Quaker 's Reasons For Buying Snapple And Snapple Essay

1149 Words5 Pages
1. Quaker’s reasons for buying Snapple and their strategy for Snapple 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: - For consumers: Snapple and Gatorade will be available in many more locations - For trade customers: more merchandising, points of sale, and in-store refrigerators - For Snapple: Quaker’s resources, management skills, packaging experience, supply chain expertise, and modern information systems. - For Quaker: Economies of scale and higher penetration for Gatorade (increase in sales, points of sale, geography), especially in cold channels. Synergies between the two brands in cold and warm channels, and geographic presence as well as the combination of corporate and entrepreneurial mindsets. 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. 2. Root causes for Quaker’s failure with Snapple Quaker’s strategy eroded Snapple’s positioning and appeal for consumers, alienated channel partners, and left them with a large product portfolio that is difficult to
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