You are on page 1of 25

Plans Book

SLUSH PUPPIE

PLANS BOOK
Abigail Wolfgang
Advertising Management
Professor Blair
April 2013

Plans Book

Table of Contents
1. The Industry
i. Overview
ii. History
iii. Current conditions
iv. Top companies
2.
3.
4.
5.

The Company
Overview
History
SWOT Analysis
a. Strengths
b. Weaknesses
c. Opportunities
d. Threats
6. The Product
7. Stages of Product Lifecycle
8. Product Sales Features and Positioning
9. Products
10.
Brands
11.
Sales History
12.
The Target Market
13.
The Competition
14.
Strengths
15.
Weaknesses
16.
Marketing Activities of Competition
17.
Distribution
18.
Pricing
19.
Communications Strategy and History
20.
Marketing
21.
Target Market
22.
Advertising
23.
Creative Strategy
24.
Objectives

Slush Puppie
Executive Summary

Plans Book

Although Slush Puppie began as a small business started by an


Ohio man named Radcliff, his hopes of providing summer joy for
children at baseball games, and amusement parks grew into a
world-wide company operating in 47 different countries.
Slush Puppie is targeted at a younger market, ages 9 to 12, and is
a successful childrens drink brand, especially in Canada and the
UK. As a distributing company, Slush Puppie sells their machines
and products to individual businesses, as a way for everyone in
the relationship to profit.
Slush Puppie has many different products in its product line but
the company is mostly known for its slush drink. The success of
the slush drink is credited to the uniqueness of the consistency of
the ice. The slush drink is appealing not only for its texture, but
also because of its smell, taste, and the sound of the slush hitting
the cup.
Slush Puppie rarely advertises in the United States and focuses
mainly on the company in which it distributes its goods to for the
success of their company.
The new advertising world filled with social media, and
participatory advertising opens the field for Slush Puppie to
reinvent its name as new and improved brand that is no longer
just for children. They can do this by using the consumer as the
focus.

1. INDUSTRY:

Plans Book

a. Summary
It is difficult to pinpoint exactly what industry the private
company, Slush Puppie, operates in since it is spread out across
the world, and operates in many different markets. Since it is a
distribution company, they operate in many different locations
including amusement parks, gas stations, and ballparks. In the
United States, Slush Puppie operates in the Coffee and Tea
Manufacturing, but I would consider their true industry to be
Convenience Stores & Truck Stops, because of the high number of
Slush Puppie products that are found in gas stations. Based on the
industry that I think Slush Puppie truly operates in, their main
competition is; 7-Eleven Inc. This Convenience Store Industry has
a NAICS code of 447110, 447190, and 445120, but the current
industry classifies Slush Puppie Corp. as a roasted coffee
distributor, while they do not sell coffee, making it an unsuitable
industry to operate in.
Following is some information on Slush Puppies current industry.
b. Overview
Slush Puppie operates in the Coffee and Tea Manufacturing
Industry, with the NAICS Code of 311920. In this industry there
are 137 companies operating with 86, 930 employees. Each year,
this industry has revenue of $78,587,180,000.
c. Current conditions:
Some of the major companies in this industry include
Farmer Bros, Green Mountain Coffee Roasters, JM Smucker
(owner of Folgers), and Kraft Foods (owner of Maxwell
House) for the US, and abroad companies, Nestl
(Switzerland), Tata Global Beverages (India), and Unilever
(UK).
Source Hoovers:

Plans Book

http://www.hoovers.com/industry-facts.coffee-teamanufacturing.1050.html
The Coffee and Tea Manufacturing Industrys related
companies are Bucarabon Inc., Black Swan Coffee Roasting Co.,
Bad Ass Coffee Company of Hawaii Inc., Triple A Services Inc.,
Dazbog Coffee Co.
($ mil.)

Share

J.M. Smucker Co.

898.50

17.69

Kraft Foods Inc.

497.30

9.79

Starbucks Coffee Co.

