After Quaker purchased Snapple, the company decided Snapple was ready to transition from a fashion brand into a lifestyle brand because of its high sales revenues. However, Quaker’s transition efforts did not turn out as planned and the Snapple products lost the support of their loyal customers, weakening the brand image. Quaker ignored, or otherwise failed to nurture, the consumer relationship with the Snapple brand, and product sales suffered significantly. Two key drivers in the beverage business are distribution and promotion and both of these drivers suffered during the Quaker ownership of Snapple.
To revive Snapple, the solution that Mike Weinstein of Triarc should implement is reinvigoration of the authenticity of the Snapple brand; being honest, human, and recapturing Snapple’s mantra of being “100% Natural”. The brand originally developed its strong
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Even though the Snapple customers were average and normal people, the quirkiness of the brand helped them to think of themselves as being offbeat and different from the mainstream customer. Snapple’s original target market segments were young, health conscious, urban professionals. Snapple was also known for its endorsers with whom people related to the brand, and the consumers often loved and embraced the controversy that some of these Snapple endorsers were known for.
While product promotion and advertising certainly suffered under Quaker control, the decline of Snapple was probably most affected by its the important driver of the Snapple brand in the beverage industry, its distribution. One important issue that arose during brand analysis under Quaker was that consumers began reporting that they could no longer find their favorite, or otherwise offbeat flavors, of Snapple anymore. This illustrated the effect of Quaker’s new distribution strategy in trying to use the original Snapple distribution channels to proliferate other Quaker products, but the relationship was just
Snapple is positioned as a premium brand. The premium product that is “available to anyone”. Being so in 1993, the price is still remains a luxury. With the purchase of Snapple, Cadbury became a leader in non-carbonated premium New Age beverage. (Plus, as was discussed during the lecture, a product can’t set the price smaller than the whole company, so there is no way that Snapple will have not a premium price being a part of Cadbury).
The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.
Snapple was a brand that just wanted to have fun and the team at Triarc understand this and embodied it. The Triarc team took many steps to undo the damage Quakers had done to Snapple. Triarc discountined the hated 32 and 64 ounce snapple. Unlike Quakers Triarc was not scared to introduce new products to the market. Quakers saw new products as a risk while Triarc saw them as an opportunity. Triarc knew when they introduced a new product to the market their development cost would be covered or at least almost fully covered so they were not scared to introduce new products even if they werent a success. In light of this Triarc rehired Wendy Kaufman and introduced a new line of products called Wendys tropical inspiration. This give-it-a-go approach paid off again in the future when Triarc introduced an extension of Snapple called Elements which in just a few months had grown to contribute 15% of Snapples total sales. Through these many techniques Triarc won back the trust of Snapples old distributors and helped bring back Snapple to its forme
The Dallas-Fort Worth Metroplex is a great place for business. It is home to multiple companies and their corporate headquarters – and with an international airport, open trade routes, multiple universities and academic institutions – it proves to be the perfect location for businesses and professionals alike. One such company that is headquartered in Plano, TX, and is an example of a thriving organization in the area, is the Dr Pepper Snapple Group. A mostly domestic company, with most of its business located in North American and Mexico, the DPS Group is a manufacturer of nonalcoholic beverages in the beverage industry and is third in overall market share (after Coca-Cola and Pepsico). The beverage industry is steady and growing, but the nonalcoholic beverage portion of the industry is facing many challenges with carbonated soft drinks declining in sales due to a more health-conscious population. Analyzing the DPS Group and how they are dealing with these challenges was very interesting, as I have always been a Dr Pepper fan and would hate to see them go out of business or die out in the market. I have known people who have worked for the company and loved it, and I hope to work for them someday as well. I collected my research on the company through their website, articles and journals, and my own knowledge of the company and research into the company history through a visit to the Dr Pepper museum.
The Pillsbury Cookie Challenge is a case study written by Natalie Mauro under the supervision of Professor Allison Johnson. The case study creates an open discussion about what the marketing manager of the refrigerated baked goods category for Canada General Mills should do to revive his products. Ivan Guillen, the marketing manager, was faced with tough challenges. He was initially “…faced with the challenge of developing a strategy that would lead to improved business performance on his category” (Johnson and Mauro, p.1, 2011). To clarify, Guillen’s category is refrigerated baked goods (RBG), which means, this category is his marketing responsibility. The issue here is that “RBG was GMCC’s fourth largest category, and its performance over the past two years had been less than stellar” (Johnson and Mauro, p.1, 2011). It is important to note that GMCC stands for General Mills Canada Corporation. Pillsbury has enjoyed majority market share in the RBG category in Canada, however, recently, the market was experiencing only moderate growth. Guillen was disappointed that their goal of 5%-7% market growth was not being achieved mainly in the refrigerated cookie dough segment. To be exact, their volume growth for two years was flat and they were having difficulty reaching new households. There was a shift among consumer’s purchases, which Guillen was challenged to figure out why.
