Snapple Case Study

1025 WordsSep 26, 20175 Pages
Introduction: The History of Snapple In 1972, three friends – Arnie Greenberg, Leonard Marsh, and Hyman Golden – established their successful brand Snapple, in Greenwich Village, New York. They saw a unique opportunity in the beverage industry to sell all natural juices by appealing to the young and health conscious urban population. The founders grew their business using funds from within the company, outsourcing production and product development, and building a distribution network. They expanded their product line and priced their most successful products at a premium. By the 1980s, the industry and competitors grew into the New Age or Alternative beverage category. Unlike many of their competitors who bought out by larger…show more content…
However, the outcome was not what they had expected. Quaker had lost the Snapple image by getting rid of the Snapple personalities. Thus sales started to decline. After 3 years, Quaker sold Snapple to Triarc. Mike Weinstein, CEO of Triarc Beverage Group, wanted to develop a strategy that would revitalize the real, natural, and quirky image of Snapple. And recreate the connection that Snapple had with its consumers. Analysis As Weinstein and Ken Gilbert assessed Snapple’s situation, through market research study, it was clear that the decline of the brand started the year it was sold to Quaker Oats. Evidence showed that Quaker had created a mainstream brand out of Snapple, which went against the principles of the brand and what consumers knew the brand to be. Price As the founders developed their brand, Snapple became part of the Alternative beverage industry, which consisted of sports drinks, bottled water, 100% juice, non-premium beverages and premium beverages. Snapple was the leading company in the premium category of the Alternative beverage industry. Therefore, they could price their most successful products at a premium. Place When the founders hired Carl Gilman, he developed a strong distribution channel. Which accounted for about 80% of sales, consisting of food vendors, restaurants, recreational areas and the like. However, when Snapple was bought by Quaker Oats, they had a

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