224.70

4.42

i) The Top 5 Coffee and Tea Manufacturing Companies are:


1. Millstone Coffee Co. -$69,889,000,000
2. Cafe Tostado De Exportacion S.A. de C.V.$36,550,900,000
3. DEMB Holding B.V.- $6,148,600,000
4. Tchibo GmbH- $4,318,000,000
5. D.E Master Blenders 1753 N.V.- $3,448,200,000
Source: Business Premiere Essentials
http://bi.galegroup.com/essentials/industry/311920?
u=loyoland_main
ii) The Top 3 Market Industry Share:

Plans Book

Source: Business Insights: Essentials


"Top Coffee Makers, 2010." Market Share Reporter. Ed. Robert S.
Lazich and Virgil L. Burton, III. 2012 ed. Detroit: Gale, 2012.
Business Insights: Essentials. Web. 24 Mar. 2013.
iii) How to be successful as a Coffee and Tea Manufacturer:
The consumer tastes and population growths drive the
personal demand for Coffee and Tea Manufacturers, while the
economic growth of restaurants and hotels increase the
commercial demand. Individual companies can be profitable
depending on how effectively raw ingredient costs, operations,
and marketing are managed. The industry in the US is highly
concentrated because the top 50 companies generate more than
90 percent of the revenue, making it even more of a difficult
industry to work in. This is part of the reason why Slush Puppie is
not successful domestically as they are abroad.
Source: Hoovers
http://www.hoovers.com/industryfacts.coffee-teamanufacturing.1050.html

Plans Book

2. COMPANY
a) Background Information
Slush Puppie began in 1970 when Will Radcliff, of
Cincinnati Ohio (where the company is currently headquartered
for the United States), came across a 1950s slush machine at a
trade show.

When Radcliff came up with his idea for a company, he set


up an exhibit at a trade show for tobacco distributors, and the rest

Plans Book

was history. At the time, Radcliff already had a peanut company,


but saw the potential for slush as more important.
Radcliffs business skills, good flavors, good promotional
materials, and distribution network helped the brand grow into
what it is today.
Slush Puppie Corp. was introduced to the UK in 1976
where it is the most successful. In 2001 it was sold to Cadbury
Schweppes.
In 2005, J&J SNACK FOODS CORP. announced that The ICEE
Company, a frozen carbonated beverage distribution company,
had acquired the Slush Puppie brand from Dr Pepper/Seven Up,
Inc., a Cadbury Schweppes Americas Beverages Company for $18
million.
Source:
http://web.ebscohost.com/bsi/detail?vid=3&sid=119e281b-b7a043d9-9001-d0ff8873e43f
%40sessionmgr112&hid=14&bdata=JnNpdGU9YnNpLWxpdmU
%3d#db=buh&AN=21675408
Slush Puppie currently operates under the ownership of the
mother company J & J Snack Foods Corp, where its description is
as follows:
J & J Snack Foods Corp.'s principal products include
SUPERPRETZEL, PRETZEL FILLERS and other soft pretzels, ICEE
and SLUSHPUPPIEfrozen beverages, LUIGI'S, SHAPE UPS, MINUTE
MAID* frozen juice bars and ices, WHOLE FRUIT sorbet and frozen
fruit bars, MARY B'S biscuits and dumplings, DADDY RAY'S fig and
fruit bars, TIO PEPE'S and CALIFORNIA CHURROS churros, THE
FUNNEL CAKE FACTORY funnel cakes, MRS. GOODCOOKIE,
CAMDEN CREEK, COUNTRY HOME and READI-BAKE cookies, PATIO
burritos and HAND FULLS and HOLLY RIDGE BAKERY filled

