Snapple Case

Imagine that you have been hired by Mike Weinstein as a marketing consultant. Help Mike
understand the situation at Snapple. Based on this understanding make recommendations about
SPECIFIC actions that could (better still, should) be taken to turnaround the Snapple business,
explaining your reasoning.

“What should Mike Weinstein do?”

To arrive at an action plan for Mike, you may want to consider: what lessons does Snapple’s history
have for Mike?

• In the period of 1972 to 1993, why do you think that Snapple flourished when so many
small startup premium fruit drinks stayed small or disappeared? (Could Snapple have
succeeded with the same actions in 1990s?)

Ans:

100% natural mantra

Distribution system grew so much including family owned distributors

Promotion was made on a large scale

They focused on various different items such as carbonated drinks, fruit flavored iced
teas, juices, vitamin supreme , broaden the product line

Internally generated funds

The owners of different other start ups had the vision to exit via an acquisition but
snapple decided to grow and stay in business

• Now look at the performance collapse in period from 1994 to 1997. Did Quaker make an
error in buying Snapple or did they manage it badly? Why do you think so?

Quaker was not able to manage snapple.

They wanted to change snapple to a lifestyle drink which was not accepted

They tried to negotiate with distributors of both snapple and Gatorade but snapple
already had a successful distribution channel and there was no need for that
 • Roll forward to 1998. What can Triarc’s managers/ Mike learn from Quaker’s experience?
What can they apply from their own experience?

Triarc’s can learn from quakers experience.

They can focus on brand image and consumer behaviour, how do they change and
what strategies can be made according to that

• Identify the highest priority initiatives on which Mike needs to focus on at Snapple.

Marketing and promotions

Creating brand image

Expaning product line

Employee engagments

Note:

1. Prepare a note, individually, for Mike outlining your understanding, recommendations and
reasoning.
2. This note needs to be ready before March 5, 2021 – IN YOUR OWN WORDS.