Dr. Pepper Snapple Group

Diana Herrera, Snow Jingxue Wang
Dec 2015
2
Table of Contents
History ....................................................3
Brand Inventory........................................5
Transition of logos..................5
Product Extension..................6
Price & Distribution.................8
Promotion & Social Media......9
Current Campaigns................8
Competitors.............................................12
Brand Identity Prism..................................14
SWOT Analysis.........................................15
Brand Voice & Mission..............................16
Marketing Strategy Recommendations......18
CSR...................................18
Snapple Emoji.....................19
Asian Tea Drinkers.................8
Hispanic Target Market.........11
History
Background
S
napple was founded in 1972 by Matthew Smith, Hyman Golden,
and Arnold Greenberg in Valley Stream, New York with the core
idea of creating a healthier alternative to sugary sodas and providing
consumers with an “all-natural beverage that New Yorkers would
love.” The Long Island friends also founded the Unadulterated Food
Corporation, Inc. in order to sell beverages made with unusual blends.
In 1978, Unadulterated Foods Inc. began to sell and distribute their first
carbonated apple juice, they called it “Snapple” the same name that
would replace Unadulterated Food Corp Inc. Slowly but surely, Snapple
started gaining a good reputation and moving market share. One of the
reasons why Snapple stood out from other juice beverages was that
the juice was allowed to ferment.
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“O
ne day we woke up. We realized we had
a business,” Marsh told Newsday in an
interview. As the company kept expanding, the
Snapple guys started experimenting with a wide
variety of natural juices, fruit drinks as well as
natural sodas. The names of the beverages were
also quirky and full of creativity.
I
n the early 90’s, Snapple saw the perfect
opportunity to counteract both the Coke and
Pepsi challenges. They entered the advertising
platform and started running ads that made fun of
beer and sports drinks. Their famous trademark
slogan “made from the best stuff on earth” was
not well received by the advertising industry
observers. Even though their ads were not as
efficient as Pepsi’s and Coke’s, they still managed
to move market share and get their name out there,
increase brand awareness and still be the leader
market of ice tea beverages.
I
n 1998, Snapple had a huge demand for a
summery drink, and this gave birth to lemon
flavored ice tea. “We made the first ready-to-drink
tea that didn’t taste like battery acid,” Greenberg
later told the New York Times. “We came up with
the first real brewed tea that was cooked.” By
the end of 1988, Snapple’s sales had increased
by 60 percent over the previous 12 months to
$13.3 million. This strong trend continued in the
following year. The line of ice-teas became wildly
popular and became the market leader of the tea
category in the New York area. By 1999, Snapple
was unable to fulfill the big demand of their ice tea
products therefore they had to expand not only
geographically but also to move and acquire an
influx of capita.
I
n 2008, Snapple was acquired by Dr. Pepper
company and became Dr. Pepper Snapple Group.
With a continuous steady growth, Snapple keeps
proving to be the leader of the ice-tea / noncarbonated beverages in the Northeastern part
of the United States. In addition, according to a
study conducted in North Carolina University, “the
average American now drinks 25 per cent less
soda than since the late 1990s, when he or she
drank an astonishing 40 gallons of soda per year”.
For such reason, Dr. Pepper found Snapple to be
the perfect addition to their brand portfolio.
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Brand Inventory
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5
2015 - Present
Transition of Logos
6
Product Extension
S
napple’s products
range from juice drinks
and all-natural sodas
and seltzers, to teas and
lemonades. Recently,
Snapple started selling
bottled water as part
of the health and
wellness goals of
Dr. Pepper Snapple
group. The initiative
focuses on reducing
calories, offering
smaller sizes and
supporting local and
national programs
that encourage an
active lifestyle.
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Price & Distribution
Distribution: (North East USA)
H
eart Land: New York City (NYC is roughly 25% of Heartland volume), Boston,
Philadelphia, Buffalo, Baltimore, Hartford, Syracuse, Albany, Washington D.C.
This is partly due to the merger of Dr. Pepper Snapple Group. Shared distribution
facilities has enabled Snapple to take advantage of a bigger distribution route.
S
napple’s social media content is consistent across various platforms. All platforms use same logo and the same color
palette. The hand-drawn style makes it highly identifiable. Consumers are able to recognize the brand at glance because
of the consistency employed. All of the platforms are updated daily and there is a high response rate.