Plans Book

handheld products. J & J has manufacturing facilities in


Pennsauken, Bridgeport and Bellmawr, New Jersey; Scranton,
Hatfield and Chambersburg, Pennsylvania; Carrollton, Texas;
Atlanta, Georgia; Moscow Mills, Missouri; Pensacola, Florida;
Colton, Vernon and Norwalk, California; Holly Ridge, North
Carolina; and Weston, Oregon.
Source:
http://bi.galegroup.com/essentials/article/GALE
%7CA318419831/9a25c35548e5d30bba74429569667805?
u=loyoland_main
Currently the brand is known for its hat-wearing puppy with
a red tongue hanging out, although the exact picture varies from
country to country. Slush Puppies slogan is the ice is cold. The
brand has grown from a one-man business to being sold in over
62 countries.
Sources:
http://www.enquirer.com/editions/1998/01/18/bus_slush18.html
http://bi.galegroup.com.ezp.lndlibrary.org/essentials/article/GALE
%7CA88335052/bfa1ed30ffe189ee3030340d0cd534b6?
u=loyoland_main
https://is30.eporia.com/company_29/630533.jpg?
cell=220,220&qlt=80&cvt=jpeg
b) Product Mix
Although Slush Puppie Corp. has grown to acquire many
different products, their most successful one still remains; the
original slush. The other products are still worth mentioning:
In the late 1980s a 'Max' version of the slush was launched
at an attempt to appeal to a healthier conscious market. Max
contained no artificial colors and was found most in schools and
leisure centers.

Plans Book

10

Here are some of the other brands that operate under Slush
Puppie:
Brand Name

Brand Type

Back Bar Magic

Beverages - carbonated

Besti Zesti_Discontinued

Lemonade

Cafreezo

Lemonade

Fruit Fraze

Fruits - candied

Pacific Bay

Lemonade

Pacific Bay Smoothie

Juices - frozen

Slush Puppie

Beverages - carbonated

The Amusement Park Lemonade

Lemonade

Thelma's

Lemonade

VitaPup

Juices - frozen

Source:
http://bi.galegroup.com/essentials/company/1291892/brands?
u=loyoland_main

Possible New Industry:


SOFT DRINK MANUFACTURING
a) Summary

Plans Book

11

To reinvent Slush Puppie and their most important product,


the slushie, they need to operate in a new industry. This way, they
could reestablish themselves as a brand thats for more than just
children. Since the current target market for Slush Puppies
slushie product, is nine to 12 years old, a new target market
needs to be established. This target market would be 13-yearolds to 18-year-olds and would be beneficial to the sales in the
United States.
Since government studies show that 24.3 percent of US high
school students drink at least a serving of soda every day, and 16
percent also drink a serving of a sports drink daily, the new target
group should have a new type of slushie that was an energy drink
slushie.
With this new line, Slush Puppie would operate in the Soft
Drink Industry (NAICS code 312111), since the current Coffee and
Tea Manufacturing Industry is not appealing to teenagers. Here
are some facts on this new industry:
Source:

http://www.huffingtonpost.com/2011/06/17/1-in-4-teens-drinksoda-c_n_878289.html
Industry Market Share Reports

Coca-Cola Co.

42.70%

PepsiCo.

30.80

Dr. Pepper Snapple

15.30

Cott Corp.

4.70

National Beverage

2.60

Plans Book

12

Hansen Natural

0.80

Red Bull

0.70

Big Red

0.40

Rockstar

0.40

Other and private label

1.60

b) International attempts in this target market:


Slush Puppie attempted to appeal to this age group back in
2009 in Australia with the Fuel the Underdog campaign. They
looked to sponsor underdogs in extreme sports like snowboarding,
and skateboarding, as opposition to the Red Bull campaigns. This
campaign aimed to represent the small company feel with the
old- school style. Slush Puppie should do the same in the United
States.
Source:
http://www.digitalbuzzblog.com/slush-puppie-fuel-the-underdog/

POSSIBLE NEW INDUSTRY:

