From 1972 to 1993‚ why did Snapple flourish when so many small start-up premium fruit drinks stayed small or disappeared? * Premium pricing allowed the company to introduce a variety of products‚ many of which were unsuccessful‚ while still remaining profitable * Hired a professional management team that used focus groups to improve label design‚ increased the advertising budget‚ and intensified the independent distributor system throughout the East Coast * Successful advertising and
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brands‚ we do know how to advance businesses. And our expectation is that we will do the same as we take Snapple as well as Gatorade to the next level." -Don Uzzi‚ President of the Quaker Oats Beverage Company‚ North America.1 SUMMARY The Quaker Oats Company‚ founded in 1891‚ is one of America’s oldest food enterprises. From its start in the domestic ready-to-eat cereal market‚ Quaker grew an appetite for diversification‚ snapping up pet food‚ grocery and toy businesses‚ and by the 1960s had
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The Acquisition of Snapple by Quaker Oats In an effort to raise the company’s growth rate and avoid a takeover.Quaker Oats‚ acquired Snapple beverage corporation for $1‚7 billion‚a price considered by many to be valued a billion too much. Snapple captured a significant loyal following by being an innovator in the ready-to-drink tea.The RTD tea segment of the beverage market was a quick developing area with promising returns ‚that’s why it attracted giants like coca cola and Pepsico‚ who entered
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The Pursuit of Synergy: Quaker Oats-Snapple Acquisition Professor Sherif A. Ebrahim Corporate Strategy‚ Spring 2012 May 1‚ 2012 Pauline Guittard Linn Gustafsson T.J. Henry Jr. Sevinc Ulu Brittany Williams Many successful businessmen and women have concluded that the most successful acquirers are also the most disciplined. In order to secure a lucrative and profitable acquisition all strategic alternatives ought to have been considered and prudently explored. Furthermore‚ a clear operating strategy
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Programa PREGUNTAS DEL CASO 1. QUE HIZO SNAPPLE PARA TENER EXITO? Análisis del Mercado: Tamaño Estructura Segmentación de clientes: Publico Objetivo: Hombres y Mujeres Por Edad: Consumidores de entre 18 a 29 años de edad Consumidores de entre 30 a 44 años de edad Por el nivel de consumo: 1. Fieles a la marca a largo plazo: La consumen hace más de 3 anos. 2. Nuevos grandes consumidores: Sinople se ha convertido en su bebida no carbonatada favorita durante
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brand that we know of today‚ Snapple‚ originally was manufactured in 1972 as an all-natural apple juice business in Greenwich Village. Arnie Greenberg‚ Leonard Marsh‚ and Hyman Golden founded the Snapple Brand outsourcing production and product development building their network of distributers across New York City. Despite many product flavors that were failures‚ premium pricing balanced everything out and Snapple was still able to generate revenues. Unlike Snapple‚ from 1972 to 1993‚ much start
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In the period 1972 to 1993‚ why do you think Snapple flourished when so many small startup premium fruit drinks stayed small or disappeared? Snapple started up with a mission focused on advertising a health-conscious product that was targeted for young professionals. They first grew the business from Boston distributors through distributors across NY‚ NJ‚ and PA. Boston was key to the East Coast Snapple success as it grew from selling 250‚000 cases a year to selling 1 million cases a year. In
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SNAPPLE – An Introduction Started in 1972 by selling all-natural apple juice “100% Natural”- the business mantra Alternative beverage category drink Product portfolio includes juices‚ iced tea‚ lemonade‚ water By 1994‚ had sales revenue around $674 m Distributed mostly through cold channels Promotion of Snapple was an offbeat blend of PR and advertising Had huge success by creating a spokesmodel for the brand: Wendy Kaufman Brand promoted through radio programs by Stern
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Quaker Oats Morrison reviving Quaker after the Snapple debacle– cost $1.4 B write-off ●Focus on Gatorade. Gatorade -cash cow – potentially could dry up ●Pre-Morrison‚ Quaker mainly riding Gatorade under-investing in food brands ●Morrison comes in and changes PA: Younger manager presidents – oversee individual product lines such as hot cereal‚ cold cereal‚ snacks‚ and domestically sold Gatorade-cost-cutting - reinvested right into their own brands ●SK ●Same representative-move multiple brands of the
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500 Module 5 4/29/2010 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
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