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Transcript of Snapple Group
3. Possible Strategies
4. Recommendation & Risks
6. Implementation History Birth (1987) "100% Natural"
Snapple Conventions Quaker Era (1994-97) Increased pack sizes, promotional support & distribution Place Distribution Goals Product Placement "Snapple Moments" Engaging Consumers Recommendation Implementation Objectives: External Problems Internal Problems Promotion Brand Image Management Distributors Place Markets Revitalize brand image
Improve distribution Market Share Goals
1. Premium segment from 28% to 35%
2. Supermarkets from 35% to 38%
3. Overall alternative beverage category
from 8.8% to 10.7% Risks Strategy: Focus heavily on increasing cold channel distribution towards prior levels and slightly on increasing warm channel distribution. 1. Increase cold channel distribution by:
8% in 1998
10% in 1999
12% 2000 2. Increase warm channel distribution by:
3% in 1998
4% in 1999
5% in 2000 Increase market share in: Triarc Enters (1997) Mike Weinstein & Ken Gilbert's study
Consumers like 'realness'
Who is Snapple's target market? Flagship Model 79 cents/12oz can Product
Desire for profits "Classic" Model IF YOU WANT TO SEE AN EXAMPLE ON HOW TO USE THIS TEMPLATE, PLEASE CHECK: https://prezi.com/n-8ibkiw881r/number-systems/ Economy Model Flagship Model "Classic" Model Possible Strategies General Market Risks
Changing consumer trends, preferences
Cost of raw materials
Seasonal product costs
Life/health line market competition
Effectiveness of celebrity endorsements
Consumer response to cans
Minor loss of sales from cutting bottom flavors Strategy: Discontinue the bottom 20 Snapple flavors while reinnovating the product line with the Economy, Flagship, & "Classic" Models. Existing Snapple tea flavors
12 oz cans Original Snapple flavors
Top 10 Flavors consisted of 55% of Total Revenues Pomegranate (Reduce Risk of Heart Attack)
Strawberry (Reduce Type 2 Diabetes)
Grapefruit (Lower Cholesterol)
Peach (Immunity) life series line: Economy Model tea line: Celebrity endorsement by iconic Jennifer Aniston
Product Placement in popular television series FRIENDS New Flavors
What Does Snapple Mean to You?
Winners of contests featured on Snapple labels Creation of the catchphrase "Snapple Moment:"
Moments on the go, during transition periods, when one breaks from everyday life and lets go to enjoy oneself
Healthy state-of-mind Because Snapple's brand image is directly related to its management, Snapple must create a strong management team and build employee loyalty in order to bolster marketing efforts. Strategy: Promotion Packaging Snapple Distribution Anusha Bokka