Present by
Overview
•Introduction
•S.W.O.T. Analysis
•Problems
•Market Segmentation
•Positioning
•Recommendations
Introduction
1972-1986 : The origins of brand
1987-1993 : The glory years
1991: Distribution jumped over to West Coast
1992 : Snapple sold to a Boston private bank
1994-1997 : Quaker takes command
1994 : Quaker buys Snapple for $1.7 billion
1997 : Triarc acquires Snapple
1997 : Triarc buys Snapple for $300 million
Annual Sales Revenue, 1972-1997
96
19
92
19
88
19
84
19
80
19
76
Growth of
Snapple
19
72
19
$ Millions
800
700
600
500
400
300
200
100
0
Alternative Beverage category, 1997
17%
24%
Premium(e.g.,
Snapple)
NonPremium(e.g.,
Lipton)
Bottled Water
16%
Sports Drink
24%
100% Juice
19%
Total Alternative Beverage Category: $10 Billion at Wholesale
Supermarket Brand Shares, 1997
29%
35%
11%
9%
4%
Snapple
Ocean Spray
Nestea
Lipton
Arizona
All Others
12%
Total Supermarket Alternative Beverage Category:
$3 Billion at Wholesale
Snapple Flavors ( %of cases in 1996)
(1) Lemon Tea
(2) Kiwi Strawberry
(3) Mango Madness
(4) Peach Tea
(5) Pink Lemonade
(6) Diet Peach Tea
(7) Fruit Punch
(8) Raspberry Tea
(9) Diet Lemon Tea
(10) Diet Raspberry Tea
Top 10 of 50 Flavors
15 %
7
5
5
5
4
4
4
3
3
55 %
SWOT Analysis
Strength:
1. Brand image
- natural, quirky, offbeat, playful, personal,
authentic
2. Full of variety and flavor
- diverse product line
- over 50 flavors
3. Brand name
- snap; appleimplicit health claims
4. Imaginative use of names
- e.g., Mango Madness
SWOT Analysis
Strength: ( Cont.. )
5. Adoption
- most new drinkers had been aware of
Snapple
- Snapple drinking flows are through friendship
network
6. Packaging
- plays out the taste experience
- complexity of the label, stippling on bottle
SWOT Analysis
Weakness:
1. Not an established brand
- like a fashion water
- differentiation is weak
- lacks a compelling reason to use
2. Distribution
- Quaker was wrong
3. Usage rate
- fluctuates seasonally, diurnally, and cyclically
4. Regional Differences
- areas without a postmodern mindset
SWOT Analysis
Weakness: ( Cont..)
5. Quaker’s corporate image
6. Package size
7. Price
SWOT Analysis
Opportunities:
1. More variety, imagination, and flavor than
competitors
2. The diversity within Snapple Brand
- a model for a multicultural society
3. No great competitors
- Snapple is fun in a way unduplicated by any
other brand of soft drink
- no competing brands stand out at the time
4. Health concern
5. Future trend is going to be individualism.
SWOT Analysis
Threats:
1. Rumor
- deep sense of betrayal by customers
2. Distribution
- warm or cold?
3. Image
- effect of Quaker: fashion  lifestyle
Problems
•Corporate Image
•Spokesmodel Disappear
•Inappropriate Distribution
•Product Size
•Lack of Innovation
•Pricing
Market Segmentation
•Geographic: Urban areas in U.S.
& foreign countries
•Demographic: Right people
•Psychologic: Active lifestyle
Target Market
Right people with active lifestyle!
Positioning
Nature! Good-for-you! Fashion!
Place
Promotion
Price
Product
4P
•Product: Smaller bottle, Product and packaging innovation
•Place: Cold channel + Warm channel
•Promotion: Spokesman
•Price: No discount
Recommendations
•Reestablishing Image - Real
- Natural
- Good for you
•Distribution - Niche Marketing
- National
- A Network of Distributors
- Warehouse Distribution
•Price - High
Recommendations
•Bottle Design - Smaller
- Convenient
- Ready to drink
- Just fits in your hand
•Promotion - Advertisement
- Sampling
•New Products Development - Health
- Diet
Thank You Very Much!
Have A good Night!