Case Study Of Shanpple

The soft drink was first created in 1783 when Jean Jacob schweppe invented Carbonated water. A young pharmacist from Waco, Texas named Charles Alderton invented Dr Pepper in 1885. He served it the drugstore he worked in. The soft drink was named after the owner of the drug store named Dr. Charles Pepper. About a hundred years later three new yorkian health food store owners made a new apple soda and was named Snapple. Snapples were originally sold in health clubs in 1973. The beginning corporation owners of Snapple was known as Unadulterated Food Corporation, then later became Snapple Beverage Corp. In 1995 Dr Pepper was bought by Cadbury Schweppes. Later in 2000 Snapple was also bought by Cadbury Schweppes. “In 2003, the four North American beverage companies under Cadbury Schweppes – Dr Pepper/Seven Up, Inc., Snapple Beverage Corp., Mott's and Bebidas Mexico – were unified under a common vision, business strategy and management structure to become Cadbury Schweppes Americas Beverages” (Dr Pepper Snapple Group). Dr Pepper now “is a leading producer of flavored beverages in North America and the Caribbean. Our success is fueled by more than 50 brands that are synonymous with refreshment, fun and flavor. We have 7 of the top 10 non-cola soft drinks, and 9 of our 10 leading brands are No. 1 or No. 2 in

Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.

Snapple is positioned as a premium brand. The premium product that is “available to anyone”. Being so in 1993, the price is still remains a luxury. With the purchase of Snapple, Cadbury became a leader in non-carbonated premium New Age beverage. (Plus, as was discussed during the lecture, a product can’t set the price smaller than the whole company, so there is no way that Snapple will have not a premium price being a part of Cadbury).

Snapple was a brand that just wanted to have fun and the team at Triarc understand this and embodied it. The Triarc team took many steps to undo the damage Quakers had done to Snapple. Triarc discountined the hated 32 and 64 ounce snapple. Unlike Quakers Triarc was not scared to introduce new products to the market. Quakers saw new products as a risk while Triarc saw them as an opportunity. Triarc knew when they introduced a new product to the market their development cost would be covered or at least almost fully covered so they were not scared to introduce new products even if they werent a success. In light of this Triarc rehired Wendy Kaufman and introduced a new line of products called Wendys tropical inspiration. This give-it-a-go approach paid off again in the future when Triarc introduced an extension of Snapple called Elements which in just a few months had grown to contribute 15% of Snapples total sales. Through these many techniques Triarc won back the trust of Snapples old distributors and helped bring back Snapple to its forme

The following plan outlines a marketing strategy for Vincor’s Project Twist which is the launch of a new alcoholic beverage in the refreshment category. The decision concerns details regarding the positioning and marketing issues such as labels, bottles, prices, carriers and flavours required to create a new refreshment beverage to bring forth in the market.

could be geared towards females in an attempt to capture drinkers of Coca Cola’s Tab. In addition, males’ ages 35 to 54 consume energy beverages at a rate slightly lower than males under age 24. An energy beverage with similar stimulant effects as most energy drinks but has other health benefits (i.e. Vitamin Water, Odwalla, Naked) could also attract the abovementioned consumers.

They have focused on building brand recognition and profitability by growing the business gaining assets to grow the company and products for greater customer satisfaction (About GMCR, 2004-2009). GMCR’s strategy to incorporate current large brands, such as Tully’s, Diedrich, and Keurig has helped to expand their customer base and satisfaction as well as the markets for their products (Phillips, 2011). Their focus on increasing their market shares in other companies will facilitate their expansion into new geographical markets and promote the brand. GMCR’s partnership with Keurig creates a larger consumer choice and the addition of agreements to create portion packs for the Keurig with companies such as Starbucks, Dunkin Donuts, and Newman’s Own helps set them apart from the competition (Invest in the Markets, 2011).

