...BRAND MANAGEMENT Case No. 3 SNAPPLE: REVITALIZING A BRAND INTRODUCTION In the 1990s, Snapple Corporation was one of the leading “New Age” beverage brands when the category was just beginning to take off. With the combination of a unique product, package design, and quirky advertising, the company grew form a regional underground favorite toa nationally recognized brand. Snapple’s rise in the beverage industry was crowned in 1994, when the Quaker Oats Company purchased Snapple for $1.7 billion. Quaker expected to make Snapple a major player in the industry, as it had done with GAatorade. However, the company was unable to capitalize on the brand’s previous success. In 1997, Quaker sold Snapple to Triarc Beverage Group for $300 million. Triarc faced a number of challenges, including reversing the sales slide, revamping the distribution system, and creating new products that will enable growth. Most importantly, Triarc had to find a way to reconnect the brand with its consumers. Triarc successfully resurrected the Snapple brand, and in 2000 sold Snapple to Cadbury Schweppes for $1.45 billion. Cadbury Schweppes then faced the challenge of maintaining Snapple’s brand strength in an increasingly competitive beverage environment. THE EMERGENCE OF SNAPPLE The roots of Snapple Corporation date back to 1972 in Brooklyn, New York when brothers-in-law, Leonard Marsh and Hyman Golden, left their window-washing business and teamed up with Marsh’s childhoAod friend and health...
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...In: Business and Management Snapple BRAND MANAGEMENT Case No. 3 SNAPPLE: REVITALIZING A BRAND INTRODUCTION In the 1990s, Snapple Corporation was one of the leading “New Age” beverage brands when the category was just beginning to take off. With the combination of a unique product, package design, and quirky advertising, the company grew form a regional underground favorite toa nationally recognized brand. Snapple’s rise in the beverage industry was crowned in 1994, when the Quaker Oats Company purchased Snapple for $1.7 billion. Quaker expected to make Snapple a major player in the industry, as it had done with GAatorade. However, the company was unable to capitalize on the brand’s previous success. In 1997, Quaker sold Snapple to Triarc Beverage Group for $300 million. Triarc faced a number of challenges, including reversing the sales slide, revamping the distribution system, and creating new products that will enable growth. Most importantly, Triarc had to find a way to reconnect the brand with its consumers. Triarc successfully resurrected the Snapple brand, and in 2000 sold Snapple to Cadbury Schweppes for $1.45 billion. Cadbury Schweppes then faced the challenge of maintaining Snapple’s brand strength in an increasingly competitive beverage environment. THE EMERGENCE OF SNAPPLE The roots of Snapple Corporation date back to 1972 in Brooklyn, New York when brothers-in-law, Leonard Marsh and Hyman Golden, left their window-washing business and teamed up with...
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...Dr. Pepper-Snapple Company Kim Hayes Deonta Samilton Jordan Narcisse Tori Wallar Professor Cary Accounting November 11, 2013 Section 2: Introduction Dr. Pepper-Snapple Group, Inc. 5301 Legacy Dr. Plano, TX 75024 Industry: Beverages (Non-Alcoholic) Sic Code: 2080- Beverages Major Products: Canada Dry (Ginger ale,) 7-up (lemon-lime,) A&W (Root beer,) Sunkist (Orange,) and Sun Drop (Citrus.) Competitors: Coca-Cola and PepsiCo. Stock exchange: 47.33 Ticker symbol: DPS Name of outside auditors: Deloitte & Touche, LLP SIC (Standard Industry Classification): 2080 Beverages * History: Today, Dr Pepper Snapple Group is one of the leading producers of flavored beverages in North America and Caribbean. The have 6 of the top 10 non-cola drinks, and 13 of their 14 leading brands are ranked in the top two of its flavor categories. The DPS market more than 50 brands of carbonated soft drinks, juices, teas, mixers, water, and other premium beverages. Dr Pepper Snapple group include: 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr. & Mrs. T mixers, Penafiel, Rose's, Schweppes, Squirt and Sunkist soda. We are able to thank DPS for inventing the first carbonated drink. In 1783, Jean Jacob Schweppes created the world’s first carbonated mineral water. Schweppes’s was the original inventor of this new product, shared his invention with a young pharmacist in Waco, Texas, named Charles Alderton. They both invented Dr Pepper in...
