Introduction : The origins of brand : The glory years 1991: Distribution jumped over to West Coast 1992 : Snapple sold to a Boston private bank : Quaker takes command 1994 : Quaker buys Snapple for $1.7 billion 1997 : Triarc acquires Snapple 1997 : Triarc buys Snapple for $300 million
Annual Sales Revenue, $ Millions
Alternative Beverage category, 1997 Total Alternative Beverage Category: $10 Billion at Wholesale
Supermarket Brand Shares, 1997 Total Supermarket Alternative Beverage Category: $3 Billion at Wholesale
SWOT Analysis Strength: 1. Brand image - natural, quirky, offbeat, playful, personal, authentic 2. Full of variety and flavor - diverse product line - over 50 flavors 3. Brand name - snap; apple implicit health claims 4. Imaginative use of names - e.g., Mango Madness
SWOT Analysis Strength: ( Cont.. ) 5. Adoption - most new drinkers had been aware of Snapple - Snapple drinking flows are through friendship network 6. Packaging - plays out the taste experience - complexity of the label, stippling on bottle
SWOT Analysis Weakness: 1. Not an established brand - like a fashion water - differentiation is weak - lacks a compelling reason to use 2. Distribution - Quaker was wrong 3. Usage rate - fluctuates seasonally, diurnally, and cyclically 4. Regional Differences - areas without a postmodern mindset
SWOT Analysis Opportunities: 1. More variety, imagination, and flavor than competitors 2. The diversity within Snapple Brand - a model for a multicultural society 3. No great competitors - Snapple is fun in a way unduplicated by any other brand of soft drink - no competing brands stand out at the time 4. Health concern 5. Future trend is going to be individualism.
SWOT Analysis Threats: 1. Rumor - deep sense of betrayal by customers 2. Distribution - warm or cold? 3. Image - effect of Quaker: fashion lifestyle
Problems Corporate Image Spokesmodel Disappear Inappropriate Distribution Product Size Lack of Innovation Pricing
Market Segmentation Geographic: Urban areas in U.S. & foreign countries Demographic: Right people Psychologic: Active lifestyle
Target Market Right people with active lifestyle!
Positioning Nature! Good-for-you! Fashion!
4P Product: Smaller bottle, Product and packaging innovation Place: Cold channel + Warm channel Promotion: Spokesman Price: No discount
Recommendations Reestablishing Image - Real - Natural - Good for you Distribution - Niche Marketing - National - A Network of Distributors - Warehouse Distribution Price - High
Recommendations Bottle Design - Smaller - Convenient - Ready to drink - Just fits in your hand Promotion - Advertisement - Sampling New Products Development - Health - Diet