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Snapple Final
Snapple Final
Executive Summary
During 1987 1993, Snapple was one of the successful brands of a variety of non-carbonated beverages that targeted mainly towards the young, health conscious consumers. Snapple provided many varieties of flavour to its consumers and placed them in different market segments which were mainly cold channel distributions. With a premium pricing strategy, it had price as an indicator of quality and was consistent with its positioning strategy. The success of its marketing strategies were
able to enhance consumers brand awareness, brand recognition and brand recall. Subsequently,
Snapple was sold to Quaker Oat in 1994 for $1.7 billion, the sale was in decline. Quaker made mismanagement in financial, marketing strategies. Accompanied with ineffective advertising and marketing programs, lost in trust in distributors and increase in competition in the market, were among the reasons for the brands decline. In 1997, Quaker decided to sell the Snapple to Triarc for $300 million.
TABLE OF CONTENTS Executive Summary 1. 2. Synopsis of Snapple The Rise of Snapple 1972 to 1993 2.1 The 4Ps: Product 2.1 The 4Ps: Price 2.1 The 4Ps: Promotion & Communication 3. 4. The 4Ps: Place The Fall of Snapple 1994 to 1997 4.1 SWOT Analysis: Internal Factors 4.2 SWOT Analysis: External Factors 5. 6. 6. Lessons Learnt from Quaker 1998 Recommendations Conclusion
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List of references
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1. Synopsis of Snapple
In 1972, Snapple was created which was formally known as Unadulterated Food Production. The initial product offered was solely apple soda, which was named Snapple. It targeted at the young, health conscious market segment. Subsequently, the company became more successful, a variety of noncarbonated beverages were then introduced and it began expanding its distribution. In 1994, the company was sold to Quaker Oats for $1.7 billion. However, Quaker was unsuccessful in building Snapples brand value as evidenced by the decline in sales (Appendix 1). Later in 1997, Quaker sold the Snapple to Triarc Beverages for $300 million. Triarcs new strategy for Snapple is to rebuild and develop new communication to revitalize the brand. Identifing the nature of the brand is done to reconnect the brand with consumers to achieve both loyalty and future success.
In conclusion, Snapple managed its brand through the use of and the coordination of a full repertoire of marketing activities to build its equity. Consequently, Snapple flourished and outshined its competitors.
In conclusion, the failure of Snapple lies both within the brand and the bad management by Quaker.
Triarc also recognized that in order for a product or brand to continue achievement, a new brand image that should be consistent with Snapples brand should be established. Maintaining a good culture of the brand as well as employing effective marketing strategies would ultimately lead to Snapple being positioned in consumers consideration or evoked set.
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5. Recommendations
Triarc needs to understand the product differentiation of its new product, Snapple, from its competitors and employ strategies to heavily market the brand values of Snapple without being stuck in its past era. To elaborate, innovation is required for Triarc to sustain with the increasing and changing consumer demands without detracting from its core product business and ensure that consumers are well informed about its product. Regardless of the types of innovations employed, the marketing strategy should always focus on its core brand value so that consumers will be able to recognize any product or campaign as a Snapple product. This ensures Snapple in properly balancing consistency and change with the brand. Building brand equity requires firms to recognize and understand the needs of their consumers. In addition, Triarc has to be able to foresee and adapt to the ever-changing consumers needs. Both qualitative and quantitative researches should be engaged, in order to gain an in-dept understanding of consumers behaviour. Brand tracking to establish consumers understanding of Snapple, their responses to competitor beverages, to establish consumers wants and needs and to establish Snapples key demographic and target market, as well as cost benefit analysis because it would be helpful if they could reasonably estimate the probable benefits to determine whatever they are worth to cost involved (Hartley 1998). Quantitative research that measures brand awareness and brand image should be collaborated as they tend to be complimentary. However, the down-side of utilizing both researches is that it involves significant amount of time and money. Extension of distribution channels to reach to vast consumers is recommended, since most of the sales are generated through cold channels. This would thus result in raising brand awareness. Vending into overseas market should be considered, when Snapples brand image has been reinstated. Hence, building a strong connection and relationship with distributors is vital to organizations especially for those that require indirect distribution channels. Fostering a strong and loyal community within the organization would ultimately enhance own brand equity. This can be done through building a strong welfare, which would help employees to have a sense of belonging to the organization that would assist Snapple in earning tremendous internal and operational loyalty.
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Though indirect distribution channel is employed, Triarc should always seek for means to interact with its consumers, through organizing events and sponsorship. Providing more information about Snapple product to consumers on its website is also recommended, in order to increase Snapples brand awareness and brand image. Another recommendation to Triarc should be to reinstate Wendy and Stern due to their association being established with Snapple. This would then assist Snapple in transforming the negative association it possessed in the 1990s and also reinstate Snapples brand image. Although various recommendations are available for Triarc, the organization should always beware of the advantages and disadvantages of each marketing strategy employed and are able to transform the negative associations into positive associations, in order to enhance the firms overall value.
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6. Conclusion
SWOT analysis is evaluated and it identified the key internal (strength and weakness) and external factors (opportunity and threat) of Snapples and Quakers failure in market environment. Snapple and Quaker have competitive advantages to be differentiated from competitors in achieving success. However, the weakness of Snapple and Quakers different brand images affected its brand consistency. Opportunities were available in the market for Snapples growth in market share and also stabilisation of its brand image in consumer buying decision process. Price is one of the barriers for Snapple due to the increase competitions and price conscious consumers. After SWOT is being analysed, it identified that there is a need for reassessing and improvement in their marketing strategies in order to be success.
To be able to manage Snapple, Triarc is required to understand the product differentiation of Snapple from its own product and its competitors and employ strategies to heavily market the brand values of Snapple. The marketing strategy should always focus on its core brand value. Both qualitative and quantitative consumer researches, and brand tracking should be engaged to enhance the understanding of their product and consumers requirements. Extension of distribution channels, building a strong connection and relationship with distributors, vending into overseas market, fostering a strong and loyal community within the organization, reinstating Wendy and Stern are recommended. However, Triarc should always beware of the advantages and disadvantages of each marketing strategy employed and to be able to transform the negative associations into positive associations, in order to enhance the firms overall value.
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References
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