This document provides an overview of the history and business of Snapple beverage company. It discusses Snapple's origins in the 1970s, its growth through the 1990s becoming a nationally recognized brand, and its acquisition by larger companies including Quaker Oats, TriAc Beverage Group, and ultimately Cadbury Schweppes. The document outlines Snapple's marketing strategy, product line expansion, and competition in the beverage industry over the decades. It concludes with Snapple's current status as part of the Dr Pepper Snapple Group and possibilities for expanding the Snapple brand internationally.
3. Largest manufacturer in the world
Efficient manufacturing processes in the
world
High speed and low cost
Origins – civilizations
More streamlined and large-scale
4. MODERN ERA
1876 - Root Beer
1886 – Coca Cola ( largest soft drink manufacturer in
the world)
1966 – Gatorade
1971 – Starbucks
1972 – Snapple
1978 – Perrier and Evian
1980 - Odwalla
1981 – Red Bull
1982 – Diet Coke
1992 – Pepsi (lipton), Cola(ocean spray)
1995 – Dasani,Aquafina
5. ABOUT…
Leonard Marsh, Hyman Goldman and Arnold
Greenburg sold fruit juices under “Unadultered
Food Corporation”
Carbonated apple soda was part of their
beverage line; snappy apple taste
Snapple tea was introduced; Snapple Lemon
Tea was first
Today they have 50 varieties of flavored tea,
fruit juices and flavored water; ”Made from The
Best Stuff on Earth”
6. STRENGTH
Brand image
Product line
The flavored drinks
available
SWOT
ANALYSIS
OPPURTUNITY
Tap the youth market
Brand image
WEAKNESS
Differentiating its
product from “fashion
water”
Discontinuance of
Wendy and Stern
THREAT
o Competition
o Pricing strategy
8. PRODUCT
Product plan in the progressively competitive beverage
industry
Focused on brand recognition and brand image
Provided experiential benefits to its customers
Extended product line with an established brand image
PRICE
Premium pricing strategy was employed
Constantly review its pricing strategy
9. PROMOTION
Free source of communication was achieved
Secondary associations was also achieved - Wendy
Support of off-beat personalities; achieving cult- like status
Use of real and natural communication means
Importance of having a spokesperson
PLACE
Indirect channel distribution marketing strategy was
exploited
Initially had a very little supermarket strategy
Maintained strong relationship with the distributors
Inve4sting in coolers and vending machines
10. JOURNEY OF SNAPPLE
•1972- incorporation of Snapple.
•1990-emerged as nationally recognized
brand in beverage industry.
•1994-Quaker oats company purchased at
$1.7 billions.
•1997-sold to Triac group at $300 million.
•2000- sold to Cadbury Schweppes at
$1.45 billion
11. EMERGENCE
•In 1972 Leonard Marsh and Hyman
Golden started with Unadulterated Food
Power Co selling pure fruit juice.
•In 1978 created apple soda that fizzled
eventually giving drink’s name as ‘SNAP’.
•In 1980 created non carbonated ready to
drink fruit juice and ice tea.
12. FUND RAISING
•In Spring 1992 Thomas Lee took majority
stake at $140m.
•In December same year they issued
4million shares at the price of $20/share
and a month later it was traded at $34.
•1992 to 93 stock price risen almost 5
times.
13. SNAPPLE FORMULA
•Offering customers new and exotic
choices of ready to drink beverages.
•Develop its own distribution channels.
•Premium pricing--Initially prices were $1-
1.25 for 16 ounce with 30-38% margin
then they reduced.
14. BRAND EQUITY
•In consumer survey they suggested
Snapple name was catchy, popular and
endangered positive feelings in consumers.
•Promotion---Through national radio, TV,
consumer composed Jingle and word of
mouth publicity.
•Company's most successful ad “Wendy-
The Snapple Lady”.
15. NEW COMPETITION
•Pepsi along with Unilever(1992)-Introduced
Lipton iced tea, advertising campaign with
Vendla drinking Lipton.
•Tetley English beverage giant Pearle.
•Coca-Cola (1994) Introduced Fruitopia but
could not do up to the target.
•Arizona captured nearly 17% market share
priced similarly like Snapple.
16. TAKEOVER BY QUAKER
OATS
•In 1994 at $1.7 billion giving 17 times earnings
to Snapple.
•But neither follow regular advertising
schedule nor introduce new products quickly
enough. Also healthy reputation began to
suffer.
•They try to use Snapple's distribution network
for their product but distributors refused.
17. NEW STRATEGIES
•Reduced no of flavors.
•Tripled add budget.
•Pushed with new packaging.
•To process order faster from 21 days to 2
days.
18. BUT…
•Snapple's sales decline…………. although in
1995 Snapple maintained its no one
position because of premium pricing
policy.
•Sales dropped almost 20% per quarter, as
other giants entered into the picture.
•Then what next…………
19. SNAPPLE SALE
•Triac Beverage Group bought Snapple for $300
Billion in 1997.
•TBG specializes in chemical, natural gas, textile
industries.
•By 1997’s Competitors were Pepsi’s
FruitWorks,Nantucket,Campbell Soup co’s V8
Splash.
20. TRIAC’S STRATEGIES
•Launched new Products
•Whipper Snapple
•Snapple Farms
•Snapple Hydro
•Snapple Elements
•Nationwide Promotion Campaigns and Contests
•Television Advertising
•Website
•Brand Extension
– Hard candy,Fruits chewy candy, Whirls gummies
21. TRIAC’S SUCCESS
•Volume of Snapple rose to 27%
•By 2000 Snapple had 40% market share
•Revenues reached $349million
22. SALE AGAIN
•Cadbury Schweppes purchased Snapple for
$1.45 Billion.
•Market Capitalization of $20Billion.
•Beverages include Carbonated drinks, fruit
juices, ice teas, water.
•Brands included are
Dr.Pepper,Mott’s,Snapple,7UP,Hawaiian
Punch,Sunkist,A&W
24. BEST SNAPPLE
PRODUCTS
•Snapple Orangeade $2.99
•Snapple Raspberry Peach $1.89
•Snapple, Apple Juice Drink $1.89
•Snapple, Beverage Fruit Punch $5.49
•Snapple, Mango Madness Beverage $2.99
•Snapple, Lemonade Beverage $1.89
25. CURRENT SCENARIO
% of Market
Number of Cases
(millions)
Dr Pepper Snapple Group (DPS)
/Cadbury Schweppes (CSG)
15.0 1491.3
Coca-Cola Company (KO) 42.8 4241.1
Pepsico (PEP) 31.1 3082.8
Cott (COT) 4.8 476.6
26. PROFIT
•Profit gained 42% compared to 2008.
•Carbonated Soft Drinks volume increased by
3% while 7UP, Sunkist soda, A&W and Canada
Dry were down a combined 3%.
•On the Non-Carbonated side, Hawaiian Punch
volume was up 3% while Snapple declined 6%.
•The company's U.S. market share of
carbonated soft drinks grew by 1.1% in the
quarter
27. SNAPPLE IN INDIA?
•Cadbury separating out drinks which include
Dr Pepper, 7UP, Snapple and Hawaiian
Punch
•Tata Group and Coca-cola bidding for Snapple
•Tata planning to expand in non-tea portfolio
•Tata planning to bid for Snapple at $2billion
