Snapple Case Study

Having Ivan Lend as a bookkeepers In their Minimal commercial, he pronounced It “Schnapps” Instead of “Snapped” which made the commercial to be a success due to the fact that it was such bad quality with such bad pronunciation. Snapped didn’t care how their commercials came out to be as long as everything came out to look real, natural (ex: “100% Anural”). They started using Wendy Kaufman as their spokes model. She was a normal real person who became famous nationwide very soon because everyone loved her.

She received Invitations to Opera, David Letterman, sleepovers and prom dates.

In 1994 Snapped was purchased by Quaker for 1. 7 billion. Quaker had already developed Storage into a billion dollar brand and even though its CEO didn’t consider Snapped was worth 1. 7 billion he still decided to purchase and develop the brand. Their plan was to use Snapper’s distributors in the cold channel in order to help Storage and used Storage’s strength in supermarkets to help Snapped.

They though that If they used the same strategy as for Storage, they will help Snapped but they failed to understand the market differences, target markets and customer references.

This left customers feeling betrayed and with the Impression that Snapped was “selling- out”. Quaker replaced Wendy and ended the contract with Howard Stern which produced bad press. They refused to take in consideration the strategies of the previous leaders of Snapped and its own external and customer analysis therefore plans didn’t go as expected and in 1 997 Tartaric Beverages purchased Snapped from Quaker for 300 million.

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Trying to promote two different brands In the same way was definitely a mistake on Quakers management.

Snapple Harvard Business Case Pdf

Storage eyeing considered a sports drink and Snapped being considered a “fashion” drink they shouldn’t have been promoted the same way. Quakers attempts to have the distributors give in their supermarkets in exchange for Storage distributor rights In the cold market was met with disagreement and resulted in conflicting distribution channels. Knowing that the Snapped consumer is considered quirky and offbeat the product must be one that portrays that Image. The average consumer Is active, on the run, fun and energetic and Snapped should’ve represented this vigorously.

Consumers used mostly single bottles, ready for consumption which indicates that Snapped is an individual drink, not a family one and by creating the larger bottling, Quaker not only created a less appealing image to the average consumer but they also caused distribution channel problems and display area problems. To bring Snapped back to success changes have to be made In order to restore the company’s Image that Snapped had throughout the period of 1987 to 1994. The company’s Image was a Tune one, 1 natural no matter ten outcome.

During Deck ten company to Its successful period and restore its image, the company currently owning it must aim for the same image the product is attempting to transmit. Product placement, quirky image, promotions and companionship ambiance will help restore consumers trust and it will erase the “sell-out” image that Quaker has developed. Special efforts should be put into restoring the customer and distributors confidence because in order for them to support and distribute the product in the cold and warm market they need to be reassured of the brands value.

Re-building great relationships with strictures is vital because in order to stay high up in the market and beat the competition, Snapped must be placed in the major and most important cold markets and the distributors are the ones in charge of that. Bringing back Wendy or another beloved real spokes person would play a big part in succeeding the brand restoration. Wendy was a real person that people could relate to and she helped the brand tremendously. Everyone was disappointed after Quaker fired her, and now if she would start representing the brand again it would definitely be a plus for Snapped.

If relationships can not be rebuilt with Wendy then another loved spokes person should take the lead and represent the brand in a very real friendly way, the way Wendy did it. Also re-building its relationships with Howard Stern would be a big plus and it would bring the company back positively into the eyes of the media but in this case relationships seem to be very hard to rebuild after Howard was very disappointed with the brand and started calling it “Scrapple”. In case relationships can not be restored then another radio station and show would do wonderful things f acquired.

Introducing different product promotions along with bringing back the nations favorite people will help Snapped reach its goal and become the markets “King”. Product introduction should be another strategy to help Snapped return to a positive and increasing market and since the brand is considered a “fashion” one, like clothing, Snapped can come up with innovative designs and flavors that will reintroduce Snapped to the popular real culture and this will reinforce the brand. Focusing on the suggestions from the Cultural Analysis Group Dutch Inc, Snapped would create its strategy based on it.