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Snapple

The document summarizes the history of Snapple from its founding in 1972 to its acquisition by various companies. It started as a small natural beverage company founded by Arnie Greenberg, Leonard Marsh and Hyman Golden. Through aggressive marketing focusing on its natural products and quirky promotions, Snapple grew rapidly to become the market leader in alternative beverages. However, competition and failed acquisition strategies led to declining sales in the 1990s. The company went through several owners, including being sold to Thomas H. Lee Company and then Quaker in 1994. Quaker struggled to maintain Snapple's brand image and culture. It was later acquired by investment firm Triarc which aimed to revitalize the brand.

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Vaibhav Gupta
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276 views13 pages

Snapple

The document summarizes the history of Snapple from its founding in 1972 to its acquisition by various companies. It started as a small natural beverage company founded by Arnie Greenberg, Leonard Marsh and Hyman Golden. Through aggressive marketing focusing on its natural products and quirky promotions, Snapple grew rapidly to become the market leader in alternative beverages. However, competition and failed acquisition strategies led to declining sales in the 1990s. The company went through several owners, including being sold to Thomas H. Lee Company and then Quaker in 1994. Quaker struggled to maintain Snapple's brand image and culture. It was later acquired by investment firm Triarc which aimed to revitalize the brand.

Uploaded by

Vaibhav Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Team :

Prakash Chandrasekar (2014201)


Prateek Shreemal (2014202)
Raj Shekhar (2014217)
Rajagopal Sampath(2014218)
Rakesh Kumar Choudhary(2014220)


THE BEGINNING
Founded by Arnie Greenberg, Leonard Marsh and Hyman Golden in 1972
Snapple: reaction to modernity
Vision: 100% natural and real
Self funded
Outsourced production and product development
Product line: Ice tea, diet juices, sports drink etc.

MARKETING STRATEGY
Well trained and experienced Management people were hired
Increased Advertising budget and improved distributor system.
Everything was real and natural
Aggressive promotional campaigns included public relations and
advertising:
I. Paid Media
II. Unpaid Media
III. Radio
IV. Fashion & Fun Events

DISTRIBUTION
300 predominantly family owned distributors
Convenience chains, Pizza stores, gasoline stations, food service
vendors etc.
Snapple dependent on its own distribution channel in Boston
Ted lenders, a part of Boston beer distribution company made a
contract with Snapple for distribution in Boston by setting up coolers
and vending machines.
This lead to an increase in sales from 250,000 to 1 million units a year
Though, unable to increase distribution in supermarket.
MARKET STATUS
Became the market leader in the alternate beverage category
Revenue boom: $80 million in 1989 to $516 million in 1993.
Tough Competition from PEPSI, COKE, MISTIC etc.
Market share remained steady
Highest turnover of $674 million in 1994.
Sold control to THOMAS H. LEE company with sales running at $674
million in 1994.
THOMAS H. LEE sold it to QUAKER in the very same year.
QUAKER- The New Acquirer
Four product lines: Grain based, bean-based, pet foods and beverages.
GATORADE, its beverage brand; the key player in beverage segment.
Energy drink mostly used by sports persons.
3 key features of its growth:
Expanded product line: various size packets with 3 to 8 flavors.
Promotional support: celebrity endorsement.
Distribution channel: entered foreign markets, improved domestic
coverage.
Explored a joint venture with coca cola, but failed.


GATORADE v/s SNAPPLE
FACTOR GATORADE SNAPPLE
IMAGE Lifestyle Fashion
CHANNEL Warm channel Cold channel
MARKETING Celebrity endorsement Real people, real
circumstances
NATURE Energy drink Taste drink
GATORADE & SNAPPLE
Integrating the markets of both Gatorade and Snapple
Availability of both products at one counter and at more locations
Quakers resource and management skills for Snapple
Reducing costs by interchanging the channels of distribution for both
products.
Gatorade and Snapple markets complemented each other .


SNAPPLE & CONSUMERS
The Target Audience for Snapple are,
1. Fun-consumers
2. Youth or people with youthful attitude and health conscious
professionals
Customers know that.
1. Snapple is an alternative to carbonated beverages
2. Its for on-the-go in between activities
3. Healthy alternative
4. Sensual, stimulating, and soothing.

TRIARC Acquires SNAPPLE
Investment company
Long history of buying and selling troubled assets
Mistic brands; fruit juice and tea beverage brand
Planned to acquire Snapple
Snapple-Great brand; competitor of Mistic
Snapple twice the size of Mistic and RC combined
STRATEGIES
Advertising agency helped to develop communication strategy to
revitalize the brand.
Believed in dynamics of ready-to-drink beverages.
Connected to consumers ,real, human and avoided marketing slickness.
Quaker was against snapple principles
Looked for whats new, whats moving and moving hot
Focused on different style of label
Focused on very average, normal people
Developed brand product first and then targeted segment

SWOT



STRENGTH
Great brand value
Good connectivity with consumers
Fun quotient/fashion statement
Variety






WEAKNESS
Distribution system failed because of
approaching supermarkets
Health quotient
Changed marketing strategies
Could not keep track with the new market
trends


OPPORTUNITY
Grow their brand as a fashion
beverage.
Innovation according to customer
needs.
Focus on their real personality &
quirky edge.
Produce bottle water and other
alternatives.
CSR like nutrition education
programs



THREATS
Gatorades was invading the market
;lifestyle drink
Resistance towards warm channel
suppliers




THANK YOU!!

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