Secondary Data & Marketing Research Insight: "The Case Of Innocent Drinks".

Executive Summary

In this report I shall be looking at data compiled on the client and using this data I will analyse the market potential and demand for "health drinks" within the United Kingdom. Also I will consider whether it is viable to expand and develop the brand within the market whilst maintaining the socially responsible attitude of the company, in conjunction with the growing health trends and the client's ethical product production.

The key issues facing the client are that; firstly; the business is focusing all of its energy onto the youth market and not attracting business and sales from the older demographic that in years to come will be a massive market, which is as yet untapped. This may be due to the fact that one of the client's main aim is to "help provide children with healthier food" (GMID 2007). Secondly; the client has not fully taken into account the changing lifestyles of people and their demands, emerging markets within the health drinks market such as health snacks have not been considered by the client and must be if they wish to expand their business and move away from being known as a one product business.

Table of Contents

Introduction - Page 5

Problems & Opportunities - Page 6

Research Objectives - Page 7

Background Information

The changes in culture in the UK- Page 8

The changes in demographics - Page 9

Conclusions & Recommendations - Page 10

Bibliography & References - Page 11

Appendix - Page 12

Introduction

The fruit juice and health drinks market has, over the past couple of years, seen a massive growth both in terms of sales and of the increasing demographic of customers that are choosing to purchase the products, especially at the expense of carbonated drinks. In 2006 the estimated value of the total market was Ј2.77 billion at retail selling price, having grown from 30.7% in 2002 (Key Note, 2007). Innocent Drinks are the markets biggest player with a market share of around 62% , selling in excess of 600,000 drinks every week (Barnett, 2005) The business is currently valued at Ј100 million. Not only content with being the largest distributor of smoothies the business has branched out to start the selling of "thickies" - a yoghurt based drink which promises to be a hugely innovative idea and also water based fruit drinks aimed at children.

The aim of this report is to examine Innocent Drinks position within the market and to see how their position of strength can be built upon, both in the current market and any potential new markets.

Problems & Opportunities

The main problem under investigation in the case of Innocent Drinks is that I think that they have lost touch with their consumers. I feel that it does not know who the main clientele are and who they should be marketing their product towards. The niche market in which they find themselves is ever expanding and to keep up with trends and with the consumers changing needs we must go back to basics and reassess the businesses outlook and targets for the future.

When looking at the market as a whole it is important to remember that Innocent are a young company without any re-branding experience. Big companies such as Coca-Cola are re-branding all the time, from the celerity craze of a couple of years ago to a more homely marketing approach currently. In order to re-invent themselves and cement their place as the market leader within the health and fruit juice market, Innocent must look at a number of things including product portfolio and other areas of the general health market they could look at expanding into, rather than being simply known as "the smoothies company".

Research Objectives

Within this report I will be looking at the following areas to help the client understand to a better degree the change in lifestyle, cultures and the demographics in the United Kingdom.

The cultural trends of the population are changing in the UK. People are more aware of themselves and more importantly of their own health and well being. The obesity "epidemic" is cause for major concern and must be considered into any new strategy as must the snacking culture of British people. The change in demographics since the launch of the business has changed and will change even more in the next 20 years; this must be built into the long term plan for the business.

Looking at these areas will help me understand where the market is going and how Innocent can gain from this knowledge in the goal of expanding and cementing its name in the health market.

Background Information

(Changes in culture)

When we look at the changing of the UK populations self awareness of personal health over the last few years it is clear to see that as a nation we are more aware than in the past. This is reflected in table (i) in the appendix where more than 75% of people interviewed in the survey say that they are trying to be healthy or are least attempting to exercise more regularly and in general are more aware of their diet.

These figures sound promising to the client as it appears that 75% of the population care about what they eat and drink. However, these figures don't add up to the fact that 20% of the UK population is considered obese, this is expected to reach 40% if eating and drinking habits do not see some form of change (Marketing Week, 2006).

As the government wage a war on the obesity issue some consumers are starting to reassess snacking choices which could bring a change in the entire market. The data states that people are trying to eat more healthily. There has been a vast increase in the number of people buying