Case: Innocents Since launching the business in 1999, Innocent has not only witnessed the rise of its own business, but
Posted: Sun May 08, 2022 8:49 am
Case:
Innocents
Since launching the business in 1999, Innocent has not only
witnessed the rise of its own business, but also the growth of the
smoothie market and the rise of competitors. Whilst being the
market leader with a UK market share of 80 per cent (The
Telegraph online, 2016), it can expect fierce competition from
PepsiCo as it attempts to be the dominant smoothie brand in Europe.
At that time, the smoothie market was in its infancy, although
innocent was not the first into the market and could not benefit
from any early entrant advantages. Nonetheless, the launch of the
product coincided with the rapid growth of the market, especially
in the form of own-label smoothies from Sainsbury’s, Tesco and
M&S.
The fruit smoothies market
Fruit smoothies are a fruit-based beverage (usually 100 per cent
crushed fruit and very little else). According to the
advertisements, they are nutritious and versatile, and are an
excellent way of grabbing a quick meal. Smoothies have been popular
in health conscious California for many decades. They are,
generally, low in fat and calories and make an excellent drink
and/or snack, especially at lunchtime. Innocent is now the brand
leader in the UK smoothie market, generating revenue of £80 million
annually. Pete & Johnny’s – the first UK smoothie company – has
annual sales of £13 million whilst private label brands make up
around one-third of the market. Innocent’s timing has been lucky or
astute. As concern grows over rising levels of obesity in Europe,
consumers are paying more attention to what they eat and drink and
multinational food and beverage companies are trying to tap into
changing consumer tastes by selling healthier products.
Innocent and developing a
new product
concept
Hot on the heels of PJ Smoothies was innocent smoothies. In
2005, innocent drinks was the fastest growing food and drinks
company in the UK; it was launched in 1999, and the company has
grown into the No. 1 smoothie brand in the UK with 240 staff and an
£80 million turnover. It has gone from making three recipes of
smoothie to seventeen different drinks. Through constant innovation
and refusal to compromise, innocent continues to make an unrivalled
range of totally natural fruit drinks that taste good and have
health benefits. But the road to success was far from simple.
The beverage market is fiercely competitive, dominated by global
players such as Coca-Cola and Pepsi. The range of beverages
available is also vast, from bottled water to carbonated drinks in
all flavours. The fruit smoothie product being launched was
perishable, with a very short shelf life and, with a price tag at
almost £2 a bottle, it was four times that of other beverages on
the shelf. Achieving success was not going to be easy.
Source: Trott (2017), Innovation Management and New Product
Development, 6th, Pearson, UK.
8 Step Process Perfects New Product
Development
Step 1: Generating. ...
Step 2: Screening The Idea. ...
Step 3: Testing The Concept. ...
Step 4: Business Analytics. ...
Step 5: Beta / Marketability Tests. ...
Step 6: Technicalities + Product Development. ...
Step 7: Commercialize. ...
Step 8: Post Launch Review and Perfect Pricing.
Apply 8 steps of New Product Development (NPD) to the
case of Innocent to explain how Innocent has developed a
business idea into a product and launched it into the
market
Innocents
Since launching the business in 1999, Innocent has not only
witnessed the rise of its own business, but also the growth of the
smoothie market and the rise of competitors. Whilst being the
market leader with a UK market share of 80 per cent (The
Telegraph online, 2016), it can expect fierce competition from
PepsiCo as it attempts to be the dominant smoothie brand in Europe.
At that time, the smoothie market was in its infancy, although
innocent was not the first into the market and could not benefit
from any early entrant advantages. Nonetheless, the launch of the
product coincided with the rapid growth of the market, especially
in the form of own-label smoothies from Sainsbury’s, Tesco and
M&S.
The fruit smoothies market
Fruit smoothies are a fruit-based beverage (usually 100 per cent
crushed fruit and very little else). According to the
advertisements, they are nutritious and versatile, and are an
excellent way of grabbing a quick meal. Smoothies have been popular
in health conscious California for many decades. They are,
generally, low in fat and calories and make an excellent drink
and/or snack, especially at lunchtime. Innocent is now the brand
leader in the UK smoothie market, generating revenue of £80 million
annually. Pete & Johnny’s – the first UK smoothie company – has
annual sales of £13 million whilst private label brands make up
around one-third of the market. Innocent’s timing has been lucky or
astute. As concern grows over rising levels of obesity in Europe,
consumers are paying more attention to what they eat and drink and
multinational food and beverage companies are trying to tap into
changing consumer tastes by selling healthier products.
Innocent and developing a
new product
concept
Hot on the heels of PJ Smoothies was innocent smoothies. In
2005, innocent drinks was the fastest growing food and drinks
company in the UK; it was launched in 1999, and the company has
grown into the No. 1 smoothie brand in the UK with 240 staff and an
£80 million turnover. It has gone from making three recipes of
smoothie to seventeen different drinks. Through constant innovation
and refusal to compromise, innocent continues to make an unrivalled
range of totally natural fruit drinks that taste good and have
health benefits. But the road to success was far from simple.
The beverage market is fiercely competitive, dominated by global
players such as Coca-Cola and Pepsi. The range of beverages
available is also vast, from bottled water to carbonated drinks in
all flavours. The fruit smoothie product being launched was
perishable, with a very short shelf life and, with a price tag at
almost £2 a bottle, it was four times that of other beverages on
the shelf. Achieving success was not going to be easy.
Source: Trott (2017), Innovation Management and New Product
Development, 6th, Pearson, UK.
8 Step Process Perfects New Product
Development
Step 1: Generating. ...
Step 2: Screening The Idea. ...
Step 3: Testing The Concept. ...
Step 4: Business Analytics. ...
Step 5: Beta / Marketability Tests. ...
Step 6: Technicalities + Product Development. ...
Step 7: Commercialize. ...
Step 8: Post Launch Review and Perfect Pricing.
Apply 8 steps of New Product Development (NPD) to the
case of Innocent to explain how Innocent has developed a
business idea into a product and launched it into the
market