Marketing and Snapple
Introduction
From 1972-1993 Snapple Fruit Juice Company flourished while many startup premium fruit drinks struggled and, in many cases, failed. In fact, most of Snapple's successful competitors during this time were sold to larger distribution companies allowing Snapple to create a Brand image and distribution alliance for the "smaller guy." They were a cult classic, promoted by loud, brash promoters like Howard Stern and Rush Limbaugh who had huge followings of independent, "stick-it-to-the-man" listeners. Snapple also created the legend of Wendy Kaufman, a former truck dispatcher and employee of Snapple. She was an instant success with the kind of style and attitude that matched Snapple's independent image. As the product began to grow so did distribution, product line, and understanding of what made the product great. Snapple and the original owners, however, sold control of the company to the Thomas H. Lee Company in 1992 for $27.9 million who then sold to Quaker in 1993 for $1.7 billion. The high-priced opportunity for Quaker was full of potential, yet after three disappointing years, Snapple was sold again. Some suggest that the purchase of Snapple was a bad move for Quaker, and the declining sales may have proved that point. However, Quaker did not understand what led to the original success of the product and tried to change the four P's. Eventually, Quaker sold the product to Triarc and it would be Mike Weinstein's responsibility to improve the declining sales and brand name success of Snapple. This paper will first analyze the success of Snapple from 1972-1993 under original ownership. Secondly, it will investigate Quaker from 1994-1997 determining if they made an error in purchasing the company, or if the owners managed it poorly. Third, how the Snapple brand compared to the competition will be addressed. Finally, three high priority initiatives Mike Weinstein and Triarc should implement to save Snapple will be identified.
From start-up
From 1972-1993 Snapple Fruit Juice Company flourished while many startup premium fruit drinks struggled and, in many cases, failed. In fact, most of Snapple's successful competitors during this time were sold to larger distribution companies allowing Snapple to create a Brand image and distribution alliance for the "smaller guy." They were a cult classic, promoted by loud, brash promoters like Howard Stern and Rush Limbaugh who had huge followings of independent, "stick-it-to-the-man" listeners. Snapple also created the legend of Wendy Kaufman, a former truck dispatcher and employee of Snapple. She was an instant success with the kind of style and attitude that matched Snapple's independent image. As the product began to grow so did distribution, product line, and understanding of what made the product great. Snapple and the original owners, however, sold control of the company to the Thomas H. Lee Company in 1992 for $27.9 million who then sold to Quaker in 1993 for $1.7 billion. The high-priced opportunity for Quaker was full of potential, yet after three disappointing years, Snapple was sold again. Some suggest that the purchase of Snapple was a bad move for Quaker, and the declining sales may have proved that point. However, Quaker did not understand what led to the original success of the product and tried to change the four P's. Eventually, Quaker sold the product to Triarc and it would be Mike Weinstein's responsibility to improve the declining sales and brand name success of Snapple. This paper will first analyze the success of Snapple from 1972-1993 under original ownership. Secondly, it will investigate Quaker from 1994-1997 determining if they made an error in purchasing the company, or if the owners managed it poorly. Third, how the Snapple brand compared to the competition will be addressed. Finally, three high priority initiatives Mike Weinstein and Triarc should implement to save Snapple will be identified.
From start-up
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