Stay Home, Stay Safe:
but our services are available.

Snapple Brand

18 Pages   |   5,843 Words
Initial Impressions and Early Objective
The Snapple brand was created in 1972 by three friends and was built from nothing to sales of $674 million per year by 1994. The reason for the triumph of Snapple can be attributed to the following brand characteristics and marketing strategies adopted by the company: Aggressive distribution and customer loyalty strategy. The company had an image of fun and irreverence that was supported through the marketing campaign which was centered on customer relationship, regular people. Wendy Kaufman became the face of Snapple on TV and her penchant for answering fan mail on air helped the company’s quirky positioning. This helped Snapple connect with the public in general. For example, Snapple relied on their most zealous customers for product and packaging ideas.
Snapple is a very dominant brand in the category of alternative beverage. However, the company is currently going through a period of recession. The will now really make some plans to revitalize again after being purchased by the Triarc Beverage Group. No doubt, Triarc has experience to deal with such troubled companies and can manage the company in bad situation. However, it should also be kept in mind that Snapple is a much larger company and can really pose a trouble for The Triarc. It will be a challenging task to manage and integrate the Snapple that already have a large network of distributors across the globe (Burns, 1996).
Snapple was a success because it was real and authentic, the brand pivoted on trust. This trust made the “100% natural” not just a mantra but a belief. The prices were an indication of quality rather than exploitation.

Yes, We Can Help!

We promise to deliver high quality papers on time which will improve your grades. Get help now!

Plagiarism Free Work
Best Price Guarantee
100% Money Back Guarantee
Top Quality Work
Snapple consumption was driven and in large parts a reaction against colas and an attempt to take control of life from the “big bad wolf”. On the other hand Snapple’s distribution channels and promotions were unconventional and had very little supermarket coverage.
The reasons that played a role in the success of Snapple should be analyzed to understand the issues of its failure. Definitely, the strengths and characteristics of Snapple as a company are very important to understand the popularity of the brand name and the company. These characteristics will be helpful to investigate the reasons of failure and the strategy, Triarc should adopt for the success of the brand. Initially, Snapple was not a bigger company and its services were totally based on the trust and authenticity of the consumers. The main products that played a role in Snapple’s success were fruit juices and the teas. Quaker made an effort to pair the two brands, Snapple and the Gatorade to expand the company internationally (Burns, 1996). 
  Gatorade Snapple
Target Market Global, Athletes, teams Niche, Trend setters
Product Large quantity consumption
Energy drink
Small quantity consumption
natural juices, Authentic
Price NA premium pricing strategies
Promotion and Communications Tradition or classic textbook communications
Lifestyle brand imagery
Spokesperson: Michael Jordan
Unconventional communications approach
Fashion brand imagery (Snapple wasn’t   about accomplishing an objective; it was about adding a little whimsy to the humdrum and the everyday.)
Spokesperson: Wendy (employee), Howard and Rush to create quirky, individualist image
Place (Distribution) Warm channel (supply chain and supermarkets) Cold channel (delis, pizza parlors)
The clash of the culture can be considered as the main reason for the failure of the Quaker and its co-brand Snapple. The Quaker failed to align the two different strategies together, the highly focused market operating style could not align well with the distributor oriented style of the Snapple. Both the stakeholders had to face the loss ultimately for miss-management. Quaker followed the Gatorade approach towards the achievement orientations, completely in contrast to the Snapple’s objective. This remarkable difference in the approach of both the companies proved to be the major reason for the failure of their incorporation under the head of Quaker (Burns, 1996).
Quaker’s acquisition of the Snapple brand failed as a result of several factors, some of which include:
  • Distribution system different
    • Gatorade mass market operating style
    • Snapple’s quirky, entrepreneurial and distributor oriented style
    • Cold channel for Snapple
    • Warm channel for Gatorade
  • Brand positioning was different: Gatorade was about sports and a high-energy, athletic image for top performers. Snapple, on the other hand, had always been promoted as New Age and healthy alternative to standard soft drink brands with no defined benefits. 
  • Imagery different:
    • Gatorade - lifestyle brand
    •  Snapple - fashion brand
  • Advertising:
    • Controversy laden for Snapple with offbeat public relations and radio shows and games
    • Conventional textbook advertising as a energy drink for Gatorade
    • Gatorade could be sold in several large packages as it was consumed in large quantities
    • Snapple was better as a one-off purchase to be consumed as an enjoyment
Both were growing sectors, so it would have been difficult for Quaker to focus on the growth of both the products.

