...Case Study: Snapple Steals Share I. Introduction This case study scans the critical decisions to be made by Arnold Greenberg, Chief Operating Officer (COO) of Snapple. The point of view of the latter was chosen since his role is increasingly important to the company’s ability to execute its strategy. The chief operating officer’s main concern is to come up with strategies that will drive operational excellence and high performance in the operation of the business. His decisions are very critical to the success or failure of the business. He is also responsible for turning such decisions into actions. II. Objective The primary objective of the study is to identify the major problem and articulate a solution that resolves the issues. III. Problem/Issue Analysis Snapple come up with a decision whether to change its strategies to keep on competitive in the ready-to-drink market and how they supposed to do these strategies with all the pressure that goes with it. IV. Alternative Courses of Actions (ACAs) The courses of actions presented in this case are made possible to address the problems and issues, these are as follows: Course of Action No. 1 Expand the company Advantages • The primary benefit of business expansion is the ability to attract, retain, and gain new customers. • Expanding the market of the business will give sense. It will create recognition to the company as well as the product/services they offer in the market • One clear...
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...Snapple – The best stuff on earth Snapple was founded in 1972 East Meadow NY as Unadulterated Food Products. It had a huge growth spurt with case sales doubling in 1990. Sales reached $516Mand had a return of 195.8%. Quaker Oats & its Strategy Quaker Oats is an American food conglomerate. The story of Quaker Oats’ success is one of a company led by a strong management effectively growing in the face of increasing competition and economic cycles through internal and inorganic growth. Its non-beverage businesses were growing only at 1% in real terms. It had a 10% growth target set, and that target was accomplished through acquisition strategy. To maintain this growth rate the management felt that Snapple presented highly compatible product offering. Overall, the company has used a growth through acquisition strategy and diversification. Diversity is necessary to secure the whole company’s survival. In addition, Quaker Oats thought they had the resources to make Snapple expand internationally. Gatorade Acquisition - A Huge Success Purchase of Gatorade in 1983 (as part of the Stokely-Van Camp purchase) catapulted Quaker to the top of an untapped beverage segment that, to this day, dominates 80% of the market. This deal was vital to Quaker’s long-term success. The company attributed success to its global sales and marketing team. Quaker acquired Gatorade in 1983 for $238M. Since it experienced a 22% compound growth rate with US Sales going from $122M in 1984 to $1.2B...
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...MARKETING PROBLEM DEFINITION Dr. Pepper Snapple Group, Inc, encouraged by its long-lasting history, experience, and favorable market conditions has decided to enter a new market segment, launch energy drink beverage and they are facing several dilemmas. A thorough analysis of company’s internal conditions, industry facts, market conditions and trends, is needed in order to develop possible alternatives, realize the possible outcomes of those alternatives, and finally to choose the most convenient options. To be specific, company needs to make decision about the following: * Choice of Target Market * Product Line and Positioning Choice * Marketing Channel Choice * Advertizing and Promotion * Pricing and Profitability COMPANY FACTS One of North America's leading refreshment beverage companies, DPS, markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a strong, sustainable and profitable business throughout the years. The company today known as DPS has evolved from a combination of discovery, invention and collaboration. This rich history includes the very birth of the soft drink in 1783, when Jean Jacob Schweppes perfected the process for carbonating water and created the world's first carbonated mineral water. In 2000, Cadbury Schweppes acquired Snapple Beverage Group, which included the namesake brand as well as RC Cola, Diet Rite and Stewart's, among...
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...Greenberg, Leonard Marsh, and Hyman Golden had been friends since high school. In 1972, they went into business selling all-natural apple juice to health food stores in Greenwich Village under the brand name Snapple. By the late 1980s, their brand had achieved near-cult status on both coasts of the United States, with its iced teas particularly in demand. It had taken 15 years, they said, to become an overnight success. In 1994 Quaker bought Snapple for $1.7 billion. The vision had been to combine Snapple with Gatorade, an earlier and very successful acquisition, to form a powerful beverage business unit. Snapple, however, did not thrive: sales fell in each of the next four years, and in 1997 Quaker despaired and sold the brand to Triarc Beverages for $300 million. In the fallout that followed, both Quaker’s chairman of 16 years and its president resigned. Mike Weinstein, CEO of Triarc Beverage Group, reflected on the acquisition. “At $300 million, Snapple is not a steal by any means. It’s in decline, and when that happens to a brand it’s seldom that it comes back. We’re in a fashion business here, and when your imagery isn’t fashionable, often that’s the end. But we’ve talked to a lot of consumers and we did a lot of qualitative research, and we’ve decided that in this case the brand still has inherent strength. People feel good about it. It will respond to the right marketing stuff.” 1972–1986: The Origins of the Brand Arnie Greenberg’s family ran a sardine and pickle store...
