1. Snapple National Brand Research, p.1
The Snapple Situation
An online study of consumer behavior tea
and juice beverage choices
2015 Report
Kristen Leupen
3. Snapple National Brand Research, p.3
Executive Brief
Snapple is dominating sales in the North
East region of the United States, but wants
to grow Trademark Volume in the areas
outside their “heartland.” In this study, we
acknowledge and discover what consumers
desire when purchasing tea and juice bever-
ages.
Main Findings
The online survey conducted found a few
key points in the consumer’s view of tea and
juice beverages:
Tea:
1. 63.80% (n=282) of individuals purchased
tea from convenience stores, opposed to
43% (n=194) who prefer a retail store.
2. 66.69% (n=294) of individuals purchased
single serve drinks.
3. 43.74% (n=192) of people prefer their
tea sweet, compared to 15.49% (n=68) who
prefer their tea unsweetened.
4. Quality was most important to consumers
rating itself 65.43% (n=282), while creative
advertising was only “very important “to
11.19% (n=48) of our sampling group.
5. Price was valued by 41.86% (n=180) as
“very important.” Strong Tea taste was also
very important to consumers, landing in
28.07% (n=121).
4. Snapple National Brand Research, p.4
2. Most people recognize that Snapple is
made from “better” ingredients. However,
there are a handful of respondents that
doubt them using this purely for marketing
and not actually providing the finest ingredi-
ents.
3. Snapple was rated by 53.49% (n=398) of
our sample as “easy to find in your area,”
yet 58% (n=435) haven’t purchased Snapple
tea in the last 90 days. The product seems
to have a good reputation, yet people don’t
go the final step in purchasing the product.
Significance of the Findings
From our research, it is evident that con-
sumers are aware of Snapple’s slogan. They
have read the bottle, or have heard it from a
friend. We have discovered that the trouble
comes when the consumers are forced to
create a meaning to the slogan for them-
selves. As Snapple, it is crucial the meaning
of the slogan be put out in the open. Be
vulnerable with consumers and they will take
Snapple more seriously.
Limitations in the Research
The online survey was conducted using
convenience sampling. Participants were
selected to partake in the survey from the
surveyor knowing them personally or through
someone else. There is a selection bias due
to the fact that it was not a random sample.
Because of this, there is no level of confi-
dence or likelihood that reproducible results
exist.
Further Research Needed
A study on teas and juices specifically could
be beneficial in helping Snapple improve in
areas that their competitors are succeeding
in. Focus groups would be constructive to
figure out what consumers like and dislike
about other teas and juices. Figuring out
exactly is desired when purchasing, and why
competitors are succeeding in an effort to
further improve Snapple as a whole.
1. 24.80% (n=186) of survey respondents
said they have purchased Snapple in the
last 90 days.
Snapple:
Juice:
1. Juice is most purchased at a retail store
46.41% (n=265) and convenience stores
39.23% (n=224).
2. Juice is most purchased in single serve
drink size 47.20% (n=253).
3. Quality topped the charts with 63.71%
(n=337) while fruit flavor followed rating
55.74% (n=296), and Price ranked 38.78%
(n=204).
4. 41.23% (n=221) answered “other” to the
type of juice they prefer, included drinks
such as Ocean Spray, Tropicana, Welch’s.
Snapple ranked 2rd (23.88%, n=128) in the
survey.
6. Arizona was preferred over Snapple,
28.31% (n=124) to 16.44% (n=72), making
Snapple the 3rd most preferred brand. Gold
Peak sits in 2nd with 20.78% (n=91).
5. Snapple National Brand Research, p.5
Introduction
The Research Problem
The Snapple Heartland represents 50% of
all Snapple tea and juice purchases. Outside
the Heartland, opportunity exists to convert
a large awareness of the brand (90%) to
preference for the brand (15%). Snapple’s
current positions as #3 in juices and #4 in
teas offers a unique opportunity to move up
and gain market share. More data is re-
quired to better understand consumer pur-
chase behavior, habits, and preference sets.
The Importance of the Problem
Snapple wants to continue to thrive in the
Heartland while growing non-Heartland
sales. By increasing national sales, we’ll
see an improved national preference for the
brand, stronger trade channel support, and
better traction for new products and pack-
age introductions.
The Snapple Heartland
represents
50%of all Snapple tea
and juice purchases.
Opportunity Exists
to convert
90%to preference for
the brand.
6. Snapple National Brand Research, p.6
In Context of Other Research
The research we were able to conduct through surveys around the United States was able
to provide more evidence, and reveal cultural trends in different areas of the United States.
As an individual, we each have a span of reach. Through this project, I was able to use
mine to reach not only individuals my age, but those in other categories as well. By under-
standing purchase behavior and the barriers to prefernce, we can move Snapple from a
well-known brand to a loved one.
