The Marketing Strategy of Innocent Drinks: January 2016

Download as pdf or txt
Download as pdf or txt
You are on page 1of 5

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/317350919

The Marketing Strategy of Innocent Drinks

Working Paper · January 2016


DOI: 10.13140/RG.2.2.11715.20009

CITATIONS READS

0 23,849

Some of the authors of this publication are also working on these related projects:

Gender and Women's Studies View project

All content following this page was uploaded by Lioba Frings on 05 June 2017.

The user has requested enhancement of the downloaded file.


Lioba Frings MSP300R

The Marketing Strategy of Innocent Drinks

1 Introduction

According to their website Innocent Drinks make 200 million in sales each year (Innocent

Drinks 2015). That they are so dominant in the European smoothie and soft drink market and the

market’s leading smoothie brand in the United Kingdom may also result from their distinctive

marketing strategy and their unconventional methods of selling their drinks and the associated

experience for the consumers (see Simmons, 2011:12), which is conveyed through recipe books,

many charity projects, experiential marketing with an own festival and with nature-oriented

decorations of the company’s vans, their rule book and the brand message.

The three founders, Richard Reed, Adam Balon and Jon Wright “have built Innocent from

scratch into a £16-million brand growing at 80 per cent year on year” (Edwards et al., 2005:46). The

company’s strategy must utilize the four Ps of the marketing mix, product, price, promotion and

place (Stone, 2007:40), very well in order to be successful and predominant in their market since

their founding in 1999 (Innocent Drinks 2015). The marketing mix was first introduced by Edmund

Jerome McCarthy who divided his marketing theory into those four terms. Drummond and Ensor

state that “the 4Ps are the vital decision areas for marketing managers, as they offer controllable

variables which can be innovatively applied to specific markets” (Drummond et al., 2005:8).

Moreover, these variables are interrelated and, in the end, act as a single unit for the consumer (see

ibid.).

2 The Marketing Mix and the Four Ps in the Case of Innocent

2.1 Product

McCarthy describes the function of a product as “consumer satisfaction or benefits” (McCarthy,

1960:209) and explaines that “in all cases, we are selling the satisfaction or use derived or expected

from the purchase of the product” (ibid.). A similar definition was mentioned by Drummond and

Ensor: “products are solutions to customers’ needs” (Drummond et al., 2005:9). Innocent states on

1
Lioba Frings MSP300R

their website that they make “natural, delicious, healthy drinks that help people live well and die

old” (Innocent Drinks 2015). In the context of McCarthy’s theory this would imply that their

product is not only the smoothie or drink but the satisfaction of the consumer and the promise of

natural ingredients and, as a consequence, a healthier consumer.

“Sometimes a product is not useful unless properly installed and instructions given for its use”

(McCarthy, 1960:210), which is reflected in the advertising and the company’s corporate image as

well as their slogan “tastes good does good” (Innocent Drinks 2015), which alltogether delivers a

certain message to the potential customer. Notions of health, delivered by their promise of natural

ingredients in their pure drinks, and charity, by donating “a minimum of 10% of profits each year to

charity” (ibid.), are being used to make their product desired by the consumers and connect the

purchase of a juice or smoothie with a healthier body and a reduction of world hunger.

This connotation, in return, fullfills McCarthy’s interpretation of a product’s function. To

embrace the image of Innocent being highly involved in charity the organization founded the

innocent foundation, explaining on their website: “we give grants to charities working all over the

world so that they can help the world’s hungry” (Innocent Foundation 2015). Thereby they include

other aspects in their brand message and corporate image like sustainability, especially with their

packaging, as well as social responsibility, which are being conveyed with every sold drink.

“Sustainability is a core part of who we are” (Innocent Drinks 2015) is said on their website,

followed by listing their company values: “to be natural, generous, commercial, entrepreneurial and

responsible” (ibid.)

Innocent Drinks expanded their product offerings, which McCarthy terms “product

differentiation”, from just smoothies to juices, coconut water, so-called bubbles and special drinks

for children to cover a more diverse market and reach a diversified target audience. According to

the product, the brand message and the corporate image Innocent tries to reach a specific health-

and charity-orientated target audience even thought they have extended their product range by

adding products that still fit their product policy.

2
Lioba Frings MSP300R

2.2 Price

Innocent smoothies and drinks are premium priced within its specific market. This may also be

down to the fact that they donate ten percent of every purchase to charity. McCarthy explains that

the marketing manager “must make price decisions which, in turn, determine the firm’s revenue”

(McCarthy, 1960:576) and “businesses obviously must make sales, and price has an important

bearing on the volume of sales” (ibid.). Furthermore he states that “price may not be the

determining factor but it is a qualifying factor, since it must remain within a reasonable range”

(ibid.). That Innocent drinks are higher priced than other drinks, with two to four pounds per drink,

and are still being bought by the majority of the consumers it is likely to say that this is a result of

their health and charity campaigns as well as their donations. That Innocent leads the market

although their products are higher-priced may imply that the prince range is justifiable.

In terms of discounts the grocery stores that sell Innocent products use quantity discounts to

induce consumers to buy more of this particular product series and stick with the product long-term.

Sainsbury’s, for example, uses discounts like “buy any 2 for £5.00” while one single smoothie costs

£3.00.

2.3 Promotion

McCarthy describes the process of promotion as follows: “sometimes consumers, before they

can appreatiate a product’s potential, must be shown or told how a product can add to their total

satisfaction” (McCarthy, 1960:210) and later in his theory as “communication with the potential

consumer” (McCarthy, 1960:502). Or as Drummond and Ensor define promotion: “the promotional

element of the mix provides communication with the desired customer group” (Drummond et al.,

2005:9). According to Stone and Desmond promotion “include[s] advertising, public relations and

sales promotions” (Stone, 2007:41). Besides various television adverts and other advertising

Innocent Drinks regularly publish press releases on their website in order to explain their products

and strategies (Unattributed, 2015a). They announced, for example, the deal with Coca Cola and the

launch of their new coconut water.

3
End of the excerpt

View publication stats

You might also like