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...pg. 88 “posted total retail ….. Gatorade” pg. 89 “…. decide upon a product line.” pg. 90 “…. distribution system supplied both off-premise and on-premise retailers.” 1. How would you characterize the energy beverage category, competitors, consumers, channels, and DPSGs category participation in 2007? * Energy Beverage Numbers 2006 * retail sales * $6.2 Billion * retail product sold * 153 Million cases * past growth * 2001 – 2006: average annual rate of 42.5% * future growth * 2007 – 2011: average annual rate of 10.2% * decrease rate due to * maturity of market * increase competition * hybrid products * price erosion * 2001 – 2006: 30% decline * decrease in price due to * larger packaging sizes that have lower price per ounce * introduction of multi-packs * increased availability in mass merchandisers * Manufacturers with a broad product line and extensive distribution have greatest chance of gaining shelf space with high turnover rates * Competitors * Five dominate with 94% of sales and volume in US market * Red Bull North America * pioneer when it was introduced to the US in 1997 * leader in dollar sales and unit volume * dollar market share * 2000 – 82% * 2006 – 43% * US media expenditures * 2006 – $39.6 million * 2007 – $60.9 million * Hansen Natural Corporation * Monster Energy released in 2002 * distributors aided with increase...
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...BRAND MANAGEMENT Case No. 3 SNAPPLE: REVITALIZING A BRAND INTRODUCTION In the 1990s, Snapple Corporation was one of the leading “New Age” beverage brands when the category was just beginning to take off. With the combination of a unique product, package design, and quirky advertising, the company grew form a regional underground favorite toa nationally recognized brand. Snapple’s rise in the beverage industry was crowned in 1994, when the Quaker Oats Company purchased Snapple for $1.7 billion. Quaker expected to make Snapple a major player in the industry, as it had done with GAatorade. However, the company was unable to capitalize on the brand’s previous success. In 1997, Quaker sold Snapple to Triarc Beverage Group for $300 million. Triarc faced a number of challenges, including reversing the sales slide, revamping the distribution system, and creating new products that will enable growth. Most importantly, Triarc had to find a way to reconnect the brand with its consumers. Triarc successfully resurrected the Snapple brand, and in 2000 sold Snapple to Cadbury Schweppes for $1.45 billion. Cadbury Schweppes then faced the challenge of maintaining Snapple’s brand strength in an increasingly competitive beverage environment. THE EMERGENCE OF SNAPPLE The roots of Snapple Corporation date back to 1972 in Brooklyn, New York when brothers-in-law, Leonard Marsh and Hyman Golden, left their window-washing business and teamed up with Marsh’s childhoAod friend and health...
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...Marketing Plan for Snapple Date: Dec. 5, 2011 TABLE OF CONTENTS EXECUTIVE SUMMARY………….………………………………………….…….pg. 2 COMPANY DESCRIPTION…………………………………………………………pg. 3 STRATEGIC FOCUS AND PLAN…………………………….………………….....pg. 3 SITUATION ANALYSIS…………………………………...……………………..…pg. 5 MARKET-PRODUCT FOCUS…………………………………………………….…pg. 7 MARKETING PROGRAM……………………………………………..…………….pg. 8 FINANCIAL DATA AND PROJECTIONS……………………………...…………pg. 10 ORGANIZATIONAL STRUCTURE……………………………………………….pg. 11 IMPLEMENTATION………………………………………….………………….…pg. 12 EVALUATION AND CONTROL…………………………..………………………pg. 13 Executive Summary Snapple is a well-known brand of iced tea and fruit drinks. It is a publicly traded company owned by Dr. Pepper Snapple Group. They are best known for their slogan of “Made From the Best Stuff on Earth” and Snapple Fact Caps. The company’s mission is to be the best beverage business in the Americas. It will achieve that goal through their philanthropic and sustainability efforts as well as building on their brand. The ready-to-drink industry is very competitive - containing teas, soft drinks, sports drinks and bottled water to name a few. The food and drink market is constantly changing. The current market trends are focused on health and wellness as well as its’ consumers being sure that the brands they use fit into their lifestyles. Consumers are more informed and knowledgeable than ever and it is important that a brand can deliver a message and product of the...