There are numerous strategies to be implemented to regain the same vigor of the Snapple. (Ellias 2006).
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 consumer’s needs. Both qualitative and quantitative researches should be engaged, in order to gain an in-depth understanding of consumer’s behavior. Brand tracking to establish consumers understanding of Snapple, their responses to competitor beverages, to establish consumer’s wants and needs and to establish Snapple’s key demographic and target market as well as cost benefits 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)
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 recommended, in order to increase Snapple’s brand awareness and brand image (John, 2002)
Triarc should take serious measures to increase the market share of the Snapple and give the sales volume a boost. The Snapple Lady “Wendy Kaufman” should be reinstated back along with Howard Stern to reconnect to the consumers. There should be a planned advertising campaign, both in the electronic and print media to take back the older days of Snapple and revive the brand. The distributors should be assured of the loyalty and trust. There should be an independent network of distributors. The brand’s original message “100% pure” should be again used to attract the consumers. Moreover, there should be no change in the bottling or labeling of the products (Burns, 1996).
Understand the Company
Strength: The strength of the Snapple is hidden in its strategies that were adopted gain a huge market share. Following are the key strengths of the Snapple:
  • Snapple Slogan “100% natural”
  • Launching natural products like teas and fruit juices to attract the customers and making the Snapple a favorite brand.
  • Snapple focused on a very small geographical area to concentrate its consumers and easily manage its distribution.
  • Company adopted an image of irreverence and fun to attract more people but with logical marketing and reality.
  • Individual distributors played a major role in the Snapple success and the distributors were independent to carry out their marketing and earn as much as they want.
  • Snapple created an image as an alternative brand to attract the individualists and the rebels too.
  • Gatorade and Snapple had different brand images: lifestyle and fashion respectively which created the confusion to the customers as the brand portfolio was not properly managed. Brand values and meaning are related to consumer’s perception of belonging a loyalty of the brand (Quester, 2006). It lacked compelling reason for use. Mainly due to the discontinuance of Wendy and Stern, brand loyalty was lost which impacted Snapple’s financial performance (Leiser, 2004).
  • Inconsistent usage rate
  • Lack of presence in the west cost alternative beverage market
  • Only a single niche/alternative market
  • Small market distribution channels with contractors for life can limit the ultimate throughput volume
  • Due to the emotional image the sales appeared to be concentrated to the corporate market only
  • Purchased only in single serving at a time never sold in bulk quantities due to the claim of natural beverage
  • Snapple was perceived as a fashion drink only and had very difficult emotional marketing component
  • Snapple’s early entry to health conscious beverage market involved little competition which helped to establish its well-known brand. Consumer’s buying decision involves recognition of problems or product needs subsequently searching for product information, valuation of alternatives, purchase and then post purchase evaluation (Pride, 2006.)
  • Entering the quirky beverage market in the west coast
  • Snapple had the advantage of using the original founders as consultants to promote products or carry a media marketing campaign
  • Increasing the market on the message of reduced calorie option
  • Influence the brand image being a smaller one and negating the mass market
Threats: Snapple’s rumors had an impact on brand image, consumer’s brand loyalty and brand quality. The quality, design, features, cost and prices are the consideration for consumers purchasing decisions. Price of a product is based on the consumer’s perception of the value (Leiser, 2004). Consumers will switch for the lower price product when there is no large differentiation between the products (Thavaraj, 1976).
  • There was an additional competition in the alternative drink market
  • It seemed to stay very true for a longer period of time when the sales exceeded tremendously beyond the expectations.
  • Health conscious people demanding drinks having high caloric values
  • Negative attitude of the distributors could harm the brand name and delivery chain
Understand the Market (5 Cs)
Company: Snapple has established its name as the leading brand in the alternative beverage market. One of the dangers of a brand in decline is that it could be viewed as irrelevant and not innovative of today’s buyer. Snapple is offered in a variety of flavors with imaginative product flavor names. Snapple also developed association between its product and the like of Howard Stern, Rush Limbaugh and Wendy Kaufman. This association appealed to the consumer’s sense of being different and offbeat.
The company was properly managed in the boom years. Alternative beverage industry is really a monopolistic world and you have many competitors to compete here. There are many differential factors among the companies which makes them unique among each other. The main factors include; pricing, quality, attributes of the product, and other things matter too. The main posed challenges that every company has to face are the distribution network and the investments required for flourishing the products to the entire area under coverage. Snapple has currently about 35 to 40 % market shares in the category of alternative beverage (Kotler).
Customers: Snapple is not for the idle. But Snapple is not the drink of the really serious athlete. Snapple drinkers are open to experiences, not particularly suspicious. The major customers of the Snapple are the people who are eager to improve their health buy using natural drinks. This factor has proved to be a very successful marketing tool to attract the consumers by introducing the innovative products having natural ingredients (Burns, 1996).
Competitors: The alternative beverages industry is a monopolistic competition. The many competitors in this market differentiate themselves in multiple manners including, pricing, product attributes, product quality, etc. The competitors of the Snapple in the market include; Spary, Ocean, and Arizona. These competitors are very active and are continuously competing with Snapple by increasing their market share like Snapple. These competitors are continuously improving their distributions channels and the following various golden marketing strategies for their success. The new companies that have entered the alternative beverage market are adopting the strategy of niche marketing and are proved to be very successful initially (Bryant, 1993).
Other similar product types in the market include; substitute and indirect competitors. These products include; bottled water, sports drinks, natural drinks, and other natural beverages. Since, there is wide variety of products in the market to chose from, the success of the company lies in the creating an attractive an appealing products to create a demand in the minds of the consumers (Deighton, 2003).

