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Transcript of Snapple Case
Alana Becerra Miranda
Mei Ting Ou - Snapple itself
- 1972-1993: Snapple's success
- Quaker and Snapple
- Triarc and Snapple
- Snapple's target
- Snapple: a fashion brand?
- Highest priority marketing initiatives
- 4Ps -Expansion to New Jersey and Pennsylvania
-Distribution, marketing and sales are improved thanks to Carl Gilman
-Snapple is present everywhere on the East Coast -Beginning in New York City
-Foundation of Unadulterated Food Products and creation on the Snapple brand 1997: Triarc Company acquires Snapple 1994: Quaker bought Snapple for $1.7 billion 1972: Arnie Greenberg, Leonard Marsh & Hyman Golden start to sell all-natural apple juice to health food stores in Greenwich Village, under the brand name "Snapple" Snapple itself 1972-1993: Snapple's success
Thanks to? Larger and larger network in New York City and then in New Jersey and Pennsylvania A new specific target for the 80’s: young and health-conscious urban professionals Hiring of Carl Gilman in charge of running sales, marketing and the improvement of Snapple’s label Larger distribution:
- Family-owned distributors servicing convenience chains
- Food service vendors
- Gasoline stations
- Mom-and-pop stores Creation of a spokesmodel: Wendy Kaufman who appears in television shows, who is interviewed in USA TODAY, radio spots 1989
> $80 million 1992
$231 million 1993
$516 million Evolution of sales Quaker and Snapple 1994: Quaker buys Snapple for $1.7 billion In order to develop its beverage division, already composed of the well-known Gatorade
GATORADE = lifestyle brand, work or play vigorous
SNAPPLE = fashionable brand, quirky and fashion Why? Quaker's goal by buying Snapple - Expand the beverage division
- Make Snapple become a more lifestyle brand than a fashion brand Quaker decides to rationalize the distribution of Gatorade and Snapple
FAIL: Snapple has less utilitarian role in the consumer’s life than Gatorade
SO Quaker could have developed Snapple well, but they did not choose the right strategy Triarc and Snapple Thanks to the Quaker experience, Triarc now knows that they can’t change the identity of a brand as it has been done earlier by Quaker.
Change of identity = changes the perception and the thoughts that have the consumers on the brand = huge risk (in this case, Gatorade and Snapple couldn’t be unified because they were not aimed to the same target) 1997: Triarc Company acquires Snapple Snapple's target People who care about their health and diet, people who also want to drink something fruity, real and with the good taste of natural fruit. These people are well concerned by their alimentation. They also want to feel while drinking that the product was made with respect of the fruit taste. But Snapple’s target could be “anyone with lips”, since anyone could like to drink such natural drinks
(On the contrary, Gatorade is a drink that contributes to give energy and vitamins to the body, aimed to sportive people) Snapple: a fashion brand? YES ! - Aimed to health-conscious people
- 100% natural, without any addictive
- Trendy packaging Highest priority marketing initiatives Apply back the first strategy of the brand:
- Increase the marketing strategy (TV advertisements, radio spots, public ads in the streets…)
- Target people who care about their health and who have this will to drink natural and real
- Lots of distribution points (pizzas, gasoline stations, food service vendors…)
Grocery stores? (Wallmart, Kroger..?) Snapple's
4Ps Product Price Place Promotion Brand name, style, functionality, recognizable packaging, good shape in the hand, get the product back at the retail Reasonable price ($19 for 24-bottle case in supermarkets), the price was not responsible for the decline of the brand with Quaker Focused on recognizable locations,
distribution channel TV ads, radio spots, billboard ads Thank you for your attention!