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Dr. Rodriquez
Case Analysis
Snapple
Brand Overview
Snapple came into formation with minds of three individuals: Arnie Greenberg, Leonard Marsh, and
Hyman Golden. In 1972, they went into business selling all natural apple juice with the brand name
entitled Snapple. The brand achieved high popularity by the 1980s on both coasts of the United States.
Marketing Strategy - In the late 1980s, the founders hired Carl Gilman to handle sales and marketing.
The advertising budget was increased to $1 million and its promotion strategy was mixed with public
relations and advertising. Wendy Kaufman was hired to be the spokes model for the brand. The fun and
upbeat of the brand brought it to booming sales by 1974. The graph below depicts Snapple’s success.
Arizona
11% Ocean Spray
Lipton Nestea 12%
9% 4%
600
400
200
0
1989 1992 1993 1994
Snapshot of Years
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Company Timeline – After reaching its peak sales, Snapple was sold to Quaker, a food company with
four main areas of business: grain-based foods, bean-based foods, pet foods, and beverages. After
changing the image of Snapple did not work, the brand was sold to Triarc in 1997.
Issues/Problems
After acquiring Snapple in 1994, Quaker had plans of expanding its beverage portfolio. The company
decided to avert from Snapple’s unique strategic position. The fun, upbeat fashion style was replaced
with a certain lifestyle motto to reflect the same image as Gatorade, its first beverage. As two
completely different brands, it is clear as to why consumers did not respond to this change in a positive
way. After the brand image was changed, consumers felt that Snapple wasn’t Snapple any longer. Their
conception of the brand was spoiled. They believed that “Snapple is Crapple”. With Snapple as Triarc’s
new acquisition, the company needs to question what strategy should be taken to revitalize brand image.
SWOT Analyses
Strengths – Despite is decline in sales, Snapple has strong brand awareness. The brand was once the
leader in the Alternative Beverages industry. Because of the knowledge of the brand, consumers are
aware of the taste. That much does not need to change to gain the trust of its consumers once more.
A fresh start may also be strength for the company. This allows the brand to explore more strategies that
Weaknesses – Snapple suffers from the image it now has with its consumers. The lost in trust of the
product can be a setback for them. Another weakness can be contributed to the flavors. Over 50 flavors
would be good if they were all putting in a healthy share. But, Triarc needs to wonder if they have too
many of the flavors that their loyal consumers do not even like. Loss in revenue should be a reason to
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cut back on flavors. More and more money is being put into making flavors that are not bought
frequently. The fact that there is not a specific target market is a weakness. Every group of people is
different so marketing needs to be fit to a certain group. Marketing to “everyone with a mouth” may
Opportunities – Snapple has an opportunity to grow in more market. With a fresh start a reach to new
markets can provide them with more shares. More distribution channels can also increase shares. New
youth markets can help the company promote on-the-go strategies that can be expressed through the
Threats – Snapple is threated by its competitors that once were behind the game and gained glory during
Snapple’s rough patch. Many organic beverages are emerging in markets so Triarc may need to
Evaluation of Options
There are a few things that Snapple must do to find its way to the top. They need to revitalize its brand,
regain consumer loyalty and trust, and utilize many distribution channels. Snapple has the option of
going back to its originality. The Snapple experience that consumers loved might be the way to win
them back. Revitalizing the brand should implement flavor cuts. A study can be done to determine
which flavors are not bringing in a healthy share. Also, asking consumers what they love is always a
good option. This will take a lot of attention. Getting rid of the wrong flavors can be detrimental.
Gaining consumer loyalty can be done through advertising via many channels including radio, TV, and
social media. Fun promotional activities can be done to engage consumers and keep them excited. Some
may include Snapple bottle deals (e.g. buy two, get one free), collecting Snapple bottles for a grand
prize.
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Lastly, Snapple can take advantage of distribution channels. This can include but is not limited to
restaurants, public transportation venues, cold channels, supermarkets, street vendors, and kiosks. The
more that Snapple is readily available, the easier its consumers can get a hold of it.
Recommendations
The best recommendation for Mike Weinstein is to revisit the image Snapple had during its glory days.
Mirroring it exactly may not be the best option right now because we are building from the ground up.
We need to start slow and I believe the best way to do that is to cut flavors and gain back loyalty. Once