By
undstanding
purchase
behavior and
the barriers
to prefernce,
we can move
Snapple from
a well-known
brand to a
loved one.
7. Snapple National Brand Research, p.7
Methodology
Defining the Population
The Total Population:
The total population, represented by N, is
the complete group for which the marketing
research was directed. The Snapple study
targeted US American adults 18-49 who
have purchased bottled OR canned teas OR
juices in the past 90 days.
The Sample Frame:
The customer satisfaction study includ-
ed adults who have purchased bottled OR
canned teas OR juices within the last three
months including all 9 U.S. Census zones.
Skip logic was used to qualify responses
and direct participants to the survey items
which were relevant to them. Due to the fact
that that people could opt out of questions,
the sample frame was different for each
one.
In total, 804 surveys were recorded.
Race
Household
Income
Gender
Children in
Home
Age
8. Snapple National Brand Research, p.8
Convenience Sampling
The online survey was conducted using
convenience sampling. Participants were
selected to partake in the survey from the
surveyor knowing them personally or through
someone else. There is a selection bias due
to the fact that it was not a random sample.
We estimate a 95% confidence level, a +/-
3% margin of error, and a 75% variability
(response distribution) rate. However, we
may not generalize this survey Population
(N) to the greater due to its non-random se-
lection process. The sample frame is repre-
sented as n.
Recruitment
Participants were selected via Facebook,
Phone calls and text messaging, Twitter,
face-to-face, and Reddit survey subgroup
posts.
Time Parameters
The research was conducted in Q4 2015
over the course of 4 weeks.
Researchers
A group of Midwestern research students
are responsible for the research conducted
in this study.
Privacy
Confidentiality was managed by making the
survey anonymous by making the survey
anonymous. No personal names, addresses,
or contact information were recorded that
would identify the respondent, other than a
zip code to better understand regional de-
mographics. In addition, respondents were
given options to “opt out” of the study at any
point. The first question qualified the re-
spondents based on their canned or bottled
tea purchases. If they did not qualify they
were not able to go further in the study. Re-
spondents also had the option to leave the
survey at any point.
Online Survey
The research was conducted through the online survey development company
SurveyMonkey.
It was a 23- point survey with 15 consumer-specific questions and 8 demographic
questions.
It included Likert Scale, open-ended, and forced-choice questions.
The first question in the survey qualified the respondent on their canned or bottled
tea purchase behavior and determined if they would move on in the survey.
9. Snapple National Brand Research, p.9
Results
Main Findings
The online survey conducted found a few
key points in the consumer’s view of tea and
juice beverages:
Tea:
1. 63.80% (n=282) of individuals purchased
tea from convenience stores, opposed to
43% (n=194) who prefer a retail store.
2. 66.69% (n=294) of individuals purchased
single serve drinks.
3. 43.74% (n=192) of people prefer their
tea sweet, compared to 15.49% (n=68) who
prefer their tea unsweetened.
4. Quality was most important to consumers
rating itself 65.43% (n=282), while creative
advertising was only “very important “to
11.19% (n=48) of our sampling group.
5. Price was valued by 41.86% (n=180) as
“very important.” Strong Tea taste was also
very important to consumers, landing in
28.07% (n=121).
6. Arizona was preferred over Snapple,
28.31% (n=124) to 16.44% (n=72), making
Snapple the 3rd most preferred brand. Gold
Peak sits in 2nd with 20.78% (n=91).
Juice:
1. Juice is most purchased at a retail store
46.41% (n=265) and convenience stores
39.23% (n=224).
Determining Factors in
Tea Purchase
10. Snapple National Brand Research, p.10
Tea Purchase Size
Preference
2. Juice is most purchased in single serve
drink size 47.20% (n=253).
3. Quality topped the charts with 63.71%
(n=337) while fruit flavor followed rating
55.74% (n=296), and Price ranked 38.78%
(n=204).
4. 41.23% (n=221) answered “other” to the
type of juice they prefer, included drinks
such as Ocean Spray, Tropicana, Welch’s.
Snapple ranked 2rd (23.88%, n=128) in the
survey.
Snapple:
1. 24.80% (n=186) of survey respondents
said they have purchased Snapple in the
last 90 days.
2. Most people recognize that Snapple is
made from “better” ingredients. However,
there are a handful of respondents that
doubt them using this purely for marketing
and not actually providing the finest ingredi-
ents.
3. Snapple was rated by 53.49% (n=398) of
our sample as “easy to find in your area,”
yet 58% (n=435) haven’t purchased Snapple
tea in the last 90 days. The product seems
to have a good reputation, yet people don’t
go the final step in purchasing the product.
Juice Purchase Size
Preference
Snapple purchase
Convience “They try to
use the best
ingredients.”
11. Snapple National Brand Research, p.11
Summary of Explanations
People’s response to Snapple’s slogan, “Made from
the best stuff on earth.” (Q14)
It is evident people are aware of Snapple’s
slogan. When asked a simple question
about it, they were able to respond with an
answer that reflects the Snapple mission.
