Sei sulla pagina 1di 10

SNAPPLE

REVITALIZING A BRAND

SHEKHAR BAID
SWATI JOSHI
ALOKE ANAND
SIDDHARTH PAWAR
GARGI KHURANA

Question 1
a) How would you characterize Snapples Brand image and sources of brand equity?
Brand Image
Snapples brand image can be characterized as a New Age product. Snapple was recognized as
a rising beverage company throughout the country. One of the major factor on which their brand
image was based was the availability of quality natural flavored drinks. Their brand image totally
reflected on certain characteristics such as their marketing strategy, distribution channels, market
analysis, product differentiation and premium prices. Snapple distinguished itself by providing a
non-carbonated drink with natural ingredients.
Brand Equity
Snapple was found to be a very catchy name which itself created positivity amongst the
consumers regarding the beverage. Snapple ran advertisement campaigns on television and radio.
Snapple publicized itself by using an authoritative marketing strategy by featuring itself in
popular television shows and movies and endorsing the brand by famous celebrities.

b) What are the strengths and weaknesses of the brands existing personality and image?
Strengths

Snapple has a very affluent brand image. The brand image was built on the basis of its
catchy and popular name, marketing strategies and their distribution channels.
Snapple has a variety of upto 52 flavors of beverages.

Weakness
Snapple sold its beverages on premium prices which was not acceptable to all types of
consumers.
Their premium product Snapple iced tea was way more expensive than its competitors
Snapple didnt introduce new products quickly. This drawback was always an opportunity
for the competitors to enter the market.

Question 2

A. Where did Quaker go wrong?


Feeling the stress from the previous competitions Gatorade, Quaker focused on growing
its beverage business by acquiring Snapple. With this acquisition, Quaker had hoped to
expand its distributors channels in both directions. Gatorade would use Snapples
distributors to list into cold channels, like wise Snapple would be bought into retail super
markets. Collaborations as such proved the demise of Snapples sales by 1997 to over
$200 million. When Quaker bought Snapple, despite product differentiation, it saw the
immediate need for integrating Snapple to be more aligned with Gatorade. With this
change in making Snapple more of a lifestyle brand, Quaker saw the risk of associating
with people living under debate and terminated Howard Sterns and Rush Limbaugh
relationship along with Wendy Kaufman which was prime lose to Snapples market.
Even Quakers advertising and communications strategy for Snapple discovered some
very observable and insightful modifications between the Mars-like Quaker and the
Venus-like Snapple. For Quaker, customers were aimed and marketing activities took on
an aggressive image. The brand failed to sustain its Brand value No initiatives were
taken for Brand sustenance. Consequently consumers floated back to water, sodas etc.
Boosted health awareness among middle-aged groups nurtured doubts about the health
factor of Snapple. The premium pricing of Snapple raised questions about the
products authenticity among price sensitive youth and young adults. Especially when
real fruit juices were cheaper than Snapple. Competition was high from brands such
as Nestea, Coca Colas new Fruitopia and Lipton.

As the alteration continued to distribution channels, Gilman was charged to work with
300 of Snapples distributors to exchange rights with Gatorade that never seemed to have
occurred, no channel validation was achieved. Quaker later on presented Snapple in
larger sizes in line with Gatorade and reduced the whole flavors. This process was met
with boundaries on distributors trucks and display space in the cold networks. Every
effort of Quaker making Snapple a combined brand with Gatorade seemed to have been
pointless and sales of Snapple started diminishing year after year. Eventually, Snapple
was sold to Triarc in 1997.

B. What could they have done differently?

1) In our opinion Quaker should have tried to frame the buying decision and successive
management initiatives within an extensively broader perspective than it seems to have
had, moving beyond Quakers visibly narrow methodology.
2) Quaker should have focused on why and how Snapple achieved its victory, and
specifically, on customer identification, purchase and use behavior, and rivals. Quaker
would also have executed an in-depth breakdown of market and competitive forces,
concentrating on the negotiating power of suppliers, buyers, substitutes, existing and
prospective competitors.
3) A structural analysis of the beverage industry would have been beneficial to Quaker to
determine whether, given the intensity of competition and the particular character of
Snapple, Quaker could realize an acceptable rate of return while finding a position where
it could defend itself against competitors.
4) Keeping Snapple a fashionable, not-so-common drink would have helped Quaker
increase profits instead of transforming into a mainstream, lifestyle product.
5) Quaker could not have made changes in packaging sizes and assortments, which caused
decreased suitability of Snapple in the cold channels. Consumers still preferred the 16ounce bottle, which they could consume in one sitting.
6) New products innovations were required which Quaker failed to do at the initial stage of
acquiring Snapple, which would have gained brand awareness, more active participation
of consumers and increased sales. Quaker would have launched new product for the
summer 1995 instead of doing nothing.
7) They shouldnt have combined Snapple with Gatorade, which gave Snapple a negative
image of Less Utilitarian Beverage which caused damage and dilution of Snapples
positioning.
8) They should have followed regular advertising schedule for Snapple for Brand
sustenance, so that consumers wouldnt have drifted back to sodas, water, juices, etc.
9) It would have been profitable if Quaker did not drop of Howard Sterns and Rush
Limbaugh and Snapple lady, Wendy Kaufman, from the ads and the brand associations.
10) In the meantime, problems with raw material inventories arose. Quaker had to dump
more than 1 million cases of outdated Snapple cans as well as discontinued flavors,
ingredients, and materials. Due to the distraction of the distribution problems during the

