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Case study

Snapples

Submitted By:
Abdul Basit Shafqat
Asad Raza
Waqar Khalid
Mahad Wyne
Sidra Arshad

Dated 18/10/2015
Lahore School of Economics

Solution:
This caseis based on the customer based brand equity. Customer based brand equity is the effect
that brand knowledge has on consumer response to the marketing of that brand.
Snapple has positive customer based brand equity as consumer trust the product and want to see
it in the market but due to low profit margins and some other reasons the parent company could
not hold or maintain this brand and they sell it.
In 1994 Quaker bought Snapple for $1.7 billion. The vision had been to combine Snapple with
Gatorade, an earlier and very successful acquisition, to form a powerful beverage business unit.
Snapple, however, did not thrive: sales fell in each of the next four years, and in 1997 Quaker
despaired and sold the brand to Triarc Beverages for $300 million.

Mike Weinstein, CEO of Triarc Beverage Group, reflected on the acquisition. At $300 million,
Snapple is not a steal by any means. Its in decline, and when that happens to a brand its seldom
that it comes back. Were in a fashion business here, and when your imagery isnt fashionable
often thats the end. But weve talked to a lot of consumers and we did a lot of qualitative
research, and weve decided that in this case the brand still has inherent strength. People feel
good about it. It will respond to the right marketing stuff.

Snapples is a quality product it had the highest market shares of 35% over the supermarket
industry and catered 24% volume of alternative beverages. Its a natural fruit juice without any
preservative. Natural is the brand Mantra. Keeping in view the current situation of Snapples it
is suggested that there is a requirement of brand awareness to make it successful again.

Brand awareness consists of brand recognition, and brand recall performance. Brand recognition
is consumers ability to conform prior exposure to the brand when given the brand as a cue. They
can easily recognize the brand as they have seen it before.
Brand performance contributed a lot towards the brand equity. Because it is the primary
influence on what consumers experience with brands, what they hear about a brand from others
and the firm tells about itself to its customers in their communication. In the case of Snapples
there is lack of marketing communication. The brand has not effectively communicated with its
potential customers. Designing and delivering a product that fully satisfies consumer needs and
wants is a prerequisite for successful marketing.
Brand imagery and brand judgment are also the essential components of brand equity. Brand
imagery depends on the extrinsic properties of a product in which the brand attempt to satisfy
consumers psychological and social needs. This can be delivered through advertising and
promotion.

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