Marketing and Iced Tea
I. Point of View The point of view taken in the case analysis of Snapple is the Marketing Manager point of view. Marketing Manager is largely responsible on making decisions on how to market the products to make it more competitive in the current environment.
II. Analysis of the Case Situation Macroenvironmnent Analysis. Iced tea market in the United States is excitingly huge and is contunously growing. It is already served in 75% off all the households in the United States. Ready-to –drink iced tea market in 1992 grew by 50% compared with 1.5% grew in the cola market.
Industry Environment Analysis. Acceptance of the iced tea in the market is due to the increasing health consciousness of the consumers. Snapple has capitalized on this increasing trend that’s why it easily gains 33% of the market by 1993. Aside from small sized competitors (like Cadburry, Schweppes and Perrier), giant competitors have also entered the market like Pepsi for Lipton Brand and Coca-cola for Nestea Brand. These giant competitors have the distribution and marketing powers. These giant competitors also have close ties with vending machine providers making their product more visible and accessible. With this, Coca- cola and Pepsi have become more popular while Snapple is lacking in national recognition
Company Analysis. Snapple is an innovator company offering ready-to-drink iced tea in the market. In 1988, the company holds 33% market share by offering 11 different flavors for under $ 1 per 16 ounce bottle. The company, capitalized on the growing health conscious market. Snapple is relatively of small size compared with the other players in the market- only 87 employees- and has no production facilities. Their product is in only 51 of the 278 major supermarket chains.
III. Problem Statement What will be the company’s strategies to remain competitive in the growing ready-to-drink iced tea market?
IV.
II. Analysis of the Case Situation Macroenvironmnent Analysis. Iced tea market in the United States is excitingly huge and is contunously growing. It is already served in 75% off all the households in the United States. Ready-to –drink iced tea market in 1992 grew by 50% compared with 1.5% grew in the cola market.
Industry Environment Analysis. Acceptance of the iced tea in the market is due to the increasing health consciousness of the consumers. Snapple has capitalized on this increasing trend that’s why it easily gains 33% of the market by 1993. Aside from small sized competitors (like Cadburry, Schweppes and Perrier), giant competitors have also entered the market like Pepsi for Lipton Brand and Coca-cola for Nestea Brand. These giant competitors have the distribution and marketing powers. These giant competitors also have close ties with vending machine providers making their product more visible and accessible. With this, Coca- cola and Pepsi have become more popular while Snapple is lacking in national recognition
Company Analysis. Snapple is an innovator company offering ready-to-drink iced tea in the market. In 1988, the company holds 33% market share by offering 11 different flavors for under $ 1 per 16 ounce bottle. The company, capitalized on the growing health conscious market. Snapple is relatively of small size compared with the other players in the market- only 87 employees- and has no production facilities. Their product is in only 51 of the 278 major supermarket chains.
III. Problem Statement What will be the company’s strategies to remain competitive in the growing ready-to-drink iced tea market?
IV.