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It's for all who have LIPS!

Pooja Awasthi

on 4 January 2013

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Transcript of Snapple

WE START HERE... Group 3! -Snapple! - All Natural Quaker Deal - An error?! It is considered to be amongst the top 10 M&A disasters!!!! Snapple's is currently snapped by? 4p's PRODUCT Advertising + PR! Ivan Lendl - SHNAPLE!
Gilman's Focused Group Study + $1mn!
Wendy - Spokesperson for Snapple.
LIVE disaster! - Shane THE WONDER DOG!
Controversial sponsorship- Shock Radio!
Negative PR OOPS !! Sorry we Snapped Poor brand image.

Declining Revenue.

Weak product differentiation.


Rumors. HOW SNAPPLE SNAPPED!!! Leonard Marsh, Hyman Goldman and Arnold Greenberg sold fruit juices under 'Unadulterated Food Corporation'.

Added carbonated drinks, iced teas, diet juices, seltzers, an isotonic sports drink and even a Vitamin supreme.

Revenues and profits grew and distribution expanded uptil 1993 when Quaker took over. A strong social presence!
Snapple - Live Operator SNAPPLE AS WE SEE IT! Products Overload!
Fashion Water -"Eh What!"
Ansoff Model - Market Penetration Our SNAP on Snapple Focused on brand image and
brand recognition

Provided experiential benefits to
its customers

Extended product line with an
established brand image

PRICE Premium pricing strategy was
employed Promotion Free source of communication was achieved
Secondary association was achieved through
Sponsored radio programs PLACE In-diret channel distribution strategy
Maintained relationships with the distributors
Invested in coolers and vending machines Glory Years 1987-1993 1. Distribution system grew.

2. Sales grew from 80$m in 1989 to 231$m in 1992 and 516$m in 1993.

3. Designing and packaging were improved.

4. Advertising budget was increased. Ami - 58 Mihir- 24 Ami-58 Aniket- 45 Mihir - 24 Meeta - 28 Pooja - 02 Wall of Fame! Fact files! Mitali - 03 "I think a Snapple drinker is anyone with Lips" - Weinstein Q.1 In the period of 1972-1993 why do you think Snapple flourished when so many small start up premium fruit drinks stayed small or disappeared? Discuss with regards to the four Ps. Q2.Did Quaker make an error in buying Snapple? Q.3.What should Mike Weinsten do? THE END! Is bought by Quaker Oates Bought By Triarc Sold off to Dr Peppers Cadbury demerges its beverage unit ( Dr Peppers Snapple Group) Goes public Company Founded by Brand Snapple was Born Goes Public Is bought by Quaker Oates Bought By Triarc Cadbury demerges its beverage

unit ( Dr Peppers Snapple Group) Sold off to Dr Peppers Segmenting
18-24 - Core consumers
12-44 - Wider Range
'People who Live in the center but like the edge'
Defining the 'Middle segment' STP Model 1 Declining market share due to high level of competition

2 Various disruption in supply chain and distribution

3 Overall integration of the company

4 Maintaining the snapple brand image
Full transcript