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Innocent LTD - Essay Example

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Summary
Society shapes our beliefs, values and norms. People absorb, almost unconsciously, a worldview that defines their relationship to themselves, to others, to organisation, to society, to nature and to the universe" (Kotler, 2000). According to Hofstede (1980) culture is a complex, multifaceted construct…
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Innocent LTD
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Innocent LTD

According to Triandis (1990), individualistic cultures emphasise independence, achievement, freedom, high levels of competition, and pleasure; whereas collectivist cultures tend to embrace interdependence, family security, social hierarchies, co-operation; and low levels of competition. UK has an individualistic culture, which constitute the main factors of independence, achievement, freedom, high levels of competition, and pleasure. That's why the Innocent drinks give very much importance to taste. With the increasing awareness among the target population regarding the problems of obesity and other health diseases Innocent drink emphasises on the purity and the neutrality of the ingredients. These qualities correctly aiming at the demands of the customers make Innocent drinks the largest player of smoothies market in UK capturing 65% of the total market share.
Advertising, as a form of social communication, is particularly reflective, and indicative of culture and its norms. To the extent that advertising does reflect cultural differences, and there exist clear differences between distinct cultural patterns, advertising appeals, which are specific approaches advertisers use to communicate how their products will satisfy customer needs (Arens & Bovee, 1994), should manifest such differences across these countries.
"Taste remains the company's number one priority. ...
ste test awards than its competitors, scooping Best UK Soft Drink in the Q Awards, the UK's principal food industry competition, every year since 2002." (Farr, 2006) "The Company sells 70,000 fresh, healthy drinks each day everywhere from Boots to Sainsbury's to a local deli. The company has the only range of 100% pure fruit smoothies that uses fresh, rather than concentrated juice." (Innocent drinks, 2004)
SWOT Analysis of the Coca-Cola Company
STRENGTHS
Strong Brand name.
Extended customer in more than 200 countries.
Use of SAP R/3 Enterprise Resource planning software
Low threat of new entrants.
Continuous training programs for employees.
High budgets of advertising and promotion.
Good relations with media.
Web based presence.

WEAKNESSES
Low ROE
Subsidiaries create legal and territorial problems.
Lack of funds for regional bottlers to continue expansion
Old image still exists.
Inconsistent marketing message.
OPPORTUNITIES
Expansion in shape of introduction of new and innovative products.
Expanding market due to globalisation.


THREATS
Current economic climate.
Over reliance on the bottlers.
Results to be achieved in future can be less than projected



"The Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix is an important matching tool that helps managers develop four types of strategies: So Strategies, WO strategies, ST Strategies, and WT Strategies.
SO strategies use a firm's internal strengths to take advantage of external opportunities.
WO Strategies aim at improving internal weaknesses by taking advantage of external opportunities.
ST Strategies use a firm's strengths to avoid or reduce the impact of external threats.
WT Strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats." (David, ... Read More
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