“That Snapple uses quality,
natural ingredients instead of
chemicals. Organic ingredients
aren’t important, just the qual-
ity of ingredients being used.”
This is important as, 65.43% (n=282) of
consumers rated “quality” as most import-
ant in choosing a tea beverage, as well as
63.71% (n=337) in the juice sample.
However, the interpretation of the slogan is
what could hurt Snapple in the long run.
This consumer stated that he indeed be-
lieved Snapple used quality ingredients, but
disregarded whether Snapple used organic
and pure ingredients. This could account for
part of Snapple’s loss in sales to Arizona
and Gold Peak. Snapple is currently the 3rd
most preferred tea.
“It would mean to ME that the
ingredients would be clean and
organic. But when you read the
label, that is not true.”
While most statements we read about the
slogan weren’t negative, it still leaves cus-
tomers to assume what Snapple is using in
their drinks. If Snapple is to compete against
competitive tea employers, they need to be
open about their ingredients as well as rec-
ognize that the majority of our consumers
prefer their tea sweeter, than unsweet.
“It seems generic and outdat-
ed, very vague and simple. I’d
like them to define what they
mean by stuff and what their
standards are that qualify this
“stuff” as the best.”
“It seems to imply organic vegetables and
fruits.”
“That’s it’s the best drink on earth”
“Better than the other brand”
Some of the negative feedback we heard
was relating to marketing. All in all, con-
sumers want to know what the drink they’re
purchasing, is made out of, considering they
usually purchase their tea and juice bever-
ages in the single serve size.
“Doesn’t really mean much to
me because brands use catchy
phrases like this to catch the
customers’ attention.”
“It’s a marketing gimmick”
“Over exaggeration.”
12. Snapple National Brand Research, p.12
What these (“best stuff on
earth”) findings say
From our research, it is evident that con-
sumers are aware of Snapple’s slogan. They
have read the bottle, or have heard it from a
friend. We have discovered that the trouble
comes when the consumers are forced to
create a meaning to the slogan for them-
selves. As Snapple, it is crucial the meaning
of the slogan be put out in the open. Be
vulnerable with consumers and they will take
Snapple more seriously.
In an effort to reduce negative feedback,
Snapple needs to strive to not only work
on what goes on inside the factory (quality
ingredients, ie...) but show it in marketing and
in the Nutrition Facts how that plays out for
consumers to see.
Conclusion
Snapple needs to give customers a reason
to purchase thier beverages because cus-
tomers tend to be uncertain about it. People
value their time and information, and Snap-
ple needs to find reasons why their bever-
ages are a better quality than other com-
peditors.They also need to find reasons to
convince their audience why the beverages
Snapple sells are truly made from the “best
stuff on earth.”
Snapple TEA purchase
in last 90 days
Consumer JUICE
brand preference
Consumer TEA
brand preference
VS
Snapple JUICE purchase
in last 90 days
13. Snapple National Brand Research, p.13
Discussion
Interpretation of Results
What do these results
illustrate is happening in
the industry?
Consumers crave quality beverages at a
low cost. Not only was quality rated high-
est in our determining factors question for
both tea and juice, but it is seen around the
board in emerging companies as well. En-
compassed in quality is assurance in know-
ing what the drink is made out of, as well as
an enjoyable taste when desired. The major-
ity of consumers purchase tea and juice in
single serving drink sizes, therefore implying
that most purchases are made upon crav-
ing. When they are sure of a company, they
are more likely to purchase the drink when
the time comes.
What implications does
this have for Snapple?
Snapple needs to strive to make their drinks
as wholesome as possible, and proceed to
market themselves as so. Half of our study
answered that Snapple was easy to find in
their area, now the only solution that re-
mains for Snapple is starting from the inside
out and working out in order to give the con-
sumers the quality drink they desire.
What recommendatons
should be made for this
brand?
It is recommended that the Nutrition Facts
act as an outward sign to show the dedica-
tion of the staff to the company. Whether
that means rebranding, or simply shifting
designs. Snapple needs to advertise what
exactly is in, “The best stuff on earth,” in an
effort to precede comments from consum-
ers. Consider taking further steps to ensure
consumers that what they are purchasing is
indeed quality though signs at kiosks, and in
checkout lines.
Further studies needed
A study on teas and juices specifically could
be beneficial in helping Snapple improve in
areas that their competitors are succeeding
in. Focus groups would be constructive to
figure out what consumers like and dislike
about other teas and juices. Figuring out ex-
actly what is desired when purchasing, and
why competitors are succeeding in an effort
to further improve Snapple as a whole.
14. Snapple National Brand Research, p.14
References
Snapple National Beverage Study 2015
Snapple NSAC Team Client Brief 2015
