BUS 646: Consumer Behavior

Case Assignment: Snapple

Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
February 20, 2017

Case Questions:
1. In the period of 1972-1993, why do you think that Snapple flourished when so
many startup premium juice drinks stayed small or disappeared?
a. In the alternative drink space, 1972-1993 was a growth period,
where it was relatively easy for Snapple to find a
concentrated, highly homogenous group to cater towards
b. In order to target this smaller group, Snapple focused heavily
on the Northeast and then garnered attention from the West
coast
c. Snapple utilized various spokesmen, from local celebrity and
truck driver, Wendy Kaufman, to national news/radio icons,
Howard Stern and Rush Limbaugh, in order to generate
traction and attention
d. These spokespeople, coupled with a general advertising
strategy (convenience stores, off color advertising), were
controversial and helped Snapple grow. Also, Snapple
appealed to hometown people who easily lifted general
awareness in the area by catering to an average American.
e. As a non-mainstream, growth product, this advertising aligned
with Snapples product characteristics
2. Now look at the period from 1994 1997, did Quaker make an error in buying
Snapple or did they manage the brand badly?
a. Quaker was challenged with trying to pivot Snapple away from
a non-mainstream growth product to a mainstream product.
b. Some activities conducted by Quaker include: larger pack
sizes, greater assortments, getting rid of spokespeople,
moving away from convenience stores to big old grocery
stores all in attempts to cater to mainstream people instead
of the Northeastern niche
c. When making this pivot Quaker failed the key question about
whether or not the purchase was an error or if brand is
managed poorly is why did it fail
d. It is our belief that the brand was managed poorly because
Quaker tried to cater to everybody instead of focusing on the
original niche of people looking for non-mainstream products
e. They should have focused on expanding geographically, but
focusing on the same niche instead of expanding to new
consumer segments as well as geographically
f. Also, they tried to marry Snapple drinkers with Gatorade
drinkers, which failed, because the two appeal to two different
customer segments.
3. Roll forward to 1998, what can Triarcs management team learn from
Quakers experience? What can they apply from their own experience?
a. Is the market anyone with lips?
BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
February 20, 2017

i. Yes and no Quaker thought anybody with lips was a

market. While the product itself does not apply to any
specific segment of people, the branding itself creates
segments. Overall, it is better to leverage existing
branding to hit on one segment despite anybodys ability
to be interested in the product. For example, this isnt
Gatorade where only athletes or hungover people will be
interested. This is a product that anybody could like, but
branding will make the product focused to only a certain
segment.
b. Is it ok that Snapple means different things to different people?
i. Yes. Everybody has different experiences and their
interpretation of the perceived product characteristics
will be shaped by those experiences. This is all to say
that every group will respond to a product differently.
The key will be to find those who respond well and target
them.
c. What are the risks and rewards of leaving the what the brand stands
for open to consumers interpretations rather than creating strong
positioning for it?
i. Risks:
1. Interpretation can be poor
2. May not appeal to everybody, or enough people to
generate sales
3. May not have as much impact or garner as much
traction
ii. Rewards:
1. Image variability keeps the positioning flexible,
relative to preferences
2. Saves resources that would be used to project a
corporate image
3. Dont have to over commit to a single segment that
may reject the product as it grows into a more
mainstream national brand
d. What does it mean to say that Snapple is a fashion brand?
i. The fashion brand really reflects Snapples lack of
product differentiation, instead the value reflects
branding differentiation. The branding relies on
continued moment within the consumer base. When this
momentum is lost, the brand itself falls apart. The idea
of a fashion brand leaves a large risk for product
abandonment due to divergence. If the product becomes
too mainstream and overused, perhaps the original
consumer base will begin to abandon it. Also, Snapple
was originally targeting health conscious consumers with
BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
February 20, 2017

their 100% Natural theme, making it more of a fashion

brand.
4. Identify the 3 highest priority initiatives you would start tomorrow if you were
in Mike Weinsteins shoes? Justify them.
a. The highest priority for Mike Weinstein is to revert Snapples
branding strategy back to a focus on the fashion brand. As
identified by Snapples founders over their twenty-year growth
span up until 1992 (and reinforced through the Deutsch, Inc
survey results), Snapple appeals to consumers as a niche,
experiential product; the beverage is consumed for the
enjoyment and the experience, where consumers are
cognizant of the health benefits, but do not choose to
consume solely on those principles. Acknowledging this culture
is what made Snapple originally successful, and is a brand
image from which Quaker has strayed through their mass
advertising and repositioning efforts. By refocusing on the
quirky Snapple culture, Triarc can begin to rebuild the trust in
the Snapple brand that separated it from competitors and
regain market share in the alternative beverage
marketspace.
b. Part of Snapples appeal to loyal customers was the authentic,
truthfulness of the brand messaging, primarily focused on the
100% Natural claims. Quakers management of the Snapple
brand strayed from the natural element that the founders
employed, an element that generated a lot of trust in
consumers. As Weinstein works to rebuild the Snapple identity
as a fashion brand, he should prioritize a renewed focus on
being 100% natural, employing the real peoplereal
circumstances advertising campaign along with marketing
centered around the 100% natural ingredients. This message
resonated strongly with the original customer base and will
undoubtedly drive renewed interest in the brand.
c. Finally, Weinstein should prioritize distribution through the
independent, cold-channel network for Snapple, while
pulling back from the strategy of mainstream supermarket
distribution that pits Snapple against market-leading beverage
giants for shelf space, as well as requires distributors to risk
long-term contracts and supplier relationships. Snapple is
most consumed in a single-serving, 16oz bottled package,
making it ideal for cold-channel distribution through small
retail shops, street vendors, and restaurants. Given the
intimate nature of cold-channel distribution, Weinstein should
prioritize rebuilding relationships with prior Snapple vendors
while also leveraging any potential distribution synergies with
the Mistic brand.
BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
February 20, 2017