Promotion & Social Media
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T
witter is Snapple’s most frequently updated
social media account. Snapple updates
and promotes their products by having active
conversations and engaging with their fans and
customers. Snapple is able to provide fast-feedback
which ultimately helps the brand establish a stronger
relationship with its customers.
S
EO: Snapple has a very active SEO. The official Snapple website appears
on the first place, followed by their Twitter page.
Current Campaigns
S
napple has implemented a lot of successful marketing campaigns, including
Wendy “the Snapple lady” and “snapple facts”. Snapple also has promotional
vending machines across offices, parks, malls and even partnered up with the
New York City public school system to be the only choice of vending machines
allowed in NYC public School cafeterias.
S
ince early 2015, Dr. Pepper Snapple Group tea and juice brand Snapple are
pushing their hashtag #LoveSnapple with the effort of persuading millennials
to share why they love the brand. This campaign is being executed using
celebrity spokespeople such as Jimmy Fallon and Nick Cannon on Tumblr. The
Tumblr page offers easy participation with links to post and share content on
user’s personal social media pages.
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Competitors
S
napple’s competitors include: juice brands such as Minute
Maid, tea brands such as Lipton, lemonade brands such
as Country Time and carbonated brands like Coke and Pepsi.
Snapple has been able to differentiate itself from its competitors
because of their strong brand recognition attributes as well as
their advertising campaigns and their creative packaging. For
example, one of the most loved campaigns is the “Snapple
Facts” These Snapple facts are fun and educative facts that can
be found under the cap in every bottle.
“
I wish Snapple facts would’ve been around
when I went to school. The vast majority of
the Snapple facts are extremely educational.”
------ Robert Witherspoon, Snapple aficionado
F
or example, one of the most loved campaigns is the
“Snapple Facts”
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Brand Identity Prism
Glass Bottle
Quality and wide range of beverages
Exciting colors
Quality oriented
Happy
Social dynamic
Creative
Trustworthy
Fair exchange of value
Convenient
NYC heritage
Urban
Commintment
Trendy
Dynamic
Self-confidence
Quality-orientationed
Healty
Nature
Snapple has been able to establish itself as the market leader as in the alternative or “healthier” beverage industry.
This means that Snapple is trusted.
SWOT Analysis
Strength
Weakness
Wide product line category
Strong brand image/ heritage/ creativity
Weak in “warm channels” (supermarkets)
as opposed to “cold channels” (grocery stores,
vending machines)
Healthy lifestyle booming
Declining soda consumption
Brand is not well-known outside of the North East
(lack of brand awareness)
Distribution increased do to merger with Dr. Pepper
Opportunities
Establish a nutritional educational program with
emphasis on health education (help people reach
personal goals)
Create CSR initiatives (buy one and Snapple will
provide one to a child in need in Africa- to increase
consumption by Millenials)
Increase engagement with millennials (emoji’s)
Target Asian Americans as well as Hispanic
Americans
Threats
Competitive market
Volatile consumer preferences
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Brand Voice
W
ith over 40 years of heritage, Snapple has stayed true
to who they are at heart: a fun brand that is quirky,
positive, flavorful and playful.
W
e are a glass-half-full, humble, and fun-loving brand
that tries not to take anything too seriously.
Mission & Vision
S
napple stands out from the crowd by differentiating itself
as natural, real, and personal.
“Made from best stuff on earth”
Dr. Pepper-Snapple Brand
Dr. Pepper Snapple brand:
“At Dr. Pepper Snapple Group, it is our vision to be the
best beverage business in the Americas. Our brands
have been synonymous with refreshment, fun and
flavor for generations, and our sales are poised to keep
growing in the future.”
Dr. Pepper Snapple Group Mission Statement
Building and enhancing our leading brands
pursuing profitable channels, packages and categories.
Leveraging our integrated business model.
Strengthening out to market.
Improving operating efficiency.
Employee Code of Conduct
Accountable
Customer-centric
Transparent and honest
Inspect what we expect
Our own decisions
No blame fixing
Dr. Pepper Snapple Group
Over $ 6B in sales (2014)
20,000 employees
Began public trading as DPS
on May 7th, 2008
Dr. Pepper
Brand Portfolio
Dr. Pepper is the oldest soft drink
in the US
Dr. Pepper is acquiring “healthier options” such as
Snapple and Mott’s to increase market share due
to the “health trend” that America is undergoing.
