Subject Code: 325-202
| Subject Name: Consumer Behaviour
Date Due: 5th May 2011
| Word Count: 2763
Assignment Name or Number: Case Analysis
| Student ID Number
| Steven Huy Tran
| Yating Lu
| Shihui (Cheryl) Li
| Putri Yusman
Consumer Behaviour- Case Analysis
Snapple is an American-based beverage brand that focuses distinctively in producing juices and tea. During the late 1980s, Snapple gained prominent share in a highly competitive market and became the leading brand in the alternative beverage industry. However following the attempts of several acquisitions, the volatile brand reacts as there are a series of sales declinations. These declining sales can be analysed through the theory of consumer behaviours and its determinants. This essay will aim to identify the main issues faced by Snapple by analysing the decision making processes their buyers partake as well as the specific conditions that influence their consumer attitudes and behaviour. The recommendations given are aim at improving the Snapple brand and market position. In this analysis, we will take a look at the specifics during both the initial rise and subsequent fall of Snapple.
First launched to local health food stores, Snapple captured an uprising niche in the beverage industry. The concept of juice may have been prevalent historically however during this period competition against sodas enabled this brand to capture both the healthy alternative as well as the versatile, novel connotations associated with common soft drinks. Marketed to “young, health conscious urban professionals”, the target market became a starting point to the revolutionary change in drink types. Being a consumable that has many substitutes, aiming for Maslow’s physiological need of food and water would not suffice in this modern era. In contrast to its indirect competitors market; cola beverages and water, Snapple struck middle ground between the fun but unhealthy cola and boring plain water. It conceptualised fun, healthy, natural, real, personal, and diverse into an everyday consumable and possesses a sense of “anti-authority” that appeals to those that don’t conform to the pre-existing drink options. With the tagline of “made from the best stuff on earth” and previously “100% Natural” and a series of effective and targeted PR and promotions, Snapple is able to achieve a significant market share within its targeted demographic Much like any business, Snapple undergoes two different evolutionary processes considered its start-up phase and maturity. The first is the continuous growth of the brand and its image, while the second is its subsequent decline. From a managerial perspective, the brand’s growth is tied towards the strategic decisions made by the original owners of the company whilst contrastingly its fall is directly due to the acquisition by Quaker and their succeeding strategic decisions. Needless to say, regardless of ownership, it is the consumers that play the vital role either in prospering the brand or desolating it and ultimately determining Snapple’s peak and trough periods. In addition, internal and external influences, such as consumers’ individual determinates and environmental determinates should be taken into account. Like all businesses it is never any individual factor that creates such movement but more a collective synergising responses to all these elements. From 1972-1993 Snapple Fruit Juice Company flourished while many other premium fruit drinks struggled. Ironically most of Snapple's successful competitors during this time were sold to larger distribution companies thus allowing Snapple to create and enhance a brand image and distribution alliance suitable for its targeted rebellious market. They were a cult classic, promoted by loud, brash promoters like Howard Stern and Rush Limbaugh who had huge followings of independent, "stick-it-to-the-man"...
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