15. Brand image; authentic, real, personal
Distributor network, sales points
Leading in Alternative Beverage Category
Many flavours
Need for authenticity
Big players are not active in this category
Many more flavour options
22. Brand image; authentic, real, personal
Distributor network, sales points
Leading in Alternative Beverage Category
Many flavours
Need for authenticity
Big players are not active in this category
Many more flavour options
23. Brand image; authentic, real, personal
Distributor network, sales points
Leading in Alternative Beverage Category
Many flavours
Need for authenticity
Big players are not active in this category
Many more flavour options
24. Brand image; authentic, real, personal
Distributor network, sales points
Leading in Alternative Beverage Category
Many flavours
Need for authenticity
Big players are not active in this category
Many more flavour options
25. Brand image; authentic, real, personal
Distributor network, sales points
Leading in Alternative Beverage Category
Many flavours
Need for authenticity
Big players are not active in this category
Many more flavour options
26. Brand image; authentic, real, personal
Distributor network, sales points
Leading in Alternative Beverage Category
Many flavours
Need for authenticity
Big players are not active in this category
Many more flavour options
27. Brand image; authentic, real, personal
Distributor network, sales points
Leading in Alternative Beverage Category
Many flavours
Need for authenticity
Big players are not active in this category
Many more flavour options
28. Brand image; authentic, real, personal
Distributor network, sales points
Leading in Alternative Beverage Category
Many flavours
Need for authenticity
Big players are not active in this category
Many more flavour options
29. Brand image; authentic, real, personal
Distributor network, sales points
Leading in Alternative Beverage Category
Many flavours
Need for authenticity
Big players are not active in this category
Many more flavour options
Good evening everyone. In our presentation we’d like to talk about how Snapple did in it’s brand history.
In 1972, Arnie, Leonard and Hyman, high school friends…
hold up a fruit basket and see a future of delicious All-Natural refreshment.
They create the Unadulterated Fruit Company, selling the first Snapple beverages to health food stores in New York City
In 80s, they introduced a line of all natural juices..
They first started with pure fruit drinks, and did not manufacture their first tea, lemon tea, until 1987
With their product line, including variety of juice and ice tea, and with their brand image on 100% Natural, Only the Real ingredients, and pure healthy approach boosted their sales volume.
The Snapple brand was so strong on being authentic, healthy and best quality. Soon, the founders aligned the entire corporate culture, including commercials, advertisements and their sponsorships around the same “100% Natural”, Real concept.
On their campaigns, instead of working with playmates or top sporters, to emphasize the “Real Snapple”, they worked with Wendy Kaufman, who posed the “Snapple Order Processing Clerk”.
On the commercials, she was reading the customer letters, and commercials had real, one time shot interview videos with customers. So the real image was well aligned on all activities and product of Snapple brand.With her personality, and with Snapple’s off mainstream adverts, both Snapple and the Snapple lady got exposure and attracted paid and unpaid media.
Snapple worked with the smaller and local distributors. This helped them to access to fast consumption retails like corner-stores, convenience chains, pizza stores, restaurants, etc. Also, this distribution chain was a cost saver, where the supermarkets required much more inventory, and asked for slotting allowances.
So with its small-sized distributors, Snapple invested on vending machines, coolers, and targeted buy&cosume now.Maybe not very consciously done, but this was a perfect alignment with the Snapple brand, too. Because Snapple was a fashion product and it was a beverage that you want to drink when you’re thirsty. It wasn’t something that you plan ahead and take home to drink tomorrow. But who were their consumers?
Snapple appealed to young adults, health-conscious professionals,
and they believed Snapple’s extraordinary attitude will release the potential in this young professionals.
Let’s note down Snapple’s strongest points;Snapple was real, authentic, and it was in touch with its consumersWith the distribution network, it had access to fast-consumption market. And yet, they didn’t invest big capital for their distribution network. The Alternative Beverage Category was not dominated by any one. Previous tries were not that successful. So Snapple had the green grass to play on.Snapple in late 80s had around 20 flavours, so this helped to get in contact with consumer, and also favoured the “being unique” between consumers.. And the product, the juice and ice tea, was so easy to mix-an-match to find new flavours.
