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BBUS402.2 Principles of Marketing

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Oscar Simon Chu Ortega

on 3 December 2014

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Transcript of BBUS402.2 Principles of Marketing

Ecological
Political
VAT case.
Fruits and veg have 0% tax,
100% fruit juice smoothie, classified as beverages and luxury face 17.5

"Thirsty" Theory
The ‘Macroeconomic Analysis’ consists of the behavior and the environment around the world. This can impact a firms performance which sometimes may not be in the firms control.

(Jobber and Ellis, 2013)
Product
Core
: Thirst - Vitamins
Actual
: Engaging Packaging, Quality
Augmented
: Charity, Good suppliers relations

SWAT ANALYSIS
BBUS402.2 Principles of Marketing
Innocent Company audit
by Oscar, Nehal, Ryan, Maryam
INNOCENT - Squeezed Overview
Industry: FMCG - Beverages
Founders: Richard Reed (CEO), Adam Balon and Jon Wright
Operations: EU - 13 Countries / Based in London, UK (Innocent, 2014)
Revenues: £ 202 millions (Coca-Cola, 2012)
Employers: 375
Agenda
Company Overview
Macro Environment
Micro Analysis
Internal Analysis
Recommendation & Conclusion

Economical
Recession 2008 - Credit Crunch

Innocent bankrupt because they unable to find capital to finance corporate operations


90% Equity
Place
Available at big 4 supermarkets.
Wholesalers to distribute product to small stores & fast-food chains (e.g. Eat) and saturate the market.
Subsidiary of Coca-Cola: use of the established channels of distribution.
More "Thirsty" Theory
This Micro analysis uses Porter's 5 forces framework. It allows industry analysis or business strategy development. This was published by Michael E. Porter of Harvard Business School in 1979. 

(Kotler et al, 2013)
Sustainable packaging .
100% Plastic bottles recyclable (Innocent, 2014)
Natural disasters, - may effect supply chains increasing fruit prices.
Social
People: more health conscious / Eat more healthy products (Mintel, 2013)
23.9% of the UK women and 22% UK men being obese (BBC. 2011). 
Innocent provides 2 of you 5 a day

New entrants - Medium

High Demand: Increase interest in healthy lifestyles, (National Diet & Nutrition Survey, 2012)
Easy to enter the market: Start-up costs are low (Mintel, 2013)
Saturated market (Mintel, 2013)

Substitutes - High

Many substitutes available: fizzy drinks, flavored water. However customer-base more focus on healthy alternatives.
Green tea, coconut water becoming the new healthy alternative (Mintel, 2013).


Supplies are from a all over the world – Dependent on international distribution and climate factors.
Healthy relationships with suppliers (BBC, 2011)

POwer of BUYERS - HIGH
B2B (FMCG) - Price sensitive
B2C - Quality as main drive (non-price sensitive): Coca-Cola 90% stake may be perceived as a drawback (The Grocer, 2013).

Porter's 5 Forces
Highly competitive market: Big 4 [supermarkets] own brands & local organic alternatives
Innocent’s USP - ‘100% natural fruit’ common promotion strategy
“Innocent enjoys an 75% share of the UK Smoothies market.” (BBC, 2010)
Declining trend: cannibalization from mother company own brands (Mintel, 2013)


Nature of Competition
Power of Suppliers - Low
promotion
FMCG: Focus on mass advertisement (e.g. TV).
Strong branding: unique packaging and brand values well communicated through quirky packaging to increase Brand Equity.

Positioning: Value Added product ‘more-for-more’
Segments: Happy to pay for added benefits - health content and ethical sourcing of ingredients.

Price:
Fruity Yogurt
Supply chain ready
Growing market size (Mintel, 2012)
High margins per unit (Mintel, 2012)
Brand Equity transferable

The
Fruity
Marketing-Audit
Tree

Even More "Thirsty" Theory
Brand Extension
Is marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category (Keller, 1998)
Brand Equity
The value of having a well-known brand name (Keller, 2003)

Product
Levels
Pull
Strategy
Push
Strategy
(Mintel, 2013)
Product
Cycling carts targeting parks, universities, in London, Brighton, other big cities

promotion
McDonald's & Coca-Cola Joined Venture: Introducing smoothies with breakfast.

placement
Guerrilla Marketing
Price
Drop price by introducing bigger family pack bottles.
'JND'
Mineral Water
High Margins (Mintel, 2013)
Supply Chain ready – i.e. This Juicy Water
Coca-Cola’s Dasani experience in UK – Case Study (Lindgreen et al., 2009)

Just-Noticeable Difference
It is the smallest detectable difference between a starting and secondary level of a particular sensory stimulus (Bebin, 2012)
Guerrilla Marketing
Guerrilla marketing is an advertising strategy in which low-cost unconventional means (Levinson, 1983)

...Last one - Theory
Thank you
for listening

Q & A

Reference List

Anthony, S. D. 2008. The innovator's guide to growth. Boston, Mass.: Harvard
Business Press.
Bowman, C. and Faulkner, D. 1997. Competitive and corporate strategy. London:
Irwin.
Bradley, N. 2013. Marketing research. Oxford [u.a.]: Oxford Univ. Press.
Campaign. 2014. The Week - Innocent offers 2012 tickets. Campaign, p. 9.
Golder, P. N. and Tellis, G. J. 2004. Growing, growing, gone: Cascades, diffusion,
and turning points in the product life cycle. Marketing Science, 23 (2), pp. 207--218.
Heavey, C. 2014. Innocent - Brand Book. Conference & Incentive Travel - CIT, p.
34.
Innocent. 2014. Innocent - Little Tasty Drinks. [online] Available at:
http://www.innocentdrinks.co.uk/us/being-sustainable/legacy [Accessed: 20
Mar 2014].
Jobber, D. 2007. Principles and practice of marketing. London [u.a.]: McGrawHill Education.
Knowles, A. 2011. Brand Lesson. Marketing Magazine, p. 16.
Kotler, P., Armstrong, G., Wong, V. and Saunders, J. 2008. Principles of
marketing. Upper Saddle River, N.J.: Pearson Prentice Hall.
Kotler, P., Kartajaya, H. and Setiawan, I. 2010. Marketing 3.0. Hoboken, N.J.:
Wiley.
Lockwood, D. 2008. Smoothie Sailing. Prepared Foods, Iss. 4 pp. 13-18.
Marketing Magazine. 2011. Innocent. Marketing Magazine, p. 16.
MarketLine. 2013. United Kingdom - Soft Drinks 2013. United Kingdom - Soft
Drinks. [report] London: Informa Business.
MarketLine. 2012. Innocent Ltd. 2012. Innocent Ltd. [report] London: Informa
Business.
Oscar Simon Chu Ortega CW2: Reflect and Evaluate Innocent’s Marketing Principles
Mintel. 2013. Fruit Juice, Juice Drinks and Smoothies - UK - November 2013.
Fruit Juice, Juice Drinks and Smoothies - UK. [report] London: Mintel.
The Grocer. 2014. Juices and Smoothies Category Report 2014: Hard pressed?.
Juices and Smoothies Category Report. [report] London: William Reed
Business Media.
The Grocer. 2011. Focus on Juices & Smoothies: Keeping the Juices Flowing.
Focus on Juices & Smoothies. [report] London: William Reed Business Media.
Which?. 2014. Is your fruit smoothie as healthy as you think? - December - 2012 -Which? News. [online] Available at: http://www.which.co.uk/news/2012/12/is your-fruit-smoothie-as-healthy-as-you-think-305688/ [Accessed: 27 Mar
2014]
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