Submitted by:

Group 7
Bhasker Lahiri (PGP/19/011)
Ronit Kumar (PGP/19/041)
Sumeet Mohapatra (PGP/19/233)
Shakti Shivam (PGP/19/286)
Arjit Gupta (PGP/19/307)
Pankaj Yadav (PGP/19/321)
Shahensha Alam (PGP/19/341)

Case Overview
1972 1986
Snapple launched. Tagline : 100%
Natural

1987 1993
Expanded Product Line.
Annual turnover doubled
from
$4 mn to $8 mn from 1984
to 1986

Brand Building Distribution

Activities

Overview

Launched under Alternative

Beverage Category
Premium Pricing and
broadened product line
Network of 300 small
distributors
Promotion was an offbeat
blend of PR & Advertising
Spokes model : Wendy
Kaufman & Radio Programs
Sales grew from $80 mn in
1989 to $516 mn in 1993
Maintained 30-40% market
share under fierce
competition

1994- 1997
Acquired by Quaker for
$1.7 billion.
Sales declined every year
until 1997

100% Natural the

driving
mantra; Reiterated
by
using
real
people and real
situations in their
ad campaigns
Building next door
imagery using the
character
of
Wendy
and
company story
Use
of
radio
channels
to
promote the brand
image of quirky

Bottom
up
approach:
Grew
locally in NY with a
network of small,
family
owned
distributors across
the city
Marketing
wonder: Targeted
convenience stores
and other smaller
vendors to garner
stickiness
and
possibly more direct
attention from the
retailers to promote

1997
Sold to Triarc Beverages

Take Over by Quaker

Vision Enhance Quakers position
in the beverage industry
Attempts to change in Brand
Imagery from fashion to lifestyle
Leverage Quakers experience and
expertise
Faced limitations in introduction of
Snapple in large pack sizes
and in greater assortments
Eventually sold the brand to Triarc

Reasons for Snapples decreased sales

(Post 1994 under Quaker)

Quaker tried to force distributors to exchange their

supermarket accounts of Snapple for the right to distribute
Gatorade in the cold channels

Introduction of large packaging sizes and greater assortments

led to limitation on distributor trucks and less retail display
space in cold channel

Bad publicity due to dropping Wendy from commercials a well

as terminating Stern who kept calling it Crapple

Snapple had less utilitarian role in consumers lives than

Gatorade which is often used in team settings

Nothing new was done towards making it offbeat

Several changes in management couldnt reverse the trend of

declining sales which damaged the positioning of Snapple

SWOT ANALYSIS
STRENGTHS

WEAKNESS

- Great brand value

- Good connectivity with
consumers
- Fun quotient/fashion
statement
- Variety

-Distribution system failed

because of their approach
towards supermarkets
- Health quotient
- Changed marketing
strategy
- Could not keep track with
new market trends

OPPORTUNITIES

THREATS

- Grow their brand as fashion

beverage
- Innovate according to customer
needs
- Focus on their REAL
personality and quirky edge
- Produce bottled water and other
alternatives

- Gatorade was invading

the market as Lifestyle
drink
- Resistance towards warm
channel suppliers

Research Findings
For immediate
consumption
there was high
usage of single
bottles

High
importance of
authenticity

People
perceived it
costlier than
real juice

Vividly
Sensual:
Luxury need
not be a big
purchase

Playful, quirky
and
imaginative

Need to bring
Snapple into
personal daily
rituals

Intensity of
Snapple is
closely
correlated with
Social
Presence

Available Alternatives
Gilberts Opinion

The Deutsch research can be

utilized to revitalize the brand

Wants to investigate Snapples

consumers, how it is expressed in
their life, key trends and values

Use the findings of the report to

revitalize the brand

Weinsteins Opinion

Believes that Snapple is a fashion

beverage and many things in
fashion world cannot be researched

He wants to work on the big thing in

this industry ,whats new, whats
moving, and whats hot

Wants to enter something new like

premium water, chocolate beverage
or, go for in-house product
development

Alternative Analysis
Gilberts Alternative

Weinsteins Alternative

PROS
It leverages existing brand
equity
Supported by systematic
research
Will use existing trust among
distributors and retailers
Less expense on promotional
CONS activities
It is difficult to convince
customers with negative
perception
Losing out of the opportunity
of new products and be the
trend setter
Research has been questioned

PROS
Listening to the experts
opinion from beverage
industry
Huge customer base potential
by making new products
Identify new trends and
capitalize on it
CONS
Dilution of brand name
Increase expenditure for
testing and marketing of new
products
New products might lead to
confusion among consumers
Retailer resistance for shelf

Brand Revitalization

There are evidences

that relevant values
exist and they were a
part of the brands
magnetism during the
healthier days. These
values have been
dormant in the recent
years.

Mike Weinstein
mentioned, The
brand still has
inherent strength.
People feel good
about it. It will
respond to the right
marketing stuff.

Why
Revitalizati
on

Distribution and
Promotion are the key
drivers in the
beverage business as
mentioned by Mike
Weinstein

Brand Revitalization
Expand depth
and breadth of
awareness and
usage of brand

Brand
Revitalization
Strategies

Refresh old
sources of
brand equity
Create new
sources of
brand equity

Increase
quantity of
consumption
Increase
Frequency of
Consumption

Bolster fading
associations
Improve
strength,
favorability,
and
uniqueness of
brand
associations

Neutralize
negative
associations
Create new
associations

Green - Primary focus

Blue - Partially addressed

Identify
additional
opportunities
to use brand in
the same basic
way
Identify
completely
new and
different ways
to use brand

Retain
vulnerable
customers
Recapture lost
customers
Identify
neglected
segments
Attract new
customer

Recommendations
Improve brand
Improve fading associations and
associations
negative associations

neutralize

Campaigns
showcasing
the
natural
ingredients, authenticity and valued
tradition
Keeping the logo or packaging aesthetics
same, increase focus on the brand mantra
100% natural by making the message
more prominent
Bring back the old mascot, to restore the
brand associations with Wendy. It is seen as
a fun brand and Wendy personifies the fun,
genuine, personal and creative dimensions
of the brand
Product Placements in Comedy TV Shows
like Friends and That 70s Show
Drop Larger SKUs and keep 16 ounces
bottles.

Increase Frequency of
Consumption
Identify Additional Opportunities
Having Snapple vending machines in Subways,
Airports, Metro stations etc. to improve visibility
and usage while travelling/commuting
Corporate tie ups with workplaces associated
with a fun imagery like Google and promote
consumption during breaks in the office hours
Natural and fun drinking association can be
leveraged by having touch points in schools
Introduce new ways to consume
Campaigns to Create your own quirky Snapple
drinks to promote Snapple Mock-tails.

Recommendations
Product

Place

Concentrate on the top 10-15 variants

according to regional sales figures instead
of the entire range of 50 variants everywhere.
For E.g. Dallas consumers are most likely to
prefer variants attached to nature and tradition
like fruity flavors
Introduce new variants in other segments
like teas, diets and position it as a natural
brand
Bundles of smaller SKUS like in Beer Carrying
case.

Majority of the sales (about 80%)

was
happening through cold channels and the
distributors had an extra margin of $4 per 24bottle case as compared to the supermarkets in
these channels which implies more focus on
cold channels
Optimize the utilization of shelf capacities
by restricting to only the top 15-20 variants in
each region
Place vending machines in channels mentioned
in new channel

Price

Promotion

Maintain the premium pricing as any change

in price would question the 100% natural
and genuineness of the product

Product Placements
Bring back Wendy
Promote Quirky Image of Brand
Corporate Tie Ups

THANK YOU!