crucial planning months, Quaker was also unable to put together a marketing plan
incorporating procedures, promotions and advertising.
11) Quaker should have shifted its view and put itself in the shoes of the other players,
namely, competitors, alternatives, consumers, complementary. It might thus have better
understood how Snapples suppliers and customers would have responded to the changes
it had executed in channel strategy, advertising, product and promotion; all of which
proved to be so misguided.
Question 3
a. How effective and appropriate do you think Triarcs Marketing Program was?
Triarc made its best bet on buying Snapple for $300 million which is worthy deal it had than its
predecessors. Having an established strength in various industries and specifically in its National
food franchise Arbys Corporation and Royal Crown which is also a producer of soft drinks.
The company trusted the brand that has had its large footprint as a premium brand in the market.
As the food Industry Analysts at Lehman Brothers commented: Snapple could well be reborn
under Triarc the brand really did. (Case, Snapple)
With the age they had many new competitors that sprung up in the market like Pepsis own
FruitWorks and others like Nantucket Nectars, Campbell Soup Cos V8 Splash. To recapture the
market share against these new entrants Triarc had to rightly sort a new Marketing strategy that
has to recapture the attention.
Product Development: As a part of continued growth, Investing in product development was
required for continued success. Its past strategy in its Mystic beverage line with edgy
advertising, colorful labels and existing distributor relationships.
New Line of Snapple Products: Triarcs new line of Snapple products that had not only fruit
juices but now having smoothies, teas, 100 percent juice drinks, Sports drinks and new line of all
natural exotic fruit flavors with health conscious marketing mix that took the various segments of
the niche drinks market. Their strategy to serve for a wide range of demographics and developing
tastes of people with new segments which.
Re-Inventing the Brand: Its efforts to get the brand back where it was earlier by getting Wendy
Kaufman which Quaker did not do. Triarcs Ads featuring Wendy really worked to gain that
boost with people who had that connection with the brand earlier.
Creative Marketing: Triarcs various efforts recapturing the feel of Snapple with its unsealing
campaigning and its attempt to connect Snapples luxury with common people as consumers
with its employees featured on its creative collective labeling. And increasing its presence with
talk shows and give away promotions, cash prizes were not just the thing of Snapples past. They

got that charisma back and also with Wendy as their brand icon who supported the campaign
with a national Joke tour.
Triarc multiple mixed marketing strategy was an innovation, its huge investments into product
development and interactive campaigns that Snapple was doing paid off by 1999. It was a rebirth for the brand to relive the market. In the 1 st year they sold 100 million than Quaker would
have sold. Significantly its Marketing Mix worked well to embark its 50 percent market share.
It just had to ensure their progress and stay ahead of the competition who was also gearing up. It
significantly had to keep up its progress and had to also ensure its old connection to its fans and
consumers. There it launched its Website with a humorous appeal and vibrant colours, Television
Ads and entering into sponsorships with New York Yankees and showing that sign of giving back
in charity.

b. What changes, if any, would you recommend Cadbury make to Snapple marketing?
Cadbury on its takeover of Snapple from Triarc at a $1.45 billion price it knew it could gain a lot
of traction in the market with the successful development of the brand under Triarc's
management. It did the right thing to retain the company with its employees who were well
running it better off than any of its
predecessors did.
Snapples Ad with its Director of Fruit
Relations J Andy Anderson. (Snapple
Commercial (2001)
Cadbury produced various creative Ads
featuring its little fruit characters that
became a sensation to connect with its
edgy Advertising. Although we believe it
must have been a character like Wendy
who was well connected as a face but Cadbury made an attempt to replace it with just the
characters that told the story.
Cadbury tried to gain Snapples focus as a much matured brand in some of its Ads that were not
suitable for a wide consumer range. It should have maintained that connect which Triarc did to
show Snapple as a luxury brand but a well proffered drink by an average consumer.
Whats Your story Campaign: While the advertising evolved Cadbury tried to get back the
connection that Snapple had with its consumers writing their experiences and letters to Wendy.
Although people made responses to Snapple with peoples stories and experiences the product
was now much more focused towards a much mature teens market with its edgy captioning and
concentration of vivid labels towards youth.
Recommendations:

To have a much wider demographic target market


segment.
Not only have matured market for Sports drinks as an in
vivid style and color statements that set the common
consumer aside Eg: Venom.
Create the feel that Snapple is for everyone and make it
the proffered peoples choice as Triarc did.
Restrict its advertising to common households as a target
than its focused mature audience with twisted ad lines.
Price has to be carefully optimized to give that premium affordable
feel than a hefty $2 price on line.

