Snapple
Snapple
Snapple
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Overview
Tells the story of Snapple's rise and fall,
and poses the question "Can it
recover?"
Many soft-drink brands flourished in the
1980s serving New York's Yuppies, but
only Snapple made the big time.
Cont.
It went from local to national success and was poised to
go international when the founders sold out to Quaker.
The brand proved harder to manage than Quaker
anticipated and in 1997 was sold for a fraction of its
acquisition price.
The case presents factors accounting for the growth and
decline and provides a qualitative study of the brand.
What action should the new owners take?
Challenges
Poor brand image
--Snapple fired their beloved spokes person,
Wendy
--Previously quirky image is obscured by the
perception that Snapple is a corporate sell
out
Declining revenue
--When bought by Triarc, Snapple's revenue had
decreased to nearly half of what it was at the time
of acquisition of the Quaker
Competition
--Competitors have entered the beverage market
with an array of similar fruit juices and tea products
Snapples early success
First, Snapple offered a broad line of beverage
products accompanied with 100% Natural that
appealed to young, health conscious New York
professionals in the 1980s.
Second, Snapples proximity to New York City
proved to be beneficial for marketing its products.
Exposure to the media and celebrities helped the
local company gain national attention.
Third, outsourcing the production and product
development and built a network of distributors across
New York.
Fourth, the premium pricing of its products enabled
Snapple to be profitable, despite many failures. Premium
pricing on the successful products covered losses on the
failures.
Fifth, Snapple successfully promoted and advertised its
products with an offbeat blend of public relations and
advertising using celebrities.
Quaker Acquisition
Cultural differences between both brands and
differences in operating styles between both
companies.
Snapple and Gatorade appealed to different
audiences in different markets. Quaker failed to
acknowledge or accept the cultural differences
between the brands, and as such, Snapple lost
market share and brand image.
Quaker alienated Snapples network of established
distributors by attempting to force a partnership. Quaker
destroyed healthy relationships that took Snapple years to
develop.
Quaker failed to recognize that offering Snapple in larger
package and bottles sizes would be unsuccessful given
that Snapple sold best in 16-ounce containers. The mass-
market operating style for Gatorade was not conducive
to Snapples traditional business.
Core Issues
Loss of brand identity
Mismanagement of established image
Termination of key spokespeople
Unorganized distribution system
Recommendation
Trairc needs to revitalize the brand by introducing
a marketing plan focuses on the unique
characteristics that made it successful initially.
Trairc needs to reintroduce Snapple with
advertising campaigns in radio, television, print,
etc.
Use of 4Ps (Product,Price,Place,Promotion)
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