Collaborations: In the U.S and Canada Snapple has got license agreement for the CSD packages and brands to bottlers for particular geographic areas. On the other hand Snapple also entered in to agreements with PepsiCo and Coca-Cola for distribution in different territories.
Context: In the normal course of business Snapple is subject to a variety of federal, state and local environment, health and safety laws and regulations. We maintain environmental, health and safety policies and a quality, environmental, health and safety program designed to ensure compliance with applicable laws and regulations. The cost of such compliance measures does not have a material financial impact on the operations. Source: Snapple Group, Inc.

Understand the Opportunity
Weinstein can achieve success in his strategies easily by looking at the past performance and success of the Snapple. Weinstein should set a stage of different strategies to be followed and then implementing them step by step to achieve the goals to take back the previous authoritative and attractive status of the Snapple. There should be a profit exchange marketing campaign initiated to persuade the users to rely on the Snapple products. The main objective of Weinstein should be to focus on the product, place, and promotion/position to carry the strategies in a successful way (Burns, 1996).
Weinstein should try to mold the objective to achieve the targets. To refine the objective, the initial step should be to make Snapple a popular brand again as much as possible to get back to the older days. Then it’s the Tiarc’s responsibility to make the products labeled in the Snapple’s way and making them highly recognizable for the consumers (Elliot, 1997).
The objectives should be clear and realistic approach should be carried out to get the targets. There should be a quantitative analysis of the statistics and the development should be noted in terms of progress made against the efforts put into the cause. Timeline results should be noted so that the progress is evaluated and discussed. On the basis of all this information, a precise report should be made indicating the future objectives and strategies (Elliot, 1997).
Segmentation: Company’s Beverage concentrate segment is the brand ownership business. It sells and manufactures beverages concentrates in Canada and United States. key brands includes 7up, Dr Pepper, Sunkist Soda, Dry, Crush, A&W, Canada Schweppens, Rc Cola, Squirt, Diet Rite, Welch’s, Vernors, Sundrop, Country Time and concentrate form of the Hawaiian Punch.
Company’s Beverages segment is the brand ownership, distribution and manufacturing business. It primarily distributes and manufactures packaged beverages and also other products, which includes its own brands, 3rd party owned brands and also private labeled beverages in Canada and United States
Targeting: Snapple is not the drink of the serious athlete, but it is not for the idle either. Its largest audience should be health-conscious consumers with youthful attitude. The brand appeals to both older and younger consumers. They know that (a) Snapple is an alternative to carbonated beverages; (b) it is for them when they are on the go in between activities, (c) it is a healthy alternative, and (d) it is sensual, stimulating and soothing
Positioning: Snapple built its brand position almost as a "counter-brand" enlisting the consumer and the distributor network in its quest for success. Snapple's strategy is similar to others in the tradition of advertising self-deprecation: Volkswagen, Burger King and, especially, Avis. A powerful part of the strategy is that Snapple does not appear to take itself too seriously and the marketing remains refreshing