Marketing executives at Cadbury Beverages, Inc. want to re-launch the following brands: Crush, Hires, and Sun-Drop soft drinks. However, Cadbury has seen several challenges arise in the eve of their next attempt to lead the market. Senior marketing executives decided to focus generally on the Crush brand of fruit flavored carbonated beverages. The key issues that were foreseen by Cadbury executives were the rejuvenation of the bottling network, figuring out brand equity, and develop new positioning. Lastly, there are numerous opportunities available for Crush to take advantage of that which
By 1990s Snapple emerged as a nationally recognized brand.. With the combination of a unique product and package design and colorful advertising the company achieved nationally recognized brand. Later Snapple went through several management system and owners.
In the ever changing world of customer needs and expectations Dr Pepper-Snapple was faced with an increased customer focus on energy drinks. This area, when exploited correctly, is a high growth and high margin beverage business. In early September 2007, Andrew Baker had his marching orders. He emerged out a long discussion about entering the energy drink business and off he went.
Quaker’s strategy eroded Snapple’s positioning and appeal for consumers, alienated channel partners, and left them with a large product portfolio that is difficult to
Other key marketing mix failures that affected Snapple in the Quaker era fall under the promotion and product umbrellas. Quaker did not follow regular advertising schedules, ceased Snapple’s partnership with Wendy Kaufman, and beside reducing the numbers of flavors available, was also unable to introduce new ones quickly enough. The started selling the product in larger sizes (32 and 64 ounces bottle), but this initiative was another flop: bottles of that size were suitable for Gatorade, not for a leisure beverage like Snapple, customers simply would not buy it. These choices elicited negative response in consumers who stopped perceiving Snapple as a funky and fashionable brand; the beverage’s healthy reputation was damaged too. It is rather clear that Quaker’s executives did not fully understand the Snapple brand and erroneously modified its marketing mix. This failure resulted in the rise of a deleterious discrepancy between the experiential value and benefits customers were used to and expected form Snapple, and the brand’s altered nature. In synthesis, Quaker tried to transplant a marketing mix and execution strategy to a recipient who was not suitable for it, and Snapple, its distributors, and its customers ultimately suffered from
PepsiCo Inc. is one of the leading brands in the world's food and beverage industry. It operates globally with a strong customer base and a wide array of products. This paper analyzes the general business environment for this leading food and beverage brand in order to assess what strategies it has been pursuing to operate in this challenging and complex environment. The analysis of internal and external environment has also been done in a view to figure out the biggest strengths, weaknesses, opportunities, and threats for the company. The final section gives an overview of the company's resources, capabilities, core competencies, and value chain which can help it to achieve a competitive advantage in its industry.
Quaker oats which is a recent addition is also increasing in demand. Thus, the turnover resulting from the Food products is helping the bottom line of the company.
This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.
Belch and Belch (2001) stated that the ultimate goal of an organization is to create brand loyalty, which in return, ensures continued patronage. Pepsi Cola is one of the world’s most popular drinks holding about 29.3% of the entire fizzy drinks market (Esterel, 2011). Pepsi cola is a brand known for reinventing itself with its various logo changes. These rebranding campaigns have been strategically positioned to keep the Pepsi brand relevant within its target audience, the youth. Pepsi still desires to be perceived as trendy, and appealing to the younger generation. The rebranding campaigns are meant to appeal to the forth-coming generation and eventually create brand loyalty. Pepsi have adopted a brand campaign set to distinguish them from other brands. They present the brand as a contemporary product as opposed to a classic relic and thus they grab the attention of the youth. It is therefore very important to understand the loyalty consumers have towards a “brand” that has undergone several changes that include facelifts and general rebranding. It should however be noted that any one of these evolutionary trends will always have consequences. It would be interesting to unravel how much of a success Pepsi has achieved over the years especially with its most recent rebranding
Pepsi-Cola brand is a brand that has been established within the refreshment industry since the 19th century. Pepsi pride the business of consumer products in beverages and snacks, on being one of the best in the world. They seek