* Quirky commercials
* Loyal customer following
Now look at the period from 1994 to 1997. Was Quaker's error to acquire Snapple in the first place or did they just manage it badly? * Why it made sense to acquire Snapple:
* $5 billion “Alternative Beverage” category that was showing “Explosive Growth” (pg 4) * Snapple had the highest market share, 35% (Exhibit 3) * Quaker had experience in the beverage industry (Gatorade) * Quaker had strong customer relationships, distribution expertise, and modern information systems that could theoretically benefit Snapple * Quaker had financial resources and management expertise to grow Snapple * Why it did not make sense to acquire Snapple
* Quaker did not have the expertise in the channels in which Snapple was distributed * Expensive: 2.5x revenue
* Snapple had a very different culture than Quaker, which would make integration difficult * Mistakes Quaker made after acquiring Snapple
* Did not develop an appropriate channel strategy for Snapple: * Snapple with a premium niche brand, which made the transition to being widely distributed in Grocery/Mass stores difficult. Quaker management did not seem to fully appreciate that fact. * Was not able to achieve channel rationalization
* Did not do a smooth job terminating the...