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Overview

•Introduction•S.W.O.T. Analysis•Problems•Market Segmentation•Positioning•Recommendations

Introduction

1972-1986 : The origins of brand1987-1993 : The glory years 1991: Distribution jumped over to West Coast 1992 : Snapple sold to a Boston private bank1994-1997 : Quaker takes command 1994 : Quaker buys Snapple for $1.7 billion1997 : Triarc acquires Snapple 1997 : Triarc buys Snapple for $300 million

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1996

Growth ofSnapple

Annual Sales Revenue, 1972-1997

$ Millions

Alternative Beverage category, 1997

24%

24%

19%

16%

17% Premium(e.g.,Snapple)

Non-Premium(e.g.,Lipton)Bottled Water

Sports Drink

100% Juice

Total Alternative Beverage Category: $10 Billion at Wholesale

Supermarket Brand Shares, 1997

35%

12%4%9%

11%

29%Snapple

Ocean Spray

Nestea

Lipton

Arizona

All Others

Total Supermarket Alternative Beverage Category: $3 Billion at Wholesale

Snapple Flavors ( %of cases in 1996)

(1) Lemon Tea 15 %(2) Kiwi Strawberry 7(3) Mango Madness 5 (4) Peach Tea 5(5) Pink Lemonade 5(6) Diet Peach Tea 4(7) Fruit Punch 4(8) Raspberry Tea 4(9) Diet Lemon Tea 3(10) Diet Raspberry Tea 3 Top 10 of 50 Flavors 55 %

SWOT AnalysisStrength:

1. Brand image - natural, quirky, offbeat, playful, personal, authentic2. Full of variety and flavor - diverse product line - over 50 flavors3. Brand name - snap; appleimplicit health claims4. Imaginative use of names - e.g., Mango Madness

SWOT AnalysisStrength: ( Cont.. )

5. Adoption - most new drinkers had been aware of Snapple - Snapple drinking flows are through friendship network6. Packaging - plays out the taste experience - complexity of the label, stippling on bottle

SWOT AnalysisWeakness:

1. Not an established brand - like a fashion water - differentiation is weak - lacks a compelling reason to use2. Distribution - Quaker was wrong3. Usage rate - fluctuates seasonally, diurnally, and cyclically4. Regional Differences - areas without a postmodern mindset

SWOT AnalysisWeakness: ( Cont..)

5. Quaker’s corporate image6. Package size7. Price

SWOT AnalysisOpportunities:

1. More variety, imagination, and flavor than competitors 2. The diversity within Snapple Brand - a model for a multicultural society3. No great competitors - Snapple is fun in a way unduplicated by any other brand of soft drink - no competing brands stand out at the time4. Health concern5. Future trend is going to be individualism.

SWOT AnalysisThreats:

1. Rumor - deep sense of betrayal by customers 2. Distribution - warm or cold?3. Image - effect of Quaker: fashion lifestyle

Problems

•Corporate Image•Spokesmodel Disappear•Inappropriate Distribution•Product Size•Lack of Innovation•Pricing

Market Segmentation

•Geographic: Urban areas in U.S. & foreign countries

•Demographic: Right people

•Psychologic: Active lifestyle

Target MarketRight people with active lifestyle!

PositioningNature! Good-for-you! Fashion!

4PPlace

Promotion

Price

Product

•Product: Smaller bottle, Product and packaging innovation•Place: Cold channel + Warm channel

•Promotion: Spokesman•Price: No discount

Recommendations•Reestablishing Image - Real - Natural - Good for you

•Distribution - Niche Marketing - National - A Network of Distributors - Warehouse Distribution

•Price - High

Recommendations

•Bottle Design - Smaller - Convenient - Ready to drink - Just fits in your hand

•Promotion - Advertisement - Sampling

•New Products Development - Health - Diet

Thank You Very Much!Have A good Night!