An Examination into How Innocent Use Relationship Marketing Strategies to Build Trust with Their Consumers Becci Dive BA AMC Level H What I Will Cover ! ! ! ! ! !             Innocent brand Trust in relationship marketing Model of Postulated Correlates of Trust (PCT) Innocent’s Relationship Marketing Activity PCT Analyses of Activity Brand SpeciKic PCT Model Innocent !   Founded in 1998 !   Started with smoothies – expanded into food, juice and children’s !   Health focus – 2 of your 5 a day !   Ethically focused !   78% market share Trust in Relationship Marketing !   Literature highlights positive outcomes to a business being trusted by partners !   Morgan and Hunt (1994) present an example of how many relationship marketing activities can lead to trust, but not all need to be applied !   Would be optimistic and confusing to expect a brand to fulKil all behaviours !   JustiKies to development of a brand speciKic model Postulated Correlates of Trust (PCT) ! Michell, Reast and Lynch (1998) !   Multidimensional !   Combination of affective and cognitive variables needed to build trust !   ‘All good behaviours and practices do not always build trust and the potential for trust depletion is imminent’ (Sirdeshmukh, Singh and Sabol’s, 2002) Over to You… Do you trust us? Why not? Why? I love you Innocent Activity Analysis !   Key relationship marketing activity from the past 18 months !   Selected due to ! ! ! ! !           Diversity Represent range Multidimensional nature Prominence in brand strategy Trust building elements The Innocent AGM ! ! ! ! !           150 Innocent consumers Q&A with founders Experience creative process Filmed for website Builds consumer trust with individuals (founders / staff) and organisation (Anderson and Narus, 1990) PCT Analysis of Activity !   Multidimensional event with regards to building trust !   Affective variables !   Truthfulness !   Integrity !   Reputation !   Cognitive variables !   Personal experience !   Experience of peers !   Model does not account for communication and the credibility of the source The Big Knit !   Charitable background since brand inception !   Annual fundraising event for Age UK !   Partner since 2003 !   Hats knitted by the public PCT Analysis of Activity ! ! ! !         Brand conscience / collaborations not considered in model Model lacking to analyse this form of trust building Cognitive variables not attributable to The Big Knit Affective variables as a result of charitable behaviour !   Professional Standing !   Benevolence !   Caring Coca-‐Cola Investment !   58% majority shareholder from April 2010 !   Consumer backlash !   Impact on consumers broad-‐scope trust (Grayson, Johnson and Chen, 2008) !   Letter from founders !   Swift response to ensuing conKlicts may strengthen relationships (Andersen and Kumar, 2006) PCT Analysis of Activity !   Letter fulKilled multidimensional need through its content !   Cognitive dimension – ‘implied intentionality to provide similar levels of service quality’ (Rempel and Holmes, 1986) !   Dependability !   Affective dimension -‐ displaying Innocent’s motives and intentions (Rempel, Holmes and Zanna, 1985) !   [Apparent] Sincerity !   [Apparent] Benevolence !   [Apparent] Truthfulness !   Model does not account for communication and the credibility of the source Innocent Model Adaptation Limitations !   Only Innocent applicable !   Analysis technique transferable to other brands !   Selective analysis !   Further work needed to determine model !   Other outcomes of relationship marketing !   Importance to be considered to guide strategy development !   Activity to be incorporated alongside trust building References !   Anderson, J. and Narus, J., 1990. A Model of Distributor Firm and Manufacturer Firm Working Partnerships. Journal of Marketing. Vol. 54 pg 42 – 58 !   Grayson, K., Johnson, D. and Chen, D. R., 2008. Is Firm Trust Essential in a Trusted Environment? How Trust in the Business Context InKluences Customers. Journal of Marketing Research. Vol. 45 pg 241 -‐ 256 !   Innocent, 2011. AGM. http://www.innocentdrinks.co.uk/AGM/ [Accessed 4 November 2011] !   Innocent, 2011. Daily Thoughts Blog. http://innocentdrinks.typepad.com/ [Accessed 15 November 2011] !   Innocent, 2011. Innocent and Investment: An Investment Update from the Founders. http://www.innocentdrinks.co.uk/us/our_story/investment/ [Accessed on 12 November 2011] !   Innocent, 2011. The Big Knit. http://innocentdrinks.co.uk/bigknit/ [Accessed 4 November 2011] References !   Innocent, 2011. Things We Make. http://innocentdrinks.co.uk/things_we_make/ [Accessed 15 November 2011] ! Michell, P., Reast, J. and Lynch, J., 1998. Exploring the Foundations of Trust. Journal of Marketing. Vol. 14 pg 159-‐172 ! Mintel, 2011. Smoothies – UK – October 2011. http://academic.mintel.com/sinatra/oxygen_academic/search_results/ show&/display/id=545342 [Accessed 7 November 2011] !   Morgan, R. and Hunt, S., 1994. The Commitment-‐Trust Theory of Relationship Marketing. Journal of Marketing. Vol. 58 Issue 3 p20 ! Rempel. J. K. and Holmes. J. G., 1986. How do I Trust Thee? Psychology Today. Vol. 20 pg 28 -‐ 34 ! Rempel. J. K., Holmes. J. G. and Zanna. M. P., 1985. Trust in Close Relationships. Journal of Personality and Social Psychology. Vol. 49 pg 95 -‐ 112 ! Sweney, M., 2009. Innocent drinks offer a taste to Coca Cola. http://www.guardian.co.uk/business/2009/apr/06/innocent-‐drinks-‐sell-‐ stake-‐coca-‐cola [Accessed 1 November 2011] Thanks for listening!