Balance ScoreCard Analysis

December 2015

Table of Contents
1. Some Background History............................................................ 3
2. Mision, Values & Strategy............................................................... 4
3. SWOT, PESTEL Analysis & Porter's 5 Forces.......................... 6

4. Balanced SroceCard......................................................................... 16
5. Sumary of Perspectives.................................................................... 24

6. BSC Graphics................................................................................... 25
7. Bibliography & References............................................................ 27

Some background History

Should we quit our jobs to dedicate ourselves to

make "smoothies"?

As for Innocent Drinks, its history can be summarized in a very simple

way, as shown on its official internet site:
and we're here to make it easy for people to do themselves some good
(whilst making it taste nice too).
We started innocent in 1999 after selling our smoothies at a music festival. We put
up a big sign asking people if they thought we should give up our jobs to make
smoothies, and put a bin saying 'Yes' and a bin saying 'No" in front of the stall.
Then we got people to vote with their empties. At the end of the weekend, the
'Yes' bin was full, so we resigned from our jobs the next day and got cracking.

Since then we've started making coconut water, juice and kids' stuff, in our
quest to make natural, delicious, healthy drinks that help people live well and
die old.
*Taken from http://www.innocentdrinks.co.uk/us/our-story

Innocent Drinks was very innovative from the start. From the way he did
his market research at a festival of music, that has been a key for the
success and growth of the brand .
Her "innocent" ethos was questioned when he partnered with Coca-Cola,
one of the largest corporations in the world and has had a questionable
track record when it comes to ethics.
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Despite a number of boycott campaigns that permeated the social

media channels, the company has gone from strength to strength, now
exports to Europe. Innocent sells more than two million smoothies a
week across 11 different countries in Europe. In 2013, Coca-Cola took full
control in a deal that generated millions founders of the company.

Mission, Values & Strategy

Mission
Despite there are not especific mission, vision or values they say and confirm

that the mission they have is:

"Make natural, delicious food and drink that helps people live well and die old"

Values
Innocent Drinks have 5 values they want people have to work by , this
because they are related to the fundamental essence of the company, and
are listed next:
Be natural
Not just our products, but being natural in how we treat each other and how we speak
to the most important people - our drinkers
Be entrepreneurial
innocent began as a small, entrepreneurial company, and nothing much has changed.
We aren't afraid to do things differently, and we've never given up on a good
opportunity.
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Be responsible
We keep our promises, are mindful of our impact on our community and our
environment, and always try to leave things a little bit better than we found them.
Be commercial
We wouldn't be here if we didn't keep our eyes on the numbers at all times.
ultimately we want to deliver growth for us and our customers too.
Be generous
this means giving honest feedback to one another, taking time to say thank you,
and where we can, donating our resources or money to those who need it more
than us. it's that simple.

Strategy
Its strategy revolves around the humor and the promotion through social
media community spirit with their customers. In the communication of their
products are always transmitted the values previously mentioned.
The creativity of its commercial strategy called my attention while this
analysis was performed, I analyzed some recent press releases, the website, I
saw videos of meetings with consumer brand, and visualize a video
interview with one of its founders, in addition, also I taste some of their
many products.
We can analyze the strategy of the company in two basic functions:
marketing and innovation. The first is still present in the company through
the process by which a company has created value and brand presence
to your target market. Regarding the second, the tendency has always
been to innovate at the product or technology and even ecological
capacity.
The trend and brand presence in innovative forms of communication
currently displayed, such as: social networks (Facebook), POS (social
retailing), events where the brand is present or others.
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The strategy chosen to win customers is based on an innovative

communication humorous community standard, which contrasts with the
communication strategies used by established large retail brands.
The basic strategy begins with Innocent Drinks packaging and all the
symbols used: banana leaves, logo and all ideas, sometimes a little flashy,
they post on their packages, such as "sign-moi boive" in bottles liquid yogurt.
These are some of the elements that humanize the brand and make it be
perceived as a friendly brand.
This has been and remains a fundamental part of the strategy that has
effectively used the company, which has so far been more than profitable.

