Consumer Behaviour-Snapple Essay Example
Consumer Behaviour-Snapple Essay Example

Consumer Behaviour-Snapple Essay Example

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  • Pages: 9 (2440 words)
  • Published: September 5, 2017
  • Type: Case Study
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Nevertheless, the Snapped brand is experiencing a decline in sales and instability due to unsuccessful acquisition attempts. To understand this decrease in sales, it is essential to examine consumer behaviors and their determinants. This essay aims to analyze the decision-making processes of Snapped buyers and the specific factors that impact their attitudes and behaviors as consumers. The recommendations suggested here are intended to enhance both the market position and the overall image of the Snapped brand.

In this analysis, we will examine the details of the rise and fall of Snapped. Initially, Snapped was introduced to local health food stores and quickly gained popularity in the beverage industry. The brand captured a unique market by offering a healthy alternative to sodas while also appealing to the trend of versatile and novel soft drinks. The target market for Snapped

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was young, health-conscious urban professionals, which played a significant role in the revolutionary shift in drink preferences.

In today's modern era, simply satisfying the physiological need for food and water is not enough for Measles. Unlike its competitors, cola beverages and water, Measles offers a unique combination of fun and healthiness. It aims to provide a consumable option that is both enjoyable and good for you, while also offering a sense of individuality and diversity. Measles appeals to those who don't want to conform to the traditional drink choices, embodying a "anti-authority" sentiment.

Through the use of tags like "made from the best stuff on earth" and formerly "100% Natural," combined with targeted promotions and effective PR efforts, Snapped has successfully gained a substantial market share within its intended consumer group. Similar to any other

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business, Snapped goes through two distinct stages of development: the initial start-up phase where the brand and its image experience continuous growth, followed by a subsequent decline in the mature stage.

Feature Article - Holiday Decision Making Process

The growth of the brand relies on the strategic choices made by its original owners. However, when Quaker acquired it and made subsequent strategic decisions, the brand's decline began. Nevertheless, regardless of ownership, consumers play a vital role in determining the brand's success or failure and shaping its high and low points. It is crucial to consider various factors, both internal (such as individual consumer choices) and external (including environmental influences), in this regard.

Through a collective response to various factors, the Snapped Fruit Juice Company thrived from 1972 to 1993 while its premium fruit drink competitors faced difficulties. Interestingly, many of Snapper's successful rivals were acquired by larger distribution companies during this time period. This enabled Snapped to establish and strengthen its brand image and distribution alliance, which catered to its rebellious target market.

Supported by outspoken advocates like Howard Stern and Rush Lumbago, who had substantial followings of independent, rebellious listeners, Snapper was a well-loved phenomenon. As its distribution network expanded, the brand's value increased, leading to significant growth facilitated by small chain distributors. Instead of relying on supermarkets for sales, which were minimal and costly, Snapped opted to distribute through alternative channels such as gas stations, pizza stores, and food service vendors. This approach allowed them to establish trust and build long-lasting relationships with these partners while benefiting the end consumer. By focusing on family values, Snapped successfully connected with distributors on both professional

and personal levels, creating a positive image among its wholesale customers and the general public. However, it is important to note that this distribution strategy alone did not suffice in driving consumption.

When Snapper's reputation was initially established with their "100% Natural" slogan, customers believed that consuming their product was healthy because it lacked preservatives. Snapper successfully targeted young, health-conscious urban professionals, who understood that Snapper was not the healthiest option compared to water but saw it as a healthy and unique alternative due to the "100% natural" claim. Snapper also connected with nonusers by sharing the stories of its original owners, Greenberg, Marsh, and Golden, through various media outlets. This helped build Snapper's reputation and experiential value with consumers. Additionally, Snapper's symbolic value played a significant role as customers perceived themselves as fashionable by drinking Snapper. It became a beverage exclusively for those who identified with a particular image or identity.

The perception of Snapped was greatly influenced by its advertisements and promotions, which featured Wendy Kaufman, David Letterman, Howard Stern, and other notable personalities. These individuals were seen as unique in their own ways, making them relatable to customers and providing Snapped with media endorsements at a lower cost. Their influence stemmed from both their presence in popular culture and their expertise.

