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Transcript of INNOCENT DRINKS
- Entrepreneurial Experience
- Initial Size
Other factors that have affected the growth of innocent
"Effective way to create buzz and earn customer loyalty" - Sahlman, 2004
Innovative Marketing Approach
The Big Knit
Business angel (1998) - Pinto
Joint venture (2009) - Coca-cola
Competitive advantage - freshness and enhanced quality
Remained true to their image and values
Maintenance of control
Casson's theory of entrepreneurship
Judgemental decision-making under risk and uncertainty
RBV: Resource Based View
-Entreprenuerial Managerial approaches:
Human Capital Theory
General and specific capital-
-Population ecology perspective (Klepper, 2002)
Small businesses dominate at initial stage in an industry
Growth is independent of size
Wednesday, December 9, 2015
Vol I, No. 4
Lead in Smoothie Market
GROWTH AND INTERNATIONALIZATION
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:
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
Firms start their foreign operations in countries that are LESS culturally and geographically distant.
First location for international expansion.
Using same supply chain and just exported to the country.
By 2009, innocent's second largest market.
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.
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
Sustainable competitive advantage
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
Minimum efficient scale
References - Images
Age UK, 2015. Big Knit 2015. [Online]. [07/12/2015]. Available from:
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].