SWOT , PESTEL Analysis

& 5 Forces
*Some parts taken mostly from Internet (Sources at the end)

IMPORTANT NOTE: The following analysis were found in Web pages focused on
education, due to the simplicity and assertiveness of the analysis, some parts were added
to the document wothout modifications. Details of the find sources cited at the end.
It is noteworthy, parts are taken from internet are highlighted with a different letter in
manuscript.
****Reference # A1 ****

SWOT Analysis.
STRENGHTS

* Good product
Innocents smoothies are characterize for being made with natural and fresh fruits and is
a product that has only an 8 day shelf life which guaranty a high quality product.
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Innovative products and creative

marketing
Innocent is being innovative by launching to the market new flavor (only in 2003 they
launch 9 different recipes in three different categories). In addition to help keep the
costumers interested they have 32 differe ntypes of labels in circulation and they change
t
them every three months.
Environmental company
They start in 2003 using 25% PCR (post consumer recycle) plastic in its bottles, now
they had change their one liter smoothie into a lighter cartons with no membrane lid
that will help save 20 tones of plastic and 400 tones of carton a year. Also now it is
possible to recycle a 100% of their packaging, furthermore they only buy fruits from
plantation approved by the Rainforest alliance and they use renewable electricity in
their business.
Sophisticated supply chain
Innocent offers unique terms of distribution and sales such as their product only has
eight days shelf life, they offered a service to retailers of orders on daily basis, these gives the
brand two advantages zero wastages and maximizes product availability. These terms
has given innocent a 98% successful delivery rate.
WEAKNESSES

Loss of innocence
Innocent last October faced a complain from ASA involving one brand of their
portfolio, This Water', because they said the advertisement of the was of the product
was false. Their allegation was that the information given by innocent said the product
only contain water and juice, bur the truth was it also contain 42g of sugar.
For some consumer innocents partnerships and deals with McDonalds and Coca Cola is
a signal that they are becoming a big corporation and forgetting their principal goals.
Loss of originality
Even though innocence is always changing their labels and introducing new products to
the market in some other aspects they have become very monotonous one example is the
Regents Park Fruitstock Festival people love it but is the same every year.
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OPORTUNITIES

Healty Products
People is looking for products that help to take care of their
health, they are looking for new products that are more natural
and without plenty of chemicals, and Innocent Drinks products
have this characteristic and has a good reputation to the
customers.
Alliances
New alliances, the same way that happened with McDonalds,
nowadays the alliance with this fast food chain has made to the
brand became international. If ID (Innocent Drinks) continues
looking for key alliances, the goals that they has proposed will be
easier to reach. The same way while they stand as leader brand.

In the case of the alliance with Coca-Cola, ID has now all the
distribution channels opened for distribute international and
continue with the expansion that they are looking for, in
addition to profits they earned them out of financial troubles
that occurred in 2008.
Porftolio
The demand made by the customers for new products from the
brand, this create the option to expand not only the market of
ID, this create the possibility of extend the IDs portfolio. This
mean that they have the opportunity of not only expand the
market by enter to new countries, but even can expand in the
current countries.
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THREATS

Economic downturn
In 2008 made the entire smoothie market had a downturn of 1 percent,
but for innocent' that meant a sales decreased of 20% in comparison with 2007, this
was mainly because people started searching for lower cost products. Because of this
innocent' is facing a mayor dilemma if they reduced their prices their costumers will
think they had being overcharged for the product since they start in 1999 and that can
ruin the brand image, but given that the prices of raw material had increased and the
company have had a decreased in turnovers they have to seek for a solution and
recovered the market they had already lost. A solution that was given by Joe
Thomas in an article he wrote for the marketing magazine was:
To hold on prices, innocent' products are not cheap but they delivered a true health
benefit
Competitors
Even when ID is the #1 brand in the market of healthy
smoothies in the United Kingdom, new companies are joining
the market, offering new product or even similar products to the
products made by ID. This means that now people has more
options at the moment of choosing their products, and even
when ID's products have better quality against some brands,
the difference in price made customers choose something
cheaper.
This is a big threat, cause in the previous years ID has not much
competence with their products, but now they have to continue
innovating and using the strategies that have been used in the
last years to keep their actual customers and get even more new
customers.
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PESTEL Analysis.