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...Snapple P ro d u c t B ra n d M a n a g e m e n t 28/02/2012 Question 1: In the period of 1972 to 1993, why do you think that Snapple flourished when so many small startup premium fruit drinks stayed small or disappeared? I think that Snapple flourished in this period of time primarily because of their mantra: 100% natural and non-preservative fruit juice. Other factors of success in 1972 to 1993 I think have been: -‐ -‐ -‐ -‐ -‐ -‐ It included a high variety of drinks such as ice teas or diets. Not all of the products where as successful as others and here came the premium pricing strategy. The premium prices generated high revenues and accounted for any losses produced by any part of the product range. The bad advertising actually helped Snapple, which became something nice and cute, Snapple knew how to take advantage of this. Wendy and the brands ‘real people, real circumstances’ got to be close to people and made a connection with consumers. Expanding into New Jersey and Philadelphia Outsourcing production and development of the product as well as building distributors network across New York. The distributors network of 300 small businesses created great strength for the brands distribution. Question 2: Now look at the period from 1994 to 1997. Did Quaker make an error in buying Snapple or did they manage it badly? I think Snapple was a great company to purchase, in my opinion it was managed badly or mismanaged. I think Quaker maybe tried to change...
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...TEXAS A&M UNIVERSITY CORPUS CHRISTI MARKETING MANAGEMENT - MKT 5320 CASE STUDY ANALYSIS: Dr Pepper Snapple Group, Inc: Energy Beverages OLUSUBOMI Y. ADETUNJI STUDENT ID: A03936869 PROBLEM DEFINITION. Dr Pepper Snapple Group Inc., a non-alcoholic beverage producing company decided to enter into the market with a new product (energy drink) and they were faced with some problems along the line. They decided to introduce an energy beverage brand to the market (existing market) which already has competitors. With this as focus, it was important to choose best market and distribution channels and some other business strategies for the product in order for it to be a success. The problem faced includes retainment of its present competitive position in the market with other energy drink companies and at the same time preserving profitability and customer base. In order to maintain the market competition, the business strategy to launch the new products into the market was very vital. Some of the factors that has to be considered before the product launch is considered are: * Industry Experience * Customer base * Profitablity growth * Favorable market condition * Core competencies * Management Team Decision. ALTERNATIVES PROVISIONS FOR PRODUCT SUCCESS The company could carefully select the strategy to launch the new product into the market to understand both the strength of their current competitive position and the strength of the...
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...Snapple Case Write-up 1. In Snapple’s early years, before it was acquired by Quaker, it became a very successful and experienced rapid growth. This is due to many reasons that all can be traced to its branding. Snapple was popular in a niche group of health nuts and hipsters. Even as it increased its market share, it successfully kept the image of the “little guy” and was appealing due to how “real” the company was. People saw that not only was the drink 100% natural, but the people were too. They kept this image and were able to sell Snapple at a premium price too. When looking at this success in terms of the four P’s of marketing, obviously each P was important. That being said, I think that product and promotion were the two frontrunners, accounting for about 30% of the success each, whereas I see place and price both contributing to 20% of the success of Snapple. Snapple as a product was more than just a drink. The product that the consumer was buying at the time was more than just a natural, relatively healthy, tasty beverage. They were buying its personality, how genuine the company was, and buying into the little guy taking down the corporate giants at the time. For those reasons, Snapple as a product appealed immensely to the select market of young, healthy individuals who did not always want to go with the flow. Once Snapple gained foothold in this market as a “fashion drink” it continued to spread to more and more of these young people. None of this, of course...
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...INITIAL MOVES WITH SNAPPLE At the time of Tricac's purchse of Snapple, consumers ha 1 more choices between ready-to-drink beverages than ever before. By mid 1997, the New age market had undergone yet another shake-up. Pepsi stopped distributing fruit drinks from Ocean Spray and launched its own Fruit Works brand. Other new brands like Nantucket Nectars, a line of 100 percent juice drinks packaged in unique bottles, and Campbell Soup Co.'s V8 Splash, a carrot-based blend of fruit juices targeting younger consumers, were entering the marketed threatened to squeeze out even more market share from Snapple. To breathe life back into Snapple, Traiarc had to invest heavily in new product development and employ dynamic marketing strategies that would differentiate Snapple from competitors and recapture the attention of consumers. Triarc soon announced that it would apply the same marketing principles to Snapple that it used to turn around its successful Mistic beverage line: edgy advertising, strong distributor relationship, colorful labels and focused street sqles. The first set of Snapple ads under Triarc's direction featured Wendy's reappearance on a desert island and the on a desert island and the labels of several of Snapple's products fotured Wendy's face to symbolize the return of Snapple to its core values. Whipper Snapple. Perhaps the most innovative and important development to emerge out of Triarc's product development efforts was the Whipper Snapple, a ruit smoothie...