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...Dr. Pepper Snapple Energy Marketing Plan Executive statement: At Dr. Pepper Snapple we are releasing a new energy drink product line in which we will be appealing to the needs of those over the age of 25. We are releasing two new types and flavors of drinks. The first is the low calorie low sugar named; AcaiPom Berry. This will be a mix of acai berry fruit and pomegranates. We strive to use all natural fruits and products when producing our energy drinks. No high fructose corn syrup will be used in either product. The second product we are releasing is our Citrus Refresh Absolute Zero. This product is a zero everything citrus flavored drink. It is designed to energize and refresh its consumers. The citrus refresh line will be most appealing to those in the 30-60 age range, but will also suffice for those who chose healthy life styles in any age range. It is important that individuals understand that we are producing a “Clean” energy product that will not place all the harmful sugars in the bodies of its consumers. “Clean energy is not only important for our environment, it is important for our bodies as well.” Clean energy is upon us in all forms, so why not in our bodies as well. Individuals of the sophisticated and aged market cannot break down complex carbs and sugars. Our marketing plan for our products will be to target places the desired age group is. Our drinks will come in 12 Oz quantities focusing on a leek slender design that for the sophisticated market. The drinks...
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...CASE #1 DR. PEPPER SNAPPLE GROUP, INC. ENERGY BEVERAGES DEFINITION OF THE PROBLEM: Dr. Pepper Snapple Group, Inc. is a major integrated brand owner, bottler, and distributor of non-alcoholic beverages in the United States, Mexico and Canada. Recently, Andrew Baker, brand manager for the company, has been tasked with formulating a marketing strategy to determine whether or not launching a new energy beverage would be profitable in 2008. To date, Dr. Pepper Snapple Group, Inc. is the only major domestic non-alcoholic beverage company in the U.S. that did not have an energy drink of its own. The decision to explore the energy beverage market is based on a business strategy that focused on the opportunities in high-growth and high-margin areas of opportunity. A primary concern facing this decision lies in the fact that the energy beverage industry is already established. The problem lies in whether or not it is worth their time and funds to explore a new product and venture into the energy beverage market. Alternatives Essentially, there are two basic alternatives to consider when evaluating this decision: (1) continue business as usual and don’t get involved with the energy beverage industry or (2) enter the energy beverage market. Evaluation of Alternatives In the first alternative, they’d continue to ride their juggernauts. Stick with their established brands and stay the course. It’s important to note...
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...MARKETING PROBLEM DEFINITION Dr. Pepper Snapple Group, Inc, encouraged by its long-lasting history, experience, and favorable market conditions has decided to enter a new market segment, launch energy drink beverage and they are facing several dilemmas. A thorough analysis of company’s internal conditions, industry facts, market conditions and trends, is needed in order to develop possible alternatives, realize the possible outcomes of those alternatives, and finally to choose the most convenient options. To be specific, company needs to make decision about the following: * Choice of Target Market * Product Line and Positioning Choice * Marketing Channel Choice * Advertizing and Promotion * Pricing and Profitability COMPANY FACTS One of North America's leading refreshment beverage companies, DPS, markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a strong, sustainable and profitable business throughout the years. The company today known as DPS has evolved from a combination of discovery, invention and collaboration. This rich history includes the very birth of the soft drink in 1783, when Jean Jacob Schweppes perfected the process for carbonating water and created the world's first carbonated mineral water. In 2000, Cadbury Schweppes acquired Snapple Beverage Group, which included the namesake brand as well as RC Cola, Diet Rite and Stewart's, among...
