Snapple Case Study

GautamRohanVaishali

SNAPPLE REVITALISING

A BRAND

• It begins with founders, in this case, three entrepreneurs working in a natural food store in the East Village of New York City in 1972.

• In the 1980s Snapple essentially created the no-carbonated segment of ready-to-drink beverages with its introduction of ready-to-drink fruit juices and iced tea.

• By 1991, Snapple emerged as a nationally recognized brand.

• In 1992, Snapple management raised capital by selling a majority stake of the firm to Thomas H. Lee.

Introduction

The Snapple formula• Tactics developed for Snapple Differentiating company from the

competitor by providing variety of products.

Concentrate on the segments where demand for the product is higher by assigning a team for particular market to have early marketing efforts.

Own distribution channel . Positioned as a premium product .

Snapple Brand equity In 1994 Snapple was experiencing

tremendous growth. Consumer love Snapple. The name “Snapple” was catchy . The name is one of the most user

friendly and consumer-friendly. Word-of-mouth advertising. Successful ad campaign like, Wendy

“the Snapple Lady”

The new age Beverage Market

• The market is divide in to eight different group

Ready-to-drink tea

Sports beverages

Plastic bottled water

Single serve fruit beverages

All-natural soda

Sparkling flavored water

Sparkling fruit beverages

Ready-to-drink coffee

Customer generally selected beverages based on fashion, taste and status related consideration

Distinctive Flavors

Quality ingredients

Clean labels

ProductPackaging Pramotion

This are the factors that play a critical role in the consumer buying behaviour.

New Competition

• Entry of the Pepsi with Unilever.• Lipton iced tea as ready-to-drink package.• Tetley• Coca Cola enter with “Fruitopia”.• Arizona Iced Tea.

•

The Quaker Oats takeoverQuaker Oats acquire Snapple at $1.7 billion. Promotional activities by Quaker Oats

• Wendy look-alike contest• Web surfing• A cooking demonstration• Trivia contest

• Raffles• Miniature golf• Carnival games

Snapple’s Healthy Reputation began to Suffer

• The Center for Science in the Public Interest- pointed out that Snapple drink contain • Sweetened water

• Less than 10% fruit juice

• More calories than a coke.

New Strategy By Quaker • People for brand management

positions• Reduced number of flavors

offered• Reduced contract manufactures• Tripled ad budget• Made changes to the flavor line.• New packaging • Process order faster and make

plant efficient

TRIARC Enters the Picture• In 1997 Quaker sold Snapple to the

Triarc Beverage group fro $300 million.

• At that time consumer had more choice between ready-to-drink beverages than ever before.

• Many new brands enter in the market rapidly.

Strategy by Triarc• Edgy advertising• Strong Distribution relationship• Colorful labels• Focused street sales.• Take back “Wendy Kaufman”

New product development

New product development

New product development

New product development

Triarc’s plans for further growth

• Back-to-the-root advertising campaigns

• Sponsorship program• Launch of Snapple’s website• Innovative outdoor campaign• Television advertising

Brand Extension

In 2000 Snapple introduce four new candy products

• Snapplets hard candy• Beans jelly beans• Fruits chewy candy• Whirls gummies

The Sales of

Snapple

Again

• In 2000, Cadbury Schweppes purchase Snapple Beverage Group for $1.45 billion.

Kept Snapple management intactMaintain the existing distribution

channelAlso did not change the CEO.

Competitive Environment

• In 2002, Beverage world reported that 1235 new beverage products were introduced in the United states alone.

• In 2003, only 250 of those products were on the market

Introducing Energy Drink• In 2001 Venom, designed to

compare with Red Bull, Coca Cola’ KMX and Anheuser-Busch’s 180

Promotion “What’s your story?”

Dye Hard Snapple Tour

• The Tour attracted audiences as large as 50,000 and huge media attention.

• The14,000 mile tour generated more than 70 million PR impressions.

Official Beverage of New York

city

Official Beverage of New York city

• In 1999, announced that Snapple was the Official iced tea of the New York Yankees.

• Snapple and the city of New York announced a five-year, $ 166million vending and marketing agreement in 2003.

• The agreement made Snapple the exclusive provider of water and fruit juices in the city’s 1200 school.

Innovation At Snapple

Diet Snapple

Snapple-a-day

Kiwi Teawi Iced Tea

Green Apple, Nectarine and Raspberry