Innocent Smoothies: Organizational Setting, Research Paper Example

As a matter of fact, Innocent Smoothies is the largest producer of food drinks in the UK. By 2010, the company realized sales worth £130 million. The company has exhibited an upward trend in its performance ever since its inception in 1998.Its initiation emanated from the idea of three colleagues: Richard Reed, John Wright and Adam Balon. Currently, it sells over 2 million smoothies. It manufactures drinks that are easily identified by their good taste. It is known of its use of pure ingredients to produce drinks.Innovation through research and developed has enabled the company to launch new products that have played a great role towards gaining competitive advantage.

Currently, Innocent Smoothies offers more than 30 recipes. Supermarkets are used to distribute the products to consumers. With its UK market dominance that surpasses 71%, the company has more than 12,000 retailers in the European market. They ensure that its products reach consumers in Ireland, Denmark, France, Germany, Belgium, Holland, Sweden among other European nations. Subsequently, it is appropriate to state that the company continuously exhibits a positive performance towards its internationalization strategy.However, its decision to use McDonald’s outlets to distribute kids’ drinks received negative press. Due to its large network of customers, the company decided to maintain constant communication with consumers. By so doing, it intended to maintain positive customer experiences that would guarantee its competitive advantage in the market.

Just like any other industry, the company faces competition from various companies. PJ Smoothies is one of the competitors. It was founded in 1994 by Harry Cragoe. However, PepsiCo acquired the brand in 2005. The brand experienced a 13% reduction in its market share to the advantage of Innocent Smoothies. The reduction in market dominance was attributed to the increasing popularity of Innocent Smoothies. However, PepsiCo stands out as a great competitor to Innocent Smoothies since it intends to win back PJ’s share of the market. Besides Pete and Johnny brand, Tropicana brand is the other competitor to the company. It is produced by PepsiCo. Besides owning Tropicana Smoothies, PepsiCo also owns Copella ranges, another competing brand to Innocent Smoothies’ brands. Other competitors include Coca-Cola, Ribena, Robinsons and Ocean Spray. Retailers also pose competition since they use personalized brands such as Tesco and M&S to enter the market. Jamba Juice, the world’s largest chain of smoothies also provides significant threat to Innocent Smoothies following its entry into the UK market.

It is important for the company to implement effective strategies that would guarantee its competitive advantage in the UK market. A competitive advantage is dependent on an effective marketing plan. The adoption of strategic marketing would ensure that the company uses the available resources to produce drinks that win the market. Innocent Smoothies has been known to be oriented to its products. The “Innocent” symbol that is attached to its products provides an impression of natural and unadulterated products. Subsequently, the company has always been known to manufacture products that appeal to the health needs of consumers. Innovation, creativity and the development of appealing products have been responsible for its market dominance.

The company’s website also provides strategic information that may be responsible for the trust that the company obtains from its consumers. The company stresses that it refers to its products as “innocent” because they are 100% pure, natural and unadulterated. It encourages consumers to verify the purity of their products and is willing to apologize for any products that are found out to be impure and unnatural. The product categories encompass delicious milk and fruit and super foods that can be stored at home. It also produces juicy water and milk yoghurt.