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MEEMANSA VAJPAYEE PUNYATA TULI ARJUN RAO PGP/14/095 PGP/14/167 PGP/14/267 AYUSHI AGRAWAL PGP/14/141 MANGESH PATIL PGP/14/217 MAHTAAB KAJLA PGP/14/280
Page 1
Introduction
Snapple History
Founded by Arnie Greenberg, Leonard Marsh, Hyman Golden for selling natural apple juice
1972
1992
1994
Page 2
4 Ps for Snapple
Product Started as bottled apple drink Extended into carbonated drink, fruit flavored iced teas, diet juices, sports drink, Vitamin Supreme Premium pricing on successful products made up for the losses Independent distribution system Network of 300 small, family owned distributors Convenience chains, pizza stores, food service vendors, gasoline stations, mom-and-pop stores Primarily concentrated on Cold Channel Warm channel supermarkets accounted for only 20% of the sales nationally Promoted as 100% natural Initial advertisement with tennis star Ivan Lendl was poorly received Later a mix of public relations and advertising Wendy Kaufman a real person became the spokesmodel Eccentric personality and brash New York attitude Sponsorship of radio programs of Howard Stern and Rush Limbaugh Snapple convention in Long Island Snapple themed fun and games
Price Place
4 Ps Promotion
Page 3
Differences in imagery
Gatorade Lifestyle brand Snapple Fashion brand
Beverage for those Fashion sensitive, who worked out quirky or played vigorous sports Stable lifestyle On the edge
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Page 6
Dismaying distributors which were responsible for growth in cold market impacted overall business
Replacement of spokesperson "Wendy produced bad press and was still haunting the company
Sales
800 700 600 500 400 300 200 100 0 1980 1985 1990 Years 1995 2000 Sales
To devise a plan so as to revitalize the Snapple brand after 3 long years of declining sales. (Overall declining sales upto 35% i.e. $674mn (94) to $440mn (97))
Page 7
Sales ($millions)
Exhibit 6 Analysis
Snapple having strong connect with the consumers Doing things differently by being real and human Seen as quirky, offbeat, authentic, fun, personal Strong individualistic ethos Means a lot of things to a lot of different people Used by average people but the brand makes them to think themselves as offbeat Perceived as reaction to modernity Seen in experiential terms more variety and combinations than competitors For people who are neither too serious about health nor careless about what they eat/drink in-betweenity
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Exhibit 6 Analysis
Reasons for decreased consumption Natural attrition due to inefficient distribution More health conscious users Doubts about authenticity Loss of fashionability - Weak product differentiation - More like a fashion water than an established brand - Lack of compelling reason for use - Absence from daily rituals and routines Negative publicity
Page 9
Modus Operandi
Increasing customer base Acquiring new customers Retaining vulnerable customers Recapturing lost customers
Increasing product consumption Expanding brand awareness: Communication about appropriateness & advantages of consuming Snapple
Entering new markets Diversifying into new beverage categories such as sports drinks, chocolate beverages etc.
Short Term
Long Term
Page 10
Q&A
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