Snapple

PPBM Section A, group 4

Company trivia
Snapple started in 1972 as an all natural apple juice brand
Exponential increase in annual turnover
$4 Mn in 1984
$8 Mn in 1986
$674 Mn in 1994!!!
Clever promotion strategies
Wendy Kauffman as a spokes model
Sponsored radio programmes
100% natural
Sold to Quaker Oats at $1.74 Bn in 1994
Sales declined to $440 Mn in 1997
Sold to Triarc Companies at $300 Mn in 1997

Points of differences offered :
1) Snapple is perceived as a very authentic brand, made for active people who want to drink
healthy products rather than coke
2) Fun is a major part of the product : Snapple is perceived as very natural, playful, informal
3) Consumers identify to the brand since several tastes are offered
4) The product is sensual



Submitted by :
Camille Le Bian
Dhruv Bhatia
Niranjana Narayanan
Saswath Suresh
Srinithi Srinivasan
Sundeep Allamraju
Umakanta Sahu

Reasons for Snapple decline with Quaker :

Quaker bought Snapple in order to form a powerful beverage business unit with Gatorade. But
Quaker changed Snapple strategy and several issues appeared.

1) Brand authenticity failures :
Shifted from core values and was seen to become corporate hence losing its uniqueness
element with the consumer
Lacked differentiation and a compelling reason to use
Usage was not defined and hence was not ingrained in daily lifestyles

2) Distribution failures
Resistance from distributors to Quakers proposals
Less focus of independent distributors with whom relationships were earlier forged

3) Product & Packaging failures
Reduction in variety of flavors offered
Introduction of large sizes, which was against consumer usage of Snapple, and 16oz was
the most preferred size
It also limited distribution as small stores did not have space to stock and display, and
truck sizes were not conducive
4) Image failure
Did not sustain fashionability, and was giving way to newer beverages
Consumers felt betrayed

Is a brand revitalisation possible ?
Snapple core values have been expressed in previous campaigns and have recently been dormant.
The brand has also been characterized with other functional and symbolic problems. Hence, we
assume that the brand equity can be influenced well by revitalization.
Understanding the brand :
Breadth and depth of brand awareness :
Breadth : Snapple is seen as a stand alone drink, taken along with in-between
meal (sandwiches etc) not associated with a wide variety of situations or
frequent usages
Depth : brand recall is not all pervasive hence not high

Brand associations and responses in consumers memory
Quirky, fun, informal, natural, real, personal, playful brand images

Nature of consumer-brand relationships
Individualistic, atmospheric experience
Loss of prior brand engagement with consumers ( Snapple Convention)


Revitalisation options :
Several options seem possible to revitalize Snapple :
1) Expand the depth and/or breadth of brand awareness
Increased frequency of use
New opportunities for usage in the same basic way
Finding completely different applications
Increased quantity consumed per usage

2) Improve brand image
Create a new marketing program
Repositioning the brand with more compelling POD
Repositioning the brand to establish a POP on a key dimension

3) Changing brand elements
Logo
Packaging

Evaluation of alternatives :
Options Decision Rationale
Increase frequency
of usage
Accept Addresses the brand authenticity and distribution problems
Increase quantity
consumed per
usage
Reject Consumers prefer 16oz
Do not gel with the product usage
New promotional
program
Accept Addresses brand image and authenticity
Reestablishing the
old logo as well as
packaging
Not
advisable
New logo has been in place for some time and going back to
old logo may make the image more tarnished

Implementation Plan
Step 1: Increased Frequency of Usage
New opportunities for usage in the same basic way:
1) Make the product ubiquitous through penetrating the 2million points of sale
Tie ups with restaurants (Non-fast food) Eg. Subway
Educational institutions healthier option promotion
More vending machines at daily points of waiting such as train stations etc

2) Find completely different applications
Not in line with brand associations of consumers and against the requirement to bring back
the brand equity of Snapple

Step 2 : Promotion
Sponsorship
Music/dance festivals
Youth Convention
Product placements
Quirky youth oriented TV shows, movies and radio programs
Tie ups with popular movies/tv shows for customized bottle caps etc (collectibles)
Contests
Capture your Snapple moment
TV ads
Storyboards conveying the Snapple lifestyle, using imagery that consumers associate
with Snapple (fresh grass, beach etc)