Plans Book

13

FRUIT AND VEGETABLE


CANNING
a) Summary:
To help reestablish the Slush Puppie brand as a drink for the
whole family and to open the narrow target market, Slush Puppie
needs to target women. Since a majority of the consumer
decisions are mostly made by the females in households, Slush
Puppie would benefit by targeting another age group of young to
middle aged women.
Since Slush Puppies are currently sold to children, there
should be a more adult version of the slush drink so that mothers
and health conscious young women can join in on the fun.
There are already fruit and vegetable drinks
available to this target market, but these women
should have an ice version of the juices that are
available to them.
In this case, its new industry would be Fruit and
Vegetable Canning, which is where Naked Juice Co.
falls under. New competitors would also be drinks such as V8 and
Naked Juice Co.
Source: Business Insights Essentials
http://bi.galegroup.com/essentials/article/GALE
%7CRN2501500080/15616b6d10a67386549251a4f9c9e4a0?
u=loyoland_main
b) New industry background

Plans Book

14

In the early 2000s, Fruit Juice and Juice Drinks were the third
most popular type of drink in the US, following soft drinks, and
water. This increased after the drop in the 1980s because of
health-conscious consumers that helped boost sales. As of
current, there are even more health conscious people, which
would help boost sales even more.
Mintel International Group, a research firm, reported that 38
percent of consumers were opting for fruit juices and juice drinks
over other beverages.
New juice blends, in addition to single fruit drinks, helped to
capture the publics likings, and the United States had a raise in
nutrition awareness for many established juice products. Purple
grape juice became known for having the same anti-clogging
health benefits as red wine. This all contributed to Welchs purple
grape juice increasing by about 50 percent, along with many
other juice brands from 1995 to 1999.
In the same industry, smoothies became popular. These are
drinks that are fruit-flavored shakes with a dairy base and
sweetened fruit juices. Some of the most known bottled
smoothies are Dannon Frustion, Tropicana Smoothies, Frulatte,
Naked Foods, Odwalla Fruit Shakes, and Yocream Smoothies.
Naked Juice Co.
Net Sales:
$71,200,000

Plans Book

15

SWOT Analysis
a)

Strengths

1. Successful in international markets


2. Established childrens drink.
3. Successful as a distributer.
i. Slush Puppies main focus is their goals as a distributor.
With this system convenience stores and other
franchises can benefit from the machines. This system
allows for everyone to make money; the stores, the
distributors, Slush Puppie, and the slush machine
makers.
Source: Slush Puppie Max." Brand Strategy 20 Apr. 2000:
30. Business Insights: Essentials. Web. 14 Mar. 2013
ii.

Here is their mission statement found on their website


pertaining to distributing their machines to private
franchises:

Committed to excellence, we offer first-rate


equipment and service:
-We have a wide variety of equipment, including lowto high volume units with auto-fill capabilities, all
equipment is installed and serviced by SLUSH PUPPIE
distributors factory-trained technicians.

Plans Book

16

-Our network of distributors will help you determine


what flavors, equipment, and program works best for
you.
-We partner with our retailers to identify
opportunities to increase sales.
-We eliminate concerns about the operation of your
Slush Puppie machine by providing a comprehensive
equipment maintenance program, a national
distribution network, and factory trained technicians
to serve you.
Source:
Slush Puppies official webpage,
http://www.slushpuppie.com/
iii. The distribution system is so successful today that it
includes 85 independent distributors.
Source:
http://web.ebscohost.com/bsi/pdfviewer/pdfviewer?
sid=119e281b-b7a0-43d9-9001-d0ff8873e43f
%40sessionmgr112&vid=4&hid=14).
4. The brands Old School style leads to trust from
consumers as an
established brand
b) Weaknesses
1) There is no consistency in quality since all different
distributors sell the products. Some gas stations are
less maintained than others.
2) There is no consistency in where to buy Slush Puppie,
whereas with competitors, you know that you can walk
into 7 Eleven and find a Slurpee
3) There is no focus on the consumers that buy from
the gas stations and centers; the focus is mostly on the
business who is selling their product.

