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snapple case

Uploaded by anirudh.iyer on Jan 17, 2007

This is a case in which a succesful comapny snapple was acquired by quaker and how it came to losses.

Major Issues:
The major issues in the case can be summarized as follows:
1. Why the Quaker takeover of Snapple failed? Where did they go wrong?
2. What should Triarc Beverage Group do now?
To understand and analyze the issues in the case it is important that we understand the reasons that made
Snapple a successful brand at a time when many others failed. For this we need to study the characteristics and
strengths of Snapple as a brand and the company as a whole. This will lead to the discovery of reasons as to the
failure of Quaker Inc in building the Snapple business and also what Triarc should do so as to regain the
supremacy of the brand.
Analysis for resolving the issues:
¡§It took 15 years to becom e an overnight success.¡¨ W hat m ade Snapple a success w hile m any other prem ium
fruit drinks stayed small or disappeared?
Snapple was a small company whose origins were based on authenticity and trust in consumers eyes. This was
evident in the initial m antra of the com pany ¡§100% N atural¡¨ even before the com pany becam e Snapple
(Unadulterated Food Products, 1972). Snapple became successful by launching innovative products, based on
fruit juices and teas, into the beverage market. Initially, Snapple beverages were sold to health-food stores and
Snapple became successful by launching innovative products, based on fruit juices and teas, into the beverage
The reasons for the success of Snapple can be attributed to the following brand characteristics and marketing
strategies adopted by the company:
„X Aggressive distribution and customer loyalty strategy, bolstered by a health and fitness craze prevalent
at the time.
„X Entered the developing iced tea market the at the right time w ith a brew ed, high quality, ¡§new age¡¨
Ready-to-Drink (RTD) tea, which was a pivotal early move.
„X The company had an image of fun and irreverence that was supported through the marketing campaign
of 100% natural ¡V no matter how the results were.
„X Snapple rolled out an advertising cam paign centered on a ¡§custom er relations, regular people¡¨ them e.
Wendy Kaufm an, becam e the ¡§face¡¨ of Snapple on TV and her penchant for answering fan mail on air
helped build the com pany¡¦s ¡§quirky¡¨ positioning. This helped them ¡¥connect¡¦ with the public in general.
For example Snapple relied on their most zealous customers for product and packaging ideas.
„X Snapple had an extensive...

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Uploaded by:   anirudh.iyer

Date:   01/17/2007

Category:   Business and Economics

Length:   4 pages (927 words)

Views:   3457

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