Professional Documents
Culture Documents
Introduction
It begins with founders, in this case, three entrepreneurs working in a natural food store in the East Village of New York City in 1972. In the 1980s Snapple essentially created the no-carbonated segment of ready-to-drink beverages with its introduction of ready-to-drink fruit juices and iced tea. By 1991, Snapple emerged as a nationally recognized brand. In 1992, Snapple management raised capital by selling a majority stake of the firm to Thomas H. Lee.
Customer generally selected beverages based on fashion, taste and status related consideration This are the factors that play a critical role in the consumer buying behaviour. Distinctive Flavors Quality ingredients Clean labels Product Packaging Pramotion
New Competition
Entry of the Pepsi with Unilever. Lipton iced tea as ready-to-drink package. Tetley Coca Cola enter with Fruitopia. Arizona Iced Tea.
Strategy by Triarc
Edgy advertising Strong Distribution relationship Colorful labels Focused street sales. Take back Wendy Kaufman
Brand Extension
In 2000 Snapple introduce four new candy products Snapplets hard candy Beans jelly beans Fruits chewy candy Whirls gummies
In 2000, Cadbury Schweppes purchase Snapple Beverage Group for $1.45 billion.
Kept Snapple management intact Maintain the existing distribution channel Also did not change the CEO.
Competitive Environment
In 2002, Beverage world reported that 1235 new beverage products were introduced in the United states alone. In 2003, only 250 of those products were on the market
Innovation At Snapple
Diet Snapple
Snapple-a-day