Political
In the UK exist rules that apply to ID, regarding to this rules that
apply to ID are basically the way that the company describes
their products to the customers, cause is forbidden to claim that
a product is really good for the health without proofs.
For this reason ID was beawared in 2007 by the regulatory
agencies to avoid the claims that the products has "so great"
benefits to the health.
Economical
Even when ID is established and has a base market, they have to
take in mind that nowadays the people has more expenses and
VAT to pay, that means that the cost of opportunity for buy an
ID's product is higher and a big part of the market don't think
that the difference between one brand and other is high, so
they are looking for cheaper options.
Also ID has to have in mind that a lower price isn't a good idea
if the quality that they has been given to their customers
decrease.
Social
Today the weight of the social media can impact any company,
that shows that the opinion of the customers is important for
the company, inclusive the concerns about the ecology and the
way that the companies contaminate or avoid to contaminate
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the environment.

The social responsibility has become a key factor for any

company that want to continue providing their products or
services, the customers, and even the non-customers can affect
a company if they think or see that the company isn't following
their social responsibility. For this reason even if it is not a law,
the companies have to made a compromise with the public,
whatever it could be, from avoid to contaminate the
environment to impulse programs for certain public concerns.
In the case of ID, they have shown their compromise to the
Social Responsibility by the Non-lucrative program "Innocent
Foundation", and continue claiming that their products are
made with strict rules for avoid chemical products and damage
to the environment.

Technology
This is the technological era, almost all people has a tech device,
and plenty of them spend hours in the computers or devices,
this create the perfect environment for diseases like obesity,
mental illness, stroke, heart disease, or even cancer. This means
that technology is modifying the habits of the people, including
the eating habits, and make that they look for something fast
even when is not healthy for them.
The products that are available for "fast food" are not always the
best options and some of them are made with a lot of chemicals
that affect even more to the customers in a long term.
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In this case ID has the advantage that is now been considered as

healthy product and a "fast food" option since is of sold in
McDonalds, that made that the products made by ID has a better
and bigger value to the customers and position it as one of the
best brands in this market.
Also, the technology affect all the publicity and presence of the
brands, today there can't be a big brand without their presence
in the Social medias and tech devices by apps, cause the needs
of the markets and customer changes all time, and they want to
have everything they use or buy close to them.
This is a strong point for ID, cause mostly of the strategy is made
by social media, this by being in contact with the customers,
participate in their daily activities. That's why the strategy and
case of ID is well known since it started

Environment
The world is concerned of the environmental issues, the global
warming, the pollution, even the water. That's why the
companies has to start reducing its pollution output, the process
that they use for provide their products or services.
There has been plenty of meetings and regulations concerned to
this, part of the social responsibility is here, in the environment,
because the companies need to show to the customers that they
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concern about the environment issues and are taking actions to

reduce the pollution output.
Even according to some countries's law they have to manage
certain activities for be allowed to continue offering and/ or
producing their products.
In the case of ID that has never been an issue, since they started
the company till today, they have been concerned about the
environmental factors and have been always looking for the best
alternatives in the packaging, process and others for avoid to
have a huge impact on the environment.

Legal
Regarding to the legal part we have just the tax amount that is of
17.5 %, and the fact that this can be dismissed by Non- lucrative
Foundations, like is the case of ID who support the "innocent
Foundation" and some sustainability research programs.

Porter's five forces Analysis.

Rivalry
The beverage market is huge, the rivalry is growing all time, for
this reason the different products has to have a competitive
advantage if they want to stay or lead the market, and for ID the
advantage that they has is the quality of their products and also
the fact that their products are all natural.
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This is another reason why the innovation had, is, and will
continue being part of the strategy of ID.

