Splenda's Problem

Note: The product and its availability in the Philippines is real. However, the circumstances described here are created solely for the purpose of this exercise. Additional product details may be accessed at www.splenda.com.

Splenda® Brand Sweetener is a no-calorie artificial sweetener. It, along with other brands of artificial sweeteners, gained popularity with the advent of many consumers’ desire for lower calorie and carbohydrate diets. It is manufactured by McNeil Nutritionals, a subsidiary of Johnson & Johnson.

One of the most common applications of artificial sweeteners is as a sugar-substitute in beverages. Splenda®, however, has also become a popular sugar-substitute for cooking and baking. This is due to its claims of having a composition that holds up better to heat as well as not possessing a bitter aftertaste usually associated with no-calorie sweeteners.

In the Philippines, Splenda® gained presence through informal channels. Consumers who knew of the brand from information or use gained from other markets started looking for it in local establishments. As a result, some retailers and importers brought Splenda® into the Philippines and sold them to select local retailers (e.g. Rustan’s, S&R), restaurants, and bakers. Recognizing its growing albeit still limited popularity, Johnson & Johnson decided to formally launch and distribute Splenda® in the Philippines.

Through its authorized local distributor, Johnson & Johnson now sells Splenda® to retailers and institutions. Availability is currently limited to Metro Manila. Given their nature of use and price vs. sugar, consumption of artificial sweeteners is skewed towards the middle to upper income classes. However, the company realizes that it must build the demand for the product in order to ensure the brand’s long-term sustainability.

You are the product manager of Splenda® and your main task is to build brand equity