Create Value
  • With many brands available in the market of Beverages Snapple focused mainly on brand recognition and brand image; employing the consumer-based brand equity framework. Broadening its product line to provide a variety of flavors to its consumers was one of Snapple’s marketing strategies. Extending the product line with an established brand name to enter different market segments, a reduction in introductory marketing expenses and high prospects of success will be achieved. In addition Snapple provided experiential benefits to its consumers through Snapple’s full and exotic tastes (Andre & Granger, 1966).
Snapple has very easily established its name in the market and the main reason for it is the selection of the niche products falling in the category of alternative beverages. The slogan of the Snapple (100 % natural) proved to be a real magic to gain the required fame. The products include sports drinks, natural juices, and variety of other beverages (Feder, 1997).
  • Snapple Loyalists
  • Juice Drinkers
  • Sports Drink Drinkers
  • Soda Drinkers
  • A premium pricing strategy was employed as Snapple targeted at the niche, Premium beverage market. It had price as an indicator of quality and is consistent with its positioning strategy (Andre & Granger, 1966).
The overall beverage market falls within the $5 billion on the wholesale level. There is a flexible demand of these products in the market and it is the key idea to focus on the limited market in a small area. The Snapple did the same thing and got its success in the old days. The new strategy should also focus on the right selection of the place for its promotion and sale, (Gilpin, 1997).
  • A free source of communication was achieved through the success of the entrepreneurial founders that led Snapple being reported by several Medias, many times. This helped to enhance consumer’s brand awareness, through the increase in brand recognition and brand recall (Keller & Lane, 2003). This resulted in an overall increase in Snapple’s brand equity.
  • As one of their marketing strategies, Snapple focused on the method of distribution of its beverages. Indirect channel distribution marketing strategy was exploited, that made the distributors having an important role to play on the impact of Snapple’s brand equity (Robert & Shelby, 1994). This can be affected through the store image portrayed and also the display of Snapple’s beverage in stores.
Value Proposition Statement
Snapple’s value proposition statement impacts in the mind of a customer as an all natural product which caters to each and everyone with the offering of a vast range of flavors.

Decision making unit
A DMU is known as a group of individuals who take part in the vital decision making process. They share common goals in order to arrive at decisions that will aid them in the process of achieving these objectives and also share alike the risks involved within the decision making process. When it comes to failed decisions the common theme is that a majority of them could have been prevented. Failure can stem from blunders made by unsuspecting decision makers and one of the most quoted debacles of a floundering business decision was when Quaker’s acquisitioned Snapple without regard to its unique characteristics and operational behavior. The present Snapple DMU consists of Dr. Pepper Snapple Group Director Board, Executive Officers and the Operating Management.

Decision making process
Snapple manager’s are well aware of the value of getting others in the organization to take part in the decision making process. For example they have identified policy makers, purchases, technologists, influencers, users as important groups who can greatly influence the company strategies for progress. A fashion sensitive and quirky brand such as Snapple should also integrate distributors as a part of their decision making process in order to facilitate understanding the reorder volumes and their consumer’s different preferences.
Hierarchy of effects

Buyers are ready to purchase Snapple’s all natural, low calorie variety of beverage range provided the company meet the expectations put forward by a verity of customers including health conscious and younger generations. By taking in to account a proper and sustainable marketing strategy Snapple could target and expand their market segment as they possess a huge buying power and potential in the beverage industry.
The 5M’s

Snapple is today available in more than 80 countries across the world and in every state of the US.  At present it is part of the Dr. Pepper Snapple Group based in Texas, producing an impressive range of over 70 flavors of fruit juices, teas and lemonades. Snapple’s mission statement reflects the brand uniqueness which states that all beverages produced under the brand name are “Made from the best stuff on earth”.

