snapple secondary research
TRANSCRIPT
Secondar Research Key Insights
Three main categories of messaging :
• Whimsical/Humorous• Mission-driven• Ingredient Focused
Snapple utilizes Whimsical/Humorous and Ingredient Focused messaging
Outlook & Recommendations• Humorous category
most crowded
• Consider merits of Mission Driven vs. Ingredients
• Test Current Concepts
Our target consumer for Snapple is 18-49 years old, with the main focus on 30 year olds. Here are some characteristics and facts about the two categories the fall into, Millennials and GenX. As of 2014, 86% of both Millennials and GenX-ers live in metropolitan areas.
• The chart to the right shows the highest index of Millennials throughout the country, with most of the areas being located in Snapple’s “Non-Heartland”
• The highest index for late Millennials could pose as a benefit for us due to the fact that Snapple wants more of a presence in their Non-Heartland
RTD Tea as a snack are also likely to consider it as an indulgence, which supports the single-serve bottle preference. RTD tea drinkers in this study did not feel tea consumption should be restricted to warmer weather, which leaves more purchase opportunity.
The figure to the right indicates point of purchase for RTD tea based on specific location and age bracket. Supermarkets are the most popular and consistent point of purchase among all generations. While a large part of RTD tea consumption is on-the-go, many convenience store purchases may not be able to be tracked at “mom and pop” shops.
Millennials are gravitating towards brands that understand their mindset; they focus on solving real consumer problems. The chart below shows the media usage for Gen-X and Gen-Y (Millennials)• Gen-Xers are “digital
immigrants” while Gen-Yers are “digital natives”
• There are many major differences in “a day in the life” based on age
• Millennials are on their phones a lot more than other age groups
• 74% feel that new technology makes their lives easier
• 83% say they sleep with their smartphones
• Millennials and Gen-X consumers are more likely to snack today than eat meals.
• Meal fragmentation has become increasing popular with the new American family: which consists of a nontraditional, intergenerational, unmarried, single-parent, multi-ethnic families. Snack culture is part of a larger cultural experience with nearly half of all adults eating between meals and family dining declining.
• This experience, the “Great American Snackscape” shows that consumers are eating an average of 2.35 snacks per day
• Snacking is not just about mindless munching as a result of the enormous shift of a more positive view of in-between meal eating
• Consumers increasingly believe that eating smaller meals more frequently is healthier and that snacking bridges gaps between meals due to long work and commute times.
• Millennial snack preferences are more health oriented, the actuality is that they indulge as seen in the chart to the right.
General Target Snapple Beverage Drinkers Are:• 36% more likely to be heavy magazine readers• Snapple does not have an ad spending in print magazine, something they should consider• 14% more likely to be heavy internet users• Snapple has fair online presence but could use a bit of a help • 21% more likely to be heavy radio listeners (56% more likely to listen to the radio on weekends from 12-6
am)• Snapple's target could be reached by radio ads, which is something Snapple is not doing heavily. • More specifically, advertising weekends between 12-6 am General RTD Iced Tea Drinkers Are:• 16% more likely to be heavy magazine readers• Many other RTD tea brands, such as Fuze, have fair ad spending in print• 11% more likely to be heavy TV viewers (14% more likely to be daytime TV viewers)• RTD tea brands will find success in commercial advertising on TV during the day time• 4% more likely to be heavy radio listeners (27% more likely to listen to the radio on the weekend from 12-6
am)• RTD tea brands will find success in radio advertising, especially on the weekends between 12-6 am
Trends for 2015:- Impermanent Social Media (Instagram & Snapchat)- Real Time Updates (Twitter integrating with TV)- Real World & Tech Integration (Apps for contests)- Bio Data (Communication & Tech integration) Other Notable Trends:- Social Media Platforms- Social Networking - Revamping Previous Campaigns - Live TV Trend
Emerging Media
Brand Spend (000) Share of Voice
Fuze 8149.2 35%
Lipton 100% Natural 7678.4 33%
