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Snapple Case Study

Decent Essays

Problem:
Develop a strategy for Snapple 's recovery after a three year trend of declining sales under the management of Triarc Companies. Sales had declined almost 35% in three years (from $674 MM in 1994 to $440 MM in 1997) and had the profile that the company had achieved great success with was diminished.
Issues
History:

• Small company origins based on authenticity and trust in consumers eyes. (ref. Exhibit 6 – Pivotal Characteristics) This was evident in the initial mantra of the company "100% Natural" even before the company became Snapple (Unadulterated Food Products, 1972). o The purchase by Quaker and subsequent changes left the consumers feeling betrayed and left the impression of Snapple "selling-out".
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Alignment of the product, image and company atmosphere will help to restore the consumer confidence from the perceived "sell-out" of the Quaker ownership era.
The quirky image and promotion of the brand should also be established where possible. Returning "Wendy" or another person that can exude the genuine, personal message of the company will play a big part in the return of the brand message. Since the brand and its message is interpreted differently regionally, from fashion forward in New York to healthy in St. Louis (see Exhibit 6), a whimsical and endearing persona will help to relate to the brand on multiple levels. As Ken Gilbert indicated, "People make Snapple their own, so it end up meaning lots of different things to lots of different people." Because of this the multi-level appeal is necessary to restore.
With the conscious efforts in restoring the perception to the consumer, special efforts must be made to restore confidence in the brand to the distributors. Assurance that they are a valued part of the Snapple brand 's success and that they will be the major force in the cold and warm markets, will be needed to keep them interested in distributing the Snapple product. With competition in the market fierce, maintaining the product presence in the important cold market has a large dependency on the distributor.
Another part of the strategy that will be needed for the

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