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Snapple Case Solution
This case study takes on the assessment of marketing adopted by Snapple since its foundation to 1997 when it was sold by Quacker to Triarc. Quacker’s failures included wanting to turn Snapple from a fashion brand to a lifestyle brand. Just as it had turned around Gatorade into a success story, it wanted to synergize the distribution capabilities acquired through Snapple to maximize the value of both brands. However, despite having the power to extend the brand’s distribution, the product element of the brand was messed up along with promotion. Coke was struggling to attain the market share of Snapple amongst youngsters while the lack of focus n promotions and dealing with it as a lifestyle brand by offering high volume product variants were a few of Quacker’s failures. The recommendation to Triarc was to reduce the number of flavors, introduce new flavors to stay relevant to the audience, and reintroduce brand concepts including Wendy who had been associated with Snapple’s initial success.
Following questions are answered in this case study solution
Use the 4P framework to analyze Quakers' failures.
Imagine the case was happening right now and generate an action plan for Triarc’s turn-around of the Snapple brand in 2018. What would new media and technology allow you to do that wasn’t possible in 1997.
Don’t just look up what Triarc did and parrot their actions back — there is no control case to decide if Triarc’s plan was the most optimal so think carefully and critically about the best Marketing Mix possible. Draw on the information in the case and the exhibits to generate strategies about Product, Promotion, Price, and Place. Pay special attention to ensuring that the 4Ps work in harmony with each other, and highlight the synergies where they occur.
Case Analysis for Snapple
1. Use the 4P framework to analyze Quakers' failures
Once Quacker acquired Snapple, it had hoped to leverage Snapple’s distribution system and combine it with the Gatorade division. Through this, the company aimed to create the most innovative distribution system. However, it focused on treating Snapple as a lifestyle brand like Gatorade and not as a fashion brand that it was. Assessing Quacker’s failures through the 4P model will help in categorizing the issues.
Quaker introduced Snapple in larger pack sizes and in greater assortments which was a failure because the company met limitations when it came to distributor trucks because it had a higher cost of distribution. Furthermore, it also competed with other beverages in the retail display space in the cold channel which caused further issues. Snapple also did not generate a lot of demand in the larger containers because compared to Gatorade, it was consumed by individuals rather in a team setting.
While previously, Snapple had a distribution network comprised of middlemen, Quacker looked to use these middlemen for the cold channel of Gatorade. The removal of middlemen reduced the costs which would have improved the profit margins for Quacker. Furthermore, Quacker worked to improve the distribution for both Gatorade and Snapple by persuading distributors to cede Snapple’s supermarket accounts in exchange for distributing Gatorade for the rest of the accounts, but all in vain. Therefore, it showed that while Quacker was working to increase price margins, it was not able to maintain the sales volume.
About 60% of Gatorade’s sales moved through the warm channel which accounted for sales through supermarkets. When it came to Snapple, before Quacker it accounted for 20% of Snapple’s sales nationally. Since Snapple was a fashion brand and Quacker wanted to convert it into a lifestyle brand like Gatorade, it focused on the supermarket sales which was not a good strategy since mostly there was a perception that one purchases Snapple and drinks it while on the go. Therefore more efforts could have been focused at Coke’s strategy of getting Snapple coolers out of high schools rather than on the supermarkets.
Quacker terminated Wendy Kaufman’s role who was associated with Snapple’s early success. This was a major failure because Wendy was the one who caused a stir amongst the audience regarding the beverage. It was stated that Wendy embodies the essential Snapple qualities. She was a low-level employee in customer relations, who became a celebrity. She exemplified the entrepreneurial story that makes Snapple appealing to many ambitious individuals.
Also, as claimed earlier, Snapple was a fashion brand and not a lifestyle brand which was lost when Quacker decided to turn it into a lifestyle brand like Gatorade.
2. Imagine the case was happening right now and generate an action plan for Triarc’s turn-around of the Snapple brand in 2018. What would new media and technology allow you to do that wasn’t possible in 1997
Action Plan 2018
When Quacker had failed with turning around the Snapple brand as a lifestyle brand, its market share was being actively taken by Coke and other drinks in the premium category. If this were happening in 2018, first and foremost, Triarc should use digital media and experiential marketing through technology like VR to assure that eccentric experience that had built the Snapple brand in the first place.
Focus on Experiential Marketing
Firstly, Triarc should focus on experiential marketing. Just like the Snapple convention in the 1980s gained tremendous customers, using new technologies to market Snapple in 2018 should be very useful for the brand. Furthermore, with the usage of big data driving decisions, the data to gauge flavor preference of the customers could have gained a better sense of what the customer wants. Also, using social media and influencers could have strengthened the brand image of Snapple as a quirky brand.
Resolve Distribution Issues
One other issue that had Snapple being driven out of reach amongst high schoolers was the removal of the coolers from these locations. With Quacker focusing on using Snapple’s distribution to improve Gatorade alongside, it had lost focus on the fact that Snapple was a fashion brand that needed to be present at the point of consumption. Also, Snapple drinking flows through friendship networks, therefore, in the modern era, it could have been adopted through influencers. Therefore, if Triarc was given the reins of Snapple in 2018, he would have focused on distributing Snapple at cafes, canteens, and hired campus ambassadors to promote Snapple in the high schools, universities, and colleges they studied in.
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