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
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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
Also there were large restaurants trying to find ways to capitalize on the specialty coffee industry i.e.: Macdonalds, Krisspy, Dunkin, Donuts …..
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).
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
As the US national debt nears $20 trillion, government programs are being looked to be cut, one of those being the SNAP program. SNAP is a federal program which offers nutrition assistance to low income families, by use of food-stamps, while also providing economic benefits to communities (“Supplemental”). SNAP is the largest program in domestic hunger safety (“Supplemental”), the Food and Nutrition Service (FNS) works with nutrition educators, faith based organizations, and neighborhood organizations to help those eligible for the SNAP program make informed decisions about applying (“Supplemental”). The FNS also works with the retail community and State partners to improve the program’s integrity and administration (“Supplemental”). The SNAP
The Government tries to tell people what that they can and cannot do when it comes to food stamps. This is not fair to the people who use SNAP Assistance clearly telling people what they can and cannot buy with SNAP Assistance is nonchalant. The United States government should not be able to tell people what they could buy with their SNAP because it is unconstitutionalize. SNAP Assistance is a government controlled program that helps low-income Americans put food on the table, providing benefits that are timely targeted,and temporary. SNAP beneficiaries receive what looks like a debit card, with which they pay in supermarkets. Ways you can get food stamps are; Current food stamp programs have little work required as a condition of assistance, encouraging the relatively well off the system and those in head to remain in poverty The Nutrition Assistance Program is targeted at our
It was a huge hit because there are less than six organic grocery stores in the nation. Knowing his vision well, John Mackey, the main founder put his dream into action. He used his ability as a connector, someone who has broad social network, to integrate others people’s ideas. Soon, expansion came to place starting from Dallas to New Orleans. In order to guarantee each store’s success, he did thorough research on social class, eating habit, and supply and demand. He took his action deliberately.
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.
Palmer Jackson realizes that product, price distribution, and promotion decisions for Green Ox all rely on the decisions they make, that all four of the ''P'' decisions are tangled and depend on each other. They feel that the place to start is with some notion of how many flavors of Green Ox they should introduce and at what price.
Marketing executives at Cadbury Beverages, Inc. want to re-launch the following brands: Crush, Hires, and Sun-Drop soft drinks. However, Cadbury has seen several challenges arise in the eve of their next attempt to lead the market. Senior marketing executives decided to focus generally on the Crush brand of fruit flavored carbonated beverages. The key issues that were foreseen by Cadbury executives were the rejuvenation of the bottling network, figuring out brand equity, and develop new positioning. Lastly, there are numerous opportunities available for Crush to take advantage of that which
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.
In the ever changing world of customer needs and expectations Dr Pepper-Snapple was faced with an increased customer focus on energy drinks. This area, when exploited correctly, is a high growth and high margin beverage business. In early September 2007, Andrew Baker had his marching orders. He emerged out a long discussion about entering the energy drink business and off he went.
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
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
However, during the implementation period, Dreyer’s faced the toughest moment in history. Its pre-tax earnings and stock price decreased dramatically due to a series of problems. One of the problems was the unexpected skyrocketing price of butterfat. Besides, the high cost promotion and the delivery system also became a heavy burden for the company. Because of these problems, Dreyer’s Grand Plan took much longer than they predicted to meet the recovery costs.