Written Analysis of Case: Group-2

Written Analysis of Case
On
Snapple
By
GROUP- 2
PrathyushaChokkapu(18021141030)
Vikram Goenka(18021141043)
Meghana KSP(18021141055)
Mohd Yusuf Hanzala (18021141070)
Guided By
Dr.Tanmoy De
1. How did the Idea of Snapple come up and what were the main reasons of success
since its origin from 1972 till 1994?
Snapple came into life in 1972 when three friends Arnie Greenburg, Leonard Marsh and
Hyman Golden have seen the need for non-preservative juices and started selling Apple
juices under the brand name Snapple. They were quite early into the industry with very
less competition but had good promotion strategies and managed their distribution
channels effectively which led to their increase in revenue from $4million in 1984 to $8
million in 1986. They have further expanded their product line and added carbonated
drinks, fruit-flavored ice teas, diet juices and etc. One of their most remarkable features is
that like other startups, they did not give up initially and went up of further expansion and
even took the support and advice from professional Mr. Carl Gilman who gave
suggestions about expanding their distribution through the East Coast and come up with
more innovative advertisements which would communicate their brand message
effectively. Their promotion strategies through radio programs and using celebrities like
Oprah and David successfully brought out their product and brand elements of being
successful, natural and real.
Their innovative fun games and fashion shows were also a huge hit which attracted and
brought in more customers.
2. What are the main reasons behind the failure of Snapple while being managed by
Quaker from the period of 1994 to 1997?
Snapple was a very successful when it was being managed by Mr. Greenburg, Mr. Marsh
and Mr. Golden. They have sold it to Thomas and Lee.Company from where Quaker
Oats acquired it in the year 1994 for $1.7 billion. By then Quaker has acquired Gatorade
and was earning almost 30% of their revenues through it and had the thought of combing
it with Snapple and growing in the beverage industry. They made certain changes in the
product line by diverging into 16 and 64 ounce bottles, promoting it through sports stars
and expanding it’s distribution network.
However despite of all these efforts they failed to recognize that Gatorade
and Snapple are entirely two different brands where one is considered as a lifestyle brand
and the other as a fashion brand respectively and the transformation from a fashion-
sensitive, quirky and on the edge brand to lifestyle was beyond their reach Because of
this the main essence of Snapple was being ignored and was not being able to reach out
to the customers. It’s real and fresh elements went missing during the promotion
campaigns and they even faced a lot of problems with their distribution partners due to
the different sizes (16,32,64 ounce bottles) for their assortment and storage. Despite of
hiring a MBA graduate from Harvard Business School things did not turn helpful for
Quaker.
Due to all the above reasons they eventually has to sell Snapple to $300
million to Triac Beverages Limited almost at a loss of $1.4 billion because of their failure
at product line, promotion, distribution and positioning and strategies.
3. What are the strategies that have to be implemented by Mr.Weinstein and

Mr.Gilbert to improve the brand image and revenue of Snapple under Triac
Beverages Limited?
Snapple was a company in distress when Triarc Management took control. CEO of
Triarc, Mike Weinstein had strong experience in managing beverage brands such as
A&W and Mistic, both of which eventually turned into great profits.
Brand Image:
Snapple must clearly examine the risks and rewards involved in branding versus allowing
their customer’s interpretations determine who they are. If they leave it to customers, the
risk factor involved is very high. It may establish ambiguity and lack of clarity as to what
brand stands for. The advantages of Snapple leaving it to customer’s is that they may
allow them to stay hip and trendy with the ever-changing world of what is fashionable.
This could potentially solidify them as a FASHION BRAND.
The Snapple brand is quirky and on the edge. It is fashion sensitive and authentic. The
Brand’s Mantra is “100% Natural” applies more to than just the product’s ingredients.
Snapple is natural, real , personal and encourages diversity and individualism. The
Snapple community is inclusive and irreverent. Ken Gilbert admits in the case that “
Snapple users are very average , normal people but the brand helps them to think of
themselves as offbeat.” This brand has a clear and distinct personality and has
established brand associations. The core values of the brand are relatable and shared by
the loyal customer base of Snapple.
The strategies implemented by Triac beverages were:-

• Launched new products like Whipper Snapple, Snapple hydro, Snapple Farms,
Snapple elements
• Launched a nationwide promotion campaign and contests
• Television advertisement
• Brand expansion
TRIARC – INITIATIVES TO BE TAKEN UP:
Efforts to recover Snapple’s Previous Brand Image:

Triarc had already taken the right initial first step ordering the Cultural Logic of the
Snapple Brand report from Deutsch, Inc. Restoring the key success factors with a sharp
focus on the “100% Natural” mantra that guided the company prior to its acquisition. The
diluted brand image and eroded loyalty is a consequence of Quaker’s mainstream
marketing and positioning strategy, and this has to be reversed in order to restore equity
to the brand. Triarc should focus on reinstating the unique , quirky aspects of the brand in
order to increase the sales, re-build profits and their customer base.
Independent Distribution Network:

Taking into consideration Quaker’s flaw of pushing Snapple into the warm channel at the
expense of cold channel distribution. Snapple is a product that is often sold in single
servings, and in small retail channels rather than in super markets. Triarc should put
efforts in building relationships with cold channel distributors alongside with Mistic’s
distribution.
In 1997, Triarc estimates placed Snapple at 35% of the total super market alternative
beverage category. With a $0.3 billion wholesale value the warm channel is not a
distribution channel that should be ignored.
Define and Communicate 100% Natural Positioning:

The Company should return to its’s roots and revive it’s 100% Natural Positioning. Triarc
has the ability to revive the Snapple brand, through honest and transparent marketing
activities. Snapple has a charming story, rich history, and strong identity. Triarc needs to
put these strengths at centre stage and showcase the great brand that it has. Wendy
Kaufman proved to be a strong spokesperson and personality of Snapple Brand. They’ll
have to get back her at Snapple because she would be an asset.
At the end of the day, Snapple should go back to the original branding that made it
successful. Innovate the original personality that Snapple started with. The brand has to
come back with an edgy, offbeat and quirky splash that their consumers will love.

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How did the idea of Snapple originate and what led to its initial success?

What were the main reasons behind Snapple's failure under Quaker's management?

Written Analysis of Case

3. What are the strategies that have to be implemented by Mr.Weinstein and

The strategies implemented by Triac beverages were:-

Efforts to recover Snapple’s Previous Brand Image:

Independent Distribution Network:

Define and Communicate 100% Natural Positioning:

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