Pop Shoppe (A)
(8 pages of text)
The Pop Shoppe was once a leading player in the Canadian soft drinks market, but changing market conditions and corporate mismanagement drove the company into bankruptcy in the early 1980s. In 2003, an entrepreneur purchased the rights to the brand, and was considering reintroducing it in the market. The entrepreneur suspected that many Canadians would be as fond of the Pop Shoppe as he was. However, he had little experience in the beverage industry and consumer habits had changed in the many years since the brand died. Looking at the market, the entrepreneur wondered if there was an attractive space for Pop Shoppe. His instincts told him that older consumers would embrace the reintroduction of the old brand, but it was difficult to know if they were a sustainable market segment. Would older consumers be able to turn their children onto the brand? With little experience and limited funds, he knew that if he proceeded with the idea, he could not afford to make many mistakes. If he chose to reintroduce the Pop Shoppe, he questioned how true he should stay to the original concept. Could a new Pop Shoppe compete in the current market? Despite the entrepreneur’s love for the old brand, he wondered how he could raise enough consumer and retailer interest to make the brand succeed.
This case considers the issue of re-launching a brand after a significant absence from the market. It touches upon issues of opportunity identification, market entry strategy, and competitive positioning. The major learning points are the power and benefits of brand equity, repositioning a brand for a new audience, brand authenticity, and understanding marketplace trends when crafting strategy. Although primarily a marketing case, it is also suitable for entrepreneurial courses when focusing on the value of extensive outsourcing for small firms.
Canada, Small, 2004
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