EXTERNAL ANALYSIS
PESTLE factors are very critical factors for an organization as it helps an organization to know what the external factors that influences any organization. It includes Political, Economic, Socio cultural, Technological, Legal and Environmental factors.
Political Factor
Innocent has been adversely affected by various political influences like some trade laws and taxes. There has always been a political pressure on the Innocent, as there was a controversy in the Innocent that however, fruits drinks and their raw material are considered as “luxury goods” so they are deemed to pay 20% VAT but Innocent believes that they should not be paying full 20% VAT as a tax as their ingredients was 100% fruits, so they believed that the company should not be paying full 20% as VAT.
Economic Factor
Exchange rates are the major economical issues which influences the Innocent Drinks. Innocent’s main ethos and strategy is to focus on its customers and employees. The main reason for losing its market and sales was recession. Due to Recession high unemployment and low customer satisfaction has lead to consumers switching to other brands of fruits. As Innocent was a premium brand, so its competitors like Waitrose has introduced low cost fruit drinks due to which Innocent was losing its customers. So now Innocent must review all its marketing strategies so they can adopt to new environment and can increase their sales.
Socio-cultural Factor
Innocent mainly focuses on being