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Snapple - Case Study

Felice BOER Anne Katharina HEGEMANN Maxi HOFFMANN Lena Hovestadt Hanne KROGER Alexandru Bogdan CLARU
by

Bogdan Claru

on 16 November 2011

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Transcript of Snapple - Case Study

S.W.O.T. Strengths Weaknesses Opportunities Threats 1997 1972 Quaker takes command Origins of the brand Tiriac acquires Snapple The glory years Strong brand awareness
History
Started as as an all natural apple juice
Seen as a premium beverage
Biggest share on the market
>50 flavors
First on the market
Official beverage of New York
Towards fashion
Consumers felt betrayed after Snapple’s overtake by Quaker
Too much flavors
Not focused on the target group
Giving up Wendy
Well defined benefits and image
Poor brand image
New markets (new countries)
Youth market
Improved distribution channel
Growth in organic foods and beverage sector
Growth in the on-the-go market
Social Media Competition from the organic beverages market
Increasingly segmented market
Rumors
Price competition
Economic crises, high unemployment rate 1. Company background
2. Life Cycle
3. Market analyses
4. SWOT
5. Marketing Strategy
Contents Foundation in 1972 in Greenwich Village, New York
Founders: Leonard Marsh, Hyman Golden and Arnold Greenburg
Unadulterated Food Corporation
50 varieties of teas, juice drinks and flavored waters
Company Background 1986 1993 Life cycle Unique strategic position:
small start-up with quality products and local products
target group: health conscious young people
unconventional distribution: cold channel
new ways of promotions/ advertising
brand image: 100% Natural, quirky, charming, individualistic, spontaneous 
 Niche company Did not maintain Snapple's unique strategic position
Expanding beverage portfolio 
Decisions which where inconsistent with brand image, e.g. entering warm channel 
Treating two very different brands (Snapple, Gatorade) the same way
Strategic fit was destroyed
Brand's uniqueness increased and therefore also competitive advantage and brand loyality was destroyed
"Snapple is now Crapple" 
Loss of fashionability
1. Brand revitalization

2. Regaining brand loyality
3. Distribution channels Fun
Personal
Active
Healthy
Premium
On the go
18 - 29 years
30 - 44 years
Snapple drinkers:
Open to new experiences
Individualistic
Improving all the time
Moving up
In control of themselves Reducing the number of flavors to 25, representing the number of years on the market
Snapple vending machines
Snapple promotion: for 3 different flavors you get 25% discount
Directions of the advertisements in that period prior to 1993 “back to the roots’’
Bring back popular representatives of the brand (Wendy Kaufmann) and hence the Snapple experience
E Radio ads
Snapple locator
Rewards for the points gathered from the caps
Create a short movie in which you are showing that you like Snapple and the most viewed one will win a beach cruiser
Cold Channels
Street vendors
Delicatessens
Restaurants
Recreation areas
Train and metro stations
Anne Katharina HEGEMANN
Hanne KROGER
Maxi HOFFMANN
Lena HOVESTADT
Felice BOER
Alexandru Bogdan CLARU THan Thank you! Market analyses Health and welness are points of interest for the beverage industry
Label Communication
Packaging campaing Snapple has been taken over by Cadburry
Release of limited edition Papayo Mango Tea that coincided with the reality tv show "The Amazing Race"
Snapple and Maroon 5 launched tea to benefit "Feeding America"
Full transcript