The Snapped brand achieved widespread presence and generated $674 million in sales revenue before being acquired by Quaker for $1.7 billion. However, after the acquisition, mistakes were made when Quaker expected Snapped's sales to continue growing rapidly. The decision to acquire Snapped was fueled by optimism about expanding the brand's potential in the thriving alternative beverage industry at that time.

Taking

Snapped under their established name and image (Storage) would allow for the utilization of pre-existing knowledge and resources that could collectively improve the market performance of both brands. Quaker clearly considered Snapped to be a highly valuable brand, as evidenced by the $1.7 billion they spent to acquire it. However, they believed that Snapped could benefit from the packaging experience, supply chain expertise, and modern information system capabilities that the existing brand already had to offer.

From a strategic standpoint, Snapper's strong market presence in the Northeast and West Coast would nicely enhance its existing product, Storage, and its market dominance in the South. However, this idea may appear appealing but it overlooks the importance of understanding the buying behavior and decision-making processes of their customers, particularly considering that both brands have distinct images. Snapper differentiates itself by offering an authentic and unconventional brand image that represents a one-of-a-kind and youthful character, presenting itself as a modest homemade beverage.

On the contrary, Storage is perceived less as a fashion item and more as a sporty energy drink by buyers. The merger has a positive effect by creating a combined distribution channel, which expands the availability of Snapped drinks to consumers in more places. This ultimately saves consumers time, allowing them to have more leisure time and simplifying their search for Snapped products. Moreover, the increased accessibility of Snapped is likely to result in more impulsive and immediate purchases.

However, despite its initial benefits, this concept actually damages Snapper's current brand image. Initially, Snapper was only in the alternative beverage industry and competed within that sector. However, Quaker's decisions caused it to no longer be in

that category. Consequently, Snapper began competing with other beverages as well due to its close association with Storage. Consumers would drink Storage after a rigorous workout, while they would consume Snapped after a long day of work and purchase it from the gas station on their way home. Selling Storage in bulk through supermarket outlets was feasible, but this approach deterred consumers from buying Snapped in the same manner.

Quakers' mistake regarding the distribution system illustrates this notion. Despite the fact that consumers highly value these aspects, it is evident that merging two distinct brands will not allow them to attain market domination. Instead, when enlarging Snapper's market share, the strategy should consist of carefully evaluating its buyers' behavior using the consumer decision-making model. In the initial phase of need recognition, motivation serves as a primary driving force to fulfill physiological and psychological needs through product purchase and consumption.

According to the Measles hierarchy, thirst is considered a physiological need. This need must be fulfilled first before consumers can move on to the next level of needs. Customers actively seek to satisfy this basic need, resulting in a large market with high demand. Snapped should position itself and target a specific audience to align their product offerings with the right segment and maximize returns.

Consumer need activation can be influenced by both internal and external stimuli. One example of an internal factor is the choice of lifestyle and personality. As Snapped is a fashion product, it should be marketed as a youthful, lively brand that specifically appeals to its target audience. By maintaining its tradition of targeting the popular culture market, Snapped should consider finding

media outlets such as Howard Stern that can serve as a reinforcement or bridge to the brand's image and value. By strategically placing promotions in appropriate media channels, Snapped can effectively reach its target consumers and influence their need activation.

To reduce the time and resources consumers spend searching for information, the information search stage is important. Marketers should understand how much consumers search for information when considering a product. Consumers typically start by searching internally, using their previous knowledge gained from experience. Information processing is quick when consumers are motivated and the level of involvement with alternative beverages is low, unless there is strong brand loyalty. Snapped should focus on increasing its brand loyalty, especially because the market is highly saturated.

Snapped needs to strategically place their product and promotion where the target consumer will easily find them after creating a need. As they are in a saturated market, the evaluation stage poses challenges. However, by understanding competitors and their attributes, Snapped can distinguish themselves and make their operations more appealing. By utilizing the right sources and understanding consumer involvement and attitudes, Snapped can position their product to gain the greatest advantage.

When making decisions about choices that affect people's actions, it is important to consider decision rules and signals, as they can help minimize issues with execution. One such example is the decision of whether to place drinks in a refrigerated area or on shelving. It is evident that a consumer who intends to immediately consume a small take away drink would prefer it to be cold. By understanding the evaluative criteria, evoked set consumers use, as well as the likely purchase situations

and social class of the target audience, similar cases can be identified.

