In the period of 1972 to 1993, why do you think that Snapple flourished when so many small Start-ups premium fruit drinks stayed small or disappeared? I would highlight several roots of Snapple’s success on the market during first 20 years: A. The start-up of “Snapple” business was based on Demand approach. Founders identified growing popularity of natural fruit juices influenced by atmosphere of 1960s. B. They were developing their business in a consistent manner in accordance with its growth (see Figure 1):
a) Production concept – «100%
b) Product concept – broaden
product portfolio, outsourced
c) Selling concept –network of
distributors, mostly independent
ones distributing via cold
channel. Covering New York at
the beginning and expanding
throughout East Coast.
d) Marketing concept – hired
top-professional who improved
label design, invested in
promotion as an offbeat mix of
PR and advertising.
Source: Andrés Cuneo. Marketing Course Wrap-Up (MBA ’13)
C. From the case we know that entrepreneurs were exiting start-ups through acquisitions as SoHo founders did in 1989. While “Snapple” founders preferred to develop the business on their own with help of hired professional. I believe it was half a battle that allowed “Snapple” to continue its growth in a consistent and coherent manner unlike competitors. D. “Snapple” was creating loyal and trustful relations with distributors by responding on their inputs/feedbacks, for example, broadening of product portfolio and introduction of commissioned advertising.
E. They were also creating trustful relations with customers by following their mantra of “100% Natural” in everything they did – from production to promotion concept. F. Approach to positioning and promotion of the brand introduced by Gilman was a success. By choosing Wendy, the truck dispatcher, that represented bottom-up popularity and in this way reflected company’s business journey from nowhere to success, as well as on-air endorsement in two shock radio shows, “Snapple” differentiated the brand from competition
and built a strong emotional connection with its consumers. That was proved in 1997 by New Jersey group survey, which showed that even after several years of failure people would still associate “Snapple” with its initial brand characteristics.
Now look at the period from 1994 to 1997. Did Quaker make an error in buying Snapple or did they manage it badly?
In my opinion, the acquisition was not a mistake. The failure was clearly the result of mismanagement. Below is a list of management decisions that lead to sales decline. A. Needs. Quaker introduced larger pack sizes for “Snapple” applying its Gatorade strategies. Since the moment of consumption was different for these two products (Gatorade – consumed when...
...Snapple has been a well-known beverage since 1972 and experienced its highest revenues during the 1987-1993 years before several years of sharp declines. The concept of transforming Snapple’s brand image to resemble that of Gatorade was a great failure on behalf of Quaker. While Quaker had the appropriate operative environment to increase Snapple sales exponentially, it lacked an understanding of client needs, confused Snapple’s brand image, and had an undefined marketing strategy. This resulted in loss of market share, revenue and most importantly customer loyalty. This report will analyze the marketing decisions, suggest solutions and provide a recommendation on how to restore Snapple’s brand image and improve profits.
When considering consumer behavior, perception is more important than reality (1). Currently, Snapple is perceived to be a “fashion water,” where desirability can greatly fluctuate based on social competition and ever-changing fads. To reverse Snapple’s declining trend, Triarc must revitalize Snapple as an established brand first by understanding the original source of brand equity (2). While Snapple drinkers enjoy “sweet things,” they do not desire pure juice. Therefore, maintaining an authentic yet fun perception is an extreme priority. One potential solution for Snapple is to shift from the fruit juice sector to becoming a staple in the iced tea sector. This...
The severity of this of this problem is showing in exhibit 1. Where total case sales of the first 5 months of 1992 were 6,8 million the sales of the first 5 months of 1993 were 15,3 million cases. So that’s an increase of 225% in sales. And when you look at figure 1 you can really see the severity of the problem. Because normally the first five months are only 27,91% of the total sales in a year. So normal sales volume would be 24,3 million cases. But if the increase in demand stays at the same level in the second part of 1993 then total predicted sales for all Snapple products will be 54,8 million cases.
This large increase in sales comes from Tea drinks which double and Fruit drinks that triple. And also soda increases 41%. This means for Snapple to overcome their shortages they need to more than double their normal production.
2. The problem
The main problem in this case is that Snapple at some point in time became unable to meet demand for their products. The demand for Snapple’s products is highly unpredictable and this leads to several reasons that explain the inability to meet demand.
- Snapple does not have its own production company; instead, everything is outsourced to independent companies based on fixed production quantity contracts. This leads to a limited production...
...trust in consumers eyes. (ref. Exhibit 6 Pivotal Characteristics) This was evident in the initial mantra of the company "100% Natural" even before the company became Snapple (Unadulterated Food Products, 1972).
o The purchase by Quaker and subsequent changes left the consumers feeling betrayed and left the impression of Snapple "selling-out".
 Replacement of spokesperson ("Wendy") and termination of contracts with radio personnel (Howard Stern) produced bad press and continued
Distribution and subsequent growth of brand from 1987 to 1994 was in large part due to the growth of the network of small family owned distributors.
o Quakers attempts to have the distributors cede their supermarkets in exchange for Gatorade distributor rights in the cold market (deli's, restaurants, etc ) was met with opposition and resulted in conflicting distribution channels.
o Upsetting the distributors that had been responsible for the growth of the cold market had potential disastrous effects on your over all business. In the alternative beverage category 94% of the wholesale dollars is spent outside of the supermarket sales. (See Exhibit 2 and 3 which indicate that only $0.3 B is spent in supermarkets as opposed to a total of $5 B spent in the overall category.)