The Snapple reputation has been achieved through a number of creative processes. However, one fact that is predominantly mentioned in relation to the Snapple brand is its innovativeness and uniqueness in promotion and distribution strategies. Snapple helps consumers to stay young in body, mind and heart.
Snapple strongly believe in being involved in appropriate media campaigns. The company has been involved in sponsorships of competitions, events in addition to committing funds for disaster relief programs. The Dr. Pepper Snapple Group recently committed a significant $1.2mn for the environmental conversation and disaster relief in a contract with the Student Conservation Association and the American Red Cross.
Snapple has been frequently cited as one the influential companies in the beverage industry providing value for money in relation to their range of all natural products.
Snapple products are considered as a high value purchase by consumers due to its all natural ingredients, exotic flavors that gives high value for all the health conscious consumers and particularly popular among the younger generation.
Capture Value
Pricing Strategy
A premium pricing strategy was employed as Snapple targeted at the niche, Premium beverage market. It had price as an indicator of quality and is consistent with its positioning strategy (Andre & Granger, 1966). Although not all products succeed, the loyalty of customers assisted Snapple in driving market share in targeted market.
To further promote positive marketing strategies, Snapple should constantly review its pricing strategy against competitors and also reviewed consumer’s perception of value. Solely relying in its brand would be detrimental. To create a value for the brand, Snapple should carefully take steps to analyze the pricing after comparing it with its competitors. This will be beneficial in the longer run for the company to re-organize it and focus on the consumers with better price offering (Feder, 1996).
Sustaining Value
Customer Acquisition: Snapple acquires customers by providing new solutions to meet consumers’ changing preferences and needs. Snapple identifies these preferences and needs and develop innovative solution to address the opportunities. Solutions include new and formulated products, improved packaging design, pricing and enhanced availability (Mathews Hayward and Don Hambrick of Columbia University)
Customer Retention: Snapple has different strategies to retain their customers by using advertising, media, sponsorship, merchandising, public relations and promotion to provide maximum impact of their brands and creating awareness about their brands by passing on messages and retain more and more customer by having continuous communication through different mediums (Mathews Hayward and Don Hambrick of Columbia University)
The Dr. Pepper Snapple Group which was established in 2007 is the integrated manufacturer, brand owner and distributor of a range of non alcoholic beverages in the US, Mexico and Canada including the quirky Snapple brand. The present profitability analysis of the DPS group is as follows:
Profit Per 24-bottle Case
Retailer’s price to consumer$19 in supermarket, $24 on street
Distributor’s selling price to retailer$15 to supermarket, $19 to street
Manufacturer’s selling price to distributor$10
Cost of goods (contract manufacturing)$ 6
Advertising and promotion$ 2
Profit before general and administrative costs$ 2
Source: Triarc Company estimates
Earnings per Share 2.17 TTM
Current P/E ratio 17.05
Annual Dividend $1.00
Cash Flow $3.38
Book Value $10.98
EBITDA $1.26 Bn
Gross Margin 62.00% TTM
Operating Margin 22.40% TTM
Market Cap $8.44bn
Profit Margin 9.40%
Price to Book Value 3.38 TTM
Price / Cash flow 11.00 TTM

