Report On Snapple: Revitalizing a Brand
Prepared for: Mahbub Hossain
Group Members:
Mahbub Md. Rakib 08-10322-1
Farzana Tuli 08-10322-1
Farzana Tuli 08-10322-1
Farzana Tuli 08-10322-1 ACKNOWLEDMENT 3 EXECUTIVE SUMMARY 4 INTRODUCTION 5 Question-1 How would you characterize Snapple’s brand image and sources of brand equity? What are the strengths and weaknesses of the brand’s existing personality and image? 6 Question-2 Where did Quaker go wrong? What could it have done differently? Is Cadbury in danger of making the same mistakes as Quaker did? 8 Question-3 How effective and appropriate do you think Triarc’s marketing program was? How effective and appropriate do you think
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By 1990s Snapple emerged as a nationally recognized brand.. With the combination of a unique product and package design and colorful advertising the company achieved nationally recognized brand. Later Snapple went through several management system and owners.
Quarker Oats purchased Snapple for $1.7 billion but for poor management system he was unable to capitalize the brand’s previous success. After Quarker sold it to Triarc Beverage Group the brand faced a new challenge to reconnect with consumers.
1. How would you characterize Snapple’s brand image and sources of brand equity? What are the strengths and weaknesses of the brand’s existing personality and image?
Answer:
The roots of Snapple Corporation date back to 1972 in Brooklyn. In 1980s Snapple introduced ready-to-drink fruit juices and iced teas. Snapple was the first company to sell its drinks in single serving wide-mouthed glass bottles rather than aluminum cans. By 1991 Snapple emerged as a nationally recognized brand.
Snapple’s Brand Image:
The image that Snapple has is somewhat like the luxury good for the average person- a Porsche for the poor. It defines itself as new age and quirky. It has some similarities with Red Bull in that it created a product category and did it their own way but it is less edgy and geared more to mainstream America. It has a quirky and a bit of a rebellious everyman vibe. It equity comes from being a
Snapple was created in 1972 in Brooklyn when Mash, Golden, and Greenberg decided to start a business. In 1978 they created an apple pop that was making a “snap” sound when people were opening it, what inspired the creators to give such name to their drink. They bought the rights for a name for a high price of $500. By 1991 Snapple became a nationally recognized brand.
The company now known as Dr Pepper Snapple Group was originally started in 1885 by a young pharmacist named, Charles Alderton, in Waco, TX. According to the Dr Pepper Snapple Group, Dr Pepper is the oldest soft drink in the United States. One of the legends state that the soft drink was named after Dr. Charles T. Pepper, an old Friend of the “Morrison’s Old Corner Drug Store,” owner, Wade Morrison where Mr. Alderton worked. Some say Morrison was thankful to Dr. Pepper for allowing him to marry one of his
Once Quakers took control of snapple they made many mistakes that caused Snapples value to decrease by $1.4B. A lot of these mistakes can be contributed to the fact that they tried to use identical 4 P methods for Snapple and Gatorade. Quakers belived since these methods worked so greatly for Gatordade that they would also work for snapple. In terms of product and price they tried to introduce snapple in a bigger size. Quakers tried to get consumers to buy the more profitable size of Snapple which was 32 and 64 ounces. They believed since these sizes worked so well for gatorade they would also work for Snapple. However, Quakers didn’t take into account that people drink Gatorade when they are extremely thirsty from things such as exercise so they need
Define what is meant by "brand equity" and discuss what a company can do to maintain brand equity.
