PESTLE Analysis of Innocent
Political Factors that Impact Innocent Drinks
Size of government budgets - Both municipal and national governments are running deficit
budgets. Budget deficits occur when expenses exceed revenue and indicate the financial
health of a country. This boosts GDP in the near term but may lead to an increase in inflation
in the longer term. The national government's bond rating is investment grade. Innocent
would need to plan carefully in the long term as an increase in inflation will most likely
decrease their revenue due to more of the population saving than spending.
Threat of Terrorist Attacks - After numerous violent terrorist attacks, companies like Innocent
Smoothie must operate under the threat of a terrorist assault. To limit the losses caused by
terrorist attacks, a wise strategy should be to purchase insurance and other forms of hedging
mechanisms. This would allow innocent to feel more at ease from the consequences if an
attack were to happen as they would have insurance to cover part or all of the losses.
Local Governments Role - Local governments have a significant impact on policy
development and execution since most policies and regulations are administered by local
governments, and enforcement agencies often report to local governments in their
respective states on different laws. Innocent's daily functioning of the business may one day
be affected by the laws that local governments enforce.
Economic Factors that Impact Innocent Drinks
A country's and region's economic characteristics have a direct influence on a market's
prospective appeal. Innocent Smoothie should consider the following economic
considerations in both its current market and the market it wishes to enter: inflation rate,
GDP growth rate, and disposable income level.
GDP Trends & Rate of Economic Growth - The economy's demand is expanding, as
evidenced by the increased GDP growth rate. By extending its product line and targeting
new customers, Innocent Smoothie may capitalize on this trend. One place to begin is to
track changes in customer purchasing behavior and developing value propositions. This
gives Innocent the opportunity to increase revenue and profits whilst expanding brand
awareness.
Consumer Disposable Income - In comparison to the US market, where family income is still
below 2007 levels and has not climbed in real terms since the early 1980s, the country's
household income has steadily increased over the previous decade and a half. By utilizing a
distinctive marketing approach, Innocent Smoothie may use this tendency to extend its
market beyond its typical clients. The US healthy drink market was valued at
$33,568,000,000 in 2019, which shows the huge growing market that Innocent can capitalize
on.
Employment Rate - If the employment rate is high, it will affect Innocent Smoothie's strategy
in two ways: first, it will supply enough clients for Innocent Smoothies products, and second,
it will make hiring talented and skilled personnel more expensive. However, if the
Political Factors that Impact Innocent Drinks
Size of government budgets - Both municipal and national governments are running deficit
budgets. Budget deficits occur when expenses exceed revenue and indicate the financial
health of a country. This boosts GDP in the near term but may lead to an increase in inflation
in the longer term. The national government's bond rating is investment grade. Innocent
would need to plan carefully in the long term as an increase in inflation will most likely
decrease their revenue due to more of the population saving than spending.
Threat of Terrorist Attacks - After numerous violent terrorist attacks, companies like Innocent
Smoothie must operate under the threat of a terrorist assault. To limit the losses caused by
terrorist attacks, a wise strategy should be to purchase insurance and other forms of hedging
mechanisms. This would allow innocent to feel more at ease from the consequences if an
attack were to happen as they would have insurance to cover part or all of the losses.
Local Governments Role - Local governments have a significant impact on policy
development and execution since most policies and regulations are administered by local
governments, and enforcement agencies often report to local governments in their
respective states on different laws. Innocent's daily functioning of the business may one day
be affected by the laws that local governments enforce.
Economic Factors that Impact Innocent Drinks
A country's and region's economic characteristics have a direct influence on a market's
prospective appeal. Innocent Smoothie should consider the following economic
considerations in both its current market and the market it wishes to enter: inflation rate,
GDP growth rate, and disposable income level.
GDP Trends & Rate of Economic Growth - The economy's demand is expanding, as
evidenced by the increased GDP growth rate. By extending its product line and targeting
new customers, Innocent Smoothie may capitalize on this trend. One place to begin is to
track changes in customer purchasing behavior and developing value propositions. This
gives Innocent the opportunity to increase revenue and profits whilst expanding brand
awareness.
Consumer Disposable Income - In comparison to the US market, where family income is still
below 2007 levels and has not climbed in real terms since the early 1980s, the country's
household income has steadily increased over the previous decade and a half. By utilizing a
distinctive marketing approach, Innocent Smoothie may use this tendency to extend its
market beyond its typical clients. The US healthy drink market was valued at
$33,568,000,000 in 2019, which shows the huge growing market that Innocent can capitalize
on.
Employment Rate - If the employment rate is high, it will affect Innocent Smoothie's strategy
in two ways: first, it will supply enough clients for Innocent Smoothies products, and second,
it will make hiring talented and skilled personnel more expensive. However, if the
