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Snapple's Branding and Market Strategy

This document is a case assignment for a consumer behavior class. It discusses the history and management of the Snapple beverage brand. A team of 4 students analyzes why Snapple was successful in the 1970s-1990s focusing on niche marketing and controversial spokespeople. They examine why Quaker's ownership from 1994-1997 failed to pivot Snapple to mainstream consumers. Finally, they provide recommendations for Triarc, the new owners in 1998, including refocusing branding on Snapple's niche "fashion brand" image, emphasizing its natural ingredients, and prioritizing independent distributors over supermarkets.

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100% found this document useful (1 vote)
299 views4 pages

Snapple's Branding and Market Strategy

This document is a case assignment for a consumer behavior class. It discusses the history and management of the Snapple beverage brand. A team of 4 students analyzes why Snapple was successful in the 1970s-1990s focusing on niche marketing and controversial spokespeople. They examine why Quaker's ownership from 1994-1997 failed to pivot Snapple to mainstream consumers. Finally, they provide recommendations for Triarc, the new owners in 1998, including refocusing branding on Snapple's niche "fashion brand" image, emphasizing its natural ingredients, and prioritizing independent distributors over supermarkets.

Uploaded by

Ryan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Introduction to Snapple Case
  • Interpretation of Snapple's Brand
  • Priorities for Snapple's Future
  • Snapple as a Fashion Brand

BUS 646: Consumer Behavior

Case Assignment: Snapple


Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
February 20, 2017

Case Questions:
1. In the period of 1972-1993, why do you think that Snapple flourished when so
many startup premium juice drinks stayed small or disappeared?
a. In the alternative drink space, 1972-1993 was a growth period,
where it was relatively easy for Snapple to find a
concentrated, highly homogenous group to cater towards
b. In order to target this smaller group, Snapple focused heavily
on the Northeast and then garnered attention from the West
coast
c. Snapple utilized various spokesmen, from local celebrity and
truck driver, Wendy Kaufman, to national news/radio icons,
Howard Stern and Rush Limbaugh, in order to generate
traction and attention
d. These spokespeople, coupled with a general advertising
strategy (convenience stores, off color advertising), were
controversial and helped Snapple grow. Also, Snapple
appealed to hometown people who easily lifted general
awareness in the area by catering to an average American.
e. As a non-mainstream, growth product, this advertising aligned
with Snapples product characteristics
2. Now look at the period from 1994 1997, did Quaker make an error in buying
Snapple or did they manage the brand badly?
a. Quaker was challenged with trying to pivot Snapple away from
a non-mainstream growth product to a mainstream product.
b. Some activities conducted by Quaker include: larger pack
sizes, greater assortments, getting rid of spokespeople,
moving away from convenience stores to big old grocery
stores all in attempts to cater to mainstream people instead
of the Northeastern niche
c. When making this pivot Quaker failed the key question about
whether or not the purchase was an error or if brand is
managed poorly is why did it fail
d. It is our belief that the brand was managed poorly because
Quaker tried to cater to everybody instead of focusing on the
original niche of people looking for non-mainstream products
e. They should have focused on expanding geographically, but
focusing on the same niche instead of expanding to new
consumer segments as well as geographically
f. Also, they tried to marry Snapple drinkers with Gatorade
drinkers, which failed, because the two appeal to two different
customer segments.
3. Roll forward to 1998, what can Triarcs management team learn from
Quakers experience? What can they apply from their own experience?
a. Is the market anyone with lips?
BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
February 20, 2017

i. Yes and no Quaker thought anybody with lips was a


market. While the product itself does not apply to any
specific segment of people, the branding itself creates
segments. Overall, it is better to leverage existing
branding to hit on one segment despite anybodys ability
to be interested in the product. For example, this isnt
Gatorade where only athletes or hungover people will be
interested. This is a product that anybody could like, but
branding will make the product focused to only a certain
segment.
b. Is it ok that Snapple means different things to different people?
i. Yes. Everybody has different experiences and their
interpretation of the perceived product characteristics
will be shaped by those experiences. This is all to say
that every group will respond to a product differently.
The key will be to find those who respond well and target
them.
c. What are the risks and rewards of leaving the what the brand stands
for open to consumers interpretations rather than creating strong
positioning for it?
i. Risks:
1. Interpretation can be poor
2. May not appeal to everybody, or enough people to
generate sales
3. May not have as much impact or garner as much
traction
ii. Rewards:
1. Image variability keeps the positioning flexible,
relative to preferences
2. Saves resources that would be used to project a
corporate image
3. Dont have to over commit to a single segment that
may reject the product as it grows into a more
mainstream national brand
d. What does it mean to say that Snapple is a fashion brand?
i. The fashion brand really reflects Snapples lack of
product differentiation, instead the value reflects
branding differentiation. The branding relies on
continued moment within the consumer base. When this
momentum is lost, the brand itself falls apart. The idea
of a fashion brand leaves a large risk for product
abandonment due to divergence. If the product becomes
too mainstream and overused, perhaps the original
consumer base will begin to abandon it. Also, Snapple
was originally targeting health conscious consumers with
BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
February 20, 2017