Power of buyers
Because of the same reason that the beverage market is full of
products, the customers can influence in the price of the
products, because the companies usually set the prices
according to the demand of the products.
If the level of customers decrease the price will decrease in
almost all cases, and if the level of buyers increase the price will
increase as well.
In the case of ID, almost all their products has an established
price, what is pretty normal in the beverage market's big
companies.

Power of suppliers
Usually the less number of providers made that the price of
product could increase easily, but in the case of beverage
market is not the case, cause the providers are a lot, so the
alternatives to providers are a lot and made that the companies
can choose the best for them.

Threat of substitutes
Is a real fact that the substitution in this market ( beverage
market) is high, this could mean a threat to any company, for
this reason the companies try to offer products with higher
value.
14

Also for this reason the companies made investigations

about

the

factibility

of

the

products

before

start

manufacturing them, also the products need to evolve or

have new improvements and innovations, for lead market or
at least keep their position on this.

Threat of new entrants

Is more than normal that the threat of new entrants would be

high, and this is because in the beverage market there is
always new products and companies joining the market, and
this is cause consumer goods are always attractive to the
companies.
In this scenario the biggest companies are always the biggest
threats, companies like Coca-Cola and Pepsico are always
increasing their portfolio and providing new products to the
customers even when is not sure if these will succeed, this
because this kind of companies have the capital to made
"experiments" with new products.
And also, new beverages are in almost all cases accepted by
the customers, that's another reason why ID is planning to
increase their portfolio.

15

Balanced ScoredCard

Perspectives

As for the prospect of success in customers it can be summarized

in being able to retain the current market share held by ID,
likewise as further expansion while meeting the needs of
customers through quality products and continue expanding
their current market.

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For financial perspective it can be said that the success would be

considered once it achieves grow 4.5% annual increase compared last
year, according to comments from leaders of the company in Yahoo
Finances.

To be always at the forefront of innovation to evolve and improve internal

and external processes that keep the company growing.
Likewise, it seeks to implement new strategies to maximize existing
resources and infrastructure in several countries.

The perspective of success would be an environment where all employees

do their job satisfactorily, and they would be proud of belonging to the
company.

17

Objective Statements

18

Increase customer relationship

Improve social programs and foundations
Extend reach of social assistance
Fulfill customers needs

Reduce costs
Enlarge anual growth
Expand the market

Improve the policy of effectiveness

Anticipate and apply the innovations
Cost savings by optimization of process
Solve death costs

Increase the employee satisfaction

Skilled workforce
New innovation technology applied
Increase of employees participating in
new Projects of the company

1. Financial Perspective

Objectives
Based on:

Value
Financial
Structure

Asset
Management

Sustainability

Financial
Perspective

Invests

Incomes

Expenses

Profitability

Indicators:
Net Profit

Solvency Ratio

Cash - fow

Benefit per employee

Liquidity Ratios

Debts to c/s

How do we appear to shareholders?

On the financial aspect it has forecast annual earnings of the company
grow by 2.6% in comparison last year, due to the various projects that are
being implemented and in conjunction with the expansion that is
happening in the company is expected that at the end of year the
earnings would be 4.5% more than last year.
Because the data and financial information of the company is more than
limited in this small research work are not exact numbers and figures
shown, nor the statements of incomes in recent quarters shown.
19

2. Customer Perspective
Indicators:
Market share
Customer loyalty
Customer purchase frequency
New customers entries
Customer profitability
Customer satisfaction with the product
Development
Efforts

Internal Process

Customer
Perspective
Image

Quality

Loyalty

Product
Advantages

Price

Needed
Information
Market
Profit

Customer's
Satisfaction
Customers
Loyalty

20

New Customers
Entries

Customer
Profitability

How do our customers perceived us?

The customer value is focused on providing customers with a wide range
of products 100% natural and high quality, so as to provide the same fun
and pleasant to taste the various products.
Also presented as a brand with social responsibility, not only in the
processes used for manufactira of its products, but also right through the
Foundation "Innocent Foundation", which provides welfare nonprofit.
They want that the customers see the brand as friendly brand, one that
has a real Social responsability and is aware of the customer needs. A
brand that deserve the worth to be loyal.

