Download - 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