Submitted by:Neeraj Garg (2013166)

Neeraj Ramadoss (2013167)

Nidhi (2013169)

Nikita Agarwal (2013171)

Nitesh Singh Patel (2013178)

Nitin Boratwar (2013179)

THE BEGINNING

• Founded by Arnie Greenberg, Leonard Marsh and Hyman Golden in 1972

• Snapple: reaction to modernity

• Vision: 100% natural and real

• Self funded

• Outsourced production and product development

• Product line: Ice tea, diet juices, sports drink, seltzers etc.

MARKETING STRATEGY

• Well trained and experienced Management people were hired

• Increased Advertising budget and improved distributor system.

• Everything was real and natural

• Aggressive promotional campaigns included public relations and advertising:

I. Paid Media

II. Unpaid Media

III. Radio

IV. Fashion & Fun Events

DISTRIBUTION

• 300 predominantly family owned distributors

• Convenience chains, Pizza stores, gasoline stations, food service vendors etc.

• Snapple dependent on its own distribution channel in Boston

• Ted lenders, a part of Boston beer distribution company made a contract with Snapple for distribution in Boston by setting up coolers and vending machines.

• This lead to an increase in sales from 250,000 to 1 million units a year

• Though, unable to increase distribution in supermarket.

MARKET STATUS

• Became the market leader in the alternate beverage category

• Revenue boom: $80 million in 1989 to $516 million in 1993.

• Tough Competition from PEPSI, COKE, MISTIC etc.

• Market share remained steady

• Highest turnover of $674 million in 1994.

• Sold control to THOMAS H. LEE company for $674 million in 1994.

• THOMAS H. LEE sold it to QUAKER in the very same year.

QUAKER- The New Acquirer

• Four product lines: Grain based, bean-based, pet foods and beverages.

• GATORADE, its beverage brand; the key player in revenue.

• Sports drink

• 3 key features of its growth:

1. Expanded product line: various size packets with 3 to 8 flavors.

2. Promotional support: celebrity endorsement.

3. Distribution channel: entered foreign markets, improved domestic coverage.

• Explored a joint venture with coca cola, but failed.

GATORADE v/s SNAPPLE

FACTOR GATORADE SNAPPLE

IMAGE Lifestyle Fashion

CHANNEL Warm channel Cold channel

MARKETING Celebrity endorsement Real people, real

circumstances

NATURE Health drink Taste drink

GATORADE & SNAPPLE

• Integrating the markets of both Gatorade and Snapple

• Availability of both products at one counter and at more locations

• Quaker’s resource and management skills for Snapple

• Reducing costs by interchanging the channels of distribution for both products.

• Gatorade and Snapple markets complemented each other .

SNAPPLE & CONSUMERS

• The Target Audience for Snapple are,

1. Fun-consumers

2. Youth or people with youthful attitude and health conscious professionals

• Customers know that….

1. Snapple is an alternative to carbonated beverages

2. It’s for on-the-go in between activities

3. Healthy alternative

4. Sensual, stimulating, and soothing.

1997:TRIARC ACQUIRES SNAPPLE

• Investment company

• Long history of buying and selling troubled assets

• Mistic brands; fruit juice and tea beverage brand

• Planned to acquire Snapple

• Snapple-Great brand; competitor of Mistic

• Snapple twice the size of Mistic and RC combined

STRATEGIES

• Advertising agency helped to develop communication strategy to revitalize the brand.

• Believed in dynamics of ready-to-drink beverages.

• Connected to consumers ,real, human and avoided marketing slickness.

• Quaker was against snapple principles

• Looked for what’s new, what’s moving and moving hot

• Focused on different style of label

• Focused on very average, normal people

• Developed brand product first and then targeted segment

SWOT

STRENGTHGreat brand value

Good connectivity with consumers

Fun quotient/fashion statement

Variety

WEAKNESSDistribution system failed because of approaching supermarkets

Health quotient

Changed marketing strategies

Could not keep track with the new market trends

OPPORTUNITY

Grow their brand as a fashion beverage.

Innovation according to customer needs.

Focus on their “real” personality & quirky edge.

Produce bottle water and other alternatives.

CSR like nutrition education programs

THREATS

Gatorade’s was invading the market ;lifestyle drink

Resistance towards warm channel suppliers

THANK YOU!!