Swot Analysis for Innocent Drinks
Strengths -Market leader in UK with annual sales of ? 130mn -Reputation for 100% pure fruit juices so it appeals to the health conscious market -Extensive product range for kids and in different sizes -Diverse market from kids to adults from all walks of life -Innovative culture has called for an extensive range of new recipes with 30 different recipes -High brand equity has called for high levels of awareness and a unique brand identity – Quirky -High standards of CSR – ingredients and packaging purchased from environmentally and socially aware organizations Weaknesses: Negative press associated with McDonalds due to ‘unhealthy’ label -Change in perceptions towards Innocent’s ‘innocence’ atmosphere changing into a corporation seeking only to make profits without having the customers best interest at heart -Only restricted to healthy juices and has not penetrated other markets -Premium pricing due to premium suppliers, production cost.
Perceived as premium brand -Lower customer base when compared to other supermarket brands and PepsiCo who have global presence Opportunities -Penetrate the healthy foods market in order to increase market share over processed foods -Increase market share in terms of reaching newer uses and users. For example as a healthy breakfast option as opposed to cereal or unhealthy bacon and eggs culture.
Also suited for the busy executive who is on the rush -Expand Innocent outlets overseas in emerging markets as consumers are more health conscious -Distribute Innocent products elsewhere to create higher penetration in foreign markets -Promotional campaigns can be done hand in hand with other organizations who focus on healthy living -Use of renewable resources will help Innocent to market themselves as eco friendly and also lower production cost substantially Threats: -High level of competition from PepsiCo and supermarket brands.
The supermarket brands are posing themselves -Due to the recession and declining consumer confidence, disposable income has decreased; therefore sales have been affected negatively. -Changing customer tastes – product range/variety may become repetitive. -If deciding to increase presence globally, language barrier may hinder promotional campaigns and awareness. Also product ranges will have to suit the needs of each individual market, hence production cost will be increased
