THE RISE OF SNAPPLE

- HOW A SMALL BRAND BECAME AN ICON

Quaker acquired Snapple & Snapple raised Sales decline created new advertising & dist. from $674 to distribution efforts & reached $440 million. system $231M (92) & Quaker needed Triarc acquires $516M (93) another beverage Snapple brand to attain
To handle the next level of growth
better economy of scale

3 Friends incept Snapple. They broaden Productline Reach $4M to $8M turnover
Recognized the want for natural fruit juices

Triarc has a history of buyingselling troubled assets

WHAT NOW?

WHAT MADE SNAPPLE A SUCCESS

Snapple had a large product lineup with carbonated drinks, flavored iced teas, diet

juices, seltzers, an isotonic sports drink and Vitamin Supreme besides the natural fruit drink. Many products failed but premium pricing on the successful products covered for the losses and kept the revenue flowing. Snapple was perceived as an amateurish company because its three entrepreneurs were new to the beverage industry They ran the company by the fundamentals of real and offbeat approach. Brand promoted through Wendy Kaufman- an eccentric personality attracted unpaid media attention Promotion via radio programs by Stern who with his wittily humor promoted the brand. Snapple's customers enjoyed this with the feel of being different, natural and real. Also Growth in Alternate Beverage category with Snapples 30-40% fueled its revenue growth

QUAKERS UNDERSTANDING OF GATORADE VERSUS SNAPPLE

Gatorade
It is a lifestyle brand. It is a

Snapple
It is a fashion brand. Snapple dominated the cold

beverage for those who worked out or played vigorous sports.

Gatorade dominated the warm

channels, i.e. supermarkets.

Gatorade sold large size packs.

channels ,i.e. street vendors, restaurants and recreation areas.

Quaker introduced Snapple in

large pack sizes but its sold best in 16 ounce containers.

SNAPPLE TO CRAPPLE
They tried to enhance Gatorade reachability at the expense of

Snapples cold chain.

Redesigned packaging size- larger pack sizes which were not

required
Scraped the advertisement function by axing relationship Howard

Stern, Rush Limbaugh and Wendy Kaufman- helped creating negative image- Crapple
The deal itself destroyed the customer connection with the brand-

customer felt betrayed

OPTIONS WITH TRIARC

Survey emphasizing on Flavor and price preferred Design and introduce new flavors

Improve Distribution channel

Introduction of fountain system and Collaboration with some health foods Package rejuvenation, Effective Advertisement and promotion. Increase cost effectiveness

WHENEVER YOU WANT MORE GRAB US AT A STORE NEXT DOOR LETS GET BACK TO REALITY

LEARNINGS
Diverse product line helps in capturing multiple customer

segments
Right projection of image is pivotal If scalability cannot be handled the business should be handed to

a capable entity
Value creation should be continuous Customer need should be kept in mind before making any

innovation or change
Like every person, every brand has an inherent strength waiting

to be recognized and exploited

THANK YOU !
-By Saurabh Kumar Priyank Dalal Upasana Mishra Radhika Agarwal Rajesh Bhatia Sandeep Dhankar