Snapple Case Study

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Snapple Case Study:

What were the key decisions that contributed to Snapple’s early success in the period 1972-1986?

• First, Snapple offered a broad line of beverage products accompanied with 100% Natural that appealed to young, health conscious New York professionals in the 1980s. • Second, Snapple’s proximity to New York City proved to be beneficial for marketing its products. Exposure to the media and celebrities helped the local company gain national attention. • Third, outsourcing the production and product development and built a network of distributors across New York. • Fourth, the premium pricing of its products enabled Snapple to be profitable, despite many failures. Premium pricing on the successful products covered losses on the failures. • Fifth, Snapple successfully promoted and advertised its products with an offbeat blend of public relations and advertising using celebrities.

What were the key decisions that contributed to Snapple’s later success during the “glory years” 1987-1993?

• First, hiring professional management to run the business like Carl Gilman to run sales and marketing. • Second, improving the label design of the bottle
• Third, increasing advertising budget to 1 million $ and intensifying the independent distributing system throughout the east coast. • Sponsoring radio programmers of two very popular shows.
• Establishing Snapple themed fun day.

Why was Quaker willing to pay so much for Snapple?

Because Quaker believed that there were two million points of availability for soft drinks in United States and Gatorade was represented in 200000. Also, Quaker had the vision to become very large beverage company.

What key decisions did Quaker make that killed the value of the brand?

The new owners changed the old corporate culture as they were very different from Snapple’s old management more corporate, more formal. The old Snapple sales force was let go, the distribution network was upset, the number of Snapple...
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