Venom
Creatives

Redesign and elevate the presence of Snapple in public with its past street campaigns and
promotional give always for which Snapple was known for ages.
Have a consumer forum for its fans to connect and share stories on the website to get user
reviews and feedback. Occasionally might even launch a drink on peoples votes on a
flavor to keep the peoples brand quotient.

Question 4
a) How might Snapple's sale to Cadbury affect Snapple's equity?
Snapple as a brand is based on the quirky and an independent image. Snapple's brand with Triarc
continued as same and sales proven that it can be brought back with same. The only concern
bothers right nowise that if Cadbury takes over Snapple then the brand may suffer. Due to the
Cadbury's image of 'being nice' in its products likes Dairy milk, chocolate, candy bars, etc.
Snapple is a serious extension to its product line as it would concern the company's image.
Whether they would carry forward the product as it is or they would risk their entire
branding as a company. The brand carry and edgy stance in marketing of this product and
consumer believes that hypostatically that brand is edgy. With the brand lady Wendy the product
showcased the genuine authenticity of the product.

b) What are dangers of brand's association with a large corporation?


Ans. b) Snapple has been in market since 1970s and it should at no time be part of large
corporation, states the history of this company. The company has done a tremendous job while
being independent than with any other large corporation, expresses the study.
To carry forward the edgy look with Cadbury or any large corporation would risk equity.
Its better if the rightful owner takes over it and runs Snapple. It is up to Cadbury to keep this
brand going higher. Rebranding themselves would be considerate as from square one but with
same intensity as they did in beginning. Cadbury will have to set long term strategies this time
for Snapple not to be a failure.

Question 5
a) What should Cadbury's next moves with the Snapple brand be and why?
Keeping in mind the past of Snapple, Cadbury's next move with Snapple should be:

Cadbury should restore the brand as the brand has its own implication since the time it
originated into the market. They should not make any fluctuations in the brand itself but
can surely focus on the innovation of product line.

Innovation of the product line can be bought by bringing fresh flavours into the market
by creating new consumer segment and see what their outlooks from Snapple are.
Investigating and inventing the product with the vibe of Snapple but with something very
worthy on the plate that realizes the turnover of Cadbury's investment.

That brings to the point of brands personality reinforcement; that keeps Snapple as it has
been but make it fresh for today's markets hope.

Cadbury should work on wide range of supply of the drink by distributing it at various
retail store across the nation whether it be a minor retailer or immense branded suppliers
and should also focus on contracts with restaurants and franchises. This way it can
capture the market at an extensive range and grow the market back.

Company should prominences on seasonality and brand product according to the changes
in weather. It would give a new viewpoint to the consumer for the product. For Example
all the fruity flavours can be available supplementary during summers.

b) Would it be beneficial for the company to expand or reposition Snapple?


Ans. b) Cadbury should sell the brand Snapple or make it an independent unit in the market and
run it as its own individual brand. Snapple should be brought with more sensible course of action
into beverage industry by a fresh image. If they want to survive in market they need a strong
marketing strategy against their competitors and lead in the market as a healthy beverage.
Snapple initially being a big success into the market still gives us upright confidence of
capturing the market backbone. Hence keeping this confidence Cadbury can expand the brand
but not reposition it and let it remain independent as it was initially.

Citations:

"Snapple Commercial (2001)." YouTube. Com. Central., 25 Sept. 2010. Web. 22 Mar. 2016.
<https://www.youtube.com/watch?v=q8NYJg13jHs>.
Snapple Elements, "Snapple Should Bring This Back! /r/nostalgia." Reddit.
VANSWISDOM.FILES.WORDPRESS.COM, 2015. Web. 22 Mar. 2016.
<https://www.reddit.com/r/nostalgia/comments/2hiwvv/snapple_should_bring_this_back/>.
Venom Creatives"Dr Pepper Snapple Group - Venom Energy." DrPepperSnappleGroup.com.
Web. 22 Mar. 2016. <https://www.drpeppersnapplegroup.com/brands/venom-energy/>.