Dr. Melissa St. James
Snapple Case Analysis
Why do you think Snapple succeeded in the 1972-1993 phase when so many similar endeavors failed to? Snapple’s success during this period was primarily the result of its personnel, channel and image differentiation. Wendy Kaufman was a spokesperson, who was seen as quirky, likable, and honest. Snapple was sold primarily though cold channels such as street vendors, delicatessens, restaurants, and recreations areas. Snapple was very successful in conveying its identity as a sort of counter culture and non-mainstream beverage that was honest, 100% natural, somewhat edgy, independent, and not a part of corporate America. Snapple had also increased its advertising budget in the later part of this period, along with enlisting the help of a marketing guru to assist in label design.
Did Quaker (the 1994-1997 phase) make an error in buying Snapple or did they just manage it badly? Briefly support your answer. The reason that Snapple became unsuccessful under the management of Quaker was because Quaker attempted to “fix what wasn’t broken.” Quaker assumed that because it had been extremely successful in marketing Gatorade that Snapple could be marketed and distributed in the exact same way. While the earlier success of Snapple resulted from differentiation, Snapple started becoming unsuccessful under Quaker’s management because it started to lack the personnel, channel, and image differentiation that its following had grown to love and identify with. Under Quaker’s management, the relationships with Wendy Kaufman, Rush Limbaugh, and Howard Stern were severed because the company felt that these individuals were either too eccentric or too controversial, when in reality, getting rid of these people was a nail in the coffin for Snapple. Snapple was sold primarily though cold channels when it was successful and Quaker attempted to apply the Gatorade model to Snapple’s...