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Innocent Drinks

Solution Id Length Case Author Case Publisher
2834 1725 Words (7 Pages) William A. Sahlman, Dan Heath Harvard Business School : 805031
This solution includes: A Word File A Word File

The case study "Innocent Drinks" presents the story of three founders who came up with an idea to start a healthy beverage industry in the UK, which became a huge success. It gives an overview of different strategies and tactics utilized by the company to maintain sustainable growth and a strong position in the market. The idea emerges as a company to deliver fresh fruits without any additives or substances in the form of smoothies. Despite numerous challenges and hurdles, the company always found its way to innovatively develop opportunities, which is evident in the UK's 30% market share in smoothies. 

Overall, the case describes how Innocent, through various marketing techniques, built a distinct brand identity, acquired a huge customer base, and maintained its unique positioning in the presence of competitors, such as by using quirky messages to communicate with customers. The case concludes by mentioning a few of the opportunities that lie ahead for the company to capitalize on.

Following questions are answered in this case study solution:

  1. How was the innocent strategic position conceived?

  2. How strong is position?

  3. How did the position that innocent achieved drive sales growth for the company?

  4. How does innocent maintain sustainability and relevance of its position in a fast-moving developing market?

  5. What impact will Coca-Cola's role in innocent have on the innocent brand from a consumer perspective? From a growth perspective? From a Coca-Cola brand perspective?

Case Study Questions Answers

1. How was the innocent strategic position conceived?

Innocent used different techniques as a brand to position itself strategically and set itself apart. They identified a gap in the market concerning health consciousness since other brands were not focusing on that department. To compete with PJ, a renowned smoothie brand, the three founders came up with a plan to focus on the freshness of the products rather than delivering concentrated juice. So, they cut down the volume to 250ml and matched it with the price of PJ's 300ml smoothie. The idea was to provide customers with a quality product made from fresh and natural fruits with no additives. The brand name "Innocent" portrays the same message of being healthy and not involved in harmful substances, and that is how they wanted it to be seen by customers.

Furthermore, Innocent has taken their marketing game to another level. They again found that labels from other brands were boring and meaningless. To capitalize on this part, they decided to work on their packaging to make it more impactful with messages. The quirky and fun messages on the package labels became an effective marketing tactic to retain customers' loyalty and attract more numbers. Additionally, they also used the same approach for vans where they made vans look like a cow and other ones covered with grass to symbolize the brand identity.

Moreover, the three founders were also planning to scale up the brand. They had different options available to them. One was to diversify into yogurts and ice cream, the other was to expand in other countries in Europe by keeping the supply chain intact, and the last one was to tap a unique US market by forming a new supply chain. Nevertheless, the focus has remained on making the brand big. Lastly, the strategy for innocent has always remained at the core of their customers. The plan is to engage with customers through different channels to maintain honesty and trust with them. This customer-centric approach has certainly given them an edge over others.

2. How strong is the position?

Innocent has maintained their strong position as far as the UK smoothie market is concerned. Their focus on healthy products shows the commitment to differentiate from its competitors, who use concentrated juices with sugar and additives. This particular approach helped Innocent to position itself as a healthy brand and is being appreciated by its customers in the form of a premium price. Secondly, they have successfully built a strong brand identity by incorporating unique marketing tactics. The brand has played with its packaging and labels to deliver quirky messages with a playful tone. The idea behind it is to engage customers in a fun way so that they remember the brand and return for the same products with messages.

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