The Dallas-Fort Worth Metroplex is a great place for business. It is home to multiple companies and their corporate headquarters – and with an international airport, open trade routes, multiple universities and academic institutions – it proves to be the perfect location for businesses and professionals alike. One such company that is headquartered in Plano, TX, and is an example of a thriving organization in the area, is the Dr Pepper Snapple Group. A mostly domestic company, with most of its business located in North American and Mexico, the DPS Group is a manufacturer of nonalcoholic beverages in the beverage industry and is third in overall market share (after Coca-Cola and Pepsico). The beverage industry is steady and growing, but the nonalcoholic beverage portion of the industry is facing many challenges with carbonated soft drinks declining in sales due to a more health-conscious population. Analyzing the DPS Group and how they are dealing with these challenges was very interesting, as I have always been a Dr Pepper fan and would hate to see them go out of business or die out in the market. I have known people who have worked for the company and loved it, and I hope to work for them someday as well. I collected my research on the company through their website, articles and journals, and my own knowledge of the company and research into the company history through a visit to the Dr Pepper museum.
People who consume Snapple say it is “refreshing, tasty, delicious, yummy, healthy, unique, fun, fresh, sweet…” Snapple seems to attract people who are happy, fun loving people. People who are health conscious and want to make healthier decisions when choosing a
The team gathered a wealth of information about the products strengths and weaknesses, but lacked important consumerbrand relationship information. Supplementing the Consumer Insight Team research with the Usage and Attitude Study provided a well rounded customer understanding.
How strong is the brand story? What are the core brand associations and meaning narratives associated with the brand?
One thing that can make or break a company is its brand equity. Brand equity is the value that comes with the familiarity with a company’s branding and the feelings consumers have towards that brand (Brand Equity, n.d.). A company with strong brand equity usually gives consumers a sense of reliability and value; causing a higher inclination to purchase its products. It usually takes
Despite the fact that many small startup premium fruit drink companies stayed small or even disappeared during the period from 1972 to 1993, Snapple was able to flourish. A large part of Snapple avoiding the fate of these other companies can be attributed to how successful it was in utilizing the four Ps of marketing, especially product and promotion.
Quaker wanted to expand their footprint in the beverage industry and add Snapple to create the most innovative distribution system in the industry. They expected the following benefits:
From 1972-1993 Snapple Fruit Juice Company flourished while many startup premium fruit drinks struggled and, in many cases, failed. In fact, most of Snapple's successful competitors during this time were sold to larger distribution companies allowing Snapple to create a Brand image and distribution alliance for the "smaller guy." They were a cult classic, promoted by loud, brash promoters like Howard Stern and Rush Limbaugh who had huge followings of independent, "stick-it-to-the-man" listeners. Snapple also created the legend of Wendy Kaufman, a former truck dispatcher and employee of Snapple. She was an instant success with the kind of style and attitude that matched Snapple's independent image. As the product began
1. Brand awareness – being a newcomer in the market will create difficulty in gaining acknowledgement; however, I feel we have a terrific product and a solid business model that will eventually speak for itself.
Starbucks has always taken exceptional care in keeping its brand value. In fact, Starbucks prides itself in its brand, particularly the power it has to keep its customer base strong. Before analyzing this loyal customer base it is best to consider the particular characteristics of the brand that has led to Starbucks having such devoted patrons.
Other key marketing mix failures that affected Snapple in the Quaker era fall under the promotion and product umbrellas. Quaker did not follow regular advertising schedules, ceased Snapple’s partnership with Wendy Kaufman, and beside reducing the numbers of flavors available, was also unable to introduce new ones quickly enough. The started selling the product in larger sizes (32 and 64 ounces bottle), but this initiative was another flop: bottles of that size were suitable for Gatorade, not for a leisure beverage like Snapple, customers simply would not buy it. These choices elicited negative response in consumers who stopped perceiving Snapple as a funky and fashionable brand; the beverage’s healthy reputation was damaged too. It is rather clear that Quaker’s executives did not fully understand the Snapple brand and erroneously modified its marketing mix. This failure resulted in the rise of a deleterious discrepancy between the experiential value and benefits customers were used to and expected form Snapple, and the brand’s altered nature. In synthesis, Quaker tried to transplant a marketing mix and execution strategy to a recipient who was not suitable for it, and Snapple, its distributors, and its customers ultimately suffered from