction of fuel price to fund for high priced fuel.
go up,which will have a
 Unused workforce significant impact on cruise
ships).
The company should lay off
Medium (The company has some of the workers to reduce
many employees who are cost in this economic downturn.
not giving any return
because currently, the
sailing is off)

Socio-cultural
Medium (Travelers from
 Cultural diversity different countries have
 Change in People’s different demands).
travelling pattern High (Cruise lines are
losing passengers to air
industry because ofpeople’s
change in travelling
pattern).(Elizabeth2020)
The company should consider the
demands of consumers from a
different culture to remain
competitive in the industry.
The company should offer more
servicesata lower price than the
competitors in the tourism
industry.

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 Technological-
 Making it in online
High (People love sharing The company should enable
their feelings during the internet connection in the fleets.
journey. So, providing
internet connection in the
fleet will have a huge
impact.)

 Enabling advanced
features and
procedure The company should focus on
High (Online ticket adding more advanced features to
booking, advanced engine, get advantages over the
fleet.)(Chih-yun-Heshie, competitors.
2020)

Section 2: Summary of the PEST analysis.

Nowadays, the cruise industry is too much capital-based and dynamic. A PEST analysis has been
conducted for identifying effectiveness and efficiency of the Carnival cruise in this industry. It
shows that in the political environment, the Carnival cruise has some potential threats. Because,
due to COVID-19, there is a strong chance of economic downturn and hence the government
may impose a higher tax on this kind on the industry to compensate on other sectors (Elizabeth.,
2020). Some expert opinion suggests that the government will not increase or impose a tax on an
industry that has been acutely affected by COVID-19, and this industry is one of the most
affected industries(Ben.,20200. So, there is a hope that the government will cut tax for us and
help us sustain in the market.Thegovernment has also banned passengers from some countries
which will run in lower passenger for the company. One good sign of political environment is
that the government remains strict to their rules and regulation. They do not often change it in the
name of the experiment. They also patronage industries that suffer from an unfortunate economic

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situation. Although the Carnival cruise is the market leader of this industry, yet, they are facing
some issues from the economic environment. Because, due to the pandemic (Corona), there is an
economic downturn and people are less interested in travelling. Exporting and importing
between many countries are also banned because of COVID-19.Bcause of that the company
currently do not have a much-scheduled sailing date. There is also a threat from the fluctuations
of currency rates because the economy of many countries is stalemated and people are less
interested in making unnecessary cost in travelling purposes. Because of the worldwide
stalemate, the fuel price is going very high, which is a significant threat. Because the industry is
losing consumers and at the same time, maintaining cost is also going very high(Paul R. La
Monica 2020).

Along with that, currently,CarnivalCruiseis not sailing because of COVID-19, and the company
have many employees who are out of work, and theyare to be paid, which is increasing the fixed
cost. People from different culture have a different way of travelling, but as a market leader,
Carnival cruise has a proper positioning over people’s mind. Furthermore, last but not least, the
company is enjoying a tremendous competitive advantage over the competitors in the
technological field. Carnival has enabled fully online method of ticket booking and internet using
the opportunity in the fleetwhich makes it different from other service providers in the industry.
However, here are some threats from the air industry. (Ben2020).Carnival Cruise has a little
advantage over them in terms of ticket fare. So, if the company can reduce the ticket fare and
healthily run promotional programs,they can beat them too. It can be concluded here that, due to
the pandemic of COVID-19 currently the company is facing some troubles, and shortly, it can be
worsened. So, Carnival Cruise must be prepared for that.

