snapple marketing case

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Page 1: Snapple Marketing Case
Page 2: 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.

Page 3: Snapple Marketing Case

Challenges

Page 4: Snapple Marketing Case

Objective

+ 116%

Increase revenue to $1 billion within the next 5 years

Page 5: Snapple Marketing Case

Competitor Analysis: Brand Image

HealthyUnhealthy

Mainstream

Unique

Supermarket Brand Shares 1997

Market Share is indicated by relative circle size.

Page 6: Snapple Marketing Case

Objective Brand Image

HealthyUnhealthy

Mainstream

Unique

Supermarket Brand Shares 1997

Healthier and more unique

Grow market share

Page 7: Snapple Marketing Case

Customer Analysis

Page 8: Snapple Marketing Case

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.

Page 9: Snapple Marketing Case

Recommendations Overview

Page 10: Snapple Marketing Case

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

Page 11: Snapple Marketing Case

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

Page 12: Snapple Marketing Case

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

Page 13: Snapple Marketing Case

Promotion

?

Page 14: Snapple Marketing Case

PlacementNot only should Snapple appeal to lost customers,

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

Page 15: Snapple Marketing Case

PlacementSchool Vending Machines

Snapple will appeal to school

boards and parents as a

healthy alternative in a

beverage market saturated with soda products

Page 16: Snapple Marketing Case

PlacementThe Snapple

Store

Flagship stores in

metropolitan areas will

be an integration

of marketing

efforts

Page 17: Snapple Marketing Case

Timeline

Page 18: Snapple Marketing Case

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

Page 19: Snapple Marketing Case

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

Page 20: Snapple Marketing Case

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

Page 21: Snapple Marketing Case

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

Page 22: Snapple Marketing Case

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

Page 23: Snapple Marketing Case

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