Snapple Case Study

Product: The Snapple product line is vast and spans many different flavors, many of which were unpopular. Only a handful of flavors held the product afloat, this in effect was due to the premium pricing of the product. The product in itself was marketed with the accompanying mantra of “100% Natural” and proved to be quite popular among a very difficult to define market segment. Snapple was neither defined as a “lifestyle” brand or a “fashion” brand, it was somewhere in the middle, generally grouped in the “alternative” beverage category. At this point in the Snapple brands development, there were many other “boutique” beverage brands aspiring to appeal to the same market segment.

Price: Given the premium pricing of their product, the Snapple product was able to remain profitable, despite several flailing product flavors. The inflated pricing was a wise decision in the inception of the products development, pre-1987.

Promotion: What a successful mess! The promotion of Snapple was “100% Natural” and apparently appealed to many New Yorker’s and U.S. citizens alike. Their initial ad was flawed and was not easily recognizable to many people: “Schnapple”, by Ivan Lendl. When the brand began using Wendy Kaufman, a real person living a real life, as their spokes model the wildfire began nationwide. She made appearances on David Letterman and Oprah, and Howard Stern and Rush Limbaugh became avid supporters of the beverage brand.

Place: This aspect of the Four P’s was particularly important in the Snapple case. The proximity to New York City proved beneficial in the marketing business aspect. Access to a plethora of media and celebrity exposure launched the beverage line into a league of national brand recognition.

Part II. Now look at the period from 1994 to 1997. Did Quaker make an error in buying Snapple or did they manage it badly? What did they do wrong that Triarc might learn from?

There are a number of options for Mark Weinstein to choose from as he attempts to lead Snapple back among the beverage industry’s elite under the new management of Triarc Beverage Group. However, there are three primary initiatives that we are proposing that can help get Snapple quickly back on track. First, Triarc should implement the suggestions from the study done by Snapple’s advertising agency, Deutsch Inc., aimed at revitalizing the brand. Specifically, Snapple must implement a marketing plan that embraces the unique characteristics that set it apart from the competition in the beverage industry. Next, Triarc must find new promotional avenues to reintroduce Snapple into popular culture, making it a “fashionable” brand again. This initiative will seek to replace Snapple’s previously successful deals with Howard Stern, Rush Limbaugh and spokesperson Wendy Kauffman. Finally, Triarc must find a way to increase Snapple’s availability in the warm channel. By reestablishing relationships with its distributors, Snapple can become more readily available in greater varieties and quantities in new locations, alleviating a number of concerns indicated by consumers.

The most immediate initiative that Weinstein should focus on is the implementation of the suggestions from the Cultural Analysis Group report, a study done by Snapple’s advertising agency, Deutsch Inc. This report appears to be a legitimate attempt to focus on Snapple’s brand identity and indicates information about Snapple’s target consumers. The report came to some interesting conclusions, which should be incorporated into Snapple’s new marketing strategy. Primarily, it appears that Snapple appeals to a very specific type of consumer falling between the typical soft-drink consumer and the health fanatic. Snapple, very simply, is an all-natural, fun and unique beverage alternative -- the perfect choice when choosing a refreshing beverage at the end of a long day. Snapple must embrace its soothing taste and make its beverage a part of consumers’ daily ritual. Consumers should be encouraged to take a moment to enjoy Snapple as a way of letting go. These should be referred to as the “Snapple moments.”

The next initiative that Weinstein should take is to reintroduce Snapple’s beverage products into popular culture through promotional deals with a new spokesperson and entertainment programs. It is no secret that Snapple’s success was at its peak when consumers could point to

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