Plans Book

17

4) Old school paper cups may lack the appeal that


clear cups that Starbucks and other companies offer for
their frozen drinks. They are also less convenient since
they become soggy when wet.
5) Slush Puppie attempted to target different markets
in the past.
i. They tried to join the health movement with their
Max drink of the 1980s.
ii. Slush Puppie tried to broaden the brand with an
aim to compete with energy drinks with energise
and cola flavored multi-vitamin enriched ice
crystals
iii. They even tried creating adult cappuccino drinks
6) Seasonal- Slush Puppie is most popular during the
warm months
7) Out of date company
c. Opportunities
1. Since Slush Puppie is successful in other countries,
they can make changes to become successful
again in the United States
2. The new health and organic movement opens a
new opportunity for Slush Puppie.
3. Operates for a niche market, has room to open
up to different target markets to broaden the
brand.
4. Hasnt made any improvements or campaigns in
the past 5 years or more.
d. Threats
1. Its hard to create health drinks when sugar is the
main component of freezing the drink
2. Its hard to reestablish a brand that is already
known for being kid-friendly

Plans Book

18

Financials:
As a private company, Slush Puppies financials are very
difficult to find. The only information about their finances was
that as of 1999, Slush Puppie had a net sale of 25 million. Also,
their buyout in 2005 was worth $18 million dollars.
Source:
Business Insights
http://bi.galegroup.com.ezp.lndlibrary.org/essentials/article/GALE
%7CA69298875/095289069ea36253b6b43e6e7e7fa47b?
u=loyoland_main

Marketing Strategy:
Slush Puppie Corp. is an established brand, whose mother
company is now in Canada. As part of the Coffee and Tea
Manufacturing industry in the United States, their competition is
misguided and therefore the company is not as prominent a drink

Plans Book

19

seller for consumers. Although their dedication to successfully


building relationships with stores who sell their product is
remarkable, the dedication to the final consumer is lacking.
Slush Puppie should use all types of advertisement in order
to appeal to the new target groups with the overall goal as
reestablishing Slush Puppie as a vital brand in the United States
for beverages. Since the brand is a loud brand, the
advertisements should be frequent to bring attention that Slush
Puppie is back and better than ever. Online advertising will be
very important since everything today is mostly online, but
magazine print advertisements should not be excluded.
With a new shortened logo, and new products, the public
should be interested in what Slush Puppie is doing to reinvent
themselves and will be excited to be involved in the process.

Advertising Plan:
a.

Summary

As an attempt to reestablish Slush Puppie in the United


States as a hip drink that is suitable for teens and also for young
to middle aged adults, Slush Puppie must change its style,
advertising, and become involved in participatory media.
The first change to be made should be in the packaging. The
traditional cardboard cup should be swapped out with a much
more up to date clear plastic design.
I also suggest that Slush Puppie create a new logo for these
two target groups, going by the name SP, a more mature looking
name.

Plans Book

20

FOR THE WOMEN:


A new line of slush drinks must be made to appease the
health fanatics. With the age of Pinterest, fruit and vegetable
shakes are all over recipe boards online. Slush Puppie should
release their own line of organic ice drinks. They should be made
with all natural ingredients such as bananas, spinach, berries,
grapefruit, and many more ingredients. This way, Slush Puppie
would be creating a guilt-free drink that women could feel good
about without the hassle of using the blender themselves. This
should be the goal of the new line.
The plastic cup that the drink would be in should be
delicately designed with varying earthy trees and flowers on the
outside to appeal to the women.
For this target group, Slush Puppie should put print
advertisements in some of the top health magazines such as
Womens Health, Self, Fitness, Shape, and Oxygen. The
advertisements should have a hippie, green, and back to nature
feel. Since the people being targeted are most likely not sitting
around on couches because they are too concerned with their
healthy lifestyle, it would not be wise to invest in television
advertisements.
Instead Slush Puppie should work on testing out the new
products in local markets and grocery stores especially Trader
Joes and Whole Foods. They can set up stands of free samples,
and offer up the chance for consumers to suggest their own fruit
and vegetable combinations that they would like to see. They
could even put machines near gyms, as an after workout treat.
FOR TEENAGERS:
The product for this target group should use the brands
already created product, Slush Puppie max. They should take this