Section 3: References
Anon., 2020. Home | Carnival Corporation & plc [viewed 14 July 2020]. Available from:
https://www.carnivalcorp.com/index

Becker E., 2020. How hard will the coronavirus hit the travel industry? [viewed 14 July 2020].
Available from: https://www.nationalgeographic.com/travel/2020/04/how-coronavirus-is-
impacting-the-travel-industry/

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Ben, 2020. Will coronavirus mean I have to pay more tax? [viewed 14 July 2020]. Available
from: https://www.bbc.com/news/business-52663523

Fern Fort University, 2020. Carnival Corporation PESTEL / PEST & Environment

Analysis[Strategy] [viewed 14 July 2020]. Available from: http://fernfortuniversity.com/term-
papers/pestel/nyse4/2641-carnival-corporation.php

Kenton.,2020. PEST Analysis [viewed 14 July 2020]. Available from:

https://www.investopedia.com/terms/p/pest-analysis.asp

PAUL R. LA MONICA, C., 2020. Carnival loses $4.4 billion as coronavirus slams cruise
industry [viewed 14 July 2020]. Available from:
https://edition.cnn.com/2020/06/18/investing/carnival-cruise-earnings/index.html

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Task 2
Section 1:
Five Forces Analysis – UK Cruise Industry

Current Competition:
 (-) The cruise industry is an oligopoly market
 (+) Brand
 (-) Product Differences
 (+) Unbalanced Competition
 (+) Economies of Scale
 (-) This industry is subject to substantial mergers and acquisitions
 (-) High exit & entry barriers

Potential Competition (or threat of new entry)

 (+) High barriers to entry
 (+) Economies of Scale
 (+) Government Policy
 (+) Brand
 (-) Proprietary Product Differences

Bargaining Power of Buyers

 (-) Buyer Information (TV-Internet Media)
 (+) Brand
 (+) Non-Concentrated

Power of Suppliers
 (-) Rely on limited numbers of ship suppliers
 (-) An extensive amount of switching costs-to curb buyer pressure
 (+) Travel Agencies (16000 affiliated CLIA agencies)

The threat of substitute Products or Services

 (+) Proprietary Product Differences
 (-) Many indirect competitors
 (-) Buyers propensity to substitute

Section 2: Summary of the Five forces model.

Current Competition(rivalry): With 5-Yr CAGR sales at 16.9 percent, the Cruise Ship industry
is the fastest-growing segment of the leisure travel market. With three incumbents (Carnival,

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Royal Caribbean, and Star) dividing 79 percent of the market, it is highly concentrated atop. The
balance between Carnival (47 percent market share) and Royal Caribbean (22 percent market
share) is also comparatively unbalanced. With hundreds of cruise lines in action, the remaining
market is highly fragmented. Competition between the companies in this industry is intense. The
rivalry is encouraged by the high cost of fixed assets. The utilisation level must be maintained at
100 percent for cruise line companies. Companies in the cruise line industry must leverage their
fleets at fixed costs to boost operating profits. Hence, at this stage, the companies in this industry
are in danger of fierce competition(Anon, 2020).

Potential Competition (or threat of new entry): There are high barriers to entry into this
industry and incumbent favour. For a fact, the market is a duopoly between the Carnival and
Royal Caribbean. Because incumbents can leverage fixed costs through larger fleets and larger
ships, they benefit from cost savings achieved over economies of scale. One major disadvantage
of being an incumbent in this industry is that there are no significant differences between
proprietary products, as competitors can imitate most amenities, excursions, and ships. As a
result, the risks of new entrants is very low in this industry(Chih 2020).

Bargaining Power of Buyers: In the cruise, line industry buyers hold some authority. The
increased access for customers to information through trade papers, TV and/or the Internet has
weakened the influence of cruise line operators and travel agents. There is a huge amount of
information for consumers to make decisions. Most travellers usually know precisely what they
want when they visit a travel agent and/or book an online trip. The percentage of passengers who
book online cruises is still much smaller than initially expected in the UK (as in the US). There
is, however, a growing awareness that a proactive Internet presence will be crucial to the success
of a retailer in this sector. Thus, the buyers ' bargaining power is moderate to weak, because
switching costs for customers are high when considering the valuethey receive with CCL despite
viable options.
Power of Suppliers: Because of high supplier switching costs and a handful of potent supplier
concentration, it puts some stress on the cruise companies. Still, Supplier bargaining power gets
weaker as travel agencies go away, and customer dealing costs are minimised.