Key Aspects

Product
Attributes

Customer
Relationship

Image

Attributes, ie the unique aspects that distinguish the product from

others.
The relationship with the customer, which is reflected in customer
satisfaction with the product, as well as the quality and frequency of
customer contact.
The product image and brand, basically how they see the company
from outside the company.

21

3. Internal Perspective
Indicators:
Cost of new product development
Number of changes in each product (Innovations)
Sales of new products
New Patents

Key Aspects
Product innovation compared to competitive products, as well as
innovation in the processes of transport and production logistics.
Optimize production processes to reduce costs and so to establish a

competitive value.

At What Processes Should We Excel?

When they analyzed the current patterns of production, shows that may
include new processes and machinery that would achieve reduce
packaging time, in the same way when analyzing various schemes can be
adjusted to new technological innovations.
Also by considering the dead costs, and current areas of optimization
that can be solved in the medium term, and long-term become source of
income.

22

4. Learning & Growing Perspective

(innovation, employees)

Indicators:
Hours of training per employee
Pace of wage growth
Number of employees with higher education
Productivity level
Percentage spending on information and communications technology (ICT)
Percentage of active participation of employees in extraordinary projects

What Sould We Learn to Grow and Prosper?

Promoting a culture and a work environment that promotes the growth
and development of our employees and the satisfaction of their needs in
a manner consistent with the values of the company.
Whichever results in an environment where all employees do their job
satisfactorily, and they could be proud of belonging to the company.

23

Summary of Perspectives

24

Balanced ScoredCard Graphics

25

26

Bibliography & References

Zuniga-Jara, S. (2011, July 17). A Balanced Scorecard for a Firm in the Chilean Mining Sector.
Retrieved December 12, 2015, from http://www.panorama.utalca.cl/dentro/2011-jul/articulo3

Humington, G. (2014, February 25). Total working capital performance depends on getting
whole company on side. Retrieved December 11, 2015, from
https://ctmfile.com/story/total-working-capital-performance-depends-on-getting-whole-company-onside#.VnA1QvnhDct

M., D. (2012, September 14). Beyond the Balanced Scorecard: How an Un-Balanced View of
Performance Could Dramatically Increase Your Ability to Execute" Retrieved December 11, 2015, from
http://www.refresher.com/Archives/adnrbeyond.html

Sapovalova, T. (2013, September 7). 'Innocent Drinks': No tengas miedo de empezar pequeo.
Retrieved December 11, 2015, from
http://voces.huffingtonpost.com/tamara-medina-sapovalova/innocent-drinks-historia-de-exito_b_3563
251.html

Innocent Drinks. (2013, May 10). Retrieved December 11, 2015, from
http://www.proofhq.com/html/innocent-drinks.html

Innocent

Drinks Retrieved December 11, 2015, from www.innocentdrinks.co.uk/

****Reference # A1 ****
After been looking for the proper way to give credit to the author or authors that made the part that is
included in the document and highlight in manuscript, and because there is not an author, I'm writing
next all the details of the source of these material that I used for complement this assignment, the
credit for that part is not mine.
Also I want to say that the information that I used from this content was verified or has sense acording
to the resources that the company and other formal institutions provides.
Details:
Title of the Article/ Post: Innocent Ltd. Report
Website: http://www.ukessays.co.uk/essays/management/innocent-ltd-report.php
Author: Not Available.
Website name: UK Essays.
Post Created: Not Available.
Retrieved: December 11, 2015

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 2015 HAN Hogeschool van Arnhem en Nijmegen.

Luis Olvera
Daalhuizerweg 8
Kamer 201, 6881 NZ, VELP, GLD.
Telf.: 0639371390
e- mail: A01325000@itesm.mx
The complete copy of the document is strictly prohibited without written
under the penalties provided by law, the total or partial reproduction of
this work by any means or process, including photocopying and
computer processing, and distribution of copies authorization her hire or
public loan. All logos and trademarks Inocent Drinks are trademarks
used in this document only for academic purposes.

Impreso en Paises Bajos - Pinted in Netherlands

Luis Olvera
2015