Project #58692 - Strategy Assessment of Snapple

Strategy Assessment of Snapple from 1994-1997

1. Identify both short/long term goals
2. Identify the strategies to achieve these goals
3. Identify and evaluate the Business Strategy
4. Identify and evaluate the Marketing Strategy

Here are some of my notes/outline to include in the paper. Please make additional inputs if necessary.

*There is no need to include a Cover Page. Needs to be 2-3 pages, double spaced. Times New Roman, 12pt.

Identify both short term and long term goals

    • 1994-1997 short/long term goals
      • “we expect to create the most innovative distribution system in the beverage industry, one which combines the very best of the two organizations and enhances the value to our trade customers through more merchandising, more points of sale, and more in-store refrigeration equipment. the great advantage to consumers is that you will be able to buy Snapple and Gatorade in many more locations than you can today.” - Quaker’s Chairman and CEO
      • “Quaker has the resources and management skills to take Snapple to the next level of success” - Leonard Marsh
      • Snapple was expected to benefit from Quaker’s packaging experience, supply chain expertise, and modern information system capabilities.

 

        • Quaker sought to eliminate the substantial cost of middlemen in Snapple’s warm channel by shipping direct from factory to supermarket warehouses, while at the same time using Snapple’s middlemen to take Gatorade to the cold channel.
        • channel rationalization
        • Snapple in larger pack sizes and in greater assortments, meeting limitations on distributor trucks and retail display space in cold channel.
      • Task to transition from “fashion” to “lifestyle” brand.
        • Snapple (“fashion”) - fashion-sensitive, quirky and on the edge
        • Gatorade (“lifestyle”) - for those who worked out or played vigorous sports
      • Retained Gilman and other Snapple senior management on short-term contracts
      • Risk of being associated with people who made cultivating controversy resulted in termination of three key people
        • Howard Stern - radio program, tasteless and outrageously sexist humor

 

          • bad publicity, stay away from  “Crapple”
        • Rush Limbaugh - advocate of right wing political and social ideas delivered in a style that combined protracted ranting with acid sarcasm
        • Wendy Kaufman - spokesmodel of Snapple
      • hired Mike Schott, Harvard MBA of 1972 to reverse the trend
        • executive who had built Poland Spring bottled water
        • sales peaked in 1994 at $674M, but declined every year until 1997, at $440M

 

    • March 1997 Triarc Acquires Snapple for $300B
      • reverse the brand’s slide and revitalize the brand
        • Managing Triarc beverage brands was Mike Weinstein, sectionmate of Mike Schott (Harvard Business School 1972)
        • Weinstein and Ken Gilbert (senior VP of marketing at Triarc) met to assess Snapple’s situation and to set priorities for reversing the brand’s slide.
        • “I like to think that Snapple drinker is anyone with lips. How would it be if we developed products first and then found out which segment they appealed to? The main thing is to keep moving the ball forward. We can’t get mired in the mud.” - Weinstein
      •  
  • Identify and evaluate Business Strategies
    • become more established
      • Snapple behaves more like a “fashion water” than an established brand
      • product differentiation is weak
      • lacks a compelling reason for use
      • not embedded in daily rituals and routines
    • develop sensuality of the Snapple experience
    • corporate image influences brand image
      • rumors about Snapple isn’t about the product, but the “owners”. this impacts brand image and sales
  • Identify and evaluate Marketing Strategies
    • community marketing strategies
      • build on brand’s personal, local character
      • Wendy embodies the essential Snapple qualities
        • fun, genuine, personal, whimsical, and creative dimensions of the brand, the bottom-up popularity
      • bringing back a spokesmodel like Wendy

 

Subject Business
Due By (Pacific Time) 02/19/2015 06:00 pm
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