Essay About Tea Industry And Popularity Of The New Iced Tea Product

Mgt 101 – Snapple Steals Share – Term Paper – Juan Miguel Pamplona
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Mgt 101 – Snapple Steals Share
SNAPPLE STEALS SHAREA Case AnalysisSubmitted by:Sheena De JesusFernandezLatidoPaula MacatangayBea MojicaJuan Miguel PamplonaGROUP 4MGT 101 – YPoint of ViewArnold Greenberg (Chief Operating Officer’s view)        The perspective of the Chief Operating Officer, Mr. Arnold Greenberg, is chosen to be the point of view since he is the one responsible for the different strategies and marketing decisions of the company. Mr. Arnold should plan now how to deal with the competition raised by their giant drinks competitor.Problem Statement        Considering the present situation of Snapple and the objective which is to keep up with the competitions and increase their profit while utilizing their assets, a problem statement can be inferred:        “What strategy/strategies should the company implement in order to remain competitive in the ready-to-drink iced tea industry while increasing their profit?”Analysis of Relevant Case Facts        Prior to the analysis of the company’s problem and possible solutions to it, it is significant to have an evaluation of its present condition. This will then be the basis in analysing the strengths, weaknesses, opportunities, and threats of the company.        Snapple’s current condition is sectioned into its internal and external factors specifically that of macro, industry and internal environment.        In 1988, Snapple introduced a lemon-flavored iced tea in the ready-to-drink beverage industry. In the past, iced teas had been manufactured in the same way that other drinks were, with flavour derived from a concentrate, sugar, preservatives and soda. After spending years perfecting the process of using natural tea and bottling it while still hot, the preservatives in the drink were eliminated. Driven by the popularity of the new iced tea product, which was soon supplemented by 11 different flavours of tea, Snapple sales took off.

By the end of 1988, Snapple immediately gained 33% of the market share. Expanding the Snapple line to include more flavours and offering the market preservative-free drinks, the company capitalized on the health-consciousness of the 1990s. Snapple then became the market leader for the flavoured tea industry.        Taking notice of the explosive growth of the iced tea industry and Snapple Company, Coca-Cola began a joint venture with Unilever’s Lipton and Pepsi with Nestlé’s Nestea brand to market and produce their own iced tea products. With the Coca-Cola and Pepsi’s distribution and marketing prowess, small companies like Cadbury, Schweppes, Snapple and Perrier are on the brink of being supressed.        With the boom in the growth of the ready-to-drink iced tea industry, the softdrink industry was left behind. In 1992, the iced tea market went up by 50% compared to 1.5% increase in the market of the soda industry.        The competition brought by the joint ventures of Pepsi-Nestea and Coca-Cola-Lipton is enormous. Being household names in the beverage industry, Pepsi and Coca-Cola have much greater financial resources and assets. Snapple is only distributed in 51 of 278 major supermarkets in the area. In addition, Snapple’s work force of 87 employees is less than that of Pepsi or Coca-Cola. Snapple also does not have production facilities of its own compared to its competitors, which have bottling companies at their disposal. SWOT Analysis        A tabular representation of the company’s strengths, weakness, opportunities and threats is illustrated in Table 1.1 with the inclusion of the possible strategies that may be materialized to help keep up with the competition the company is currently facing.Internal Environment/External EnvironmentOpportunitiesExpansion of market due to advertising of iced tea by competitorsIced tea is served in 75% of all households in AmericaPresence of other small marketers: Cadbury, Perrier, SchweppesIced tea industry is still growing in AmericaHealth-conscious market is also growingThreatsStrong competition in the iced tea market by Pepsi-Lipton and Coke-NesteaCompetitors have connections to large bottling companiesIced tea can be prepared at much lower costs at homeStrengthsPioneer in the ready-to-drink iced tea industryPreservative-free ecological imageFlavored iced tea with 11 different flavors33% share in the market in the first yearS-O StrategyProduct DevelopmentIntroduce other product for other market, i.e. sports drink market Expand the flavor variety of the iced teaS-T StrategyStabilize Brand Name in MarketPackage their iced tea in multiple pieces per packs and lower selling priceCreate agreement with local grocery stores to sell the iced teaFind distributors to constantly share the productsWeaknessesNo production facilities of its ownLack of national recognitionVery small work force of 87 employeesAbsence in the vending machine marketOnly distributes in 51 of 278 supermarket chainsSingle serving drink (16oz bottle)W-O StrategyBegin PartnershipMake deals or agreements with smaller bottling companiesBegin a partnership with smaller marketers (Cadbury or Schweppes)Find a corporate partner for infusion of capital (venture capitalist)W-T StrategyUse the CompetitionBenefit from the advertisement of the large companies and ride on their coattailsProduce a larger serving of iced teaCreate new packaging that doesn’t require bottles, i.e. cartonsTable 1.1 Snapple Company SWOT analysis and strategies

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“Mgt 101 – Snapple Steals Share” EssaysForStudent.com. 10 2015. 2015. 10 2015 < "Mgt 101 - Snapple Steals Share." EssaysForStudent.com. EssaysForStudent.com, 10 2015. Web. 10 2015. < "Mgt 101 - Snapple Steals Share." EssaysForStudent.com. 10, 2015. Accessed 10, 2015. Essay Preview 1 rating(s) By: Juan Miguel Pamplona Submitted: October 17, 2015 Essay Length: 2,767 Words / 12 Pages Paper type: Term Paper Views: 841 Report this essay Tweet Related Essays Mgt 358 - Balzac and the Little Chinese Seamstress MGT 358-01 Interview Steve Simmons is the owner of a multi-skilled training consulting business. We go to different plants to train people who need it 1,505 Words  |  7 Pages Impact of the Share Buy-Back on McI’s 1.) Impact of the share buy-back on MCI’s: a) Shares outstanding Assumptions 􀂃 The assumption is made, that MCI exactly offers 2 billion $ of 1,134 Words  |  5 Pages Mgt 350 - Case Study - Let It Pour Case Study “Let It Pour” University Of Phoenix Mgt 350 Case Study “Let It Pour” Analysis My analysis of this case is that the communication 736 Words  |  3 Pages Mgt 330 - Function of Management Functions of Management MGT 330 Week 1 The method of management is changing substantially. Therefore, managers must recognize the four functions of management. They 922 Words  |  4 Pages Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter