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Product and Brand Management:325-307

Executive Summary
During 1987 1993, Snapple was one of the successful brands of a variety of non-carbonated beverages that targeted mainly towards the young, health conscious consumers. Snapple provided many varieties of flavour to its consumers and placed them in different market segments which were mainly cold channel distributions. With a premium pricing strategy, it had price as an indicator of quality and was consistent with its positioning strategy. The success of its marketing
strategies were able to enhance consumers brand awareness, brand recognition and brand recall.

Subsequently, Snapple was sold to Quaker Oat in 1994 for $1.7 billion, the sale was in decline. Quaker made mismanagement in financial, marketing strategies. Accompanied with ineffective advertising and marketing programs, lost in trust in distributors and increase in competition in the market, were among the reasons for the brands decline. In 1997, Quaker decided to sell the Snapple to Triarc for $300 million.

1. Synopsis of Snapple
In 1972, Snapple was created which was formally known as Unadulterated Food Production. The initial product offered was solely apple soda, which was named Snapple. It targeted at the young, health conscious market segment. Subsequently, the company became more successful, a variety of non-carbonated beverages were then introduced and it began expanding its distribution. In 1994, the company was sold to Quaker Oats for $1.7 billion. However, Quaker was unsuccessful in building Snapples brand value as evidenced by the decline in sales (Appendix 1 ). Later in 1997, Quaker sold the Snapple to Triarc Beverages for $300 million. Triarcs new strategy for Snapple is to rebuild and develop new communication to r evitalize the brand. Identifing the nature of the brand is done to reconnect the brand with consumers to achieve both loyalty and future success. SNAPPLE INDIA

A&M Enterprises was established in 2006 by Mr. Anand Loganathan and Mr.Manish Vyas with the head office in the southern city of Coimbatore, Tamil Nadu, India. It has branch offices in Mumbai and Banglore and operates with a distributors and area sales managers throughout the country. We have full-fledged warehousing facility at Mumbai, Banglore, Chennai and Coimbatore from where distribution is facilitated across the country. Internationally, A&M 1

Product and Brand Management:325-307

Enterprises also distributes Snapple in the GCC countries & Thailand through its channel partners in these countries. A&M are the exclusive national distributors in India for Snapple beverage manufactured by Dr. Pepper Snapple group, a very leading beverage a very leading beverage manufacturer from the United States of America. There are 19 different flavors available in India. A&M has national tie-ups with Caf Coffee Day(CCD), Subaway, Coffee Bean & Tea Leaf & with Five Star hotels like the TAJ and Marriot Hotels too. Apart from this, all new airports in India also carry Snapple through our association with HMS HOST(USA) & SSP catering (U.K). Our Retail sector tie-up includes tesco, spar/Max hyper market, Food world, Nilgiris, Future Retail, Spencer and several other retail chains. Theatres like PVR,SATYAM,BIG CINEMAS

SALES STRATEGY:Snapple is one of the best natural juices in the market, selling the juice without any preservatives. It is made from natural fruits. The sales strategy is the product being heavy costing ,its a premium drink which is expensive in Comparison to the other drinks in the market. Its is packed in glass bottles and found only in selected places like Subway, Caf Coffee day and the International Airport. Snapple is in talks to get the juice to the college campus of different colleges all over India to increase the sales.

Product and Brand Management:325-307

2. The Rise of Snapple 2.1 The 4Ps: Product


With many brands being available in the Alternative Beverage category market by Snapples competitors, it was vital that Snapple had a product plan in the progressively competitive beverage industry. To increase brand equity, Snapple focused mainly on brand recognition and brand image; employing the Consumer-Based Brand Equity Framework. Broadening its product line to provide a variety of flavours to its consumers was one of Snapples marketing strategies. Extending the product line with an established brand name to enter different market segments, a reduction in introductory marketing expenses and high prospects of success will be achieved. In addition, Snapple provided experiential benefits to its consumers through Snapples full and exotic tastes. Therefore Snapple brand is synonymous with the brand image of natural, fun and quirky, in the eyes of consumers.

2.2 The 4Ps: Price


A premium pricing strategy is employed as Snapple targeted at the niche, premium beverage market. It has been price as an indicator of quality and is consistent with its positioning strategy (Andre & Granger, 1966). Although not all products succeed, the loyalty of customers assisted Snapple in driving market share in targeted market. . To further promote positive marketing strategies, Snapple should constantly review its pricing strategy against competitors and also reviewed consumers perception of value. Solely relying in its brand would be detrimental.

2.3 The 4Ps: Promotions & Communication


A free source of communication was achieved through the success of the entrepreneurial founders that led Snapple being reported by several medias, many times. This helped to enhance consumers brand awareness, through the increased in brand recognition and brand recall (Keller & Lane, 2003). This resulted in an overall increase in Snapples brand equity.

Product and Brand Management:325-307

Beside that, secondary associations were also engaged. Wendy was employed as the spokesmodel. Wendy possessed some personality attribute associations and product-related associations that were linked to the Snapples brand, which reinforced Snapples quirky positioning.

Snapple also enlisted the support of offbeat personalities, including Howard and Rush to create a quirky, individualist image that assisted Snapple in achieving a cult-like status, which is a strong and unique marketing strategy (Business Week, 2004). Reinforcement of Snapples brand image and brands mantra: 100% Natural can be seen through the use of natural and real communication means. This assisted Snapple in creating a consistent brand. Additionally, Snapple recognized importance of having its spokesperson in understanding the meaning of the Snapple brand.

Snapple Convention aided Snapple in being interactive with consumers, allowing consumers to remember Snapple, and tries to form a positive brand image through creating strong, favorable and unique associations to the brand.

2.4 The 4Ps: Place


As one of their marketing strategies, Snapple focuses on the method of distribution of its beverages. Indirect channel distribution marketing strategy was exploited, that made the distributors having an important role to play on the impact on Snapples brand equity This can be affected through the store image portrayed and also the display of Snapples beverages in stores. Snapple recognized this fact and thus built a strong relationship with its independent distributors.

Initially Snapple had a very little supermarket coverage. It identified that distribution in supermarket would lead to a decrease in own profit margin. Instead, it flowed through small distributors that were small as individual distributors were but became a mighty marketing force when aggregated. One of the mainstays to Snapples success was in an aggressive distribution . Snapple had an extensive and dependable network of independent distributors. Not only did these distributors generate high margins carrying Snapple, they also had the option of delivering other beverages to chain stores, further boosting profitability. Maintaining a strong relationship with distributors through commitment and trust, Snapple earned tremendous operational loyalty (Robert & Shelby, 1994).

Product and Brand Management:325-307

Snapple also can undertake the opportunity to increase its distribution volume significantly by investing in coolers and vending machines for convenience stores that differentiated itself on the basis of superior convenience and accessibility.

In conclusion, Snapple managed its brand through the use of and the coordination of a full repertoire of marketing activities to build its equity. Consequently, Snapple flourished and outshined its competitors.

3. The Fall of Snapple SWOT Analysis


SWOT analysis is used to evaluate the failure of Snapple and Quaker s management performance. The aim of SWOT analysis is to identify the key internal and external factors in the market environment in achieving the underlying business objectives and goals.

3.1 Internal Factors:


Strength is the competitive advantages and attributes which helps to differentiate companies from competitors, in meeting the target market demand. Quaker is experienced in managing its products and also building strong brand images. Since it had the resources and management skills, it was foreseen to be able to benefit Snapple brand. Moreover, the wide range of flavours tends to reinforce Snapples individualism characteristic, which was a clear point of difference. Snapple also possessed a strong heritage of providing authentic, natural juices. However, past performance offers no guarantee of future success and even well-established brands need to work to sustain their position.

Weakness relates to the limitation and restraint in decision making to achieve the objectives. Gatorade and Snapple had different brand images: lifestyle and fashion, respectively, which created confusion to the consumers as the brand portfolio was not properly managed. Brand values and meaning are related to consumers perception of belonging and loyalty of the brand (Quester, 2006). Y et, Snapple had difficulty in differentiating its product from fashion water. It lacked compelling reason for use. Mainly due to the discontinuance of Wendy and Stern, brand loyalty was lost which impacted Snapples financial performance (Leiser, 2004).

Product and Brand Management:325-307

The failure of large pack of Snapple drinks illustrated Quakers low understanding and lack of consumers and distributors communication. Moreover, the failure of distributing a wide range of flavours affected consumers repurchasing behaviour (Andreu, 2006). The main weakness of Quaker was the failure of Snapples brand consistency and the transformation of its brand. The lack of understanding of brand also led to wrong implementation of marketing tactics.

3.2 External factors:


Opportunity is the supportive marketing environments which assist organizations in achieving their objectives. Snapples early entry to health conscious beverage market involved little competition which helped to establish its well-known brand. Consumers buying decision involves recognition of problems or product needs, subsequently searching for product information, valuation of alternatives, purchase and then post purchase evaluation (Pride, 2006). In the information search process, the external factor of decision is affected by friends or outside resources (Pride, 2006). Being perceived as fashion water, Snapples youth market is seen to be more easily influenced by peers. Furthermore, as Snapple had a strong heritage of providing natural, authentic juices, it had well established its brand image and also gained a group of loyal customers, which would pave a path to maintain and develop future growth of Snapple. Threat is the barrier that prevents organizations in achieving their objectives. Snapples rumors had an impact on brand image, consumers brand loyalty and brand equity. The quality, design, features, cost and prices are the considerations for consumers purchasing decisions. Price of a product is based on the consumers perception of the value (Leiser, 2004). Due to the success of Snapple, increase in

competition was seen and consumers became more price conscious. Consumers will switch for the lower price product when there is no large differentiation between the products. The youth market, with a lower disposable income, may thus be lost. Furthermore, Snapple should aim to deliver to the ever-changing markets demand, as "experience" will be a key word for the beverages brand architecture and the consumer-focused development in the future market place (Ellia, 2006).

Product and Brand Management:325-307

In conclusion, the failure of Snapple lies both within the brand and the bad management by Quaker.

4. Lessons Learnt
It is vital for all organizations, including Triarc to learn from past experience, reviewing the success and failures of Snapple. Continuous improvements and reviewing of past experience would aid Triarc in gaining an edge

Recognizing the failure of Snapple from, should understand that mere relying on the past success of a product and brand is detrimental to the organizations health. It is almost impossible for a brand to continue flourish, without reassessing it, especially when the market is saturated and consumers perception and behaviour continue to change. Introduction of new flavours to the market should be done only after having an in-dept consumer research. Investigating on what beverage market actually requires and what is lacking in both the product and the market is essential in successful innovation. Hence, Triarc is encouraged to understand and continuously reassess the meaning of the brand and customer desire or trends.

Engaging brand management teams that have the required knowledge and understanding of Snapple is one of the essential element in managing own brand equity. Moreover, good communication and establishing and maintaining a strong, favourable relationship with the distributors would assist Triarc in achieving an increase in market share, expansion of its current market, which would ultimately lead to an increase in value of Snapple. However, Quaker failed to recognize this and led to Snapples independent-minded distributors to mistrust Quaker management. Quaker overestimated Snapples value and tried to compete with large brands like Coca -Cola and Pepsi. They made advertising miscues that led to detrimental marketing mistakes. Furthermore, discontinuation of Wendy and Stern was one of the main failures of Snapple (Tajirian 2003), which changed the image of Snapple.

Triarc, which is known for acquisition of troubled assets, should be aware that consumers have changed their purchase habits and further consumers behaviour is evolving at a rapid pace. In order to be successful in a certain industry, investigation of consumers demand and behaviour has to be executed on a regular basis. Likewise, responding to the markets needs accordingly is crucial, rather

Product and Brand Management:325-307

than innovate for the sake of innovation or rest on their laurels and expect a product or brand to continue to be successful based on its history.

Triarc also recognized that in order for a product or brand to continue achievement, a new brand image that should be consistent with Snapples brand should be established . Maintaining a good culture of the brand as well as employing effective marketing strategies would ultimately lead to Snapple being positioned in consumers consideration or evoked set.

5. Recommendations
Triarc needs to understand the product differentiation of its new product, Snapple, from its competitors and employ strategies to heavily market the brand values of Snapple without being stuck in its past era. To elaborate, innovation is required for Triarc to sustain with the increasing and changing consumer demands without detracting from its core product business and ensure that consumers are well informed about its product.

Regardless of the types of innovations employed, the marketing strategy should always focus on its core brand value so that consumers will be able to recognize any product or campaign as a Snapple product. This ensures Snapple in properly balancing consistency and change with the brand.

Building brand equity requires firms to recognize and understand the needs of their consumers. In addition, Triarc has to be able to foresee and adapt to the ever-changing consumers needs. Both qualitative and quantitative researches should be engaged, in order to gain an in-dept understanding of consumers behaviour. Brand tracking to establish consumers understanding of Snapple, their responses to competitor beverages, to establish consumers wants and needs and to establish Snapples key demographic and target market, as well as cost benefit analysis because it would be helpful if they could reasonably estimate the probable benefits to determine whatever they are worth to cost involved (Hartley 1998). Quantitative research that measures brand awareness and brand image should be collaborated as they tend to be complimentary. However, the down-side of utilizing both researches is that it involves significant amount of time and money.

Extension of distribution channels to reach to vast consumers is recommended, since most of the sales are generated through cold channels. This would thus result in raising brand awareness. Vending into overseas market should be considered, when Snapples brand image has been reinstated. Hence,

Product and Brand Management:325-307

building a strong connection and relationship with distributors is vital to organizations especially for those that require indirect distribution channels.

Fostering a strong and loyal community within the organization would ultimately enhance own brand equity. This can be done through building a strong welfare, which would help employees to have a sense of belonging to the organization that would assist Snapple in earning tremendous internal and operational loyalty.

Though indirect distribution channel is employed, Triarc should always seek for means to interact with its consumers, through organizing events and sponsorship. Providing more information about Snapple product to consumers on its website is also recommended, in order to increase Snapples brand awareness and brand image.

Another recommendation to Triarc should be to reinstate Wendy and Stern due to their association being established with Snapple. This would then assist Snapple in transforming the negative association it possessed in the 1990s and also reinstate Snapples brand image.

Although various recommendations are available for Triarc, the organization should always beware of the advantages and disadvantages of each marketing strategy employed and are able to transform the negative associations into positive associations, in order to enhance the firms overall value.

Product and Brand Management:325-307

The new age Beverage Market



Ready-to-drink tea Sports beverages Plastic bottled water Single serve fruit beverages All-natural soda Sparkling flavored water Sparkling fruit beverages

New Strategy People for brand management positions Reduced number of flavors offered Reduced contract manufactures LOW PRICE Made changes to the flavor line. New packaging
Innovation At Snapple

New product development

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Snapple-a-day

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CONCEPT OF DIET SNAPPLE:-

6. Conclusion
SWOT analysis is evaluated and it identified the key internal (strength and weakness) and external factors (opportunity and threat) of Snapples and Quakers failure in market environment.

Snapple and Quaker have competitive advantages to be differentiated from competitors in achieving success. However, the weakness of Snapple and Quakers different brand images affected its brand consistency. Opportunities were available in the market for Snapples growth in market share and also stabilisation of its brand image in consumer buying decision process. Price is one of the barriers for Snapple due to the increase competitions and price conscious consumers.

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Product and Brand Management:325-307

After SWOT is being analysed, it identified that there is a need for reassessing and improvement in their marketing strategies in order to be success.

To be able to manage Snapple, Triarc is required to understand the product differentiation of Snapple from its own product and its competitors and employ strategies to heavily market the brand values of Snapple. The marketing strategy should always focus on its core brand value. Both qualitative and quantitative consumer researches, and brand tracking should be engaged to enhance the understanding of their product and consumers requirements.

Extension of distribution channels, building a strong connection and relationship with distributors, vending into overseas market, fostering a strong and loyal community within the organization, reinstating Wendy and Stern are recommended.

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