their 100% Natural theme, making it more of a fashion


brand.
4. Identify the 3 highest priority initiatives you would start tomorrow if you were
in Mike Weinsteins shoes? Justify them.
a. The highest priority for Mike Weinstein is to revert Snapples
branding strategy back to a focus on the fashion brand. As
identified by Snapples founders over their twenty-year growth
span up until 1992 (and reinforced through the Deutsch, Inc
survey results), Snapple appeals to consumers as a niche,
experiential product; the beverage is consumed for the
enjoyment and the experience, where consumers are
cognizant of the health benefits, but do not choose to
consume solely on those principles. Acknowledging this culture
is what made Snapple originally successful, and is a brand
image from which Quaker has strayed through their mass
advertising and repositioning efforts. By refocusing on the
quirky Snapple culture, Triarc can begin to rebuild the trust in
the Snapple brand that separated it from competitors and
regain market share in the alternative beverage
marketspace.
b. Part of Snapples appeal to loyal customers was the authentic,
truthfulness of the brand messaging, primarily focused on the
100% Natural claims. Quakers management of the Snapple
brand strayed from the natural element that the founders
employed, an element that generated a lot of trust in
consumers. As Weinstein works to rebuild the Snapple identity
as a fashion brand, he should prioritize a renewed focus on
being 100% natural, employing the real peoplereal
circumstances advertising campaign along with marketing
centered around the 100% natural ingredients. This message
resonated strongly with the original customer base and will
undoubtedly drive renewed interest in the brand.
c. Finally, Weinstein should prioritize distribution through the
independent, cold-channel network for Snapple, while
pulling back from the strategy of mainstream supermarket
distribution that pits Snapple against market-leading beverage
giants for shelf space, as well as requires distributors to risk
long-term contracts and supplier relationships. Snapple is
most consumed in a single-serving, 16oz bottled package,
making it ideal for cold-channel distribution through small
retail shops, street vendors, and restaurants. Given the
intimate nature of cold-channel distribution, Weinstein should
prioritize rebuilding relationships with prior Snapple vendors
while also leveraging any potential distribution synergies with
the Mistic brand.
BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
February 20, 2017

Common questions

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Snapple's identity as a 'fashion brand' emphasizes branding over product differentiation, relying on continuous consumer momentum . This approach can lead to brand abandonment if consumer bases feel it becomes too mainstream or diverges from their preferences. The fashion brand image also reflects Snapple's original targeting of health-conscious consumers, adding another dimension to its market strategy .

Triarc could learn to focus brand efforts on leveraging existing branding that targets specific segments rather than attempting to appeal to a broad audience as Quaker did . Emphasizing Snapple's image flexibility, Triarc should concentrate on maintaining brand authenticity, catering to its core consumer niche, and not overcommitting to expanding consumer segments, an approach that led to Quaker's failure .

Maintaining a distinctive niche identity is crucial for Snapple because its success rests on appealing to specific consumer segments that value its unique qualities, rather than mass-market appeal . A mainstream identity could dilute the brand's differentiation, reduce its unique charm, and alienate its core consumer base, leading to potential declines in loyalty and sales .

Snapple can enhance its current brand perception by reinvigorating past marketing strategies that embraced its quirky, non-mainstream appeal and involving grassroots advertising with local spokespeople . By re-emphasizing the '100% Natural' message and returning to cold-channel distribution, Snapple can reconnect with its core consumer base, regain trust, and reinforce its brand differentiation .

Snapple thrived from 1972 to 1993 because it targeted a highly homogenous group in the alternative drink space, starting in the Northeast and eventually gaining attention on the West Coast . The brand's growth was bolstered by using diverse spokespeople like local celebrities and national icons, creating controversial advertising strategies that resonated with 'hometown' audiences . Its non-mainstream appeal and alignment with product characteristics helped establish its popularity .

To rejuvenate Snapple's brand and market position, management could focus on reviving the 'fashion brand' identity, emphasizing its original quirky culture and niche appeal . They should reinstate the '100% Natural' message to resonate with health-conscious consumers and rebuild trust . Additionally, focusing on cold-channel distribution would leverage prior vendor relationships and exploit synergies with other brands like Mistic for strategic advantage .

Snapple's initial market success was significantly influenced by its original advertising, which involved employing a mix of local and national spokespeople and engaging in bold, controversial campaigns that resonated with 'hometown' and average American audiences . The product's non-mainstream identity and alignment with such advertising further reinforced its appeal, fostering growth and consumer loyalty .

Quaker failed to support Snapple's brand by shifting away from its niche positioning and unique identity, leading to consumer detachment . By altering the brand's image, removing its grassroots spokespeople, changing distribution channels, and attempting to mainstream the product alongside Gatorade, consumer perception was negatively impacted, culminating in reduced sales .

Allowing Snapple's brand identity to remain open to interpretation can lead to poor consumer perception, a lack of broad appeal, and reduced market impact . However, this approach allows for image variability and reduces resource expenditure required for cultivating a rigid corporate image. It also mitigates the risk of overcommitting to a segment that might reject the product as the brand evolves into the mainstream .

Quaker possibly made errors by trying to mainstream Snapple rather than focusing on its niche market, diluting its original non-mainstream identity . They abandoned the use of spokespeople, changed packaging, and shifted from convenience stores to larger grocery stores, which alienated the original consumer base . Quaker attempted to link Snapple with Gatorade drinkers, but this crossover failed as the products appealed to different segments .

BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
Feb
BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
Feb
BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
Feb
BUS 646: Consumer Behavior
Case Assignment: Snapple
Team Members: Ryan Brown, Krystina Cruise, Jaclyn Dixon, & Joe Miller
Feb

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