2. Table of Contents
Snapple’s Background and Mission
Environmental Scan
Snapple’s Strategic Plan
Snapple’s Implementation Plan
Organizational Management
Snapple’s Success Factors and Financials
Risk Management and Contingencies
Conclusion
References
3. Snapple’s Background and
Mission
• Background—Snapple started out
as a part-time joint venture
between three friends who wanted
to bring fresh juices to the New
York area. Now, a wholly owned
subsidiary of Dr Pepper Snapple
Group.
• Purpose—”leading producer of
flavored beverages.”
• Vision—company states its
products “are synonymous with
refreshment, fun, and flavor.”
• Value—Snapple motto is still
“Made from the Best Stuff on
Earth.”
4. Environmental Scan
External
• Geopolitics—Snapple located
in the U.S.
• Industry—Dr Pepper Snapple
Group one of the big three
plays along with Coca-Cola
and PepsiCo.
• Operations—Snapple has a
large workforce that is highly
capable of carrying out
innovations with relative ease
of speed and quality.
Internal
• Distribution and Production--
has a relative sharp edge in
terms of distribution scale
based on its popularity (6 of
10 non-cola drinks). High
production base.
• Resources—Snapple has a
vast array of tangible assets
as well as extensive
economic and social goodwill.
5. Strategic Plan
Grand Strategy—product
development. Snapple
needs to produce a drink
that will need the niche
tonic market to financial
success.
Value Discipline—
product leadership.
Focus on creating the
most value with its new
product line.
Generic Strategy—
hybrid combination
between product
differentiation and
customer focus. Create a
“Snapple-y” tonic that
would arouse enough
curiosity and satisfaction.
6. Snapple’s Implementation Plan
• Objective—Snapple’s aim is to enter the
tonics market so as to gain as much
consumer following as possible in the
least amount of time.
• Functional Tactics—best tactic is
segmentation strategy. Snapple is in a
better position to create its own niche
following of Snapple drinkers who would
be very interested in a healthier, yet tasty
tonic drink.
• Tasks and Ownership--the company will
mostly likely choose the current and
active team leader or the team’s subject
matter expert to be accountable for
directed tasks completion.
• Resource Allocation--Algorithm allocation
has the distinct advantage in that it is
able to “cut away” from certain flaws of
human thinking, like sentimental values .
7. Organization Management
• Snapple should receive
adequate input from the
lower echelons of
management.
• Snapple should ensure
that its workforce has the
necessary skills to
implement the desired
strategy and that their
other resources are also
equipped for the task.
• Snapple should be careful
in making any drastic
organizational changes
and should factor in
plenty of lead time for its
workforce to become
accustomed to the
changes before
continuing further.
8. Snapple’s Success Factors and
Financials
• Success Factors:
• Whether Snapple can make a
profit with tonic drinks.
• Whether Snapple can make a
“healthy” profit.
• Budget--conduct its own
studies in order to first
determine what the
niche market expects in
tonic drinks and then
build a budget and a
financial forecast around
it.
• Break-Even Point—
Chart
• Snapple would need to sell
more than 187,097 units and
make over $486,452 in
revenue to make a profit from
its tonic drink initiative.
Units Sold Sales Revenues Variable Costs Fixed Costs Operating Profit
0 $0 $0 $290,000 $-290,000
46774 121,613 49,113 290,000 -217,500
93548 243,226 98,226 290,000 -145,000
140322 364,839 147,339 290,000 -72,500
187096 486,452 196,452 290,000 0
233870 608,065 245,565 290,000 72,500
280645 729,677 294,677 290,000 145,000
327419 851,290 343,790 290,000 217,500
374193 972,903 392,903 290,000 290,000
420967 1,094,516 442,016 290,000 362,500
9. Risk Management and
Contingencies
• Major Risks:
• Snapple is as yet untested in tonic drinks market
• Niche consumers may reject Snapple’s versions
• Contingencies:
• “Shotgun approach”—produce various kinds and
flavors of tonics hoping that at least one would
catch on.
• Only monitor customer behavior and make slight
changes based on ongoing market feedback.
• Create joint venture with more established
competitor and share in risks and profits.
• Most drastic—develop a backup product and scrap
the tonic drinks if they don’t take. Could use same
or similar ingredients under different label.
10. Conclusion
• Environmental Scan reveals that
Snapple stands in an optimum
position to break into the tonics
market.
• Financial forecasting also shows that
Snapple would most like have the
money and other resources to handle
such a project and that a healthy
profit can be made.
• Snapple has several solid and
feasible options in terms of a strategic
plan and implementation.
• Snapple has several realistic risk
management plans and its
contingency options would be able to
counteract any negative impact.
• The bottom line—the tonic drink
project is a relatively low resource
investment, medium risk, and high
return opportunity.
