Famous Case Study of Snapple by Nitesh Singh Patel, IMT Nagpur

1. Submitted by:
Neeraj Garg (2013166)
Neeraj Ramadoss (2013167)
Nidhi (2013169)
Nikita Agarwal (2013171)
Nitesh Singh Patel (2013178)
Nitin Boratwar (2013179)

3. THE BEGINNING
• Founded by Arnie Greenberg, Leonard Marsh and Hyman Golden in 1972
• Snapple: reaction to modernity
• Vision: 100% natural and real
• Self funded
• Outsourced production and product development
• Product line: Ice tea, diet juices, sports drink, seltzers etc.

4. MARKETING STRATEGY
• Well trained and experienced Management people were hired
• Increased Advertising budget and improved distributor system.
• Everything was real and natural
• Aggressive promotional campaigns included public relations and advertising:
I. Paid Media
II. Unpaid Media
III. Radio
IV. Fashion & Fun Events

5. DISTRIBUTION
• 300 predominantly family owned distributors
• Convenience chains, Pizza stores, gasoline stations, food service vendors etc.
• Snapple dependent on its own distribution channel in Boston
• Ted lenders, a part of Boston beer distribution company made a contract with
Snapple for distribution in Boston by setting up coolers and vending
machines.
• This lead to an increase in sales from 250,000 to 1 million units a year
• Though, unable to increase distribution in supermarket.

6. MARKET STATUS
• Became the market leader in the alternate beverage category
• Revenue boom: $80 million in 1989 to $516 million in 1993.
• Tough Competition from PEPSI, COKE, MISTIC etc.
• Market share remained steady
• Highest turnover of $674 million in 1994.
• Sold control to THOMAS H. LEE company for $674 million in 1994.
• THOMAS H. LEE sold it to QUAKER in the very same year.

7. QUAKER- The New Acquirer
• Four product lines: Grain based, bean-based, pet foods and beverages.
• GATORADE, its beverage brand; the key player in revenue.
• Sports drink
• 3 key features of its growth:
1. Expanded product line: various size packets with 3 to 8 flavors.
2. Promotional support: celebrity endorsement.
3. Distribution channel: entered foreign markets, improved domestic
coverage.
• Explored a joint venture with coca cola, but failed.

8. GATORADE v/s SNAPPLE
FACTOR GATORADE SNAPPLE
IMAGE Lifestyle Fashion
CHANNEL Warm channel Cold channel
MARKETING Celebrity endorsement Real people, real
circumstances
NATURE Health drink Taste drink

9. GATORADE & SNAPPLE
• Integrating the markets of both Gatorade and Snapple
• Availability of both products at one counter and at more locations
• Quaker’s resource and management skills for Snapple
• Reducing costs by interchanging the channels of distribution for both
products.
• Gatorade and Snapple markets complemented each other .

10. SNAPPLE & CONSUMERS
• The Target Audience for Snapple are,
1. Fun-consumers
2. Youth or people with youthful attitude and health conscious professionals
• Customers know that….
1. Snapple is an alternative to carbonated beverages
2. It’s for on-the-go in between activities
3. Healthy alternative
4. Sensual, stimulating, and soothing.

11. 1997:TRIARC ACQUIRES SNAPPLE
• Investment company
• Long history of buying and selling troubled assets
• Mistic brands; fruit juice and tea beverage brand
• Planned to acquire Snapple
• Snapple-Great brand; competitor of Mistic
• Snapple twice the size of Mistic and RC combined

12. STRATEGIES
• Advertising agency helped to develop communication strategy to revitalize
the brand.
• Believed in dynamics of ready-to-drink beverages.
• Connected to consumers ,real, human and avoided marketing slickness.
• Quaker was against snapple principles
• Looked for what’s new, what’s moving and moving hot
• Focused on different style of label
• Focused on very average, normal people
• Developed brand product first and then targeted segment

13. SWOT
STRENGTH
Great brand value
Good connectivity with consumers
Fun quotient/fashion statement
Variety
WEAKNESS
Distribution system failed because of
approaching supermarkets
Health quotient
Changed marketing strategies
Could not keep track with the new market
trends
OPPORTUNITY
Grow their brand as a fashion
beverage.
Innovation according to customer
needs.
Focus on their “real” personality &
quirky edge.
Produce bottle water and other
alternatives.
CSR like nutrition education
programs
THREATS
Gatorade’s was invading the market
;lifestyle drink
Resistance towards warm channel
suppliers

14. THANK YOU!!