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Copy of Snapple Case

marketing strategy
by

João Ferreira

on 6 March 2013

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Transcript of Copy of Snapple Case

Content --a tour of Snapple 1972-1986 1987-1993 1994-1997 God hated the 80's
but he liked Snapple. Snapple Case ZHANG XI
XIANG YI
LI TONG
XING YU JIAO after 1997 The Origins Childhood friends: Leonard Marsh, Hyman Golden and Arnold Greenburg saw potential in fruit.
In 1972, they began selling 100% natural juice to helthy food stores under the name Unadulterated Food Corporation. where did they get the name Snapple? From a carbonated apple soda which had a snappy taste. Marketing mix Glory Years
(1972-1993) 1.Focus on cold channal convenence store gasoline stations pizza stores mom-and-pop stores Maintaining a strong relationship
with distributors through commitment
and trust, Snapple earned tremendous
operational loyalty. Product Price Place Promotion quirky fun natural fashion offbeat 1.Attractive products:
100% natural,
healthy subsitute for soda
unique flavors (such as mangosteen)
more than 50 flavors. 2.Special brand image. 2.The Snapple lady: Wendy Kaufman genuine, fun who embodies the essential Snapple qualities. 1.Charming advertisments. 3.Sponsorship the radio shows hosted by Howard Stern and Rush Limbaugh personal 300 small, family-owned distributors 2.strengthen East Coast awareness and networks 3.Initially stayed away
from warm channel
(supermarkets). 1.Per 24-bottle case: $19 at supurmarket
$24 on the streets 2.Sells best as a single serving
16-ounce bottle. 3.premium pricing on popular
products/flavor. Snapple sales peaked at 674 million in
1994, when Snapple was bought by
Quaker Oats . Quaker's takeover (1972-1986) (1994-1997) Did Quaker make an error buying Snapple? In 1997,Quaker Oats bought Snapple for $1.7 billion.
After that, Snapple sales began to decline. No, buying Snapple is not wrong. Quaker failed because
of their poor management: the implement of previous
successful experience of Gatorade on Snapple. Gatorade vs Snapple lifestyle fashion Quaker's mistake External factors Internal factors 1.changed the image
of Snapple
2.low risk/traditional
marketing
3.reduced flacors
4.reduced contract
manufacures
5.terminated Wendy 1.increasing competition
2.consumers' changes
of purchase habits and
behaviour In the spring of 1997,Triarc bought Snapple from
Quaker for $300 million.
At that time, Snapple sales were $440 million, less
than 55% of that in 1994. Triarc's takeover (after 1997) --an investment company known for
buying and selling trouble assets. What should be the priorities for
Mike Weinstein? 1.Rebuilt the "Snapple" brand image. 2.Reconnect with the distributors. Snapple whitening Snapple slimming = = New product--"Snapple Beauty" collection offer mix fruit with particular function: whitening & slimming new package and new combination people are not only concerned about health but also beauty A combination contains a large amount of vitamin C,helping sun protection and whitening. change the label and offer beauty secrets on the bottle a combination rich in dietary fiber, helping intestinal movement New place 1.The first root thing Triarc needs to do is to rebuilt relationship with prerious distributors. (through providing preferential policy) 2.lauching new channels: top health club,
SPA and golf club -the members are more concerned about health
-less sensitive with price 3.Vending machine in commercial office buildings 4.Flag ship stores in metropolitan areas -offer convenient lunch choice New Promotion 1.Reinstated Wendy 2.New exciting commercial --Telling people the "Snapple" you used to love has come back 3.Creative outdoor advertisment --Remain quirky brand image 4.Product placement in quirky TV shows with young viewership product place promotion New Price remain premium pricing strategy price is implication of quality price New strategies for Triarc marketing mix Snapple Case Thank you!
Any questions?
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