Snapple Case Study

                                                        Snapple case study

Key issue:

The very popular brand Snapple is in trouble under the new company Quaker as Snapple has experienced decrease in sales and weak brand image (exhibit 1). The biggest mistake is that consumers got detached from the original Snapple brand image as Quaker made several important changes after the acquisition of the Snapple. Quaker believed that their Gatorade would complement Snapple. However, the target consumers for the Gatorade are consumers who work out or play vigorous sports or live that kind of lifestyle whereas consumers consider Snapple as a ‘lifestyle’ beverage and the target consumers are young, health conscious urban professionals who are fashion-sensitive and quirky. Besides that, Quaker strategy to distribute Snapple through Gatorade distribution channel did not work out quite well. Further, they also tried to sell Gatorade to small Snapple distributors. However, the biggest mistake was that Quaker fired Wendy- with who consumers connect the brand value of Snapple. In addition to that, they terminated contracts with radio personalities such as Howard Stern and Rush Limbaugh. As a result, Snapple consumers got bored and switched to new beverages. Quaker was quite slow to respond to its bored consumers. Thus, Quaker had to sell Snapple to Triarc. Now the main question is how Triarc can restore the original image of Snapple and get back to its consumers.

Possible solutions:

Based on the data so far, the best solution is to get back to the original marketing, promotional and distribution plans that made Snapple successful initially and established it as a brand.

• To reestablish the Snapple as a ‘fashion brand’ to the consumers.
• To adopt and direct the marketing and sales promotion the way so that consumers get the original, small niche, unique, innovative and quirky feeling of Snapple.
• Target customers should be young and health conscious urban folks rather than consumers who work out or are involved in sports.
• Invest on media and celebrities for the promotional purpose of Snapple.
• Alternative means of marketing and use the grassroot activities.

• Building of a strong distribution channels who are motivated to supply and sell Snapple.
•  ‘100 % natural’ was something that helped Snapple to establish it as a lifestyle brand which needs to be reestablished into consumer mind.
• Get back to Snapple’s original packaging and bottles so that consumers can easily get connected with the brand.
• Need to focus on product development as the number of Snapple flavors was reduced under Quaker. In that case, line extension such as sweet tea, black tea, zero calories tea etc. can be introduced in the market under Snapple brand name.

Recommendations

Triarc needs to reestablish the brand image and value of the Snapple. Here are some recommendations for Triarc-

• Triarc needs to reconnect the Snapple brand with the customers. According to the study done by Snapple’s advertising agency, Deutsch Inc, the target customers of Snapple are folks who maintain an active lifestyle, youthful and outdoorsy (exhibit 6, page 16). Snapple is certainly not for idle consumers or serious athlete. Further, the study has revealed that most of the Snapple lovers are single bottle purchaser (exhibit 6, page 15). They just want to sit down somewhere and enjoy their Snapple like they said, “I could save money by buying in bulk, but I don’t”, “That first 15 minutes when I get home from work . . . I don’t answer the phone, sit down and have a Snapple.” Further, change of the packaging and label design of the bottle by Quaker played an important role to detach the consumers from Snapple. Thus, Triarc needs to focus on improving the label design of the bottle. Another important aspect of Snapple is its product variation. Under the Quaker, number of flavors were reduced. Thus, Triarc should invest in product development to extend the line and brand of Snapple such as different flavors of Snapple and sweet tea, black tea, zero calories tea etc.

• Triarc must adopt and implement marketing and promotional plans which will make the Snapple unique from the competitors in the beverage industry. They should reintroduce Snapple in the mainstream media such as radio shows and television programs to promote it. Deutsch Inc suggested that most of the Snapple consumers still connect Snapple with Wendy Kaufman (exhibit 6, page 16). Thus, Triarc should hire Wendy again to promote Snapple. Relationship with radio personality Stern and Limbaugh should be reestablished to promote Snapple through different radio programs.

• Triarc must focus on establishing the independent distribution system throughout the east coast. They should take the initiative to increase Snapple’s warm channel availability. According to Deutsch Inc, poor distribution played a significant role in reduced consumption of Snapple. Snapple consumers did not find their favorite Snapple they used to drink- “can’t find my flavor anymore,” or “My grocery store has only peach diet tea and kiwi strawberry and I’m getting tired of kiwi strawberry” (exhibit 6, page 14). Thus, by reestablishing the relationship with Snapple distributors, Triarc can increase the availability of Snapple in the supermarkets. Increased supply in the supermarkets and other warm channels will make the product available to consumers.

Discussion of potentials drawbacks of proposed solution

Snapple case study covers an important aspect of marketing management which is how to build a brand and maintain it. Clearly, the innovator company was able to identify the target customers for the Snapple, was able to position the product in the market and deliver the value of the product to the consumers. Further, the original company had developed some unique selling points for the Snapple and used different promotional strategies to reach out to the consumers. However, Quaker had damaged the branding image of the Snapple and these consumers got detached from the original and 100 % natural Snapple. Now, the most important step for Mike Weinstein is to reestablish and reposition the Snapple brand in the heart of Snapple consumers. I have made several recommendations for Triarc to rebuild the Snapple brand. One limitation of the recommendation is that the way Quaker ended up relationship with Wendy and radio personality Stern and Limbaugh, they may not want to come back. In that case, similar personality like Wendy and other persons who are regular in radio and TV programs can be hired to promote the Snapple brand. Another limitation is- brand and line extension of Snapple might dilute the brand value of the Snapple. In that case, premium pricing of some of the popular Snapple line will cover the loss of the other Snapple. Further, to engage consumers, Mike may consider introducing Snapple themed fun day where Consumers will come and take part in different games and enjoy the Snapple.