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The Threat of Substitute Products or Services: Carnival Cruise may need to address the threat
of substitute products, as there are viable options beyond the company. Nonetheless, by giving
the customer great value for the price, Carnival Cruise has placed itself very well to cope with
the rivalry. In their own words, they want to meet the standards of the customer to the best of
their capacity. It will bring value to the company, as it will undoubtedly increase the willingness
of the customer to pay and choose them over the alternatives(Hsieh 2020).

Section 3: References
ANON., 2020. Assessment of carnival cruise lines competitive position [viewed 14 July 2020].
Available from: https://www.ukessays.com/essays/information-technology/assessment-of-
carnival-cruise-lines-competitive-position-information-technology-essay.php?
fbclid=IwAR3Zl5XNZkPyB0zMmEOL8cDiOMyQq6mwGCLs1cUhnlFpZAml9ldJAg81iLw

Anon., 2020. Carnival Cruise Lines Competitors, Revenue and Employees - Owler Company
Profile [viewed 14 July 2020]. Available from: https://www.owler.com/company/carnival

ANON., 2020. Home | Carnival Corporation & plc [viewed 14 July 2020]. Available from:
https://www.carnivalcorp.com/index

HSIEH, C., 2020. An in-depth strategic analysis of Carnival Corporation & plc 2012-
2016 [viewed 14 July 2020]. Available from: https://www.academia.edu/33397765/An_in-
depth_strategic_analysis_of_Carnival_Corporation_and_plc_2012-2016?
fbclid=IwAR1yXX4cdOmVt2y2fhQdaCE3CvPJg5i5yFp9cNcoUn7zqPecUBit-6z5jlQ

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Task 3

Marketing Mix of Innocent Drinks

Introduction
The 4Ps of marketing are known as the product, price, promotions and distribution(place). These
4Ps are mainly based on customers and the way of satisfying them and making them maintain
their relationship with the organisation. Customers’ satisfaction and gaining their trust have a
significant influence in ascertaining the success of an organisation(Kotler and Keller 2020).

Organisational profile of Innocent Drink

Innocent Drinks started its journey of producing drinks in 1998. The name ‘Innocent’ implies
that the products of the organisation are naturally made, hygienic and unadulterated. Whatever a
person finds in an innocent bottle will always be 100% hygienic and savoury -and if it is not,
make us beg for forgiveness” (Innocent Drinks, 2006). It deals with the production of drinks
made of its cow milk and fruit drinks. It has a diversity of brands of drinks, which are produced
to provide ecstasy to its customers. The range of its product varies from smoothies; with a brand
for children and other option like superfoods. The target markets are the adult people who want
healthy foods and the parents of the children. The product brand of the organisation has gone a
long way in developing the organisation’s identity since the beginning. From 1998 to 2002, in
just four years, the turnover rose from £0 to £10.6 million, Sales increased to £80 million in 2006
and surpassed over £100 million in 2007. The electrifying raise in profit guided innocent to
massive success in the just five years (1999-2003). For the next five years (2004-2008), the
propagation was a massive success throughout the middle of Europe (Innocent Drinks 2020).

Innocent Drinkssegemetns the market based on the age and life style of people. Based on their
segmentation they target a particular range of customers for their products. Their main target
customers are the adults who want a healthy lifestyle. They also target the childrens but as the

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childrens are controlled by  parents they run promotional activity towards the parents.

4.5

3.5

2.5 Carbery
Vita Coco
2 Innocent Drinks
Jasmine
1.5

0.5

0
1.5 2 2.5 3 3.5 4 4.5 5 5.5

Graph 1- Market Share of Innocent drinks and its competitors.

