SNAPPLE

SNAPPLE MARKETING STRATEGY
Name
Institution
Introduction
Dr. Pepper’s Snapple Group is a brand of soft drinks and ice teas that originated from Texas that achieved popularity due to its marketing strategy that utilized modern pop-culture references. For instance, a lot of its packaging contained some fun fact about popular TV shows, songs, and other interesting anecdotes. Founded in 1972, the company would cut out a niche for itself in a period where a craze for healthy food was beginning to gain traction in the United States (Dr. Pepper Snapple Group 2010). By advertising itself as a healthy alternative to the like of Coca-Cola and Pepsi, the Snapple brands were able to gain a foothold during the “Cola Wars” where soft drink companies were spending over $60 million on media advertising alone. In such a case, we compare and contrast Snapple marketing strategies with a major company like PepsiCo.
Market Segmentation
Market Segmentation is the division and profiling of potential buyers in a market into groups or demographics by considering various issues which have shaped a particular group’s purchasing power and habits (Cadogan 2009). One of the most important steps in marketing, identifying current market segmentations will help the Snapple brand meet the various needs that each potential buyer is seeking and compare it to PepsiCo. Hooley et al. note that various factors often influence particular demographics’ taste and preference (Hooley, Saunders & Piercy 2004). For example, Snapple capitalized on the need for healthier, natural alternatives for the carbonated drinks provided by its competitors.

The four forms of segmentation are; demographic segmentation; divides a market based on various social variables such as age and gender. Snapple has products that are consumed by individuals of all ages regardless of gender. On the other hand, PepsiCo comprises products that are consumed by individuals of both genders between the ages of 14 and 30. Behavioral segmentation; profiles uses on different purchasing patterns and preferences.
Snapple has a variety of products ranging from soft drinks to iced tea that enables consumers to have different purchasing patterns and preferences, unlike PepsiCo that has specialized only in the production of soft drinks that limit pattern and preference to consumers. , Psychographic segmentation; consumers are grouped based on their lifestyle and personal interests. Snapple products are fit for consumers who prefer soft drinks, iced tea, and other products while PepsiCo limits consumers to purchasing soft drinks only. While lastly, geographic segmentation relies on the physical location of the market. Currently, Snapple has a large market that extends across the world while PepsiCo is limited to various markets because of a limited variety of product provision. (Hooley, Saunders & Piercy 2004).
Market Targeting
Ferrell and Hartline contend that after segmenting a market, the producer must target unique characteristics that will define how a product will be sold to the target demographic (2004). Various characteristics such as taste, brand loyalty, purchasing power, and age are quite different across target groups. For instance, young adult consumers are more influenced by colorful and trendy products. Furthermore, the young adult consumers are often looking for ways to stand out from their peers and other demographics. With this in mind, the soft drinks company produced juices that targeted the conscious fitness market of young adults by advertising itself as a “one of a kind.” The case is different from PepsiCo that manufactures products general for purchase by all consumers. In fact, Riggs contends that the “one of a kind” marketing campaign aimed at wrestling control from Pepsi and Coca-Cola was a major factor in bringing the brand to the mainstream buyer’s attention (2007).
On the other hand, market segments such as the mature adults’ population are not easily influenced by costs compared to other groups since they have more purchasing power (Madhavaram & Appan 2006). Hence any products aimed at this segment can be of higher quality, with less regard for the “suaveness” in packaging. Young children are often influenced by colorful packaging that promises a good time for the consumer, with a preferably low cost. For instance, Snapple recognized the potential for this market and sought to gain a foothold by partnering with school system administrators in the state of New York to provide drinks for school going children. PepsiCo is concerned with the production of goods appealing to teenagers and young individuals from the age of 14 years to 30 years.
Product Positioning
Product positioning is a critical step in ensuring that the brand is well positioned in the potential consumer’s mind (Ulusoy 2015). A company must strive to appeal to a consumer by identifying what the customer seeks. For instance, Snapple Group positioned itself as a cheap, healthier and natural alternative to other soft drinks manufacturers in the United States. The Snapple Company’s market positioning “has proved to be hugely successful with the company gaining a foothold in a sector dominated by two giants who were already established globally.” Its entry into the relatively untapped ice tea market helped the manufacturer gain footholds in the market before it could expand into other flooded markets.
The Snapple Company gained roughly 33 percent of the soft drinks market share by positioning itself as a traditional beverage manufacturer with a different and fresh twist. The company portrayed its drinks as preservative free, ecologically friendly and nutritionally boosted substitute for carbonated drinks that at the time were being blamed for various health complications such as diabetes and child obesity. In marketing, the final product positioning is often a crucial step in ensuring company profitability. PepsiCo, on the other hand, is concerned with the production of products that are appealing to the youths and young generation without paying attention to color and other preferences. The company has specialized in the production of energy drinks and soft drinks. It is facing challenges because consumers have found better alternatives that are appealing to them.
References
Cadogan, J. W. (2009). Marketing strategy. London: SAGE.
Dr. Pepper Snapple Group, Inc. (2010). New York, NY: Datamonitor.
Ferrell, O. C., & Hartline, M. D. (2004). Marketing strategy. Mason, Ohio: Thomson/South-Western.
Hooley, G. J., Saunders, J. A., & Piercy, N. (2004). Marketing strategy and competitive positioning. Harlow, England: Prentice Hall Financial Times.
Madhavaram, S., & Appan, R. (January 01, 2006). Marketing Strategy.
Riggs, T. (2007). Encyclopedia of major marketing campaigns. Detroit, MI: Gale.
Ulusoy, E. (January 01, 2015). “Revisiting The Marketing Strategy: Towards Detecting the Main Factors in Developing a Marketing Strategy.”