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...Mr. Marchionne will attempt to integrate Fiat and Chrysler by developing Fiat’s newer models with Chrysler for a number of brands, as well as sharing parts, platforms and plants to become a more efficient manufacturer. Another attempt by Mr. Marchionne is to take advantage of Chrysler's dealership network in the U.S. to sell its own cars and reduce its exposure to Europe. The integration of Fiat and Chrysler will augment its economies of scale to have an advantage in competing against their rivals in the global market. Mr. Durban's reputation is known for being savvy with technology. This reputation was given to him because of his deal to take Dell private. If it becomes approved by Dell shareholders, it would be the largest corporation privatization since the financial crisis. Mr. Durban works for Sliver Lake Partners, a private-equity firm which focuses on investing exclusively in the tech industry, saw value in Dell's software and services operations, which allows him to gain knowledge about technologies. Another reputation that Mr. Durban is known for is being a “deal junkie”. He invested in companies, such as Zynga, Groupon, and Skype and all have turned out successful. Mr. Durban urges all investors to make calculated financial decisions rather than emotional ones. The approach is Alcatel-Lucent taking to stabilizing the organization is by pursuing a plan called, “Project Secular”, which allows the company to buy time by mortgaging key assets. This plan raised the...
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...Problems and Opportunities It is important to understand the primary problem being addressed throughout this case study: Whether or not a profitable market opportunity exists for a new energy beverage brand to be produced, marketed and distributed by the Dr. Pepper Snapple Group. In order to effectively answer the above question, there are a number of secondary questions that need to be answered to get the full picture. They are as follows: Who would the target market be? What would be the full product line and how would it be positioned within the market place? What marketing channels would be used? How would it be advertised and promoted? What would be the RSP and within which margins can it operate to remain profitable? Before answering these questions, it is important to highlight some of the external challenges that would face the company were they to go ahead and introduce a new energy drink. Firstly, there has been significant price erosion within the energy drink market, with energy drink prices declining by 30% between the years 2001 and 2006. This has been attributed to larger package sizes, the introduction of multi-packs, and the increasing availability in supermarkets, which operate with lower retail gross margins. Secondly, the market has also experienced product proliferation due to line extensions, new packaging and sizes, and market segmentation. Thirdly, DPSG needs to be aware of the changing attitudes of the consumer. The consumer is becoming more and...
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...UNIVERSITI TEKNOLOGI MARA KOTA SAMARAHAN CAMPUS MKT750 MARKETING MANAGEMENT CASE STUDY DR PEPPER SNAPPLE GROUP, INC. ENERGY BEVERAGE PREPARED BY: RAMSIS ANAK WILLIAM AGIM 2012402536 Strategic Issues and Problems Being the consultant of Dr Pepper Snapple Group, Inc. (DPSG), I am charged to assess whether or not a profitable market opportunity existed for a new energy beverage brand to be produced, marketed, and distributed by the company. The decision to explore a new energy beverage was made by senior company management of DPSG as part of a corporate business strategy to focus on opportunities in (1) High Growth and (2) High Margin beverage businesses. My tasks involve a number of important factors. I must assess the likelihood that DPSG Competitive environment will be liberal or conservative in its marketing of the new energy beverage. An important consideration is DPSG role in affecting this environment, given its strong presence in the CSD market and utilizing that strength to push the new energy beverage. Ultimately I must make a “go-no go” decision. A “go” decision requires a recommendation in the form of the new energy beverage, its target market, its price, and promotion. A “no go” decision must take into consideration Dr Pepper’s profit and growth position without the new energy beverage and measures to minimize their impact. The problem facing Dr Pepper’s is how to retain its present competitive position given an environmental threat...
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...Marcela Beas Dr. Pepper Snapple Group March 5th, 2013 Current Situation Analysis Mission/Vision Statement The Dr. pepper Snapple Group fuses its vision and mission statements saying, “At Dr. Pepper Snapple Group, it is our vision to be the best beverage business in the Americas. Our brands have been synonymous with refreshment, fun and flavor for generations, and our sales are poised to keep growing in the future.” This stamen is straightforward and informatively average. It establishes the company’s goal and core values. Also, it highlights DPS’ interest in future sales growth. The company includes its business strategy stating that it focuses on building and enhancing leading brands, pursuing profitable channels, packages and categories, leveraging an integrated business model, strengthening routes to markets, and improving operating efficiency (Dr. Pepper Snapple Group). External Analysis Government policies and regulations affect business development and growth. Products have to be consistent with the USDA’s dietary guidelines and adhere to the FDA’s standards for health claims. Due to the current post-recession economy, growth is expected to be slow since existing demand patterns are expected to change as consumers become more health conscious. Moreover, global awareness and concern regarding the impact of climate change continues to be a focal point as business seek to achieve better business in terms of reduced cost and risk while achieving positive impact on...
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