When a consumer buys the Snapped product, they often overlook simple things like deciding where to sell it. Selling the product everywhere without consideration may harm the brand image and result in revenue loss due to stock depletion. The location must align with the target market and the desired image of Snapped. For instance, it could be a healthy food store, supermarket, or a local food store. Ultimately, the post-purchase evaluation stage is when the consumer assesses their level of satisfaction or dissatisfaction with the consumption experience.

Snapped nonuser satisfaction has decreased after the acquisition, resulting in reprimanding attitudes for future purchases and poor word of mouth. Changing these negative perceptions becomes difficult due to the availability of alternatives that discourage second chances. Additionally, complaints about not finding desired flavors further diminish the consumer bonding identity of Snapped. In light of these issues, the following recommendations should be considered.

Snapped requires market research and focus groups to understand consumer expectations and work towards meeting them. It has been successful in the "cold channel" for brand culture improvement. However, Storage did not generate significant sales through this channel, leading Quaker to believe that Snapped would also find success in similar distribution channels as Storage. This assumption should have been clear considering supermarket sales only made up 6% of the alternative beverage industry, as shown in the case exhibits.

The Seibel recommendation suggests avoiding the pursuit of $0.3 million in a $5 billion supermarket industry. Snapper's decline is attributed to the removal of its "brand stories" by Quaker. To address criticisms of "selling out," Snapper

could reintroduce individuals like Howard Stern, Rush Lumbago, and Wendy Kaufman as promoters of the product. Additionally, by revisiting their humble beginnings, Snapper can revive the connection with consumers that was lost when the original owners were no longer involved.

Snapped needs to rejuvenate its original image as a youthful, trendy, and unconventional brand. This particular brand identity appeals to consumers seeking a modern and stylish lifestyle that aligns with their outgoing and adventurous personalities. These characteristics grab consumers' attention by recognizing their desires, inspiring them to choose Snapped beverages not just for hydration but also to fulfill their desire for social recognition and self-assurance.

To enhance a product's popularity in the market, it is important to meet consumers' preferences and create a positive consumer attitude towards the brand. The health-conscious attributes of Snapped demonstrate its responsible nature, which can lead to a favorable consumer attitude during product evaluation. Consequently, this achievement allows for an expansion in Snapper's product line, offering a wider range of flavors and larger bottle sizes of Snapped drinks. This further highlights the functional advantages of Snapper as a beverage. Hence, guaranteeing utilitarian motivation for consumers is crucial.

In Snapper's unique promotion, Wendy Kaufman and her team have assisted in garnering attention from both paid and unpaid sources, resulting in increased brand visibility. By reintegrating Wendy into retail stores and accepting sleepover invitations, Snapper has established a stronger bond with consumers, leading to higher engagement with the brand representative. Moreover, the inclusion of Snapper-themed fun and games day offers an avenue for consumers to actively participate in brand-related activities.

The termination of Wendy's role for Snapped by Quaker has resulted in

a cessation of interpersonal communication and a decrease in consumer involvement with the product. This could be a contributing factor to the decline in sales volume for Snapped in the following years. An alternative approach would be for Quaker to replace Wendy Kaufman with another public figure, such as a movie star or pop singer, to continue being the spokesperson for Snapped. Additionally, it would be beneficial to film more television campaigns and increase the frequency of their airing to enhance brand awareness and improve brand name recognition.

In order to improve the likelihood of consumers remembering and making repeat purchases, it is crucial to conduct surveys and collect pertinent data prior to launching new products. A method for gauging market response is by providing consumers with free samples of Snapped drinks featuring new flavors or packaging, and observing their immediate reactions. In general, this procedure enables a brand to cultivate its own brand culture and craft distinctive brand narratives.

The text highlighted the significance of brand value components in enhancing a brand's image and customer relationship. Snapped exemplified this concept as it achieved success. Quaker's transformation of Snapper's brand culture further emphasized the importance of these attributes. The text emphasized the criticality of a strong brand-customer relationship, and highlighted that the failure to acknowledge mistakes in this aspect can lead to the destruction of a brand's culture.

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