11. References
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business.com/article/00255?gko=9d35b
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Boardman, M. (2015). Critical Success Factors in Strategic Implementation. Demand Media. Retrieved from http://smallbusiness.chron.com/critical-success-factors-
strategic-implementation-12801.html
Clark, W. (2015). Examples of Grand Strategies in Business. Demand Media. Retrieved from http://smallbusiness.chron.com/examples-of-grand-strategies-in-business-
14377.html
Cross, V. (2015). Tactics to Implement Objectives in a Business. Demand Media. Retrieved from http://smallbusiness.chron.com/tactics-implement-objectives-business-
10173.html
Dr Pepper Snapple Group. (2015). Fact Sheets. Retrieved from http://news.drpeppersnapplegroup.com
Fox, M. (2013). Leonard Marsh, a Founder of Snapple, Dies at 80. The New York Times. Retrieved from http://www.nytimes.com/2013/05/23/business/leonard-marsh-
80-dies-a-founder-of-snapple.html
Gaines, M. (2015). How to Develop Milestones for Your Business. Demand Media. Retrieved from http://smallbusiness.chron.com/develop-milestones-business-
25635.html
Lucas, P., Haley, P. & Daigneault, J, et al. (n.d.). Soft Drink Industry SAR Analysis. Google Sites. Retrieved from
https://sites.google.com/site/softdrinkindustrysaranalysis/home
MITRE. (2013). Systems Engineering Guide. MITRE Corporation. Retrieved from http://www.mitre.org/publications/systems-engineering-guide/risk-management
12. References Con’d
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Snapple is now a wholly owned subsidiary of the Dr Pepper Snapple Group.
purpose is to be the “leading producer of flavored beverages”
brands “are synonymous with refreshment, fun, and flavor”
“Made from the Best Stuff on Earth”
This corporate group is headquartered in the United States of America and has most of its operating facilities in-country considered to have one of the world’s most robust economies with a large social support for business innovation and the political will that is generally open and supportive of business practices in a fair, capital market-based system
. The United States also has one of the largest and “cutting-edge” technological capabilities to support business innovation.
there are currently mainly three large and well-endowed leaders in the global soft drink industry with Coke, and PepsiCo being the first two and Dr Pepper Snapple Group
has a labor force of around 19,000 employees spread across North America and the Caribbean
work force is large and highly capable of maintaining is product line as well as carrying out innovations with relative ease of speed and quality.
When it comes to the strengths and weaknesses of soft drink companies there are two main determinants to keep in mind—scale of distribution and product differentiation
A cursory online review of Snapple’s tangible or physical assets shows a vast array of buildings, real and movable property, and capital
Snapple also hold a high amount of what could only be termed “economic and social goodwill.”
From the four most popular strategies, the best one that fits Snapple under its tonic drink scenario is product development. Since there is a current, yet albeit, small niche market, it does not need to grow the market, and instead, it should produce a drink that will lead this niche market to financial success.
value discipline. This is the best option because this is to be Snapple’s first foray into the tonic drink market and it does not necessarily need to streamline its supply chain or fabricating process at this time.
Snapple should primarily concentrate on a probable hybrid combination between differentiation and customer focus.
the aim for Snapple is to enter the tonics market so as to gain as much consumer following as possible.
Snapple can definitely compete with its competition using its scalable volume output of tonic bottles. Since Snapple already has world-renown recognition, it is in a better position to create its own niche following of Snapple drinkers who would be very interested in a healthier, yet tasty tonic drink.
actions items are composed of the following list: the action item itself (the what), the company function (the who), the strategy or tactic to be used (the how), and a concrete, but flexible timeline (the when)
If a company’s functional teams are not adequately tasked or if they do not take their tasks very seriously the company’s project is almost doomed to failure
Resource allocation may one of the most important, if not the most important part of strategic plan implementation, because without resources, virtually nothing can be done to advance the company’s goals.
Organizational management is nothing more than a comprehensive process a company uses to ensure that its organizational structure is optimized for project success
the most determinative success factor is whether it would be able to make such a profit with tonic drinks.
A secondary, but heavily related factor is whether it would make a “healthy” profit
Snapple should not forget to touch base with its external stakeholders (read: customer base) to get a better idea as to how much money it should devote to the plan
second question is aimed more at documents than people, but specifically past and present budgetary reports, as well as a few published studies on the subject
Snapple would need to sell more than 187,097 units and make over $486,452 in revenue to make a profit from its tonic drink initiative.
The whole point of a risk management plan, as the name suggests, is to “manage” any risk inherent in a company’s strategic or other plan.
An organizational risk management plan include four separate, yet interconnected stages: risk identification, risk impact assessment, risk priority analysis, and the risk mitigation plan
Snapple would need to develop a clear-cut projection for this venture
Snapple would first conduct an external and internal environmental scan.
Snapple would need to develop an overall comprehensive business strategy to match its goal and business position
. The bulk of Snapple’s activity would come in the form of an implementation plan where Snapple would rationally divvy out assignments to its functional units while at the same time ensuring that project priorities are not too disruptive of its organizational structure.
Snapple would need to take certain risks in mind and be prepared with some tactics to avoid or at least reduce them as much as possible.
