Dr. ANAND NAHAR (9161)
BINY SARAH ABRAHAM (9162)
NEHA BHUSARI (9163)
JOURNEY OF SNAPPLE
QUAKER OATS TAKEOVER
Largest manufacturer in the world
Efficient manufacturing processes in the
High speed and low cost
Origins – civilizations
More streamlined and large-scale
1876 - Root Beer
1886 – Coca Cola ( largest soft drink manufacturer in
1966 – Gatorade
1971 – Starbucks
1972 – Snapple
1978 – Perrier and Evian
1980 - Odwalla
1981 – Red Bull
1982 – Diet Coke
1992 – Pepsi (lipton), Cola(ocean spray)
1995 – Dasani,Aquafina
Leonard Marsh, Hyman Goldman and Arnold
Greenburg sold fruit juices under “Unadultered
Carbonated apple soda was part of their
beverage line; snappy apple taste
Snapple tea was introduced; Snapple Lemon
Tea was first
Today they have 50 varieties of flavored tea,
fruit juices and flavored water; ”Made from The
Best Stuff on Earth”
The flavored drinks
Tap the youth market
product from “fashion
Wendy and Stern
o Pricing strategy
Product plan in the progressively competitive beverage
Focused on brand recognition and brand image
Provided experiential benefits to its customers
Extended product line with an established brand image
Premium pricing strategy was employed
Constantly review its pricing strategy
Free source of communication was achieved
Secondary associations was also achieved - Wendy
Support of off-beat personalities; achieving cult- like status
Use of real and natural communication means
Importance of having a spokesperson
Indirect channel distribution marketing strategy was
Initially had a very little supermarket strategy
Maintained strong relationship with the distributors
Inve4sting in coolers and vending machines
JOURNEY OF SNAPPLE
•1972- incorporation of Snapple.
•1990-emerged as nationally recognized
brand in beverage industry.
•1994-Quaker oats company purchased at
•1997-sold to Triac group at $300 million.
•2000- sold to Cadbury Schweppes at
•In 1972 Leonard Marsh and Hyman
Golden started with Unadulterated Food
Power Co selling pure fruit juice.
•In 1978 created apple soda that fizzled
eventually giving drink’s name as ‘SNAP’.
•In 1980 created non carbonated ready to
drink fruit juice and ice tea.
•In Spring 1992 Thomas Lee took majority
stake at $140m.
•In December same year they issued
4million shares at the price of $20/share
and a month later it was traded at $34.
•1992 to 93 stock price risen almost 5
•Offering customers new and exotic
choices of ready to drink beverages.
•Develop its own distribution channels.
•Premium pricing--Initially prices were $1-
1.25 for 16 ounce with 30-38% margin
then they reduced.
•In consumer survey they suggested
Snapple name was catchy, popular and
endangered positive feelings in consumers.
•Promotion---Through national radio, TV,
consumer composed Jingle and word of
•Company's most successful ad “Wendy-
The Snapple Lady”.
•Pepsi along with Unilever(1992)-Introduced
Lipton iced tea, advertising campaign with
Vendla drinking Lipton.
•Tetley English beverage giant Pearle.
•Coca-Cola (1994) Introduced Fruitopia but
could not do up to the target.
•Arizona captured nearly 17% market share
priced similarly like Snapple.
TAKEOVER BY QUAKER
•In 1994 at $1.7 billion giving 17 times earnings
•But neither follow regular advertising
schedule nor introduce new products quickly
enough. Also healthy reputation began to
•They try to use Snapple's distribution network
for their product but distributors refused.
•Reduced no of flavors.
•Tripled add budget.
•Pushed with new packaging.
•To process order faster from 21 days to 2
•Snapple's sales decline…………. although in
1995 Snapple maintained its no one
position because of premium pricing
•Sales dropped almost 20% per quarter, as
other giants entered into the picture.
•Then what next…………
•Triac Beverage Group bought Snapple for $300
Billion in 1997.
•TBG specializes in chemical, natural gas, textile
•By 1997’s Competitors were Pepsi’s
FruitWorks,Nantucket,Campbell Soup co’s V8
•Launched new Products
•Nationwide Promotion Campaigns and Contests
– Hard candy,Fruits chewy candy, Whirls gummies
•Volume of Snapple rose to 27%
•By 2000 Snapple had 40% market share
•Revenues reached $349million
•Cadbury Schweppes purchased Snapple for
•Market Capitalization of $20Billion.
•Beverages include Carbonated drinks, fruit
juices, ice teas, water.
•Brands included are
•Launched Exotic flavors and announced in
•Official Beverage of New York
•Snapple Orangeade $2.99
•Snapple Raspberry Peach $1.89
•Snapple, Apple Juice Drink $1.89
•Snapple, Beverage Fruit Punch $5.49
•Snapple, Mango Madness Beverage $2.99
•Snapple, Lemonade Beverage $1.89
% of Market
Number of Cases
Dr Pepper Snapple Group (DPS)
/Cadbury Schweppes (CSG)
Coca-Cola Company (KO) 42.8 4241.1
Pepsico (PEP) 31.1 3082.8
Cott (COT) 4.8 476.6
•Profit gained 42% compared to 2008.
•Carbonated Soft Drinks volume increased by
3% while 7UP, Sunkist soda, A&W and Canada
Dry were down a combined 3%.
•On the Non-Carbonated side, Hawaiian Punch
volume was up 3% while Snapple declined 6%.
•The company's U.S. market share of
carbonated soft drinks grew by 1.1% in the
SNAPPLE IN INDIA?
•Cadbury separating out drinks which include
Dr Pepper, 7UP, Snapple and Hawaiian
•Tata Group and Coca-cola bidding for Snapple
•Tata planning to expand in non-tea portfolio
•Tata planning to bid for Snapple at $2billion