Information Case

Please analyze the Snapple case to find answers to the below questions:

1) In the period of 1972 to 1993, why do you think that Snapple flourished while so many small startup premium fruit drinks stayed small or disappeared? Explore the answer using the Four Ps (promotion, product, place and price).

Promotion- Quirky and non-traditional. Created a spokeswoman and commercials that were "natural" in their own right. On air commercials were play as you go and unedited. Contracted with Howard Stern and Rush Limbaugh which are arguably two extremes and "natural" in their own right.

Product- Natural beverage drink alternative to Soda. Unique flavors and successful teas.

Place- Built through the "cold channel" which is comprised of small stores, delis, and gas stations. Started on East Coast with idea of ramping up to make the West Coast want the product. Small "warm channel" distribution (large grocery stores).

Price- Sold best as 16oz bottle

2) Now look at the period from 1994 to 1997. Did Quaker make an error in buying Snapple or did they manage it badly?

Quaker managed the company badly by 1) Ending a successful marketing promotion strategy (terminated radio relationships with Rush and Stern, and releasing their spokeswoman). 2) Tried to expand into new channels and they were not achieved. 3) Snapple was not Gatorade (lifestyle vs. fashion brands) and consumers did not consume large quantities of the product i.e. cases or large bottles.

3) Roll forward to 1998. What can Triarc's managers learn from Quaker's experience? What can they apply from their own experience? Is the Snapple target market "anyone with lips?" Is it ok that Snapple "ends up meaning lots of different things to lots of different people?" What are the risks and rewards of leaving "what the brand stands for" open to consumers' interpretations rather than a strong positioning on it? And what does it mean to say that Snapple is a fashion brand?

Triarc reinvigorated Snapple brand by going back to the core consumer. They did the following 1) Reinstated the spokeswoman and brought back quirky image 2) Rebuilt distribution relationships 3) Launched new products.

Snapple target is anyone with lips as consumers have several choices. By leaving the brand open for consumers interpretations it allows for them to 'fill in the blanks' or identify with the produce rather than having the product fall into a particular definition. I think Snapple is a fashion brand in that it appeals to a distinct non-mainstream soda drinker with a higher price, better quality, and more expensive product.

4) Identify the three highest priority initiatives you would start tomorrow