Swot Analysis of Snapple
Executive Summary
During 1987 – 1993, Snapple was one of the successful brands of a variety of non-carbonated beverages that targeted mainly towards the young, health conscious consumers. Snapple provided many varieties of flavour to its consumers and placed them in different market segments which were mainly cold channel distributions. With a premium pricing strategy, it had price as an indicator of quality and was consistent with its positioning strategy. The success of its marketing strategies were able to enhance consumers brand awareness, brand recognition and brand recall.
Subsequently, Snapple was sold to Quaker Oat in 1994 for $1.7 billion, the sale was in decline. Quaker made mismanagement in financial, marketing strategies. Accompanied with ineffective advertising and marketing programs, lost in trust in distributors and increase in competition in the market, were among the reasons for the brand’s decline. In 1997, Quaker decided to sell the Snapple to Triarc for $300 million.
Snapple
MPD † 545: Snapple Revitalization Plan
Problem Statement - Changes need to be immediately implemented to stop the declining revenue trend of Snapple. Revenues declined from $674M in 1994 to $440 M in 1997; the sales plummeted by 34.7%
Snapple was best known for its line of iced teas and juices in off-beat flavors but recent surveys show that Snapple brand means different thing to different people. So the immediate goal is to position the brand and return to sustainable growth. Also one of the biggest priorities is to repair the distributor relationship which was distressed because of prior owners.
SWOT Analysis
|Strengths |Weaknesses |
|Cold Channel network / Distributors |Positioning of Snapple brand |
|Triarc's Corporate style
During 1987 – 1993, Snapple was one of the successful brands of a variety of non-carbonated beverages that targeted mainly towards the young, health conscious consumers. Snapple provided many varieties of flavour to its consumers and placed them in different market segments which were mainly cold channel distributions. With a premium pricing strategy, it had price as an indicator of quality and was consistent with its positioning strategy. The success of its marketing strategies were able to enhance consumers brand awareness, brand recognition and brand recall.
Subsequently, Snapple was sold to Quaker Oat in 1994 for $1.7 billion, the sale was in decline. Quaker made mismanagement in financial, marketing strategies. Accompanied with ineffective advertising and marketing programs, lost in trust in distributors and increase in competition in the market, were among the reasons for the brand’s decline. In 1997, Quaker decided to sell the Snapple to Triarc for $300 million.
Snapple
MPD † 545: Snapple Revitalization Plan
Problem Statement - Changes need to be immediately implemented to stop the declining revenue trend of Snapple. Revenues declined from $674M in 1994 to $440 M in 1997; the sales plummeted by 34.7%
Snapple was best known for its line of iced teas and juices in off-beat flavors but recent surveys show that Snapple brand means different thing to different people. So the immediate goal is to position the brand and return to sustainable growth. Also one of the biggest priorities is to repair the distributor relationship which was distressed because of prior owners.
SWOT Analysis
|Strengths |Weaknesses |
|Cold Channel network / Distributors |Positioning of Snapple brand |
|Triarc's Corporate style