| Weaknesses: * Pays extra payment for new flavor. * More expensive to produce than other sports drinks. * Deciding the segment to target. * How to position the product in the mind of its potential consumers

Innovation is important to both distribution channels, but more important to the finished goods model since the juice category has seen a decrease on both volume and market share. At the same time the carbonated soft drinks market has grown in both volume and market share. In order to increase the volume sold in the juice aisle a brand extension should be developed. By adding more SKU’s and promoting to the eight to twelve year old group, sales

Gatorade has emerged as the global leader in sports nutrition beverages by continually managing their brand to signify high energy, athletic excellence combine with one of the most efficient new product development and introduced processes in the beverage industry. As a result of being able to consistently synchronize these many components of their business so well, Gatorade today holds a 75% market share in the sports nutrition market globally today. Gatorade is owned by PepsiCo, which has made it possible for the company to sell in 80 countries today. Gatorade relies heavily on the PepsiCo distribution and retail network globally. Gatorades' revolutionary approach to managing branding for beverages has served to increase the total market size for this product category globally (Huang, Sarigöllü, 2012). Despite the continued widespread adoption of Gatorade as a healthy energy drink, the company has encountered resistance to its brand and the ingredients used for creating the many variations of Gatorade energy drinks (Tallon, 2009). Despite these setbacks the Gatorade brand continues to experience exceptional growth and stability over time.

Dr. Pepper/Seven Up, Inc. is the company which produces the brand Squirt. “Squirt is a caffeine-free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Squirt is the best selling carbonated grapefruit soft drink brand in the U.S.” (Kerin and Peterson, 2010) Kate Cox, the brand manager responsible for Squirt believes that market targeting and product positioning are key elements in Squirt’s advertising and promotional plan development. This case study will provide a summary and analysis of Dr. Pepper/Seven Up, Inc.’s options and the examination into the company’s strengths, weaknesses, threats, and opportunities.

Portland Drake Beverages (PDB) had acquired Crescent Pure, a non-alcoholic, all natural energy enhancing and hydrating functional beverage. Having organic ingredients as the bases of Crescent Pure beverages made the perfect acquisition for extending the PDB organic brand to more markets. These multiple attributes made the drink an attractive product for the consumer, but the necessity to position it, sparked a debate. Some people wanted to market it as an energy drink, while others wanted to market it as a hydrating drink. The VP of marketing, Sarah Ryan, thought that although Crescent Pure fit both of these categories, there was an alternative option. The third option would be to position the new beverages as healthy drinks, this would be a broader market positioning strategy, one that a transcendent product like Crescent Pure, could fulfill. The concern was to simultaneously position the drink in the most lucrative market, while also ensuring that the drinks attributes aligned with the market consumers’ needs.

Given the track record of Dr Pepper-Snapple and looking at the SWOT analysis I feel that Dr Pepper should introduce an entire new product line. They can leverage their ability to manage a diverse brand business, the leverage they have in the RTD segment, and the strengths that the business as a whole has.

The strategy was to integrate Snapple’s entrepreneurial culture but manage the brand with a corporate perspective. This included cutting ties with Snapple’s eccentric spokespeople and transitioning the brand from fashion to mainstream and lifestyle. Also, Snapple’s distributors should only supply cold channels (with Snapple and Gatorade) whereas Quaker would integrate Snapple in its distribution to warm channels.

The success the Snapple Beverage Company had achieved by the early 1990s drew the attention of the Quaker Oats Company which bought it in 1994 for $1.7 billion, and planned on maximizing the professedly unequivocal synergies between the “funky” iced tea brand and their established Gatorade brand. Despite Quaker’s efforts and ambition, which some might classify as hubris, the company’s decision to acquire Snapple is often regarded as a clamorous example of a merger and acquisition disaster. This paper analyzes Quaker’s failures using the 4 P’s framework, and proposes an action plan for Triarc’s turn-around of the Snapple brand, tailoring it to a modern market setting.