Ethics in marketing
Ethical concerns arising in the process of marketing Snapple Juices include deceptive advertising. In this case, the focus is the promotion of, consumer culture re which leads to consumers buying more of the product owing to impaired thinking.
This kind of advertising is of benefit to the company since out of this; they realize high sales at the expense of consumers. The other ethical concern is price fixing, where by Snapple brand utilizes the use of line pricing. In this case, a single price is a fixed unit, only to all distributors and retailers.
Application of price fixing within the market leads to anti-competitive marketing practices since it destroys the spirit of the free market. This encourages consumer exploitation by retailers through restrictive prices.
The safety of the product is also another concern since consumers should be provided by adequate information and granted freedom of choice based on products ingredients.
The true ingredients of Snapple brand had intentionally been mentioned since the juice is marketed as all natural but in the real sense the product has got some sugary content which is harmful to health (United States District Court, Southern District of New York 1-37).
Market research plan for the product and information needed
Market research plan contains relevant information about factors within the market affecting the performance of the product. The plan considers the existence of critical competitors in terms of market share and financial capability.
There is a need to address the leverage upon which Snapple juice will operate to ensure healthy competition. The marketing strategy should incorporate and address consumers’ changing needs. The company has to identify principal sources of its raw materials which should be of good quality.
Adequate plans should be made in advance for sourcing good quality raw materials. There is a need for sourcing highly qualified technical persons with the focus of developing high-quality products satisfying diversified consumer appeal.
The market research should focus on identifying competitive prices which enables Snapple juice to be sold within different market environments.
Snapple juice Company has to provide for back-up for its business transactions by incorporating updated information technology ensuring efficient real-time transactions. Being conversant with various laws within the market environment is of prime importance (Deighton 3-7).
Competitive analysis and position of the product within the market
Competitive analysis and description of the product about competition focuses on the percentage market share owned by Snapple about its competitors. Potential competitors within the market include Coca-cola, Pepsi, Hansen Natural and others.
Coca cola’s greatest strength in business is conducting effective advertising and promotional programs which keeps them ahead of competitors (Coca-Cola Company).
Pepsi’s greatest strength is in the level of diversified products they offer over their competitor’s range of juices Strengths of Snapple juice comprise of being high on minerals, reasonably prized and health conscious (Pepsi Company Overview).
However, their weakness revolves around the level of acceptance of their new flavors amongst the targeted audience. Threats comprise of established images of main competitors within the targeted market.
Snapple brand could enhance its competitiveness by offering a juice brand which meets consumers’ demands. The demand for delicious and healthy drinks with the ability to improve health should be the focus of the company (United States District Court, Southern District of New York 1-37).
The company’s NAICS code
Snapple brand is listed under North American Industry Classification System (NAICS) code. The system is used to determine whether a business should be classified as big or small determined by revenues in millions of dollars or number of employees.
NAICS code is divided into various sections according to the nature of industries available; this could be manufacturing, retail, wholesale, mining, construction, insurance and financial.
Classification of Snapple brand takes place by first assigning the brand code 312 which deals with beverage and tobacco manufacturing, then code 312111 as soft drink manufacturers.
Since the company has less than 100,000 employees, it qualifies as a small business entity which could be granted business incentives by the government.
NAICS Code makes it convenient the process of classifying businesses thus eliminating signs of any irrelevant information (Kentucky Directory of Manufactures).
Impact of external factors
External factors which are thought to impact on the product performance within the market should be considered. Trends in economic growth indicating the level of consumers’ purchasing power should be addressed before the product is released to the market.
Increased health awareness amongst consumers resulting in significant demand should also be addressed within the market plan.
The focus should be shifted towards fast-growing sectors of the population; this could be enhanced through adequate marketing, innovation and diversification of the product.
The focus should be on consolidating a range of Snapple juices through retailers which could help in efficient product delivery to the target markets. Consideration should be focused on product prices which are always affected by costs of raw materials determined by their availability.
Lastly, the company anticipates a high demand for the product during warm seasons as compared to cold seasons (Deighton 3-7).
Snapple Juice as a consumer product
Snapple brand is a consumer product. This is since consumer product is any product used for personal and household purposes and not for business.
Snapple products are produced for consumption and enjoyment and not for the sole aim of making profits. The juice brand provides health benefits to consumers.
Snapple juice is part of the product line which is closely related to other products manufactured under the brand.
The Snapple brand has several products operating under it, these include;
- Sunkist which is an orange drink in the U.S. with diversified flavors,
- Seven-up which is lemon-lime juice with different flavors,
- A $ W which is root beer,
- Canada Dry,
- Crush brand which is a juice with orange diet and other fruits in flavors,
- Squirt brand,
- Penfield which is a carbonated mineral water brand,
- All natural Snapple which is a ready to drink tea in the U.S.,
- Motts and Clamato which is a leading spicy tomato juice brand in the US and Canada markets (Deighton 3-7).
Quality of the product within the market
Quality of a product is its ability to fulfill the customer’s needs and expectations. Perceived product quality is critical to marketing process whose objective is centered around building brand and increasing market share. Perceived product quality leads to satisfaction and purchase intentions.
Low perceived quality of a product leads to less satisfaction and involvement which is normally accompanied by a low level of purchase. Marketers should ensure that the perceived quality of their products amongst consumers is high.
Perceived product quality could also be used by marketers as a segmentation criterion. This would provide a strategic advantage over its competitors. Variables which could impact the product quality are mainly sourced during the manufacturing process.
Right set-up of manufacturing process gives consistency in processing which ensures that quality of the product conforms to its specification qualities. Next, it is the expertise and skills of the workforce manning the process so that at each stage correct standards are applied.
Lastly and most importantly is the quality of raw materials. To produce high-quality products, we have to start with the best grade quality of raw materials (United Nations Industrial Development Organization).
Suggestions for improving the product
Snapple Juice brand could improve its product line by complimenting other products within this line. The company can diversify its product portfolio to start production of other products which are not necessarily within their mainstream.
The company can resort to producing food formulation targeting vulnerable members of society. These members comprise the young and elderly who require special food nutrients within their diet.
Introducing natural brands would help increase their market share thus more revenues at a reasonable cost since the products will be marketed on the existing market channel.
Coca-Cola Company. “Hoovers.” Coca-cola Company’s profile, 2006.<http://www.hoovers.com/cocacola/ ID10359/freecofactsheet. xhtml > 26th March, 2011
Deighton, John. How Snapple Got Its Juice Back. Harvard Business Review, (2002): 3-7
Kentucky Directory of Manufactures. “NAICS product guide manufacturing facilities listed by North American Industry Classification System.” NAICS guide, 2011 <http://www.Thinkkentucky.com/edis> 26th March, 2011
Pepsi Company Overview. “PepsiCo”. Pepsi Company’s Profile, 2006. <http://www.pepsico.com/ >. 26th March 2011
United Nations Industrial Development Organization. Product quality: A guide for small and medium sized enterprises, NY; Vienna, 2006. Print.
United States District Court, Southern District of New York. Evan wiener and Timothy Mcclausland vs. Snapple Beverage Corporation. Sealed opinion and order document, 92 (2010): 1-37.