Case Case Study : Snapple Case

Coke or Pepsi? Diet or regular? These are questions that many of us hear on a regular basis when making choices about what we want to drink. But if a new law has its way this variety of drink choice could be no more, which is largely because soda and sugary beverages are contributing to the staggering increase in obesity rates in recent years in the United States. Obesity is defined as an abnormal accumulation of body fat that is usually 20% or more over an individual’s ideal body weight for their specific height, age and gender (Free Medical Dictionary 2007). Body weight and obesity risk are a result of genes, metabolism, behavior, environment, culture and socioeconomic status, wherein behavior and environment play two of the largest roles (University of Drexel 2015). People make decisions based on their environment or community which influence their health decisions and due to this it is essential to create environments that make is easier for people to engage in physical activity and eat a healthy diet (University of Drexel 2015). This is a problem that is particularly persistent in low-income populations causing them to suffer higher rates of obesity and the adverse health consequences that follow as a result of these poor diets. This is due in large part to their poor economic state but also their environment because they are surrounded by people that are in similar situations and dealing

could be geared towards females in an attempt to capture drinkers of Coca Cola’s Tab. In addition, males’ ages 35 to 54 consume energy beverages at a rate slightly lower than males under age 24. An energy beverage with similar stimulant effects as most energy drinks but has other health benefits (i.e. Vitamin Water, Odwalla, Naked) could also attract the abovementioned consumers.

The Times have published new stories exposing the company further with deeper information that they have gained through their investigation. Some of the information includes:

The history of Dr Pepper Snapple Group Inc. is very complex, but all started when Jean Jacob Schweppe invented the world’s very first carbonated mineral water in 1783. A young pharmacist, Charles Alderton from Waco, Texas made Dr Pepper in 1885. It was only sold in the pharmacy where Alderton worked. In

In 1999, three university friends, Richard Reed, Adam Balon and Jon Wright established what was soon to be called Innocent Drinks. Soon after, they introduced their first smoothie into the market, at a stall in a London music festival. In fact, consumers where asked to throw their empty bottles in cans marked “yes” and “no” to determine if the three business men should continuous selling their product, the majority agreeing “yes”. After numerous name changes that ranged from “Fast Factor”, “Hungry Aphid” and “Nude”, the business came to be known as “Innocent Drinks”.

Snapple’s brand equity was driven by how unique and popular the product became almost immediately. By 1994, it had grown substantially and was known as a popular and user friendly “ready-to-drink” beverage. The huge growth Snapple was able to achieve was due in part to the almost cultish fan base that Snapple developed. For example, a family in New Jersey even gave their son the middle name Snapple. Studies showed that ready-to-drink beverages were selected almost strictly based upon fashion, taste, and status related considerations. For this reason, Snapple gained appeal through alternative means of marketing. They used product placements (Seinfeld and Sleepless in Seattle), sponsorship from celebrities, consumer composed jingles, and

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.

Cosmopolitan has 58 international editions, is published in 36 languages and is distributed in more than 100 countries, making it one of the most dynamic brands on the planet. In 1999, Cosmopolitan launched a line of low-fat yogurt and cheese in the UK. The yogurts, intended to be “sophisticated and aspirational,” were priced higher than competing brands. However, consumers didn’t want to eat a fashionable yoghurt. From the time of its release, the yogurt was supposedly off of the shelves in 18 months.

Coca-Cola makes a concerted effort to align the values of their organization with both their employees and customers. This alignment of values is evident in the company’s shared-value approach to doing business. This approach is intended “to appeal to consumers and stakeholders who increasingly judge companies and brands as much on the content of their character as the quality of goods and services they produce and market,” (“Coca-Cola focuses on ‘shared value’,”2012, para. 1). The organization is

So while it maintains an age division with a continuous support, if they cannot reestablish their positive image with you, they will eventually be diminished in the market. In the past 5 years the brand has seen a decline in its standard product. While it has exemplified small per capita increases in the vitaminwater zero category, these minimal increases cannot compensate for the larger declines of its standard product. The company must find a way to establish its brand awareness with the youth in order to preserve future growth in the company.

Being the consultant of Dr Pepper Snapple Group, Inc. (DPSG), I am charged to assess whether or not a profitable market opportunity existed for a new energy beverage brand to be produced, marketed, and distributed by the company.

Coca-cola boasts of being the world’s largest beverage company serving approximately one billion customers daily. The most dominant products distributed by Coca-cola are Coke, Fanta, Sprite and Diet Coke. This strategy is aimed at ensuring that every customer gets satisfied whenever they use a Coca-cola brand. Coca-cola has large distributions across the globe making it the largest distributor in the world. The late Roberto Goizueta termed Coca-cola to be an American company with large international business and a sizeable American business (Ferrell, 2008). This has helped a lot with brand selling as it is the most recognized brand in the whole world. “Coca-Cola has the most valuable brand name in the world and, as one of the most visible companies worldwide, has a tremendous opportunity to excel in all dimensions of business performance” (Ferrell, Fraedrich, & Ferrell, 2008). Coca-cola, however, has not been smoothly running over the decades in operation. It has on numerous occasions been criticized for overlooking some ethical standards that it should have rather upheld. This essay aims at looking into some of the issues facing Coca-cola, the most significant of them, how they were resolved and how Coca-cola should have solved them.

Super’s branded consumer segment develops and distributes more than 300 consumer brands of instant beverages and convenient

Snapple really began to see growth in the late 1980’s, when consumers were starting to become more health oriented and looked for alternatives to soda. “New Age” movement started because consumers were tired of high-caloric beverages and artificial additives.

During the 1980’s Coca-Cola was faced with a potentially company killing problem. They were losing market share quickly to their competitors. Pepsi was stealing a portion of the younger generation with their advertising campaign, and they proved that consumers liked Pepsi better with the “Pepsi Challenge.” To combat their falling market share Coke decided to introduce a new formula. This formula was based on the fact that people preferred the sweeter taste of Pepsi. Once the new formula was finished, Coke conducted close to 200,000 taste tests to find out what consumers thought. New