Plans Book

21

energy drink and make it a slush, since that is what Slush Puppie
is known for. They should then offer one that is caffeinated so
that it could compete better with the Soft Drink Industry.
Slush Puppie should use a style that is reminiscent of
throwbacks, using Old School hip hop music in the ads to appeal
to the younger generations. Colors should be bold and
mismatched like the College basketball uniforms that most teams
are now supporting. Teenagers seem to love brightly colored
sneakers that they can personalize, and statement clothing.
Slush Puppie should represent all of this. This will show the
brands efforts to be new, yet emphasize the history that Slush
Puppie has as a brand.
Advertisements for the newly invented teenage energized
slush drinks should be both print and television. It should be
displayed on channels such as MTV and ESPN to appeal to the
young men. It should also be featured online with heavy
involvement on Twitter and Facebook.
COUNTRYWIDE CAMPAIGN
Since consumers like to be involved in decision making,
Slush Puppie should advertise online, on television, and in print
about the chance to create their own Slush Puppie flavor. The
campaign will be a nationwide contest where a winner from each
state gets to create a recipe for a flavor combination that they
think best represents their state. For example, a Slush Puppie fan
from New York can enter the competition saying that that a
combination of green and red apples represents their state.
The contest should be online where anyone can submit
suggestions with links to the website, Facebook, and twitter on
every advertisement. The clear cup should then be designed to
also represent the state flavor. The campaign should go on until
all the states have a represented flavor, creating attention for the

Plans Book

22

Slush Puppie brand. Most importantly the campaign should start


in the early spring because ice drinks are seasonal to the warm
weather for most people.

Creative Strategy:
a. What is the purpose of the advertisements?
The purpose of the advertisements that are aimed at the
new target group of teenagers is to influence those consumers to
become involved in the new campaign for Slush Puppie. Hopefully
this will redirect them to the newly designed online website, and
social media, spreading the brand even further. This will show
that Slush Puppie is attempting to reinvent itself, as a brand for
the consumer, letting them know that they have a say in the
new brand. This will eventually lead to sales increasing.
The purpose of the mostly print advertisements aimed at the
new target group of young and middle aged women is to view
Slush Puppie as an easy already-made health drink that is an
indulgence without feeling the guilt of unhealthy foods and drinks.
By adding the advertisements to health magazines, the brand will
start to be associated with healthy choices, not only fun.
b. What is the most important thing to say?
The most important thing to say in the teenagers campaign
is that Slush Puppie understands the need to be an individual and
to customize style. That is why the campaign was launched and
open for them to participate in.

Plans Book

23

The most important thing to say to the new womens market


is Slush Puppie is not just for your children; instead it is a trendy
drink that takes away the hassle of pulling out the blender and all
the fruits and vegetables for women and young ladies on the go.
It has the appeal of a juicer, with the fun of ice drinks. The already
made organic slushie is convenient, but wont set you back on
your days work out.
C. What is the brand image and message?
The brand image is that Slush Puppie cares about all
customers and the message will focus on the reinvented image as
an established but trendy brand.
D. What do you want your audience to think and feel?
When the audience is exposed to this advertising, the
teenagers should feel included in the media, such as the Doritos
Super Bowl Campaign. Since most of our world is focused on
media that is based on our personal preferences, Slush Puppie
should be known in each state for customization.
E. What are the rational reasons for target audience to buy
products?
1. Slush Puppies are refreshing drinks
2. Slush Puppies are customizable to individual tastes; you
can choose which flavor you like.
3. Perfect for after yoga sessions and workouts as a cool
down treat, but still organic
4. Slush Puppies are good to sip while walking around the
grocery store
5. Cool drink for teenagers
6. Slush Puppies can now make the whole family happy,
not just children

Plans Book

24

Objectives
1. Build customer feedback and participation by:
- improving the United States website to have locations
of where to find the closest Slush Puppie
-Creating a successful Facebook page with at least
4,000,000 likes (comparable to the Slurpee Facebook
page).
2. Broaden target market by selling to new distributors
such as selling the new organic slushie to Trader Joes
and Whole Foods and fitness centers, especially yoga.
3. Make the new and improved SP line of Slush Puppie the
best frozen drink choice.

Plans Book

25