Sprite Presentation Team 8: Samantha Mangan - Elizabeth Jefferson- - - PowerPoint PPT Presentation

Sprite Presentation

Team 8:

Samantha Mangan - Elizabeth Jefferson- Eliza Meyers - Jordan Jasper - Chanel Burner

Background

• Sprite originated in Germany and was called 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

• Sprite became the market leader position in the lemon-lime category in 1989 after the

Coca-Cola Company was able to influence their large bottling companies to distribute Sprite instead of 7-Up.

• In more recent years Sprite has changed the contents of the drink, actually making it

healthier. ○ 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.

• 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

• Sprite is a light-colored, caffeine free, lemon-lime flavored beverage.
• Sprite’s current tagline is “Obey your Thirst”
• Distribution methods include gas stations, restaurants, grocery stores and vending

machines in various places.

• Sprite offers variations like Sprite Zero, Sprite Cranberry, and Sprite Tropical Mix,

however these may not be found from all distributors.

• Sprite is a well-known brand and will continue to be on a worldwide scale, however

the revenue of the brand is at threat with competition, healthy choices made by target markets, distribution of the product variations and its erratic advertising spend.

Consumer Evaluation

• The demographics that Sprite heavily targets are low-income consumers and

African Americans under the age of 24.

• Sprite is purchased mostly in the Southern and Southwest regions of the country.
• Sprite heavily targets young people with their advertisements through music,

particularly rap, and through celebrities and famous athletes, such as Drake, Lebron James, and many more.

Competitive Evaluation

• The two biggest competitors that Sprite faces are Sierra Mist and 7-UP. This is due

to the fact that all of these sodas are marketed as lemon-lime flavored.

• Sprite has the largest market share between the competitors.
• When comparing Sprite to its competitors, it is overall the most unhealthy of the
• three. This is a disadvantage for Sprite.
• From research conducted, it seems that Sprite is the most favorable of the three

lemon-lime sodas.

• Indirect competitors for Sprite include juice, iced tea, and sports drinks because of

their sugar content. Water is also indirect competition for Sprite because it is a much healthier option.

Marketing Environment Evaluation

• The market for soda in general have been on steady decline.

○ People turning away from soda for healthy alternatives. ○ Most recent recession made it harder for people to buy soda

• Market for Sprite largely mirrors market for soda.
• Decline is Sprite sales is noteworthy, but Sprite is still a top competitor in the soda

market.

Market Environment

SWOT Analysis

Strengths:

• Versatile: Sprite can be mixed with other drinks to make new

flavor combinations for taste sensations.

• Brand Recognition: Sprite alone is recognizable with its brand

imaging of the colors silver, blue and green. Having Coca Cola Company be the parent company helps it be a well-known soda brand since it is offered most placed Coke is offered.

• Health and Ingredients: Sprite has lesser amounts of sodium,

sugars and overall calories than other sodas like Mountain Dew and Cherry Coke.

Weaknesses:

• Advertising Spend: Coca Cola Company spends more money in

advertising the Coca Cola product variations such as Coke Zero than it does on the brand variations like Sprite.

• Distribution: Coca Cola Company only offers the original flavor of

Sprite in vending machines, most restaurants and Sprite’s product variations are harder to find.

• Variation: Many other soda brands have a variety of flavors
• ffered in product variations. Sprite has a few that they offer but

they are not offered all year round. Opportunities:

• Health Perceptions: People believe that Sprite helps settle an

upset stomach and hangovers; is less harmful to teeth discoloration than other sodas that have a darker color.

• Partnerships: The Keurig Kold and Coca Cola have worked

together to make “pods” of different Coke products including Sprite, giving another opportunity for distribution.

• Serving Size Variety: Sprite is offered in a variety of sizes

including smaller than the average, this gives more opportunity for those who like the beverage but prefer smaller sizes.

Threats:

• Healthy Choices: There are healthier choices than Sprite and
• ther carbonated beverages, these healthier choices have

increased over the last few years and are expected to continue to do so. Some of these healthier choices include the growth of bottled water and juice productions.

• Caffeine: While there are some soda drinkers that prefer not to

drink caffeine there are many that like dark colored soda because

• f the caffeine. Caffeinated competitors such as energy drinks can

also sway consumers away from Sprite.

In-Depth Interviews: Objective

The objective of the interviews was to gain more knowledge about…

• Target Audience’s feelings and attitudes about Sprite
• If there was any correlation between Sprite brand loyalty and students who live on

campus because of WVU’s contract with The Coca-Cola Company making their products the only soda options on campus

• Would consumers’ likelihood to buy Sprite increase if Sprite’s product variations

such as Cranberry Sprite, Sprite Zero and Tropical Mix were offered all year (if not already) and were available in more distribution areas (e.g. vending machines, restaurants, entertainment venues, etc.)

In-Depth Interviews: Details

• Each member of the team conducted two interviews with students

currently attending West Virginia University.

• The sample was recruited through quota sampling, split between

students living on campus and students living off campus.

• The sample size was 10 students at West Virginia University.
• Each in-depth interview was conducted at different times and locations.

In-Depth Interviews: Results

• There is a correlation between WVU students living on campus and loyalty

and preference to Coca-Cola products.

• Many WVU students drink Sprite mainly with alcoholic beverages.
• Although not a top favorite among the respondents, Sprite is still a very

recognizable and popular brand among college students.

• Sprite’s variations such as Sprite Zero, Tropical mix, and Cranberry, are

not nearly as popular or desirable as original Sprite.

Online Surveys: Objectives

The online survey was used to…

• Answer the research questions
• Help gain a better understanding of the soda industry and consumer

trends

• Gain insight on trends within the university since it has a contract with the

Coca Cola Company

• Take a closer look at the mind and habits of the average college student

Online Surveys: Details

• The online survey consisted of 12 questions related to the participant’s

Sprite consumption and knowledge of the brand.

• The remaining 6 questions consisted of demographics questions.
• The survey was open for two weeks, from April 6th-April 21st.

Online Surveys: Results

100 West Virginia University students participated in the study.

• 34% do not drink soda
• 30% prefered light soda
• 10% drink soda the most during a typical day
• 63% do not drink Sprite
• 58% have tried Sprite Zero
• 83% were aware Sprite is owned by Coca-Cola
• 65% female
• 84% live off campus
• 50% Juniors
• 87% white

Conclusion

• Although Sprite is not a favorite soda among college students, the brand

name is still very powerful and recognizable.

• A way to better interest college students in Sprite would be to advertise as

a mixer or chaser for alcohol, instead of taking the “healthy” and “refreshing” approach it already has.

• College students are simply not very interested in the variations of Sprite,

like Zero, Tropical Mix, and Cranberry.

• Whether due to the fact that it is the only soda brand offered on campus
• r not, WVU students largely prefer Coca-Cola Company sodas than other

brands.