2. On November 3, 1994, Quaker Oats acquired Snapple at $14 a share, for a total of $1.7 billion. Quaker Oats top management believes that too much was paid for Snapple.The management has created a task force of seven top managers to ensure the expensive investment will produce a high rate of return. The task force must make strategic decisions concerning the marketing and product mix for Snapple for the upcoming year. Tactics such as making Snapple products distinctive, listening to
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).
Once Quakers took control of snapple they made many mistakes that caused Snapples value to decrease by $1.4B. A lot of these mistakes can be contributed to the fact that they tried to use identical 4 P methods for Snapple and Gatorade. Quakers belived since these methods worked so greatly for Gatordade that they would also work for snapple. In terms of product and price they tried to introduce snapple in a bigger size. Quakers tried to get consumers to buy the more profitable size of Snapple which was 32 and 64 ounces. They believed since these sizes worked so well for gatorade they would also work for Snapple. However, Quakers didn’t take into account that people drink Gatorade when they are extremely thirsty from things such as exercise so they need
Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.
1. How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007?
“Marketing Mix” is made up of 4P’s of marketing. This tool blends these variables together to produce the results it wants to achieve in its specific target market. “Brand Position” mentions to consumer’s reason to buy the products in preference to others.
Mars-library, 2015, Marketing mix in marketing strategy: Product, Price, Place and Promotion, viewed 3 June 2015, < www.marsdd.com/mars-library/the-marketing-mix-in-marketing-strategy
Another way to focus on the companies marketing strategies would be the four P 's (Product, Place, Price, and Promotion). There is an importance of understanding the marketing mix to sell more products as well. Developing an effective and successful marketing mix takes more of an experimentation and following up the process to determine the most effective method of marketing of a product or service for the customers.
This document represents The i-Fusions Consultant’s Report on BRITA. The company’s current business situation is analysed and various options for action considered. The report aims to identify a clear marketing strategy for Brita in order to address the current issues facing the company the associated falling sales.
DPS will more than likely never catch the success of Coca-Cola or Pepsi and create a competitive edge mainly because of name recognition alone. However, if DPS achieves her five goals, competitive pricing and tries to eliminate or mitigate many of their risk the company will have a bright and successful future. Moreover, if there was one way that DPS could jump ahead of their competitors is the creation of a drone system to deliver orders to customers’ houses at a competitive price.
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.
For Snapple: Quaker’s resources, management skills, packaging experience, supply chain expertise, and modern information systems.
E. Jerome McCarthy in the 1960s – introduced the marketing mix of Product, Price, Promotion, and Place to marketing education (Yudelson, 1999). The concept constitutes the range of incorporated decisions made in terms of marketing to ensure success for related business entities. Typically, these decisions are made in four vital areas known as the 4 Ps of marketing, that is – product, price, place, and promotion – issues like, the variety of merchandise to be marketed, brand name, pricing, advertising, publicity, geographic coverage, retailing, and distribution - are covered therein (marketing mix, 2007). With an appreciation of the term marketing mix in mind, in what follows the author endeavours to examine each component of the marketing mix and how each element contributes to the success of Walmart Store Inc.
The Marketing Mix refers to the controllable parts of the marketing process that can be used to influence a consumer to buy. It also helps a brand to establish a name and distinguish itself from competitors. Marketing is often thought to be just a method of selling or advertising. This idea traces back to the early days of advertising when the primary goal of a marketing campaign was to help a seller sell more product. This is no longer the case in the modern world. While marketing is still used to drive and increase sales, the primary focus has shifted to creating a seamless buying process which helps the buyer buy more efficiently. We live in an information age and buyers want to make informed decisions about everything they purchase. The rise of ecommerce means buyers are no longer limited to 2-3 companies offering a product, they can now choose between thousands of retailers. Buyers demand excellent quality products, and they want them for the cheapest available price. Marketing has responded to this change in demands by evolving into a complex blend of communication and creativity that supports the mutually beneficial exchange of goods or services between interested parties. When we begin to analyze marketing, we can see that is an art which requires a skilled professional at the helm of the campaign. The 4P’s of marketing, an idea introduced in 1964 by Jerome McCarthy, can be used as method of increasing business profitability. In fact,
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