Innocent Drinks' Journey to Success


Added on  2019-09-19

4 Pages1270 Words155 Views
Innocent DrinksInnocent drinks were established in 28th April 1999. They began by selling smoothies atmusic festivals and asking people at the festival whether they liked the idea of the businessand product. Because the company received positive feedback, they started making coconutwater, natural healthy drinks and started to sell in addition to smoothies in local sandwichbars. In 2000 they developed transport. Five years later they developed many drinks such assmoothies, kids drink and tried to innovate them. In 2006 they finally start to advertise onTVs about their drinks to increase sales by telling customers about the benefits of the drinks.By 2014 the company spread worldwide and start selling drinks to 30 countries.One of the co-founders of Innocent drinks was interviewed by Huffpost Business. The factthat all three entrepreneurs were Cambridge graduates must have helped in the promotion,product and marketing. Richard Reed (co-founder), was asked: ‘How can people be besthelped to start their own business?’ His reply was revealing in that he had an idea to develop.innocent is a brand who treat their customers as real, breathing, living human beings. They engage with their customers ina friendly and relatable manner, by acknowledging that each of the people sending them comments, questions or complaints is an actual person behind a computer screen/mobile.They don’t market themselves too obviously what I am trying to sayis that innocent don’t make try to advertise them too self and treat all the cust‘I think it’s partly about awareness. When I was at school, it wasn’t even on anyone’s radar that starting a business was an option. Jobs were things that you got in other people’s businesses; there was no sense that you could set up your own business.’ (http://www.huffingtonpost.co.uk/2013/07/25/richard-reed-innocent-interview_n_3653121.html )This revealed his ability to become aware of a possible marketing niche. Most importantly, the funding of any entrepreneurial business is based on sound investment and on a product that has been tested (people’s opinions etc).‘The second thing is about giving people access to funds. But I’m quite positive about that because I think it’s easier now than it has ever been. I’m not saying it’s easy though, I think raising funds is a sort of filtering process tostop the shit ideas getting to market.’ (http://www.huffingtonpost.co.uk/2013/07/25/richard-reed-innocent-interview_n_3653121.html )It is evident that the three co-founders had the source to develop their ideas. Richard Reed stated that he was able to secure finance for the product and promotion of the company.Fifteen years ago, an older guy put in money to our business and without that money, there’d be no Innocent, and so we want to pass on that to the next generation. (http://www.huffingtonpost.co.uk/2013/07/25/richard-reed-innocent-interview_n_3653121.html )
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The development of other drinks under the ‘Innocent’ labelThe clever way that Innocent advertised 10% of their profits to charity. This is obviously net profit (after tax etc.) If the company had lost money, then they would not have been obliged to pay anything. This obviously encourages smaller companies to promote their companies through Social Enterprise. Also, being a Limited Company, the entrepreneur’s income would have been deducted from profits before the 10% gift was allowed. The clever part here is the declaration of giving to charity. Within the context of demystifying social enterprise, Innocent drinks were developed for a social and environmental purpose. Because of the Social Value Act 0f 2013, there has never been a better time to be a social enterprise. The composition of Innocent drinks correlates well with todays need for healthier food and drink. The charities benefitting from the pledges made by Innocent was more than just a business decision: ‘We wanted to leave things a little better than we found them; to work in a more enlightened way, where we took responsibility for the impact of our business on society and the environment.’ (Richard Reed. Business zone on CSR). Forty-one charities were involved in 30 countries worldwide. Innocent company donates 10% of the profit to innocent foundation which set up in 2004 and the purpose behind this was to help community on a sustainable path to a better lifeall around the world. They helped poor people by giving unwanted drinks and fruits to people who need it. In the UK company works with many charities: the Matthew Three project charity and Trussel Trust charity.The table below shows the amount of profit/ loss company has made from 2004 to 2014 and amount of money committed to charity and amount received by the foundation.There are number of reasons behind the success of the Innocent company. First of all, the company started by producing innovative products which could compete and be meaningful
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