The Gross profit margin rankings of DPS

Industry -   1 from 15 in the soft drinks beverages industry
Sector – 13 from 392 in the consumer goods sector
Overall – 1179 from 3946
As at the end of 3Q of 2010 DPS gross profit margin stood at 60.76%. This is the difference between cost of goods sold and the total sales divides by company revenue. The ratio is an indicator of the relationship between the company’s sales revenue and gross profit.
Sustainable competitive advantage
In late 1994, Quaker Oats bought over the Snapple Beverage for $1.7bn. Analysis’s calculated at the time, Quaker has paid approximately $1billion over the Snapple real time value. Attempting to reach a sustainable competitive advantage through acquisitions and mergers introduces the concept of efficient market wall. If a particular industry is known to be profitable, there will inevitably be other companies bidding on assets already existing in the market. Amidst the many disastrous acquisitions environment today, Quakers handling of Snapple remains as the quintessence of what should not be done in facing this efficient market wall. Though many mergers have failed to yield anticipated and projected returns, the Quaker failure is remarkable for its sheer magnitude, particularly in the face of the company’s marketing knowhow, financial resources and striking success in the beverage industry. Had Quaker attempted to minimize damage with a few alternative steps, the company would have saved at least $1.4bn. Most notably was Quaker’s failure in identifying and maintaining this quirky and upstart little brand’s strategic position which highly applied to the younger and health conscious people of the nation. Snapple possess a unique and unconventional promotional and distribution strategy of its own. Propelled by a quest to expand Quaker’s beverage portfolio and capture larger economies of scale, the company ignored the Snapple brand’s uniqueness and ultimately made compromises and many inconsistencies which greatly undermined Snapple’s sustainable competitive advantage.
Evaluation Metrics
Snapple ROI figures are an indication of its management effectiveness and in measuring opportunities of the company by means of metric. The Snapple management effectiveness is reflected in the ROI figures given below:
DPS ROI – 6.83%
Industry ROI – 6.85%
Sector ROI – 2.40%
ROI Calculation for Snapple Investment                                $ millions
  1997 1998 1999 2000
Revenues 550 616 689.92 772.71
Operating Margin       10%
EBITDA       77.27104
EV/EBITDA       10
Enterprise Value (2000)       772.7104
Purchase Value  (1997) 300      
IRR 37.08%      
Assume revenue growth of 12%
Source: Triarc Annual Reports 97,98,99,00.
Execute, Observe, record
Snapple brand was sold to Triarc Beverage Group, a company which has experience in buying and selling troubled companies. Their Goal was to attempt to revitalize the brand by using a revamped marketing strategy designed through research conducted by the Culture Analysis Group.
In order for Triarc to restore the Snapple image to its success of the late eighties and early nineties Snapple’s original image must be regained. Regardless of the types of innovations employed, the marketing strategy and implementation should always focus on its core brand value. Building brand equity requires firms to recognize the needs of their customers through research in order to gain in depth understanding of the consumer’s behavior, needs, and wants. Regardless of the types of strategies employed, it should always focus on its core brand value to ensure consistency. Extension of distribution channel to the west coast and internationally to reach broader consumers is recommended once East coast market is regained its market share. Hence building a strong connection and relationship with distributor is vital of Triarc. It is extremely important for Triarc to constantly access the target market’s consumption behaviors and enhance the product lines.
All the strategies should be executed perfectly to get the results and these strategies should be carried only after making strong observations and recording the facts and figures to make a successful working plan (Burns, 1996).
Alternative strategies might have been a change in the packaging, bottling, and distribution of Snapple.  This strategy would likely further alienate consumers, and in particular, Snapple loyalists, a market segment which has already decreased over the past several years.  In addition, a Pepsi or Coca-Cola-style mass media advertising campaign which is highly commercialized and slick will also alienate Snapple loyalists.  Snapple must return to its roots, which means being offbeat and quirky, and appealing to consumers through its sincerity and liability (Burns, 1996).
Re – Do (Work the plan)
The whole plan that is sort out after long discussions and meetings should be executed properly otherwise it will be just a piece of paper. For this, the facts should be evaluated on the statistical basis, the results should be re-analyzed, innovative approach should be adopted, adjustments should be made quickly, plan should be revised if it is needed to do so, and finally the revised plan should be properly implemented to achieve the targets (Beckwith, 1997).
Reposition Snapple’s Image: Snapple should be marketed with re-focus on the “100 % natural” brand image without overstating or misrepresenting the health benefits. By doing this, Snapple’s can fully target health conscious customers.
Rebuild its independent Network of Distributors: Snapple had large number of individual distributors in the past. However under Quaker’s management the independent distribution network was completely dismantled. Quaker’s management focused on shipping directly from its warehouse to supermarkets via a mass market operating style system. As a result they lost the trust of long term distributors. Hence now Triarc must rebuild Snapple’s long-term relationship with its 300 plus distributors in the East Cost concentrating in the cold channel. This will be advantageous to Snapple brand in reestablishing its market share on the east coast.
Redesign the look of Snapple: Triarc has to revert back to the original bottle size of 16 ounces with a focus on single purchase and discontinue of the larger packages. Triarc should also redesign the product label in such a way that it attracts more people. Since, Snapple is not a brand like Coco-Cola and Pepsi, it is important for them to attract customer through its appearances. The appearances of hand painted Chinese ceramic containers from Arizona Iced Tea have proven to be an attraction for the new consumers. Snapple has to adopt similar strategies to attract more customers with illustrations that it is quirky and fun throughout. This marketing strategy could also be used to announce the new management of the company and the movement back to the “old glory” days of Snapple.
Increase Advertising: In the interim Snapple must increase its intensity to promote the product and recover its previous image. Triarc has to bring back the passion of the brand, reformulate its advertising strategy, recreate events/programs with spokes people that consumers can relate to.
Differentiation Strategy: The competition is very high and many competitors share Snapple claim of 100% Natural and Low calorie beverages. Hence Snapple has to differentiate itself from its competitors by producing huge varieties of products that satisfy the needs of different market segments/regions. Product introduction is vital to Snapple’s success and funding should be allotted for continuous R&D and experimentation. This would reposition Snapple as a highly differentiated unique product.
I recommend that that Tiarc’s new strategy for Snapple is to rebuild the marketing plan to revitalize the brand to increase sales volume for the Snapple brand.  The strategy to include get back to basics by refocusing on what specifically made the brand initially successful. It should bring back the passion of the brand by recreate Wendy “Snapple Lady” alike to connect with its consumers.  And lastly the company must once again regain the loyalty and trust it previously enjoyed among its distributors, and develop a new an extensive  dependable network of independent distributors much as in its roots (Burns, 1996).
Decision making unit (DMU) should be established to carry out the market research and design recommendations for the marketing team to accomplish the tasks of promotion and regulating the distributors. Decision making process should include all the members on board (Feder, 1997).

