BRAND

MAGAEMENT

Snapple
(group 5)

WAC
by-

Akanksha Verma 19021141008

Aparna Singh 19021141023

Swayam Avasthi 19021141121

Venushree Agarwal 19021141134

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 Contents

Introduction___________________________________________3
1972-1986: The Origins of the brand________________________________3

Snapple drinkers_______________________________________3-4
Snapple’s glory_________________________________________4
Decrease in sales________________________________________4
Swot Analysis___________________________________________5-6
A strategy for Snapple___________________________________6
Conclusion and Implication_______________________________6

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Introduction

Snapple was founded in 1972 by 3 partners Hyman Golden, Arnold Greenberg and Leonard Marsh in
Valley Stream, New York on Long Island. It began as an all-natural apple juice and it took whole lot of
15 years to be successful. Snapple provided an exemplary product to satisfy needs of adults in the
health-conscious category. The business grew slowly using internally generated funds. The brand
achieved great name and fame by late 1980s with its iced tea in great demand. By 1991 snapple
emerged as a nationally recognised brand, consumers loved Snapple because of its catchy name and
a successful advertisement campaign. With snapple’s sale at the peak it was sold to Quacker in
1994.Quacker making some mistakes led the company to a downfall and was forced to sell it to Triarc
Companies.

This case examines the growth of snapple’s brand evolving under the management of various
companies that owned it. The study too examines the rise, fall and the revival of Snapple and it
concludes providing the inability of Snapple to become a leading beverage brand.

1972-1986: The Origins of the brand

Three friends running a pickle and sardine store in Queens, New York saw the popularity of no-
preservative fruit juices decided and teamed up with California based Juice Company to manufacture
and distribute a bottled drink. Eventually seeing the opportunities founded their own company under
brand name Snapple, with a mantra “100% Natural”. The business grew slowly and was dynamic,
with time Snapple broadened the product line to keep the distributors occupied. The advertising
campaign was quite appealing and it attracted a lot of customers. But for the time being Snapple was
just another beverage brand trying to beat its competitors and emerge as a new age Beverage selling
Company.

Snapple drinkers-
● Active approach to life, suffused with youthful attitude.
● Snapple is not for the idle
● Snapple is not the drink of the real serious athlete
● Snapple drinker is open to new experiences, not particularly suspicious
● Looking for things to help them step back from life
● Sense of being on the way somewhere, interested in improving themselves, moving up
● Snapple itself was a model of come from nowhere and make it big time success

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 ● They are in control, not on a power trip, it is control of themselves
● The reaction against colas is the matter of taking back control of their lives
● Snapple is a way to seize the moment
● There is an individualistic ethos and it resonates to individuals making a comeback
● Drinkers fit a fairly narrow taste profile like sweet things, often dislike carbonation
● The drinker is not attracted to pure juice
● It’s not for health nuts, but for people who cleave towards fulsome and flavourful fruits

Snapple’s glory
The Snapple founders decided to increase its growth by hiring professional management. They
approached Carl Gilman a veteran from Seven-Up to run sales and marketing. Gilman increased the
advertising budget to $1 million and intensified the distributor system to the east coast.
They heavily marketed using advertising and pr activities. The advertising agency Kirshenbaum, Bond
& Partners created a spokesperson for Snapple, Wendy Kaufman, a former truck dispatcher with a
brash New York attitude. Her eccentric personality attracted unpaid media attention, and she also
appeared on Oprah and Letterman.

Snapple kept their advertisements simple and real with no reel marketing stunts that would make
consumers suspect Snapple’s success. They received after from a woman who claimed that het dog
named Shane came running every time, he heard a Snapple cap being opened. It was named Shane,
the wonder dog.

From Wendy’s success, Snapple sponsored the radio shows of Howard Stern and Rush Limbaugh.
The brand received on-air endorsement and was often the topic of the two radio hosts’ banter.
Snapple’s sales grew from $80 million in 1989 to $231 million in1992 and $516 million in 1993. Even
with the growth of competition in the “Alternative beverage” category, Snapple remained steady at
30-40% of market share.

Decrease in sales after Quaker acquired Snapple

The reasons for declining in sales of Snapple after acquired by Quaker are:

● The owners of Quaker’s assumed that changing product perception is an easy

task. They wanted to change Snapple from a fashion brand to life style brand.

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 ● They tried to rationalize distribution of both Snapple and Gatorade and
negotiate the deals with distributors, which are unsuccessful. Instead they could
have used the successfully established Snapple’s distribution for Gatorade.
● Several management changes further added to the decline of continuous
Snapple sales.

SWOT Analysis

Strength-
● Wide product line
● Strong brand image
● Strong and meaningful spokesperson
● Well established distribution network

Weakness-

● Lacks the feature that differentiates it from its competitors

● Established as a ‘fashion’ brand and that hampers its consumption
● Lacked consistency in their promotional techniques
● Couldn’t sell their product through supermarket channels
● Had cold relationships with a few public figures

Opportunities-
● Grow their brand as a fashion beverage
● Continuous innovation through customer interpretations
● Launch a few health-conscious products
● Bank through nutritional educational programs
● Establish a clear brand image
● Increase product differentiation

Threat-
● Rapid increase in the number of competitors
● Inclination of consumer demands towards healthier products
● Emerging markets

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A Strategy for Snapple

• A study was done by New Jersey group to help develop an overall communications strategy
to revitalize the brand. It investigated Snapple’s consumers, the culture they live in, and the
dynamics of the ready to drink beverage category.
• The brand had connected strongly with consumers in its early years because it had done
things differently by being natural and real. The research showed that the many changes
Quaker had instituted went directly against these principles, because of which consumers felt
betrayed.
• People make Snapple their own, so it ends up meaning lots of different things to different
people.

Conclusions and Implications

• Regional ethos- Areas that are most ‘settled’, ‘self-satisfied’, are least susceptible to Snapple’s
‘subversive’ appeal
• Authenticity is pivotal- Overstating or misrepresenting Snapple’s health benefits does more
harm than good
• Corporate image influences brand image- It need not be a small company, but should be a
caring company.
• Intermediate character of Snapple is both strength and weakness- As a strength, it broadens
the customer base and market niche and is a source of symbolic power. As a weakness, the
brand can move quickly from hero to villain.
• Become more established- Intensity of Snapple from a ‘fashion water’ to a staple brand like
Pepsi, Coke, Sprite with well-defined benefits and image
• Social influence- Intensity of Snapple use is closely correlated with social presence.
• Community marketing strategies- Build on brand’s personal, local character.