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Team 8 Sprite Research & Analysis Spring 2016

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Team 8 Sprite Research & Analysis Spring 2016 Team 8 Sprite Research & Analysis Spring 2016 Samantha Mangan Elizabeth Jefferson Jordan Jasper Eliza Meyers Chanel Burner 1 Table of Contents Cover page ………………………………………..……………………………. 1 Table of Contents …………………………………………………..………….. 2 Overview of Research ……………………………………………...………….. 3 Phase I (Situation Analysis) ………………………………………………….... 4 Phase II (Primary Research) …………………………………………………… 16 Research I ……………………………………………………………… 18 A. Overview of the Study …………………………………………. 18 B. Objectives of the Study ………………………………………… 18 C. Project Details …………………………………………………. 18 D. Analysis of Results …………………………………………….. 19 Research II …………………………………………………………….. 21 A. Overview of the Study ………………………………………… 21 B. Objectives of the Study ……………………………………….. 21 C. Project Details ……………………………………………….... 21 D. Analysis of Results ……………………………………………. 22 Overall Findings and Suggestions …………………………………………….. 27 References ……………………………………………………………………… 30 Appendices …………………………………………………………………….. 32 Research Plan ………………………………………………………….. 33 Research I …………………………………………………………….... 34 A. Interview Guideline ……………………………………………. 34 B. Consent Forms …………………………………………………. 37 C. Interview Transcripts ………………………………………....... 47 D. Interviewer’s Reflection Notes ………………………………… 69 Research II ……………………………………………………………………… 74 A. Online Survey Questionnaire …………………………………………… 74 2 Overview of Research As our semester comes to an end, we have worked closely to come up with ways to help our client; Sprite. Our SWOT Analysis helps to analyze the strengths, weaknesses, opportunities and threats of Sprite. This analysis helps point out the good and bad factors of our client; some being beneficial and some that may need a change. To further help our client, we created a survey in which we collected results from 100 students. We also interviewed ten students who live on and off campus. We created a couple research questions and several questions based off of the research questions that would help us get a better idea of how students feel about Sprite and what could be changed. This gave us information to help us develop different products within the right line to appeal to a different audience and increase visibility in the marketplace. Ultimately, this would increase profit greatly. Our interviews were a major success and made it possible for us to help our client. After conducting interviews, Team 8 has created a set of suggestions for Sprite, if they choose to follow. First and foremost, know your consumer. Secondly, answer the health question. Next, continue seeking contracts. Lastly, add and advertise more variations. All of these steps are more in-depth starting on page 28, however they are very important and can be helpful. As a team, we feel as though we were successful in gathering research findings and being able to help our client. Sprite can improve by paying attention to what needs to be changed, as a result of our information. Being a semester long project, we learned a lot and gained various insights that we were unaware of previously. 3 Phase I Situation Analysis 4 Introduction This is a situation analysis and market research development plan for Sprite, a lemon and lime flavored caffeine-free drink, produced by the Coca-Cola Company. This analysis will use secondary data to provide information about the Sprite brand. This information will include evaluations of the product itself, its consumers, and its competitors. An overall evaluation of the brand’s marketing environment will also be conducted. A summary of the problems and opportunities found during the research will be included as well, which will be made of internal factors such as strengths and weaknesses, and external factors including opportunities and threats. This analysis will help the brand raise awareness and profits by successfully narrowing down and reaching specific target audiences. Brand History Originating in Germany as Fanta Klare Zitrone, or “Clear Lemon Fanta”, the Coca-Cola Company introduced Sprite in the United States in 1961 to compete against 7-Up, a lemon-lime flavored soft drink produced by Pepsi (Pollack, 2008). The drink was first marketed to be used as a drink mixer, such as tonic water, but slightly sweeter. It was promoted to be used with alcoholic beverages such as whiskey and vodka. In the 1980s, years after Sprite was introduced, due to the Coca-Cola Company’s power, the brand was able to push its large bottling companies to start distributing Sprite over 7-Up. This switch was what ended up leading into Sprite becoming the market leader position in the lemon-lime category by 1989 (Pollack, 2008). In the late 1970s and early 1980s, Sprite rebranded with its own terminology, naming its flavor as “lymon”, a mix of lemon and lime (Pollack, 2008). This makes the drink appear to be a healthier version of soft drink to its consumers; some advertisements even deemed the drink to be “natural”. The drink is also caffeine free, which is different than most soft