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INNOCENT DRINKS

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by

Elf Vekaria

on 9 March 2016

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Transcript of INNOCENT DRINKS

- Relationship between the men
- Entrepreneurial Experience
- Initial Size
- Personality
Other factors that have affected the growth of innocent
"Effective way to create buzz and earn customer loyalty" - Sahlman, 2004
ENTREPRENEURIAL CHARACTERISTICS
GROWTH FACTORS
GROWTH THEORIES
Innovative Marketing Approach
Packaging
The Big Knit
Delivery van

Financial Support
Business angel (1998) - Pinto
Joint venture (2009) - Coca-cola

Business Strategies
Competitive advantage - freshness and enhanced quality
Remained true to their image and values
Maintenance of control
Location
Casson's theory of entrepreneurship
Judgemental decision-making under risk and uncertainty

RBV: Resource Based View
(in-house training)
-Entreprenuerial Managerial approaches:
personality

Human Capital Theory
General and specific capital-
Innovation

-Population ecology perspective (Klepper, 2002)
Small businesses dominate at initial stage in an industry

Gibrat's Law:
Growth is independent of size

Stochastic approach:
lottery effect

£100m
Wednesday, December 9, 2015
Vol I, No. 4
INNOCENT DRINKS
Lead in Smoothie Market
GROWTH AND INTERNATIONALIZATION
INTERNATIONALISATION PROFILE
Entrepreneural Characteristics

Growth Factors

Growth Theories

Internationalisation profile

References
On an ending note..
References - Online Journals
Brown, R and Grayson, D. 2008. Innocent Drinks: Values and Value.
Cranfield University, School of Management.
[Online]. 1-28. [04/11/2015]. Available URL:
https://vlebb.leeds.ac.uk/bbcswebdav/pid-3735760-dt-content-rid-6601009_2/courses/201516_30953_LUBS2410/Innocent%20%28Innocent%20Drinks%20-%20Values%20and%20Value%29.pdf

Moore, C, Fischer, L and McCarthy, M. 2012. Innocent Drinks: Maintaining Social Responsible Values During Growth.
London Business School.
[Online]. 1-8. [04/11/2015]. Available URL: https://vlebb.leeds.ac.uk/bbcswebdav/pid-3735760-dt-content-rid-6601010_2/courses/201516_30953_LUBS2410/Innocent%20%28Innocent%20Drinks%20Maintaining%20socially%20responsible%20values%20during%20growth%20%28A%29%29.pdf

Sahlman, W. 2004. Innocent Drinks. Harvard Business School. [Online]. 1-24. [04/11/2015]. Available URL: https://vlebb.leeds.ac.uk/bbcswebdav/pid-3735760-dt-content-rid-6601008_2/courses/201516_30953_LUBS2410/Innocent%20%28Innocent%20Drinks%29.pdf

Elf Vekaria
Emma Kaye
Hannah Slade-Smith
Abi Neckermann
UPPSALA MODEL:
Firms start their foreign operations in countries that are LESS culturally and geographically distant.
IRELAND:
First location for international expansion.
Using same supply chain and just exported to the country.
By 2009, innocent's second largest market.

EUROPE:
Innocent

has a prescence in 13 countries
Difficult because it is composed of very different markets.
Identified opportunities in Netherlands, France and Belgium
Followed same strategy as with UK.
Low cost expansion as they didnt spend considerable amount of money on advertising (hoping for word of mouth). Smoothie market not established in Europe so strategy had a good chance of working.

US:
Possible expansion?
Largest market for smoothies: very competitive.
Would have to build new supply chain

DEAL WITH COCA COLA
£30m investment in 2009 (10-20% stake)
£75m further investment in 2010 (58%)
2013: Coca-Cola increased their stake to over 90%: 3 founders now hold minority stake

Helped Innocent expand and exploit Coca Cola's distribution network overseas.
Organic growth: 3 to 250 employees
Sales growth: £250k £130m
Brand Image
Sustainable competitive advantage
innocent's Values:
Be natural
Be entrepreneurial
Be commercial
Be generous
Be responsible


These values are used in initial assessment of job applicants and for company decision making
Entrepreneurial characteristics and other factors like innovative marketing are responsible for high-growth

Growth theories support the growth of Innocent

Brand Image provides a sustainable competitive advantage to Innocent

Joint Venture with Coca Cola is responsible for firm's Internationalisation
Offbeat non-corporate messages
Green business
Minimum efficient scale
Any Questions?
References - Images
Age UK, 2015. Big Knit 2015. [Online]. [07/12/2015]. Available from:
http://www.ageuk.org.uk/peterborough/activities--events/big-knit-2014/
CLAY, F. 2009. The Founders. [Online]. [25/11/2015]. Available from: http://www.theguardian.com/business/2009/apr/07/innocent-smoothies-coca-cola
Economics online. Minimum efficient scale. Available at: http://www.economicsonline.co.uk/Business%20economics%20graphs/MES.png [2/12/2015]
LIM, O. 2013. Rapid Expansion. [Online]. [25/11/2015]. Available from: http://www.dailymail.co.uk/news/article-2284834/Bumper-payday-trio-Innocent-founders-Coca-Cola-snaps-stakes-fruity-100m.html
London Entrepreneurship Online, UCL, (2010). Innocent Sales. [image] Available at:https://www.londonentrepreneurshiponline.com/hwdphotos/uploads/208/44/5ksdt60feht0tz.jpg [2/12/2015].
News Desk Food Bev Media. Innocent Drinks Launches Provenance TV Advertisement. [image] Available at: http://www.foodbev.com/news/innocent-drinks-launches-provenance-tv-advertisement/ [2/12/2015].
Acw.uk.com, (2015). [online] Available at: http://acw.uk.com/blog/image.axd?picture=%2F2013%2F10%2Finnocent_smoothies2.jpg [Accessed 7 Dec. 2015].




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