The graph above describes that the major competitors of the Innocent Drinks are Carbery, Vita
Coco and Jasmine. They position themselves in the mind of the customers with their environ
friendly , authentic and delicious producst.Cureently Innocent Drinks are the market leader with
40% market share followed by Carbery 30%( Charolotte 2020).

The marketing mix(product, price, place and promotion) of the Innocent Drinks are explained
below:

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Product
For ensuring the long-term growth of a company, it is essential to bring out new products and
services. The first item of smoothies (250ml) of Innocent, labelled “innocent”, was inaugurated
to the public in 1999. At the initial stage, not much effort was given in introducing new products.
Nevertheless, the company was continuously launching new flavours and formats to improve
brand awareness among consumers. In 2003, Innocent established four new recipes for the
remaining ranges, an extent of two great smoothies and three more tastings of a brand range
known as Juicy Waters. New items of products were brought to the market in the second phase,
particularly, the kitchen pots in 2008 and fruit mangers in 2009.From 1999 to 2003, the company
concentrated on spreading its remaining smoothie product range rather than developing entirely
new items such as cream or yoghurt. Innocent’s sales massively benefited from new product
development.

Price
The pricing strategy was to accumulate the factor for generating profit. The main objective of
creating the marketing mix of the company was to ramp up the sale of the given product or
service.So,the strategies for producing, placing, pricing and promoting are generally taken to
provide the customer with a specific product and the product should be at the catch of the
customers. The pricing strategy of the Innocent Drinks was to keep the price always stable, and
the price of all over the ten countries of Europe it distributed was the same.Innocentemphasised
on becoming an ethical company that produces environ friendly products. It contributed to its
financial function because most of the consumers were ready to pay a high price for an ethical
product, mainly produced by a company with a high sense of sustainability and social
awareness(Anon, 2020).

Promotion
If manufacturing a product is the creation of a drama, promoting is the stage performance of it.
Innocent Drinks has made itself known and established a strong brand through which it operated
its promotion and reached to the target customers. We can see the cow van of Innocent Drink
reaching all over the counties to deliver the products, which is the part of a promotional strategy
to make the customers aware of the drink all the time. Innocent Drinks owns organised websites,
which were the primary sources of the promotion for the market inside and outside the United

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Kingdom, where it used the same structure amid the presence of different languages. The
resemblance of the websites made it introduced and reminded for the customer it targeted.

Place
The distribution network has an essential function between the marketing and supply chain
interface. Innocent focused on researching distribution networks, and the findings helped the
company reach into a decision that into the sales effort should emphasise London-based distinct
channels for the primary stage. Along with that, Innocent gave some power to their retailers as
they could dominate the order amount. Changing power relationships from the organisations to
the retailers was a massive decision because by transferring the power to retailers, the innocent
reduced the wastage of products(Anon., 2020).

Conclusion
Innocent Drinks since the very beginning of their journey have come over this long way through
integrated marketing tactics. Their combination of 4Ps and the implementation of these in the
practical business field indicates their organisational prudency.

References
ANON., 2020. How smoothie brand Innocent became a bestseller [viewed 14 July 2020].
Available from: https://www.bbc.com/news/business-43542605

ANON., 2020. Marketing Mix Of Innocent Drinks Organisation Essay - PHDessay.com [viewed

14 July 2020]. Available from: https://phdessay.com/marketing-mix-of-innocent-drinks-
organization/

Innocent Drinks., 2020. innocent - little tasty drinks [viewed 14 July 2020]. Available from:
https://www.innocentdrinks.co.uk/

CharolotteBrodtkorb., 2020. GRIN - Consumer Behaviour Analysis. The "Innocent"

Smoothie [viewed 14 July 2020]. Available from: https://www.grin.com/document/448720

ANON., 2020. the innocent news [viewed 14 July 2020]. Available from:

https://www.innocentdrinks.co.uk/static/webnews/040414/040414_WEBNEWS.html

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