RTD Fruit Drinks-Case Analysis 3
Competitor Position Analysis
Opportunity for competitive advantage
* Snapple should continuously survey their current target market and try to appeal to their preferences—Snapple’s target market consists primarily of health-conscious, young to middle-aged, middle-class working and professional women. This group is continuously looking for easily accessible, healthy drink choices, which Snapple is in a good position to provide. * Shape Snapple to the “likes” of the current target market—Consumption and demand of sodas and carbonated beverages continues to decrease, but the consumer need for non-carbonated, convenient, health-conscious, affordable beverages is on the rise. There are a growing number of women joining the workforce which Snapple should focus its health-conscious and convenient appeal toward. * Establish new target markets—Snapple has been looking to other regions of the US in which they previously have had less penetration (e.g. Texas, Florida, and the Western US) and have had some success increasing sales to these areas. By continuing to focus on the preferences of these markets, they should have opportunity to continue growing their brand, and may possibly wish to investigate expanding internationally in the future. * Performing against critical success factors
* Adapting to change: Snapple needs to continue to build and enhance the brand by focusing on the trends of their target market, namely concentrating on high-demand features like health-consciousness and convenience brand by focusing on the trends of their target market. Snapple may want to look into powdered versions of their juice drinks to compete with the convenience and lower priced options offered by Crystal Light. * Product marketing: Snapple’s focus should remain on keeping the brand in convenience stores and retail outlets and continue to increase demand for Snapple through marketing and in-store activity. Snapple should also maintain focus on providing a “happy” and “simple” product. The tonality should be humorous (to fit the brand’s quirky nature), especially if they try to target women ages 18-24. Snapple has recently announced its latest ad campaign called “one of one.” The ad campaign will feature real people with real stories. Humanistic approaches worked in Snapple’s early days, and have the potential to be effective again. * Strong distribution networks and channels: Snapple shows great potential to gain competitive advantage through distribution coverage. With facilities strategically located to ensure product availability for target markets, Snapple has positioned the brand for success. A specific example of targeting a younger market would be to dispense Snapple juice drinks in college cafeterias rather than through vending machines. This will allow students to charge the drinks instead of having to carry change. Fountain drink placements in fast-food restaurants would also benefit the brand name: Snapple needs to elevate their target market’s awareness, preference and loyalty. Snapple may wish to more strongly promote their products to currently unsaturated markets in the US (possibly through different flavors choices, or lower price points for select beverages), and may want to explore an international marketing campaign in the near-future to increase their potential for significant growth and international exposure. * Stage of competing products in the product life cycle
* The RTD fruit drink industry is in the growth stage. Snapple as a brand can benefit from the decline in carbonated soft drinks and gain a competitive edge over the competition if the brand continues to grow. The timing is right to make a move for a better position in the industry.
Firm and competitor capabilities and resources
* Management strength and depth
* Snapple’s executive management team has...
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