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...Arnie Greenberg, Leonard Marsh, and Hyman Golden had been friends since high school. In 1972, they went into business selling all-natural apple juice to health food stores in Greenwich Village under the brand name Snapple. By the late 1980s, their brand had achieved near-cult status on both coasts of the United States, with its iced teas particularly in demand. It had taken 15 years, they said, to become an overnight success. In 1994 Quaker bought Snapple for $1.7 billion. The vision had been to combine Snapple with Gatorade, an earlier and very successful acquisition, to form a powerful beverage business unit. Snapple, however, did not thrive: sales fell in each of the next four years, and in 1997 Quaker despaired and sold the brand to Triarc Beverages for $300 million. In the fallout that followed, both Quaker’s chairman of 16 years and its president resigned. Mike Weinstein, CEO of Triarc Beverage Group, reflected on the acquisition. “At $300 million, Snapple is not a steal by any means. It’s in decline, and when that happens to a brand it’s seldom that it comes back. We’re in a fashion business here, and when your imagery isn’t fashionable, often that’s the end. But we’ve talked to a lot of consumers and we did a lot of qualitative research, and we’ve decided that in this case the brand still has inherent strength. People feel good about it. It will respond to the right marketing stuff.” 1972–1986: The Origins of the Brand Arnie Greenberg’s family ran a sardine and...
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...Strategic Management Project/Presentation The Dr. Pepper Snapple Group History Overview From the invention of the first soft drink more than 200 years ago to some of the industry's most beloved beverage brands, Dr Pepper Snapple Group (DPS) has a proud legacy of innovation, bold and distinct flavors, and entrepreneurial spirit. On May 7, 2008, DPS became a stand-alone, publicly-traded company on the New York Stock Exchange as the result of a spin-off by Cadbury, plc which held the Cadbury Schweppes Americas Beverages business group of entities. One of North America's leading refreshment beverage companies, DPS markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a strong, sustainable and profitable business. The company's integrated business model enables the company to manage the entire value chain from innovation to the store shelf. History The company now known as DPS has evolved from a combination of discovery, invention and collaboration. This rich history includes the very birth of the soft drink in 1783, when Jean Jacob Schweppe perfected the process for carbonating water and created the world's first carbonated mineral water. Dr Pepper and Snapple, the flagship brands of DPS, have origins that share Schweppe's entrepreneurial spirit. Charles Alderton, a young pharmacist in Waco, Texas, invented Dr Pepper in 1885. It was served at...
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...Mr. Marchionne will attempt to integrate Fiat and Chrysler by developing Fiat’s newer models with Chrysler for a number of brands, as well as sharing parts, platforms and plants to become a more efficient manufacturer. Another attempt by Mr. Marchionne is to take advantage of Chrysler's dealership network in the U.S. to sell its own cars and reduce its exposure to Europe. The integration of Fiat and Chrysler will augment its economies of scale to have an advantage in competing against their rivals in the global market. Mr. Durban's reputation is known for being savvy with technology. This reputation was given to him because of his deal to take Dell private. If it becomes approved by Dell shareholders, it would be the largest corporation privatization since the financial crisis. Mr. Durban works for Sliver Lake Partners, a private-equity firm which focuses on investing exclusively in the tech industry, saw value in Dell's software and services operations, which allows him to gain knowledge about technologies. Another reputation that Mr. Durban is known for is being a “deal junkie”. He invested in companies, such as Zynga, Groupon, and Skype and all have turned out successful. Mr. Durban urges all investors to make calculated financial decisions rather than emotional ones. The approach is Alcatel-Lucent taking to stabilizing the organization is by pursuing a plan called, “Project Secular”, which allows the company to buy time by mortgaging key assets. This plan raised the...
