snapple marketing case

Case HistoryIn 1994, Quaker acquired Snapple at the height of its popularity for $1.7 billion. Quaker made a series of changes, disaffecting Snapple’s most loyal customers and tarnishing the brand’s image, resulting in declining revenue. In 1997, Triarc acquired Snapple for $300 billion, and needed a strategy to turn the brand around.

Challenges

Objective

+ 116%

Increase revenue to $1 billion within the next 5 years

Competitor Analysis: Brand Image

HealthyUnhealthy

Mainstream

Unique

Supermarket Brand Shares 1997

Market Share is indicated by relative circle size.

Objective Brand Image

HealthyUnhealthy

Mainstream

Unique

Supermarket Brand Shares 1997

Healthier and more unique

Grow market share

Customer Analysis

Customer Value Proposition

“For the quirky consumer who needs a break

from a busy day, Snapple is a

flavorful, healthy choice.”

To achieve the objective brand image, Snapple needs a value proposition that will resonate with its target

market.

Recommendations Overview

Product Line Renovation Unique Flavors

Cap Fact: Queen Victoria offered a

reward of 100 pounds to anyone

who could bring her a fresh Mangosteen

Offering a line of unique flavors maintains Snapple’s quirky image while differentiating them from competitors

MANGOSTEE

N MANGOSTEE

N

Product Line Renovation

IMMUNE HEALTH

Immune Health: Fortified with vitamins to help strengthen your

Immune System

Snapple Plus

The Snapple Plus Line moves Snapple toward a healthier brand image

Protein Plus: Packed with protein to help build muscle

Product Line RenovationSnapple Boost

All natural energy boosting ingredients

The Snapple Boost Line competes with the energy drink market by providing a healthier alternative for target customers with fast-paced lifestyles

BoostBoost

Promotion

?

PlacementNot only should Snapple appeal to lost customers,

but it should also bring in new customers by creating new sales channels

PlacementSchool Vending Machines

Snapple will appeal to school

boards and parents as a

healthy alternative in a

beverage market saturated with soda products

PlacementThe Snapple

Store

Flagship stores in

metropolitan areas will

be an integration

of marketing

efforts

Timeline

Financial SummaryProduct Line RenovationProduct Line Renovation

$140,000 one time + $140,000 annually$140,000 one time + $140,000 annuallySnapple StoreSnapple Store

$650,000 annually$650,000 annuallyLabel Design ContestLabel Design Contest

$19, 600$19, 600TV AdvertisingTV Advertising

$1.6 million annually$1.6 million annuallyVending machine contractsVending machine contracts

$12 million annually$12 million annually

TOTAL $14.5 million for all recommendationsTOTAL $14.5 million for all recommendations

Cost Analysis: New Flavors Exotic FruitsExotic Fruits

4/year x $35,000 each = $140,000 annually4/year x $35,000 each = $140,000 annually

Snapple BoostSnapple Boost One energy formula $35,000One energy formula $35,000 Snapple PlusSnapple Plus

3 formulas x $35,000 each= $105,0003 formulas x $35,000 each= $105,000

TOTAL $280,000TOTAL $280,000

Cost Analysis: TV Advertising$100,000 (Production Cost) +$100,000 (Production Cost) +$300,000 (air a 30-second ad) x 5 slots / season$300,000 (air a 30-second ad) x 5 slots / seasonTOTAL $1.6 million annuallyTOTAL $1.6 million annually

Cost Analysis: Vending MachineVending Machine

($1,500/machine) x (2 machines/school) x (3,600 schools/year) = $10.8 million/yr for 3 yrs

Personal SellingSalary ($60,000/ year) x employees (20) = $1.2

millionRestocking

Existing DistributorsTOTAL = $12 million

Cost Analysis: Snapple StoreStore Operation Store Operation

$500,000 / yr$500,000 / yrRental Cost Rental Cost

$150,000 / yr$150,000 / yrTOTAL= $650,000 annually per storeTOTAL= $650,000 annually per store

Cost Analysis: Label Design Contest$10,000 prize$10,000 prizeInfo Sessions/ Advertising Info Sessions/ Advertising

2 representatives(travel and board), 1 intern $3,3002 representatives(travel and board), 1 intern $3,300Posters/handouts $4,400 Posters/handouts $4,400 Labor $8 x 8hrs x 3days x 10schools = $1,920Labor $8 x 8hrs x 3days x 10schools = $1,920

Top 10 Art SchoolsTop 10 Art Schools

TOTAL $19,600TOTAL $19,600