This means that their brand portfolio is quickly
changing and growing.
D
r. Pepper Snapple Group’s portfolio includes more than 50
brands and hundreds of flavors of carbonated soft drinks, juices,
teas, mixers, waters and other beverages.
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Recommendations
1. CSR: “buy one, help one”
I
mplement a Corporate Social Responsibility campaign that will give back
to those in need. “Buy One, Help One” campaign. Buy one Snapple water
bottle and Snapple will give one to a child in Africa. According to a study
conducted by Forbes, “75% of millennials expect brands to give back to
society”. Millennials love brands that support local communities and would
rather purchase from them than competitors.
2. Snapple Emoji
I
ncrease engagement with millennials
using emoji’s. According to Marie
Dolle, a digital media content specialist
at Kantar Media in Japan, “Emoji
advertising is just as much about
communication and having a sense of
humor as it is about branding. The latest
advertising trend is mainly logo-free,
giving emoji users on both ends of the
chat more freedom.’
D
esigning a Snapple keyboard
campaign will allow millennials to
communicate with their peers, and
enable them to include Snapple in their
interactions.
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3. Asian-American Tea Drinkers
I
ncrease distribution to target AsianAmericans that are already teadrinkers in California and the West
Coast. According to Hak Teng and Lim,
Tai Wei “tea is an indispensable part
of the life of the Asian culture. There
is a Chinese saying that identifies tea
as being part of the seven basic daily
necessities: fuel, rice, oil, salt, soy
sauce, vinegar, and tea. The custom
of drinking tea is deeply ingrained in
almost every Chinese, and has been
for over a thousand years.”
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Train & Bus Station
In-store DIsplay
I
mplement an in-store display
that highlights the product and
also give out samples. An outdoor
campaign that will be present on
the top 3 Asian-American majority
communities, such as San Mateo,
California, Flushing, New York and
Palisades Park, New Jersey.
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4. Hispanics Target Market
L
astly, target hispanics living in the Unites States. Fruit
drinks are very popular among Hispanics because fruity
juice drinks reflect the flavor and tastes of the fresh fruit
drinks from their homeland. According to a 2015 Study on
America’s Consumption of Fruit & Vegetables, “the average
daily consumption of juice by Hispanics in the United
States is far greater than any other race”.
D
esign digital ads to target Hispanics. According to the
American Press Institute, “the two largest minority
groups in the United States — African Americans and
Hispanics — are in many ways using digital technology for
news at similar rates as the American population overall”.
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Works Cited
Afa, Jiji. “Let’s Discuss Emoji in Ads.” Japan Times RSS. N.p., 17 Aug. 2015. Web. 02 Dec. 2015.
“Dr Pepper Snapple Group.” DrPepperSnappleGroup.com. N.p., n.d. Web. 02 Dec. 2015.
Hak Teng, Quah,, and Lim Tai Wei. “Chinese Tea: The Art Of Drinking Tea.” Chinese Tea: The Art Of Drinking Tea. N.p., n.d.
Web. 02 Dec. 2015.
“How African Americans and Hispanics Consume News.” American Press Institute RSS. N.p., 16 Sept. 2014. Web. 02 Dec.
2015.
Produce For Better Health Foundation (Pbh). “2015 Study on America’s Consumption of Fruit & Vegetables.” 2015
Study on America’s Consumption of Fruit & VegetablesProduce for Better Health Foundation (n.d.): n. pag. Produce for Better
Health Foundation. Web. 2 Dec. 2015.
Schawbel, Dan. “10 New Findings About The Millennial Consumer.” Forbes. Forbes Magazine, 20 Jan. 2015. Web. 02 Dec.
2015.
“Snapple Museum of Best Stuff on Earth.” Snapple. N.p., n.d. Web. 02 Dec. 2015.
Jaekel, Brielle. “Snapple Encourages Fans to Do the Talking and Showcase the Brand.” Mobile Marketer. N.p., 15 May 2015.
Web. 02 Dec. 2015.
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Diana Herrera
Snow Jingxue Wang
herrerad@smu.edu
http://diana-herrera.com/
jingxuew@smu.edu
http://snowwang.prosite.com/
SMU Temerlin Advertising Institute
Strategic Brand Management Class Project
Dec 2015