Analysis of the “Mais l’innocence enfin n’a rien ā redouter” case
Analysis of the “Mais l’innocence enfin n’a rien ā redouter” case.
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A company is product oriented if it focused on the product (Kotler et al.). In this orientation the company goes into improvements of the existing products (Escobilan), they make innovations and variations for the product that will best satisfy their costumers. The Innocent Company is product oriented because; first, the company engaged so much in the improvements and in the modifications of the products, these are such as making different varieties and inventing new variants that the company sells in so many retail outlets, making the product to contain no preservatives, assuring that each bottle of their product is containing 3/4lb of fresh crushed fruit, it also has shifted the style of the product to a more national way rather than the former being a trendy London-style, they also made improvements on the packaging and the promotion, and as well as with the transportation of their product. Another reason why it is product oriented is because it fused to only one product which is their current product. They do not consider the different products that the people might need and they do not consider the expensive price of their product. These showed that the firm’s main focus is the customization of their product, and that this company is a product oriented firm.
The integrated marketing mix is the tactics of combining and coordinating the 4P’s to overcome their competitors and for an achievement of greater earnings (MarketingProfs), and the marketing mix is the possible combinations of the 4P’s for a successful attainment of the firms goals (Wikipedia). The 4P’s of marketing are the Product, Place, Price and Promotion (NetMBA), these are the factors that managers must control, in order to satisfy their customers and for them to meet their target market.
The Marketing Mix
Product. The product plays a very important role in the marketing mix, since it is the object that is offered to the consumers, who are willing and able to obtain it. The company’s product offering is the Innocent smoothie. It is a fruit drink made up of blended fresh fruits. Unlike the other brands, Reed’s offering is a product made up of only 3/4 pounds of fruits and has no preservative. This strategy of the company is a good way of getting more costumers, especially those who are health conscious,. In the introduction stage of the product, the stage where the firm started the production and offering of the product to the market (Teacher), what they did was to make a taste test and let the people vote if they should continue doing the product, since many people have a positive impact on the product they continued the production. At this stage since it is new in the market, it is obvious that there will be lower revenue, since it is the time when the cost is much greater than what is earned because the product is not yet being communicated to bigger markets and to the other potential costumers. In growth stage, seeing positive impacts of the market, the company increased their investments on the product to a more than double than the past few years. This move allows better productions and to have the “economies of scale” which improves the company’s production efficiency and thus earning greater revenues. They also developed and improved the many aspects related to their product, such as increasing the stores where the product can be bought which made the product more accessible to more people, making variants of the products which increases the number of consumers by enabling them to have and make choices. The company also has produced a good brand image- an image that is not so serious yet entertaining and informative, and slogans. The image, since it is very appealing to most teen-agers that comprises the bigger percentage of the population is a good way of attracting and getting customers that will demand for the product and the slogan’s uniqueness is a good communicating and promoting strategy to new and old consumers.
Price. The price is another variable that a firm must take into account, it consist of the discounts and list prices (Chanimal). This element shows the impact of consumers to certain product and their sensitivity to the changes done on the product. The company is producing smoothies made up of fresh fruits with no chemicals that will preserve and will improve the taste of the product; it has a packaging that is more attractive and convenient to the consumers, which explain the reason why the product is expensive. The price of the product is £6.76 much higher to the average of £3.70, it is really of a big difference to the average, as it can be seen it is almost double than the price. Usually with this increase in price, the consumers will shift to substitute (Auburn), but in this case the consumers did not. This case is usually of a high risk since it is known to a fact that increases in price will shift the demand curve, but since the company is the market leader and has developed good communication to consumers, they have communicated to the consumers the reasons behind such price increase, and thus the reason why many customers still demand for the product.
Place. Place are the different stores or channels in the market where the product can be obtained (Bureau-uk). Innocent’s smoothies can be bought to 4000 retail outlets, which ranges from small to large enterprises. They also have these “grass vans and cow vans (Innocent).” These are vehicles that make the product accessible to more places; it is like a rolling store that moves around the city. The company also has made a website for a quick access of the products for consumers and they also have possible expansions to other countries. The wider scope of places where the product can be obtained is a good way of generating greater revenue, since the product will be more accessible, this also is a good promotion strategy since more people will be able to see the product.
Promotion. This is another element and it is a way of communicating the product to other people (Marketing), it is a mean of increasing the awareness of the people and thus increasing the generated revenues. The company has put up unique slogans which sets to customers mind the good traits of the product such as its healthy effects which produced a good image for the product which also sets the reason why the product is being patronized by more consumers. They also have promotions such as a foundation for kids. This strategy is a good way of getting more loyal customers, since it showed that the company has a heart for the people. The promotions help the company to have the so called “loyal customers” that patronizes their product and it enabled their product to be properly communicated to customers. The company also planned of possible advertising using television, which is a very effective way of communicating the product to most people since more people today already have televisions.
On the first statement Reed is implying that their product is really of the best and quality raw materials and of the processes that do not involve the not-natural ways. Here Reed is saying or is implying that there is no way that their products will have chemicals and other not-natural raw materials, and that their products though of a relatively high price are really of the best that can be offered in the market. He is putting up a firm hold of their foundation which gives the company a good image, since people will give the product their trust; they will believe that the firm’s products are really healthy. The statement is also implying that their company is not “forcing” anyone to buy the product, but rather like the product. This is a good way of getting people’s heart, by showing that they are not using just pressure, but an assurance that their products are really worth spending a premium price, and turning these people to prospects and thus to consumers that will demand for the product. On the contrary this statement might also generate negative effect to some customers. It is because since the company has a founded principle which as they said can not be negotiated, it can communicate to people that this company is not open for change, for suggestions from other people or from the customers themselves, which is implying that the firm is not considering the consumers preferences but just their own and that whatever product they will produce, the consumers will like and will buy. It is a risk that can contribute to a decrease in profit, because the consumers might think that to this firm the customers are not significant, since this firm is not considering their preferences. The statement, also can imply too confidence of the firm, which can greatly affect the image of the firm, by generating a negative image which can lead to some loyal customers to not demand for the products anymore.
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Innocent. “Our Vehicles”. 2006. November 21 2006. <http://www.innocentdrinks.co.uk/us/?Page=our_vehicles>.
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