SNAPPLE REVITALISING A BRAND Gautam Rohan Vaishali
Introduction It begins wit with founders, in this case, three entrepreneurs working in a natural food store in the East Village of New York Cit City in 1972 972. In the 1980 980s Sna Snapple esse ssentiall ally created the no-carbonated seg segme mennt of re reaadydy-to-dr driink bever everag agees with with its introd troduucti ction of read re adyy-to to-d -dri rink nk fr frui uitt juice uicess and and ice cedd tea. tea. By 1991 991, Snap Snappl plee em emer erge gedd as a nati ationall ally re reco cogn gniized bra rannd. In 1992, Snapple management raised capital by selling a majority sta stake of the firm to Thomas H. Lee.
The Snapple formula Tactics developed for Sna Snapple Differentiating company from the competitor by providing vari variet etyy of pr prod oduc ucts. ts. Concentrate on the segments w here demand for the product is higher by assig signing a team for particular market to have ave ea earl rlyy ma mark rket etiing ef effo fort rts. s. distriibuti bution on chan channe nell . Own distr Posittioned as a premiu mium product . Posi
Snapple Brand equity equity
In 1994 1994 Snap Snappl plee was ex expe peri rien enci cing ng trem tremen endo dous us gr growt owth. h. Consu Consume merr love ove Snapp Snapplle. The name ´Sna Snappleµ was was ca cattchy chy . The name is one of the most user friendly and consumerfriendly. Word-of-mou Word-of-mouth th advertisi advertising. ng. Succ Succeessfu ssfull ad ca camp mpaaign like, Wen Wendy ´th ´the Snap Snappl plee Lad adyyµ
The new age Beverage Market The market market is divide in to eight different d ifferent group group Ready-to Ready-to-dr -drink ink tea Sports beverages Plastic Plastic bott bottled led water Single serve fruit beverages All-natural soda Sparkling flavored water Sparkling Sparkling fruit fruit beverages beverages Ready-to Ready-to-dr -drink ink coffee coffee
Customer generally generally selected beverages based on fashio fas hion, n, taste and status s tatus related consideration This are the factors that play a criti c ritical cal role in the consumer buying behaviour. Distinctive Flavors
Product
Quality ingredients
Packaging
Clean labels
Pramotion
New Competit Competition ion Entry of the Pepsi with Unilever. Lipton iced tea as ready-to-drink package. Tetley Coca Cola enter with ´Fruitopiaµ. Arizona Iced Tea.
The Quaker Oats takeover Quaker Oats acquire Snapple at $1.7 billion.
Promotional activities by Quaker Oats
Wendy Wendy lookook-al alik ikee cont contest est Web surfing A coo cookking demo demonnstrat stratiion Trivia con contest
Raffles Min Miniature golf Car Carnival game mess
Snapple·s Healthy Reputation began to Suffer The Center for Science in in the Public Public Interest- pointed pointed out that Snapple drink contain Swee weetened wa water Less Less tha thann 10% fr frui uitt jui juice ce More More ca callori ories tha thann a cok coke. e.
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 packaging Process order faster and make plant efficient
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-todrink beverages than ever before. Many new brands enter in the market rapidly.
Strategy by Triarc Edgy advertising Strong Distribution relationship Colorful labels Focused street sales. Take back ´Wendy Kaufmanµ
New product development
New product development
New product development
New product development
Triarc·s plans for further growth Back-to-the-root advertising campaigns Sponsorship program Launch of Snapple·s website Innovative outdoor campaign Television advertising
Brand Extension In 2000 Snapple introduce four new candy products
In 2000, 2000 , Cadbury Cadbury Schweppes purchase purchase Snapple Beverage Group for $1.45 billion. Kept Snapple management intact Maintain the existing distribution channel Also did not change change the CEO.
Competitive Environment In 2002, Beverage world reported that 1235 new beverage products products were were introduced introduced in the United states alone. In 2003, only 250 of those products were on the market
Introducing Energy Drink In 2001 Venom, designed to compare with Red Bull, Coca Cola· KMX and Anheuser-Busch·s Anheuser-Busch·s 180
Promotion ´What·s your story?µ
Dye Hard Snapple Tour The Tour attracted audiences audiences as large as 50,000 50,00 0 and and huge media attention. The14,000 mile tour generated more more than 70 million PR impressions.
Official Official Beverage Beverage of New York city
Official Beverage of New York city In 1999, announced that Snapple was the Official Of ficial iced tea of the New York Y ork Yankees. Snapple and the city of New York Y ork announced announced a fiveyear, $ 166million vending and marketing agreement in 2003. The agreement made Snapple the exclusive provider of water and fruit juices in the city·s 1200 120 0 school. school.
