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Snapple

Essay by   •  December 29, 2010  •  Study Guide  •  634 Words (3 Pages)  •  1,345 Views

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Snapple was a small company whose origins were based on authenticity and trust in consumers eyes. This was evident in the initial m antra of the com pany ÐŽ§100% N aturalЎЁ even before the com pany becam e Snapple (Unadulterated Food Products, 1972). Snapple became successful by launching innovative products, based on fruit juices and teas, into the beverage market. Initially, Snapple beverages were sold to health-food stores and Snapple became successful by launching innovative products, based on fruit juices and teas, into the beverage market. The reasons for the success of Snapple can be attributed to the following brand characteristics and marketing strategies adopted by the company: „X Aggressive distribution and customer loyalty strategy, bolstered by a health and fitness craze prevalent at the time. „X Entered the developing iced tea market the at the right time w ith a brew ed, high quality, ÐŽ§new ageЎЁ Ready-to-Drink (RTD) tea, which was a pivotal early move. „X The company had an image of fun and irreverence that was supported through the marketing campaign of 100% natural ÐŽV no matter how the results were. „X Snapple rolled out an advertising cam paign centered on a ÐŽ§custom er relations, regular peopleЎЁ them e. Wendy Kaufm an, becam e the ÐŽ§faceЎЁ of Snapple on TV and her penchant for answering fan mail on air helped build the com panyÐŽ¦s ÐŽ§quirkyЎЁ positioning. This helped them ЎҐconnectÐŽ¦ with the public in general. For example Snapple relied on their most zealous customers for product and packaging ideas. „X Snapple had an extensive and dependable network of independent co-packers and distributors to prepare, bottle, warehouse, and sell its products. Not only did these distributors generate high margins carrying Snapple, they also had the option of delivering other beverages to chain stores, further boosting profitability. With competition in the market fierce, maintaining the product presence in the important cold market has a large dependency on the distributor. Marketing II Why did the acquisition of Snapple by Quaker fail? Quaker believed that pairing the established Gatorade brand with Snapple would allow Quaker to realize significant synergies. Quaker believed it had the financial resources and leadership experience to market and expand Snapple nationally and internationally. The immediate benefit to Quaker was that the acquisition would instantly establish

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