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Overview Introduction S.W.O.T. Analysis Problems Market Segmentation
Positioning Recommendations
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Introduction 1972-1986 : The origins of brand
: The glory years 1991: Distribution jumped over to West Coast 1992 : Snapple sold to a Boston private bank : Quaker takes command 1994 : Quaker buys Snapple for $1.7 billion 1997 : Triarc acquires Snapple 1997 : Triarc buys Snapple for $300 million
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Annual Sales Revenue, $ Millions
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Total Alternative Beverage Category: $10 Billion at Wholesale
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Supermarket Brand Shares, 1997
Total Supermarket Alternative Beverage Category: $3 Billion at Wholesale
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Snapple Flavors ( %of cases in 1996)
(1) Lemon Tea % (2) Kiwi Strawberry (3) Mango Madness (4) Peach Tea (5) Pink Lemonade (6) Diet Peach Tea (7) Fruit Punch (8) Raspberry Tea (9) Diet Lemon Tea (10) Diet Raspberry Tea Top 10 of 50 Flavors %
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SWOT Analysis Strength: 1. Brand image
- natural, quirky, offbeat, playful, personal, authentic 2. Full of variety and flavor - diverse product line - over 50 flavors 3. Brand name - snap; appleimplicit health claims 4. Imaginative use of names - e.g., Mango Madness
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SWOT Analysis Strength: ( Cont.. ) 5. Adoption
- most new drinkers had been aware of Snapple - Snapple drinking flows are through friendship network 6. Packaging - plays out the taste experience - complexity of the label, stippling on bottle
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SWOT Analysis Weakness: 1. Not an established brand
- like a fashion water - differentiation is weak - lacks a compelling reason to use 2. Distribution - Quaker was wrong 3. Usage rate - fluctuates seasonally, diurnally, and cyclically 4. Regional Differences - areas without a postmodern mindset
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SWOT Analysis Weakness: ( Cont..) 5. Quaker’s corporate image
6. Package size 7. Price
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SWOT Analysis Opportunities:
1. More variety, imagination, and flavor than competitors 2. The diversity within Snapple Brand - a model for a multicultural society 3. No great competitors - Snapple is fun in a way unduplicated by any other brand of soft drink - no competing brands stand out at the time 4. Health concern 5. Future trend is going to be individualism.
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SWOT Analysis Threats: 1. Rumor - deep sense of betrayal by customers
2. Distribution - warm or cold? 3. Image - effect of Quaker: fashion lifestyle
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Problems Corporate Image Spokesmodel Disappear
Inappropriate Distribution Product Size Lack of Innovation Pricing
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Market Segmentation Geographic: Urban areas in U.S.
& foreign countries Demographic: Right people Psychologic: Active lifestyle
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Right people with active lifestyle!
Target Market Right people with active lifestyle!
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Nature! Good-for-you! Fashion!
Positioning Nature! Good-for-you! Fashion!
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4P Product: Smaller bottle, Product and packaging innovation
Place: Cold channel + Warm channel Promotion: Spokesman Price: No discount
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Recommendations Reestablishing Image - Real - Natural - Good for you
Distribution - Niche Marketing - National - A Network of Distributors - Warehouse Distribution Price - High
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Recommendations Bottle Design - Smaller - Convenient - Ready to drink
- Just fits in your hand Promotion - Advertisement - Sampling New Products Development - Health - Diet
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Thank You Very Much! Have A good Night!
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