Steinway & Son
In 1972, three friends who were running a sardine and pickle store in Queens, New York City, started up a beverage company to sell apple juice. After 20 years’ development, the annual sales of this company were growing from $4 million (1984) to $674 million (1994), increasing 168 folds. “Snapple” became a well-known beverage brand. Through analysis of Snapple’s marketing mix, we can peek at the reasons why Snapple can achieve such successes
1) Product. Snapple’s major product is a bottled apple drink which emphasizes 100% nature. It is easy for us to understand such apple juice met many customers’ needs to have a healthier and high-quality life, when environmental issues caused broad public attentions in 1980s and 1990s (e.g. Chernobyl nuclear disaster in 1986). Moreover, it is public obsession that fruits, especially apples, contain various nutrition and vitamins that can bring positive impacts to people’s health. This stereotype strengthen customers’ subconscious believes that drink 100% natural fruit juices, such as Snapple, can result in a better life. There is a huge market segment, especially young health-conscious urban professionals, for Snapple. Snapple met such strong wants and needs of customers by its apple juice products and built a great brand.
2) Place (channels). Snapple outsourced its production and product development. It built a network of distributors across New York City by using individual distributors working for their own account. This distribution system eventually contained 300 small, predominantly family-owned distributors supplying convenience chains, pizza stores, food service vendors, gasoline stations and other stores. It expanded to New Jersey and Pennsylvania after years. Snapple also developed a distribution network at Boston by collaborating with a small local beer distribution company. On the other hand, only 20% of Snapple’s sales come from supermarket nationally due to Snapple’s financial strain in this distribution
1) Product. Snapple’s major product is a bottled apple drink which emphasizes 100% nature. It is easy for us to understand such apple juice met many customers’ needs to have a healthier and high-quality life, when environmental issues caused broad public attentions in 1980s and 1990s (e.g. Chernobyl nuclear disaster in 1986). Moreover, it is public obsession that fruits, especially apples, contain various nutrition and vitamins that can bring positive impacts to people’s health. This stereotype strengthen customers’ subconscious believes that drink 100% natural fruit juices, such as Snapple, can result in a better life. There is a huge market segment, especially young health-conscious urban professionals, for Snapple. Snapple met such strong wants and needs of customers by its apple juice products and built a great brand.
2) Place (channels). Snapple outsourced its production and product development. It built a network of distributors across New York City by using individual distributors working for their own account. This distribution system eventually contained 300 small, predominantly family-owned distributors supplying convenience chains, pizza stores, food service vendors, gasoline stations and other stores. It expanded to New Jersey and Pennsylvania after years. Snapple also developed a distribution network at Boston by collaborating with a small local beer distribution company. On the other hand, only 20% of Snapple’s sales come from supermarket nationally due to Snapple’s financial strain in this distribution