Snapple Readings

Diagnostic symptoms
The most critical and diagnostic facts in this case primarily revolve around Snapples overall
image as perceived by consumers. The image is what built this brand into a success and later
pushed it into decline.

Five most diagnostic/alarming symptoms:
1. Mismanagement of established image. (Deighton, 2003:5). Quaker intended on making the
Snapple brand into big business in a short amount of time much like it did with the Gatorade
brand. A major issue of this was customers perceiving Snapple as being sold out which is a
major hit to the image of a company in a more specialized market. Other problems arose due to
the general use of the product. Gatorade is consumed in higher quantities and is associated with
rehydration during and after physical activity; Snapple did not have this same appeal. Lifestyle
product versus fashion product.
2. Termination of key spokespeople. (Deighton, 2003:6,16,17). To avoid the downfalls of being
associated with controversial figures in the media Quaker quickly dropped sponsorships for both
the Howard Stern and Rush Limbaugh radio shows. This move may have lost many consumers
as a daily reminder for a drink is a great way to ensure continual usage. Also Howard Stern
referred to the formal sponsor as crapple for several months which is instant image jab.
Wendy Kaufman also known as the Snapple Lady was also let go furthering the hit to the
quirky image aspect.
3. Unorganized distribution system (Deighton, 2003:6).

Quaker failed at attempts to negotiate with the already established Snapple distributors and lost
out on their attempts to distribute Snapple and Gatorade together. This move also had to have an
affect on their relationships with distributors and how they pushed the brand.
1) Why do you think Snapple succeeded in the 1972-1993 phase?
The reasons for the success of Snapple in the 1972-1993 phase can be attributed to its blend of
marketing strategies and brand characteristics. First, Snapple offered a broad line of beverage
products accompanied with the mantra 100% Natural that appealed to young, health-conscious
New York professionals in the 1980s. Snapple created the appealing image of being fun, quirky,
offbeat, real, and cool. Second, Snapples proximity to New York City proved to be beneficial
for marketing its products. Exposure to the media and celebrities helped the local company gain
national attention. Third, Snapple experienced tremendous success in the hard-to-define and
growing Alternative beverage category. At the time, Coke and Pepsi did not have a share in this
market. Fourth, the premium pricing of its products enabled Snapple to be profitable, despite
many failures. Premium pricing on the successful products covered losses on the failures. Fifth,
Snapple successfully promoted its products with an offbeat blend of public relations and
advertising. Snapples advertising line of 100% Natural, the use of Wendy Kauffman as a
spokesmodel, and its quirky commercials using real people in real circumstances gained
appeal from regular people nationwide who felt a connection to the brand. Sixth, Snapple built a
successful network of 300 small, predominantly family-owned distributors that serviced
convenience chains, pizza stores, food service vendors, etc. Maintaining its product presence in
these cold markets with which Snapple positioned its products was largely dependent on
successful distributor relationships.

2) Did Quaker make an error in buying Snapple or did they just manage it badly?
I dont believe Quaker necessarily made in error in buying Snapple; they simply managed it very
poorly. The reasons for Quakers failed acquisition of Snapple can be attributed to cultural
differences between both brands and differences in operating styles between both companies.
Snapple and Gatorade appealed to different audiences in different markets. Quaker failed to
acknowledge or accept the cultural differences between the brands, and as such, Snapple lost
market share and brand image. For example, subsequent to the acquisition, Quaker destroyed
Snapples offbeat brand image by terminating relationship with Wendy Kauffman. People began
to question Snapples new corporate image. Also, Quaker alienated Snapples network of
established distributors by attempting to force a partnership. Quaker destroyed healthy
relationships that took Snapple years to develop. Furthermore, Quaker failed to recognize that
offering Snapple in larger package and bottles sizes would be unsuccessful given that Snapple
sold best in 16-ounce containers. The mass-market operating style for Gatorade was not
conducive to Snapples traditional business.

3) There is one, most urgent short term problem to tackle, what is it?
Snapples most urgent short term problem to tackle was to regain its brand identity of being real,
100% Natural, and personal within its target market. The acquisition by Quaker had left many
loyal consumers feeling betrayed and created the impression that Snapple had sold out. As a
result, Snapple had lost market share and revenue. Trairc needd to revitalize the brand by
introducing a marketing plan focuses on the unique characteristics that made it successful
initially. Trairc needs to reintroduce Snapple with advertising campaigns in radio, television,
print, etc. promoting the healthy, natural, and quirky characteristics of the brand. In line with
this, Snapple needs to get a new spokesperson (Wendy!) that can relate to the consumers and
embody the entrepreneurial story that attracts many individuals to its beverages.