Beckwith, H (1997) Selling the Invisible: A Field Guide to Modern Marketing. Warner Bros,  Inc. New York, NY
Burns, Greg, "Crunch Time at Quaker Oats," Business Week, September 23, 1996, p. 70.
Bryant, Adam, Market Place; In Snapple, investors see a glass either half-empty or half-full. Published: February 4, 1993
Deighton, John (2003). Snapple, Boston, MA: Harvard Business School Press.  Kotler, Philip and Keller, Kevin Marketing Management, 13th edition, Prentice Hall
Elliot, Stuart, Market Place; Snapple shares are flying high, but some analysts see a fall. Published: June 6, 1997
Ellias, Sam (2006), ‘The Future Beverage Experience’. Beverage World, vol.125 issue12, p52-53
Feder, Barnaby, Quaker to Sell Snapple for $300 Million Published: July 20, 1996
Feder, Barnaby, New owner of Snapple brings back its most, uh, unforgettable endorser. Published: March 28, 1997
Glen Collins, “On the front lines of the Beverages Wars: The life of a Snapple Distributor, Surviving Robbers, Illegal Parkers and the Usual Cutthroat Competition”, the New York Times, December 3, 1997.
Gilpin, Kenneth, Snapple's new owners see not a crisis, but an opportunity. Published: April 2, 1997
Gilpin, Kenneth, Snapple Is an Over-the-Counter Success Published: April 2, 1997
Gilpin, Kenneth, Resignation at Quaker Oats Over Snapple's Poor Sales Published: December 16, 1992
Hartley, Robert F. (1998), Marketing Mistakes and Successes, 7th edition, John Wiley & Sons
John, Deighton (2002) ‘How a Juice Brand Came Back to Life’, HBS Working Knowledge, February,2002.
John Deighton, “Snapple,” Harvard Business Review (December 2003): 1-3. Vivian Manning, “Snapple”, November14, 2005
Kotler, Philip and Keller, Kevin Marketing Management, 13th edition, Prentice Hall.
Keller, Kevin Lane (2003), Strategic Brand Management: Building, Measuring and Managing Brand Equity, 2nd edition, Upper Saddle River, NJ: Prentice Hall.
Leiser, Michael (2004), ‘Understanding Brand’s Value: Advancing Brand Equity Tracking to Brand Equity Management’, Handbook of Business Strategy, vol.5, issue 1, pp. 217-221.
Morgan, Robert M. & Hunt, Shelby D. (1994), ‘The Commitment-Trust Theory of Relationship Marketing’, Journal of Marketing, vol.58 No.3, pp. 20-38.
Pride, W.M, Eliott,G., Rundel-Thiele, S., Waller, D., Paladino A. & Farrell O.C (2006), Marketing: Core Concepts and Applications, 1st ed., Asia-Pacific Milton, Australia: John Wiley & Sons.
Prince, Greg, “ Come Together,’’ Beverages World, December 1995
Peshkin, Alan (1993), ‘The Goodness of Qualitative Research’, Educational Researcher, vol.22, issue 2, pp. 23-29.
Quester, Pascale (2006), ‘Brand-Personal Values Fit and Brand Meanings: Exploring the Individual Values Play in Ongoing Brand Loyalty in Extreme Sports Subcultures.’ Advances in Consumer Research 2006, vol. 33 issue 1, pp.21-27.
Thavaraj, M.J.K.(1976), ‘Pricing and the Consumer’, Social Scientist, vol. 4, issue 10, pp. 58-64.
Wayne, Leslie, Snap Back, Published: July 20, 1994

Download Full Answer

Order Now