Snapple Case Study Essay Sample
I. Point of View
This instance survey examines the critical determinations to be made by Arnold Greenberg. Chief Operating Officer ( COO ) of Snapple. The point of position of the latter was chosen since his function is progressively of import to the company’s ability to put to death its scheme. The main operating officer’s chief concern is to come up with schemes that will drive operational excellence and high public presentation in the operation of the concern. His determinations are really critical to the success or failure of the concern. He is besides responsible for turning such determinations into actions.
II. Analysis of the Case Situation
When a individual house became successful in a market wherein there is no competition. the positive net incomes enjoyed entirely by the latter will bring on other houses to eventually come in on that same industry. Hence. the so dominant house will hold to confront competition among the new entrants/firms. In the instance of Snapple. after its five-year domination on the ready-to-drink iced tea market. it has to confront its new elephantine rivals viz. : Coca-cola/Nestea and Pepsi/Lipton
Snapple has captured a big portion of the market by pulling health-conscious persons on 1990s with its preservative-free ecological image and its new turn which offers iced tea on 11 different spirits.
Snapple offers ready-to-drink preservative-free iced tea in 11 different spirits which attracted the health-conscious market. In advancing
its merchandise. Snapple does non pass much on expensive advertizements but instead sit on with its competitors’ promotional ads which lead to Snapple’s quandary. its deficiency of national acknowledgment. Market distribution of Snapple is in merely 51 out of 278 major supermarket ironss in the United States. In add-on. the ready-to-drink iced tea of Snapple is comparatively expensive as compared to its rivals. Another job is the company’s inability to come in into the peddling machine market.
Snapple does non hold adequate financess to finance such expensive advertizements unlike their elephantine rivals. Coca-cola and Pepsi. In add-on. the company has no production installations of its ain.
Snapple is a comparatively little entrepreneurial company with merely 87 employees. They do non hold their ain production installations. Hence. it impedes the company’s production.
Discussion of the Case Issue:
Snapple has to fight with its elephantine rivals. Coca-cola/Nestea and Pepsi/Lipton which spend on promotional and expensive advertizements to advance their merchandise. which Snapple lacks. Give the fact that Snapple is in merely 51 of the 278 major supermarket ironss in the United States. it has to confront jobs in spread outing its market distribution and be able to get by up with its issue of deficiency of national acknowledgment. The Chief Operating Officer of Snapple has to invent efficient and effectual schemes and techniques that will assist them accomplish its ends and assist them to be competitory plenty to remain on the industry.
III. Problem Statement
What scheme should Snapple demand to make to stay competitory in the ready-to-drink iced tea market?
IV. SWOT Analysis
Snapple has a preservative-free. ecological image. It has given a new turn in the ready-to-drink iced tea. supplying 11 different spirits.
Snapple has no production installations of its ain and has a little figure of employees. They lack national acknowledgment. and are merely in 51 of the 278 major supermarket ironss in the state. In add-on. they are unable to bring forth bundles for peddling machines. and have a comparatively expensive monetary value.
There is a turning figure of markets by 50 % versus the Cola industry. There is besides a turning figure of consumers- 75 % of all families in US.
The consumers can do iced tea at place and would do them less. instead than purchasing ready-to-make iced tea. In add-on. there is an approaching competition with Coca-Cola/Nestea and Pepsi/Lipton.
|Formulation and Evaluation
1. The company may unify with a bigger company.
2. The company may present a powdery Snapple iced tea drink.
3. The company may spread out market distribution and increase promotional and advertisement activities.
4. The company may use for fiscal loans as an investing for production installations of their ain.
Snapple should spread out its market distribution and increase its promotional and advertisement activities.
With limited resources. the company can bit by bit increase their market distribution. They will hold more established advantages. like growing of net income. addition of national acknowledgment and distribution. once they penetrate the market.
The Finance Division is to re-allocate the company’s financess to come up with a better budget for the needful schemes.
The Marketing Division shall spread out market distribution to at least 25 more supermarkets around the state particularly to big provinces and venture to other possible traders like schools canteens. office cafeteria. fast-food ironss. and the similar.
The Advertising Division shall spearhead promotional schemes to choose consumers who make their iced tea at place to prefer ready to imbibe Snapple iced tea. They shall better advertisement schemes like giving out freebees. postings. etc. to increase national acknowledgment. stressing in their advertizements the wellness benefits ( preservative-free ecological image ) of the merchandise and its 11 different spirits.
In line with these actions. the Human Resource Division shall engage the necessary figure of employees for the addition in production. in distribution and in publicity. bearing in head the budget for employment.
If the first program of action will neglect. Snapple may unify with a bigger company interested in come ining the ready-to-drink iced tea industry. and willing to back up them.