The market that Snapple products compete in is the Alternative Beverage category. This is a very competitive market with types of...
Despite the fact that many small startup premium fruit drink companies stayed small or even disappeared during the period from 1972 to 1993, Snapple was able to flourish. A large part of Snapple avoiding the fate of these other companies can be attributed to how successful it was in utilizing the four Ps of marketing, especially product and promotion.
Of the four Ps, the marketing mix typically starts with the product, which is one area where Snapple separated itself from competitors. The product not only entails the physical unit but also, among other factors, its package, warranty, after-sale service, brand name, company image, and value. Snapple prides itself on being 100% natural. Although the original product was a bottled apple drink, the company eventually added carbonated drinks; fruit-flavored iced teas; diet juices; seltzers; an isotonic sports drink; and even a Vitamin Supreme to keep distributors occupied. Snapple is also well known for the noise the bottle caps make when one presses them.
Place, or distribution, strategies are concerned with making products available when and where customers want them. Snapple has succeeded exceptionally well with small, predominantly family owned distributors servicing convenience chains; pizza stores; food service vendors; gasoline stations; and so-called mom-and-pop stores. As a result...
...popular and user friendly “ready-to-drink” beverage. The huge growth Snapple was able to achieve was due in part to the almost cultish fan base that Snapple developed. For example, a family in New Jersey even gave their son the middle name Snapple. Studies showed that ready-to-drink beverages were selected almost strictly based upon fashion, taste, and status related considerations. For this reason, Snapple gained appeal through alternative means of marketing. They used product placements (Seinfeld and Sleepless in Seattle), sponsorship from celebrities, consumer composed jingles, and other alternative means to get consumers to believe they were a fun, innovative, popular and fashionable brand. They used theses sources of marketing to target a younger (18-30), more alternative and “new aged” crowd. Another source of brand equity for Snapple was Wendy “the Snapple Lady.” She was a company employee and started by answering consumer letters. Later, she became the unofficial spokesperson of Snapple. She was featured in commercials reading consumers letters and was really Snapple’s first effort towards giving the brand a (“real people”) personality. This was backed by Snapple’s all-natural ingredients, which helped them gain popularity with health conscious people as well. Although Snapple was good at reaching its target market, its largest disadvantage in the early...
BUS680: Training and Development
December 14, 2014
Dr.: Amy Hakim
1. Would a TNA be needed in this situation? Why or why not? If yes, who would you want to talk to?
When it comes to (TNA) training needs analysis being needed for the IMP situation, I believe that it is necessary. For example, being that there is a division difference in the company that requires an individual’s prerequisite to uphold an essential ability to execute the projected labor, which adheres to the correspondent unit. The key importance role of TNA is that it detects any training crack that is in presence and connected to its training need fundamentals. Therefore, with noting all these factors, we must remember that this type of training will also be obtainable to workers that are in different units with in their correspondent company even after the fact that fairness is not highlighted in that particular method of training. Nevertheless, it is important to talk to the North America’s international Airports, H.R manager in regards to the training needs analysis. The reason why we need must communicate with the H.R manager is due to that Mr. Pettipas needs to fellow his chain of command, which in all entails adhering to his organizations H.R manager.
2. Based on the case as presented earlier, what KSAs need...
...Product: The Snapple product line is vast and spans many different flavors, many of which were unpopular. Only a handful of flavors held the product afloat, this in effect was due to the premium pricing of the product. The product in itself was marketed with the accompanying mantra of “100% Natural” and proved to be quite popular among a very difficult to define market segment. Snapple was neither defined as a “lifestyle” brand or a “fashion” brand, it was somewhere in the middle, generally grouped in the “alternative” beverage category. At this point in the Snapple brands development, there were many other “boutique” beverage brands aspiring to appeal to the same market segment.
Price: Given the premium pricing of their product, the Snapple product was able to remain profitable, despite several flailing product flavors. The inflated pricing was a wise decision in the inception of the products development, pre-1987.
Promotion: What a successful mess! The promotion of Snapple was “100% Natural” and apparently appealed to many New Yorker’s and U.S. citizens alike. Their initial ad was flawed and was not easily recognizable to many people: “Schnapple”, by Ivan Lendl. When the brand began using Wendy Kaufman, a real person living a real life, as their spokes model the wildfire began nationwide. She made appearances on David Letterman and Oprah, and Howard Stern and Rush Limbaugh became avid supporters of...
...In the period 1972 to 1993, why do you think Snapple flourished when so many small startup premium fruit drinks stayed small or disappeared?
Snapple started up with a mission focused on advertising a health-conscious product that was targeted for young professionals. They first grew the business from Boston distributors through distributors across NY, NJ, and PA. Boston was key to the East Coast Snapple success as it grew from selling 250,000cases a year to selling 1 million cases a year. In 1984 the founders hired professions management to help grow the company. So they hired Carl Gilman from Seven Up to run the sales and marketing for Snapple. He increased advertising by 1 million and focused to build the East Coast Snapple image with the idea “The stronger we build the East Coast, the more the West Coast will want us.” From 1984 to 1986 Snapple’s sales doubled from 4 million to 8 million. Then Snapple made Wendy Kaufman a spokes model for the product and starting focusing on supermarkets. Supermarkets eventually accounted for 20% of Snapple sales.
Sales: 1989 80 million – 1992 231 million – 1993 516 million
Now look at the period from 1994 to 1997. Did Quaker make an error in buying Snapple or did they manage it badly? Explain
Buying Snapple was an overall bad decision for Quaker. Quaker is not known as...