drinks, past and present. Much of the following of the brand during the 1980s was teenagers and young adults. Going into the 1990s, Sprite used many different advertisements to appeal to its crowd, such as cartoons, humor, and famous athletes, specifically basketball players. The athletes seemed to play into the part of the soft drink being a “healthier” version. Over the years Sprite has developed its look and kept the theme of green and yellow, with background colors of blue and silver. It has maintained a “refreshing” appeal. In the 1990s Sprite came up with its famous line, “obey your thirst”. This line can be correlated with quenching thirst, going back to the refreshing appeal the brand has captured. In more recent years Sprite has changed the contents of the drink, actually making it healthier. The major change was in 2012, Sprite was reformulated to remove 30% of the sugar and replacing it with the sweetener Stevia, which results in the drink containing less calories (Tepper). 5 According to the Coca-Cola Company website, today Sprite is the world’s leading lemon lime soft drink, as well as the number three leading soft drink world-wide. Product Evaluation The Coca Cola Company has been providing the clear colored, caffeine free, lemon-lime flavored beverage for over 50 years. Sprite has added variations of the brand over the years to offer different flavors and an option of the drinks with zero calories to continue to meet the needs and desires within the carbonated beverage market. The beverage is available in multiple sizes for plastic bottles and aluminum cans. The most commonly found are 2 liter and 20 fl oz bottles as well as 12 fl oz cans. Sprite’s current promotional tagline is “Obey your thirst” and was for a long time before 2010, where other taglines have been used without the same success; (Zmuda, 2013) other taglines used in recent years have included, “Sprite, for the thirsty”, “There’s nothing soft about it”, “The spark” and “The uncontainable game”. Since the other taglines did not have much success, Sprite decided to go back with the “Obey your thirst” tagline.The branding image of Sprite includes the three main colors of silver, green and blue on the cans, while the bottles are typically a transparent green. The logo maintains an image that exemplifies the combination of lemon-lime flavor found in the drink, which is seen dotting the “i” in the brand name on the product packaging. Product Variations Sprite’s original crisp lemon-lime flavor has reached popularity on a worldwide scale. Around the winter holiday season, the brand has also brought the holiday popular flavor of cranberry into being a flavored that is available around the holiday season. Sprite has also created a flavor with collaboration of LeBron James, who has had a relationship with the brand since 2003. This flavor is called LeBron’s Mix and features cherry and orange flavor mixed with the original flavor, and was brought back to the market in 2015 when he returned to the Cleveland Cavaliers (ProQuest, 2015). The brand has recently announced that they are bringing back a limited edition flavor called Tropical Mix, which features a mix of pineapple, and strawberry flavorings to the original lemon lime flavor. Sprite Zero has been introduced as a zero calorie and zero sugar version of the original Sprite and the Cranberry Sprite. Strengths Being a product of the Coca Cola Company, Sprite is available in majority of grocery retailers, convenience stores, many restaurant establishments, entertainment venues, schools and universities, and other public and or private buildings. For the convenience of those who drink Sprite, the beverage is offered in sizes that work for people who are on the go like the 20 fl oz bottle or the 12 fl oz can; or even watching the amount of soda and calories they drink like the 7.5 fl oz mini can. The clear color of the 6 beverage along with its taste, Sprite is seen as a versatile drink and can be mixed with other drinks. Clear coloring has also been noted to be less harmful in teeth discoloration as opposed to darker carbonated beverages. Sprite has health benefits from being caffeine free, containing lower sodium than other carbonated beverages, and overall lower calories than other sodas. People also perceive that Sprite settles an upset stomach, which can count as another product strength. Weaknesses Although Sprite offers variations of the product, many of those variations are not found in all the areas that the original Sprite is available at, like vending machines, restaurants and entertainment venues. Some of these variations are as noted above only available for a limited amount of time whether it be seasonal or a special edition flavor. While Sprite Zero is available all year, it also has struggled to be found outside of the grocery store, gas station and convenience store retailers. The Coca Cola Company is a large beverage producer that is capable of spending large amounts on advertising, however Sprite tends to receive little ad spend compared to the Coca Cola Company’s namesake soda brand, Coca Cola.
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