NAME: MALATE, MONICA MALICDEM

BLOCK & COURSE: 1.3 BSBA-MM

PROFFESOR: MR JAY RYAN CRUZ, MBA

CASE STUDY:

Launching innocent into the growing fruit smoothie market.

Questions

1 Innocent is very clear about the image it wishes to project to the public. This is one based on being.

different, fun-loving, and having a care-free approach to life. This hippie-style image has helped the
brand. Become acceptable to the young urban professionals at which it is aimed. But beneath the
surface of this image there is evidence of a business that could be characterized as single-minded,
profit-driven, and very business orientated. Where is the evidence of the latter?

Answer: the fun-loving, hippie style carefree approach portrayed by innocent clearly resonates well
with its target market, young urban professionals leading to the company being successful with respect
to the intended audience. Beneath the surface, however, innocent’s image could be characterized as a
single-minded profit driven and business-oriented company because all the cofounders are of privileged
backgrounds. Their backgrounds therefore do not reflect the rags to riches story the company seeks to
tell. Secondly, the singlemindedness approach of innocent is portrayed in its NPD process, right from
their business idea creation to screening all the way through evaluation and product development.

2 The success of the business is based partly on extremely good communications with retailers. How is
this achieved?

Answer: The three founders managed to have their first product launched with sandwich group and
believing that smoothie runs well with sandwich and local delicatessens. Furthermore, innocent created
unique communication by using newspaper to its retailers which included product information and fun
stories. The design of the copy was also considered very well intention to break down the barriers
manufacturers and customers.

3 What type of financing did innocent secure? Does it matter?

4 Would you have sold the company to Coca-Cola for £200 million? As one of the shareholders you
would have pocketed tens of millions of pounds. If not, why not?

Answer: I or we choose yes because of the following:

*Innocent product is lack of differentiation strategy.

*Product is easily to copy by competitor

* Harsh competition in food & beverage industry

5 Innocent benefited from a key advantage: what was this and explain how it helped in the product.

development process.

Answer: Constant innovation and refusal to compromise. This key advantage is crucial to keep
innocent products sell on the shelf. Innovation is needed when a product is in red ocean market, in
which failure to develop new concept will to a decrease in market share.

6 How is innocent ‘virtual’ and how is this different from traditional food and drink manufacturers?
What advantages and disadvantages does this provide?

Answer: weakness of the product is that innocent doesn’t have its own, manufacturing and supply
chain. So, they use the other companies’ product such as bottle, packing for the smoothie based on the
contracts comparing with other manufactures. Other aspect: Quality, reliability, leakage of intellectual
property from contractors to other manufactures, control of the brand and its value is less secure if there
is too reliance on others.