Page 3 Page 4 Page 6
Question 1 – In the period of 1972 to 1993, why do you think that Snapple flourished when so many small Start--‐ ups premium fruit drinks stayed small or disappeared? The growing success of Snapple can be explained with 2 of the four principals of marketing mix. Marketing mix describes the set of tools that management can use to influence sales, in the traditional formulation: the 4Ps of marketing—product, price, place, and promotion. Analyzing the case is perceived that Snapple differentiated themselves through Place and Promotion. After they turned a marketing executive his chief for sales and marketing the company redefined its promotion strategy and expanded its distribution. Regarding Place, the merit was to keep the expansion of the current distribution model at a sustainable pace, growing consistent in the East coast and them to the rest of the country. The company has been kept simple and under the model of small distributors. About Promotion, with a limited budget, compared to the giants of the beverage industry, one of the biggest accomplishments of the new promotion strategy was the alignment of the product with the average citizen using real people and real situations, the promotion should follow the motto of the product: 100% Natural. In addition, sctions such as the spread of the history of entrepreneurship of the owners and founders, the establishment of Wendy Kaufman as a spokesmodel, the Snapple Convention and the alternative channels and radios to promote the brand reinforced and are good exemplification of this success new strategy. Exhibit 1 Place - Small distributors - Sustainable pace expansion - Great retailers as secondary priority - Focus on small retailers (convenience chains, pizza stores etc.), cold channel
Promotion