1. Quaker’s reasons for buying Snapple and their strategy for Snapple
Quaker wanted to expand their footprint in the beverage industry and add Snapple to create the most innovative distribution system in the industry. They expected the following benefits:
- For consumers: Snapple and Gatorade will be available in many more locations
- For trade customers: more merchandising, points of sale, and in-store refrigerators
- For Snapple: Quaker’s resources, management skills, packaging experience, supply chain expertise, and modern information systems.
- For Quaker: Economies of scale and higher penetration for Gatorade (increase in sales, points of sale, geography), especially in cold channels. Synergies between the two brands in cold and warm channels, and geographic presence as well as the combination of corporate and entrepreneurial mindsets.
The strategy was to integrate Snapple’s entrepreneurial culture but manage the brand with a corporate perspective. This included cutting ties with Snapple’s eccentric spokespeople and transitioning the brand from fashion to mainstream and lifestyle. Also, Snapple’s distributors should only supply cold channels (with Snapple and Gatorade) whereas Quaker would integrate Snapple in its distribution to warm channels.
2. Root causes for Quaker’s failure with Snapple
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
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
One of the advantages that Kool-Aid has over the dominant players is its portability and easiness of distribution. Since Kool-Aid was invented for the purpose of reducing shipping cost and comes in small packets or tubes, it is extremely cheap to ship compared to the bottled and canned drinks that most of the soft drink companies are offering. It also does not take up space and therefore reduces space and cost for the retail stores to display Kool-Aid in the store. The distribution advantage is there, so Kool-Aid’s main focus should be creating demand and to be on consumers’ consideration set in order to compete with the dominant players in the juice/punch category. However, multinationals such as Coke and Pepsi are also very profitable in the concentration category by selling their products through fast food chains and convenient stores, which allow them to be profitable in both as bottlers and concentration producers. In order to compete with companies like Coke and Pepsi, Kool-Aid needs to offer “ready to drink” products that are bottled or
3) Who is Kraft Kool-Aid’s customer, and what trends do we see in that market
Gatorade also targets average citizens who are physically active. During commercial breaks, Gatorade is always broadcasting their product, not only is Gatorade advertised on television, but they also advertise their products on the sidelines of professional sports teams by having large jugs and Gatorade cups on the sideline that is often shown during timeouts. As result, Gatorade advertisement is a success, because when going to buy a sports drink they’re going to remember that Dwayne Wade or whoever their favorite professional athlete drinks
1. How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007?
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.
The highest percentage of the company sale is as a result of making impulse purchases; hence this requires a good point of sale support team. The market is very competitive. There are a couple of competitors that offer the same products as Gatorade, for example, MW, M.I.T and A.U.I. The experience that the firm has in the
If life, ones actions can determine the depths of their fate. In Homer book of the Odyssey this fate appeared throughout the entire book towards Odysseus and his men. Odysseus and his men couldn’t get back home because of the enigmatic gods. Therefore, fate does control Odysseus life; in particular his journey back to Ithaca.
Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.
Also soft drink companies diversify business by offering substitutes themselves to shield themselves from competition. Rivalry:
Examining a company’s strategic perspective is somewhat easy when their marketing campaign and advertising are as notable as Subway’s. Over several years, Subway used a spokesman who became one of the most recognizable people with one of the most recognizable stories in the United States: Jared Fogle. Jared Fogle’s story is a simple one, not unlike many others in America: “Known around the world as the "Subway guy," Jared Fogle is by some polls one of the most famous faces on the planet. As a college student, weighing in at 425 pounds, Jared courageously set out to shed hundreds of pounds that had haunted him since childhood. Like millions of Americans, he tried various diets, but when he stumbled upon Subway's seven sandwiches with six grams
Quaker’s primary change to the Snapple product was to manufacture Snapple in much larger value sizes such as 32- and 64-ounce bottles (instead of Snapple’s original single-serve 16-ounce ones). Quaker had had previous success in launching their Gatorade jucies in larger sizes as consumers usually drank it after practice or a work out, and so, were considerably thirsty. These consumers found the larger sizes appealing as they needed to rehydrate, and the larger sizes enabled them to do that more efficiently. However, this same product/ packaging model did not work on the Snapple line, as Snapple was consumed by customers for a different reason. Customers drank Snapple during lunch time or in the afternoon as something they can finish quickly. So the large serving sizes did not appeal to them at all.
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).
big market share, such as Pepsi Cola, Mt.Dew, and so on. I like to drink Coke