The case of Snapple and Triarc Company highlights a lack of application of new marketing strategies in revamping an old and successful brand (Snapple), amidst new ones, leading to a revenue decline for almost four years (Deighton, 2003). As such, Triarc’s goal should be; to achieve a 70 percent market share (from 35 percent) by year 2003 even though it has to deal with variability of customer preferences involving Snapple, as the greatest impediment in achieving that goal. Nevertheless, the impediment can be dealt with through aggressive marketing using an array of digital techniques including social networks.
Goal and goal defense
With regards to revamping Snapple and Triarc Company’s revenues, the firm should seek to achieve a 70 percent market share by year 2003. This goal is the most important because Snapple failed to succeed (around 1997) largely due to lack of new marketing strategies to remind people why Snapple (already accepted with 35 percent brand share) is good for them. At 70 percent market share, the efforts required (aggressive marketing) of Triarc are immense which should engender continuous evaluation (as well as innovation) of the brand and product so as to ensure it stays at the top. The chosen time frame (1997-2003) and a 35 percent increase in market share (35-70%) is ambitious, yet realistic, in ensuring Snapple acquires market leadership. Less or more time as well as a greater market share percentage increase would be unrealistic while a smaller percentage would, as a firm goal, minimize effort applied to maintain Snapple’s market leadership.
Impediment and Impediment Defense
The variability of customer preferences is the greatest impediment that may derail achieving a 35 percent increase in market share in five years. This is because it is difficult to target the identified customer characteristics of the Snapple drinker who does not fit in a well-definable market segment. Nonetheless, aggressive marketing will reveal distinct market segments to target while relying on available data on the Snapple Drinker and the old market segments for continued revenue generation. This impediment is the most important than others because it directly involves the customer and his/her decision to purchase Snapple while others like more market research will yield relatively similar results.
Overcoming the identified marketing impediment will require aggressive marketing especially using digital techniques which represents the best choice because it will reach a wider customer base and influence customer purchase decisions. The cost of using digital marketing techniques especially social networks and online advertisements is relatively low and thus, will not use excess firm resources, while an alternative like market research will only add costs and no positive results. Anticipated results include a wider customer base due to new customers and identification of distinct market segments that will allow better customer targeting. Using other non-digital marketing techniques will not reach many consumers and is more costly, which would dig into other firm resources slated for other purposes.
- Deighton, J. (2003). Snapple. Harvard Business School. 9-599-126. 1-17.