This strengths and market opportunities sky rocketed the Snapple’s revenue
In 1994, their sales were above 600 million dollars, and founders realized it was time to step up to a new stage.
Then Quaker had a very nice offer and acquired Snapple
Besides many food brands, Quaker had Gatorade as its alternative / sports beverage. - They wanted to increase the sale of Gatorade in the cold channel and increase the distribution of Snapple in the warm channelThey felt the two products would complement each other and help Quaker to become a large beverage companyAnd Queker thought it wouldn’t be hard to transform Snapple into a mainstream product.But to understand Queker’s approach, let’s look at the customers of Gatorade. Gatorade positioned itself as a lifestyle product and its target customers were…
Their branding “drink while sporting” was positioning the product to be purchased prior to consumption. And well matching with their branding, Gatorade was available at a many supermarkets, sport shops, and had large and strong distribution channel.
Do you remember this slide? Strengths of Snapple..
Let’s see what happened by acquisition of Quacker, and if strengths resulted in any synergy between Snapple and Gatorade
Brand images and consumer segment was different. Ok, we can think about Quaker expended its market, but using same sales channels, retailers, and not well integrating Snapples“Real” image didn’t work.No initiatives were taken for Brand sustenance. Hence consumers drifted back to water, sodas etc.
Distributors of Snapple were not ready to exchange their supermarket accounts for trading Gatorade in the cold channels via these distributorsAdditionally, the trucks were all full with Gatorade, and logistic problems showed up when trying to combine Snapple and Gatorade distribution into same dispatch.
Snapple was not really leading anymore. However it was still strong in sales, it lost its brand value and customers were not that attracted anymore with Snapple.
Many flavours approach was needed for Snapple’s success. But this resulted in large inventory on supermarkets and distribution channels. And also remember the logistics problems, and trucks being full.. Variety and we talk about 20+ various flavours, were making the logistics problems harder.
Other brands were popping up , even though not strong, but the original need for authenticity was also in with Snapple's damaged image
Many more flavour options was still an opportunity in the market, but due to Gatorade, and it’s distribution challenges, Quaker was not really getting benefit out of this opportunity.
And overall Snapple was not that tasty for Quaker. Brand resulted losing its market position, and revenues. In couple of years, Quaker put the Snapple to sales.
Then Triarc group came into scene. They were an investment group that is known by dealing troubled assets. They had some beverage brands, but they were not that competitive at that time.
Mike Weinstein was managing the beverages brands at the Triarc group and had the idea that, basically anyone can be their customer for Snapple.
And the case asks us, what would be our strategic suggestions for Mr Weinstein?
Our proposal is; The Snapple has strong and characteristic roots. Remember them, and use them.Keep emphasizing “Real, Natural and Extraordinary” and make sure his characteristic exists on all the operational levels in the organisation. The eccentric brand image was very strong with Wendy. Try to find similar campaign approaches. Customer is not everyone who has lips.! Your customer is health conscious, and fashion curious. Don’t forget. Stay away from mainstream. Will look like a profit loss, but it’s the best for product image.Find ways to keep working and improving the best stuffAnd emphasize in every occasion “Snapple is real”
So considering this case is telling the Snapple story up to 1996 – 97, we did a quick research and found out which of these advises, coming from future, Mike Weinstein listened.
They kept emphasizing extraordinary brand image.Worked with Real, and eccentric people in their commercials
And they found ways to make Snapple better.!Maybe only on the commercials :)
And to emphasize the “real stuff”, in 2002 they come up with the “Real facts under caps”. Now in every bottle you opened, you learn a real fact, as real as Snapple itself.I’m about to conclude my slides, but I want to tell you one small thing. In my group we though the best closure for this presentation would be hand out Snapple’s to all of you. But this week we were very busy with assignments, and also in our job. So
