SNAPPLEGROUP 1

ANKIT| ASUTOSH| DISHA| PRIYANK|

SHWETANK| SIDDHARTH| VAMSI

SNAPPLE OVERVIEW

1972• Snappl

e introduced

1994• Sold to

Quaker for $1.7 billion

1997• Sold to

Triarc Beverages for $300 million

• Differentiation• Premium price• Glass bottle rather than cans• More than 50 flavors

• Distributor• 300 small distributors

• Entrepreneurial spirit• Promotion

• Offbeat blend of public relations and advertising

• Advertising ‘Wendy’: the Snapple lady

• ‘100% Natural’ Mantra• 30-40% market share

TAKE OVER BY QUAKER• Snapple was a ‘FUN’ brand before the acquisition

• Attempt to change it to a ‘lifestyle’ brand

• The brand's distribution channels were as unconventional as its promotions. Initially Snapple had very little supermarket coverage, mostly it was cold-channel

• Quaker’s motive for acquisition: to achieve economies of scale by adding more drinks to its portfolio

• It used its leverage with supermarkets to win premium display space and squeezed costs out of the supply chain.

• Problem in new positioning: SNAPPLE ISN'T ABOUT ACCOMPLISHING AN OBJECTIVE; IT'S ABOUT ADDING A LITTLE WHIMSY TO THE HUMDRUM AND THE EVERYDAY.

SWOT ANALYSIS• Strong

Image/Heritage

• Product Line• Full of variety

and flavor• Packaging• Innovative

Advertising

• Multiple management challenges

• Distribution• Regional

differences• Weak in warm

channels• Discontinued

media and advertising

• Brand Image• Popularity of natural

no- preservative fruit juice

• Tap the youth market

Strength Weakness

OpportunitiesThreats

• Volatile consumer preference

• Shift in positioning due to acquisitions

• Ever increasing range of beverage categories

• Lack of Credibility due to false claims and failing to deliver core product attributes

CHALLENGESBrand Image Deteriorating• Snapple fired Wendy• Previous quirky image is obscured by the perception that Snapple is a corporate sell-out

Declining Revenues

• When bought by Triarc, revenue had decreased to half

Competition

• Similar array of fruit juices and tea products

Distribution Issues

• Quaker’s attempts at original distributors had made them angry

TRIARC’S OBJECTIVE

•Reasserting brand identity through increased awareness, meaning transfer and brand image

•To achieve the brand objective, Snapple needs a value proposition that will resonate with its target segment

OPTIONS

CHANGING BRAND ELEMENTS

IDENTIFYING NEW AND COMPLETELY DIFFERENT WAYS

TO USE THE BRAND

GOING BACK TO THE ROOTS

REPOSITIONING THE BRAND

CHANGING BRAND ELEMENTS

IDENTIFYING NEW AND COMPLETELY DIFFERENT WAYS

TO USE THE BRAND

REPOSITIONING THE BRAND

REPOSITIONING THE BRAND

• Current: healthy drink as an alternate to colas and carbonated drinks, authentic and fun filled drink for young people

• Prospective Repositioning:

• For homely, health conscious , concerned mothers

• Advertisements focusing on the female members who will act as influencer for the children and society

• Reassertion as a natural beverage due to the possibility of it being branded along with Gatorade as a sports drink due to its association with it

CHANGING BRAND ELEMENTS

• Health conscious branding with ‘ A Snapple – a-day’ tagline further reinforcing product benefits

• Display of the contents of the drink i.e. fiber, calcium and minerals in a visible manner on the product

• Creation of Doctor Snapple as a character promoting the health consciousness. The logo can be apple shaped to promote the association with health. The negative consequence of such a change would be the bias towards apple drinks with the other products taking a hit

IDENTIFYING NEW AND COMPLETELY DIFFERENT WAYS TO USE THE BRAND

•Use it as a meal drink : Used to flush down the contents of the meal in a healthy manner

•Served as a breakfast drink to the family. This will increase the consumption and hence the frequency

•Use it as a drink in sports events

GOING BACK TO THE ROOTS• Reviving the ‘fun’ image of Snapple among the

consumers

• Authenticity – Appropriate representation of Snapple’s health benefits

• Connections with the caring company – as corporate image influences brand image

• Creating Social Influence – How to create an image of a brand which people want to share

• Developing sensuality of the Snapple experience

• Increase the frequency of using Snapple – Snapple moments

RECOMMENDATION• Snapple has always been associated with its fun and

individualistic image

• Repositioning as a family drink or a drink to have with meals or at sports events will not connect with the audience

• Consumers are more likely to accept the old Snapple

• However we also recommend to change a few brand elements• Packaging could be changed to give it a fun and quirky look

• Adding real fruit elements so that they are visible from the outside

• Logo could be modified

PRODUCT•ATTRIBUTES

•Real, convenient, on the go, a treat, sweet, bright, subversive, urban

•PERSONALITY

•Quirky, fun, modern, independent, creative, rebellious, irrelevant

•Pack size to be revised to small single serve and other packs to be discontinued

PROMOTION• Consumer composed jingles on radio

• Bright artistic and unique packaging to identify

• Promote usage situation in movies

• Unique drink labels such as “Go Bananas” or “What-a-melon”

• Invite Snapple inspired artwork

• Beverage of real people: responding to consumer requests and naming their drink proposals after them

• Bring back Wendy – Consumers have a strong association with her

PRICE• To maintain the familiarity with the old brand, price

will not be tampered with

• Premium Priced

PLACE• Need to explore all channels-cold as well warm

• Outsourcing of distribution can be considered

• Outsourcing to a leading beverage company which is not having

any beverage in alternate category

• Will help in capturing the market initially and increase shelf

visibility

THANK YOU