Pure Leaf 2806 12%
Lipton 1755.3 8%
Brisk 597 3%
Snapple 564.1 2%
Honest Tea 491.8 2%
Turkey Hill 340.6 1%
Two If By Tea 301.1 1%
Gold Peak 295.3 1%
Sweet Leaf 251.8 1%
Tradewinds 68.9 0%
RTD Tea - 2013Brand Spend (000) Share of Voice
Lipton 19566.9 32%
Gold Peak 18559.4 31%
Pure Leaf 14401.1 24%
Snapple 4136 7%
Turkey Hill 2184.8 4%
Honest Tea 789.4 1%
Fuze 232.2 0%
Sweet Leaf 198.7 0%Original Long Island Iced Tea 155.3 0%
Two If By Tea 128.5 0%
Brisk 126.7 0%
Crystal Light 69.3 0%
RTD Tea - 2014
Snapple Media Mix- 2013
Snapple Media Mix - 2014
LOCAL.RAD (000) OOH (000) INT.DIS (000) B2B (000) SPOT.TV (000) Total (000)
240.4 228.7 198.1 168.6 0.1 835.9
29% 27% 24% 20% 0% 100%
NET.TV (000) CABLE (000) SYN (000) INT.DIS (000) SPOT.TV (000) NEWSP (000) Total (000)
4702.1 3979.7 2275.9 343.1 6.8 4.2 11311.8
42% 35% 20% 3% 0% 0% 100%
RTD Tea + Juice
• Because the RTD tea market is so big, and only expanding, Snapple needs to focus on brand loyalty: Meeting and Exceeding consumer expectations
• Snapple’s Consumers expect to be heard and engaged with, as they did with Wendy the Snapple lady. This proved successful with thousands of letters a week and constant customer feedback
• Today’s consumers are more interested in being engaged than entertained, and emotional engagement proves to be most successful. Brands such as Apple, Facebook, Google, and Dunkin Donuts take these approaches.
• To obtain brand loyalty, a few common tactics used include: giving quality products, engaging in consumers, staying relevant, receiving customer feedback, and giving appreciation to our loyal consumers
• Brand loyalty and geographic expansion can benefit one another. Ben & Jerry’s is a good brand to study. They used their brand image to go from a local brand to a national brand.
• After quality and cost, consumers are most attracted to a brand that is “for someone like me.”
Demographics of Social Media Users
23% of all internet users/20% of entire adult
population30% of online adults under 50 use Twitter,
compared with 11% of online adults ages 50 and older.
Pinterest31% of adult internet users/26% of entire adult
population44% of online women16% online men37% under the age of 5022% of those ages 50 and older
72% of adult internet users/62% of entire adult
population82% of online adults ages 18 to 29 use Facebook79% of those ages 30 to 4964% of those ages 50 to 6448% of those 65 and older
Instagram 28% of adult internet users/24% of entire adult population
55% of online adults ages 18 to 2947% of African Americans38% of HispanicsWomen 31%Men 24%
What People Expect From Brands on Social Media• Consumers report they expect brands to be
active on at least three to four social channels.
• 95% of Millennials expect brands to have a Facebook presence
• Also, 87% of Gen X’ers (30- to 44-year-olds) and even 70% of those ages 45 to 60 think brands should, at the very least, have a Facebook page.
In their 2014 State of MultiChannel Customer Service report, researchers at Parature (a Microsoft company) asked 1,000 consumers whether they ever asked a customer service question via social media. Thirty-five percent responded that they had. Of these respondents, 51% reported that the brand’s response gave them a “somewhat more” or “much more” favorable view of the brand.
23% of all internet users/20% of entire adult
population
30% of online adults under 50 use Twitter, compared with
11% of online adults ages 50 and older.
31% of adult internet users/26% of entire adult population
44% of online women
16% online men
37% under the age of 50
22% of those ages 50 and older
Social Media Breakdown
• Within RTD there has been 20% in growth in the fast 4 years with another 20% increase due in the next 5 years• Limited service establishments (fast food, cafes, snack snops, tea shops, etc) sales increased 22.7% within the last 5 years• Energy drinks (vegetable and fruit) have most growth, along with health/natural• Jude-drink sales have risen while 100% juice sales have declined due to concerns over sugar content• Future Innovations will include functional, hybrid drinks as well as food with drink pairings, and the creation of an active rather
than passive buying environment• Packaging plays a major role in “nonconscious priming” or the sensory factors that are considereed when a consumer
evaluates how premium a product is• Consumers want Connection, Convenience, Sustainable, On-the-go options• Tie in the physical benefits of the drink with emotional ties