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Snapple Pricing and Product Strategy Essay

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Updated: Mar 25th, 2019

Snapple is an American soft drink company that ensures it has an effective product strategy: the strategy ensures that the company comes up with products that are competitive and responsive to the needs of the customers.

The company makes brands of different flavors depending with the target market; some of the products include juice of different flavors, tea drinks, water, diet drinks, and fresh squeeze among others. The driving force to buying a certain product is the target market that the products are aimed at selling to.

To come up with the products, the company engages in massive products and market research (Snapple Official Website).

The main change that should be made in the company’s products is the packaging that they use: most of the products have been packed on plastic material that destroys the environment; with the decomposition rate of plastics, when they have been deposited, they pollute the environment.

The company should look for paper packaging material (when using paper concentration should be on recycled paper material), they will be less polluting.

Snapple can be said to have a strong brand name across the markets it operates in, despite the competition in the soft drinks company, the company has been able to command an increasing market share and in the future its markets are likely to improve even further. When faced with an issue that can challenge the growth of its brand, the company is quick to react and change the ill move.

The company can increase its markets further if it can have some low alcoholic products alongside the main line. The strategy will be a move of brand extension strategy: to get into the market, the company should make use of the strength of the current brand to persuade people adopt and embrace the new products (Monroe 63).

Pricing strategy

The company uses a premium pricing model; the products can be said to be slightly higher than the average price of commodities in the industry. The reason why they have adopted the method is because of the strength of the brand. It has high quality products that can command a higher market than the others; when using the method, the company targets the working class and the high class members of the society.

Premium pricing model is a strategic pricing model where the company rests on it strength in the market as well as the quality it offers. Since 1972, when the country was incorporated, they have developed unique products designs and they can blend sweet flavors to increase the market.

When pricing the products, the company looks into the costs incurred, the profit margin as well as the costs sold by other companies in the same industry. After noting the average price in the market, the company’s marketing team then adds a margin that represents the premium as required by premium pricing strategy. The pricing method gives a higher return to the company but makes the products not affordable by the less fortunate in the society.

The company should looks into the pricing approach that it is using; the current approach is locking the less fortunate in the society to afford the products. It should start taking use of economies of scale that it currently enjoys; with the current rate of economies of scale, the company can have some quality flavored products at a lower price (Kotler and Armstrong 263).

Works Cited

Kotler, Philip, and Armstrong Gary. Principles of Marketing. New Jersey: Pearson Prentice Hall, 2010. Print.

Monroe, Kent. The Pricing Strategy Audit. Cambridge: Cambridge Strategy Publications, 2003. Print.

Snapple Official Website. Snapple. 2011. Web.

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IvyPanda. 2019. "Snapple Pricing and Product Strategy." March 25, 2019. https://ivypanda.com/essays/snapple-pricing-and-product-strategy/.

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IvyPanda. (2019) 'Snapple Pricing and Product Strategy'. 25 March.

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