snapple case study
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Snapple Case studyTRANSCRIPT
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GautamRohanVaishali
SNAPPLE REVITALISING
A BRAND
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• It begins with founders, in this case, three entrepreneurs working in a natural food store in the East Village of New York City in 1972.
• In the 1980s Snapple essentially created the no-carbonated segment of ready-to-drink beverages with its introduction of ready-to-drink fruit juices and iced tea.
• By 1991, Snapple emerged as a nationally recognized brand.
• In 1992, Snapple management raised capital by selling a majority stake of the firm to Thomas H. Lee.
Introduction
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The Snapple formula• Tactics developed for Snapple Differentiating company from the
competitor by providing variety of products.
Concentrate on the segments where demand for the product is higher by assigning a team for particular market to have early marketing efforts.
Own distribution channel . Positioned as a premium product .
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Snapple Brand equity In 1994 Snapple was experiencing
tremendous growth. Consumer love Snapple. The name “Snapple” was catchy . The name is one of the most user
friendly and consumer-friendly. Word-of-mouth advertising. Successful ad campaign like, Wendy
“the Snapple Lady”
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The new age Beverage Market
• The market is divide in to eight different group
Ready-to-drink tea
Sports beverages
Plastic bottled water
Single serve fruit beverages
All-natural soda
Sparkling flavored water
Sparkling fruit beverages
Ready-to-drink coffee
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Customer generally selected beverages based on fashion, taste and status related consideration
Distinctive Flavors
Quality ingredients
Clean labels
ProductPackaging Pramotion
This are the factors that play a critical role in the consumer buying behaviour.
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New Competition
• Entry of the Pepsi with Unilever.• Lipton iced tea as ready-to-drink package.• Tetley• Coca Cola enter with “Fruitopia”.• Arizona Iced Tea.
•
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The Quaker Oats takeoverQuaker Oats acquire Snapple at $1.7 billion. Promotional activities by Quaker Oats
• Wendy look-alike contest• Web surfing• A cooking demonstration• Trivia contest
• Raffles• Miniature golf• Carnival games
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Snapple’s Healthy Reputation began to Suffer
• The Center for Science in the Public Interest- pointed out that Snapple drink contain • Sweetened water
• Less than 10% fruit juice
• More calories than a coke.
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New Strategy By Quaker • People for brand management
positions• Reduced number of flavors
offered• Reduced contract manufactures• Tripled ad budget• Made changes to the flavor line.• New packaging • Process order faster and make
plant efficient
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TRIARC Enters the Picture• In 1997 Quaker sold Snapple to the
Triarc Beverage group fro $300 million.
• At that time consumer had more choice between ready-to-drink beverages than ever before.
• Many new brands enter in the market rapidly.
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Strategy by Triarc• Edgy advertising• Strong Distribution relationship• Colorful labels• Focused street sales.• Take back “Wendy Kaufman”
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New product development
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New product development
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New product development
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New product development
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Triarc’s plans for further growth
• Back-to-the-root advertising campaigns
• Sponsorship program• Launch of Snapple’s website• Innovative outdoor campaign• Television advertising
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Brand Extension
In 2000 Snapple introduce four new candy products
• Snapplets hard candy• Beans jelly beans• Fruits chewy candy• Whirls gummies
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The Sales of
Snapple
Again
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• In 2000, Cadbury Schweppes purchase Snapple Beverage Group for $1.45 billion.
Kept Snapple management intactMaintain the existing distribution
channelAlso did not change the CEO.
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Competitive Environment
• In 2002, Beverage world reported that 1235 new beverage products were introduced in the United states alone.
• In 2003, only 250 of those products were on the market
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Introducing Energy Drink• In 2001 Venom, designed to
compare with Red Bull, Coca Cola’ KMX and Anheuser-Busch’s 180
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Promotion “What’s your story?”
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Dye Hard Snapple Tour
• The Tour attracted audiences as large as 50,000 and huge media attention.
• The14,000 mile tour generated more than 70 million PR impressions.
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Official Beverage of New York
city
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Official Beverage of New York city
• In 1999, announced that Snapple was the Official iced tea of the New York Yankees.
• Snapple and the city of New York announced a five-year, $ 166million vending and marketing agreement in 2003.
• The agreement made Snapple the exclusive provider of water and fruit juices in the city’s 1200 school.
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Innovation At Snapple
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Diet Snapple
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Snapple-a-day
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Kiwi Teawi Iced Tea
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Green Apple, Nectarine and Raspberry
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