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...Marketing Plan for Snapple Date: Dec. 5, 2011 TABLE OF CONTENTS EXECUTIVE SUMMARY………….………………………………………….…….pg. 2 COMPANY DESCRIPTION…………………………………………………………pg. 3 STRATEGIC FOCUS AND PLAN…………………………….………………….....pg. 3 SITUATION ANALYSIS…………………………………...……………………..…pg. 5 MARKET-PRODUCT FOCUS…………………………………………………….…pg. 7 MARKETING PROGRAM……………………………………………..…………….pg. 8 FINANCIAL DATA AND PROJECTIONS……………………………...…………pg. 10 ORGANIZATIONAL STRUCTURE……………………………………………….pg. 11 IMPLEMENTATION………………………………………….………………….…pg. 12 EVALUATION AND CONTROL…………………………..………………………pg. 13 Executive Summary Snapple is a well-known brand of iced tea and fruit drinks. It is a publicly traded company owned by Dr. Pepper Snapple Group. They are best known for their slogan of “Made From the Best Stuff on Earth” and Snapple Fact Caps. The company’s mission is to be the best beverage business in the Americas. It will achieve that goal through their philanthropic and sustainability efforts as well as building on their brand. The ready-to-drink industry is very competitive - containing teas, soft drinks, sports drinks and bottled water to name a few. The food and drink market is constantly changing. The current market trends are focused on health and wellness as well as its’ consumers being sure that the brands they use fit into their lifestyles. Consumers are more informed and knowledgeable than ever and it is important that a brand can deliver a message and product of the...
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...Comercialización II. Snapple Beverage Corporation 1. ¿Cuáles son los problemas a los que se enfrenta Snapple Beverage Corporation? * Pérdida de la posición No.1 por Lipton en las ultimas encuestas de Nielsen * Problemas para cumplir con la demanda de producto aunado con, que los productores de bebidas no quieren trabajar horas extras para surtir a Snapple, afectando la producción a sus demás clientes * Que en el caso del canal de tiendas el gerente decide que pedir y que exhibir en los anaqueles, lo cual puede afectar sus pronósticos de demanda * Lipton comienza una disputa directa en medios sobre las características del producto que afecta la imagen de Snapple * La Entrada de nuevos competidores como Nestea, Lipton y Arizona 2. Propuesta de Soluciones * Debe responder con una campaña de publicidad para resaltar las bondades del producto sin llegar a ser directa o caer en una guerra directa * Si la producción esta topada, si debe de abrir una planta que le permita tener mayor capacidad de producción, lo cual además le dará mayor poder de negociación con los proveedores actuales. * No debe enfocarse en una zona o reducir significativamente la cantidad de sku’s, ya que tiene presencia nacional y esto solo decrementaría su potencial de crecimiento. Aun así, si se propone que se realice una selección de sabores para liberar capacidad de producción y poder tener respuesta a la demanda en el corto tiempo, con ello se pueden manejar estacionalidades...
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...According to the article, Dr. Pepper Snapple Group is one of the largest integrated brand owners, bottler, and distributor of nonalcoholic beverages. The company analysis highlights seven strengths that Dr. Pepper Snapple Group Inc. possess, which include a strong portfolio of leading, an integrated business model, consumer-preferred brands, customer relationships, stable cash flows, manufacturing and distribution coverage, attractive positioning, and experienced management. In addition, they are not just gaining sales in the United States, but sales are being acquired within Mexico and Canada as well. In 2007, the company accumulated a net sales over five billion dollars. Per the support of Brand manager Andrew Baker, Dr. Pepper Snapple Group focused on six key elements...
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...Snapple is the brand of fruit juices and teas that was founded in Brooklyn, New York in 1972 by a company known as Unadulterated Food Products. The company supplied their production to healthy food stores because Unadulterated Food Products was one of the first companies in the United States to manufacture juices and other beverages made from natural ingredients. In the history of marketing the Snapple case is known as “a three act play” for its rise and fall in the hands of different owners. First of all , I want to discuss brand elements that differentiate it from all other brands on the market. “Snapple” name was created when an apple soda fizzled so much that several bottles exploded and that is how the “snap” in the eventual name was inspired. The owners of the brand, brothers-in-law Leonard Marsh and Hyman Golden bought the rights of the brand name from a man in Texas for $500. That brand element is definitely memorable and meaningful. The second brand element that defined Snapple from other competitive brands was brand character. Unadulterated Food Products became one of the first companies to enter the 'New Age Beverages' market, which included non-carbonated drinks like tea and natural juices. This element is meaningful and likable by consumers who care about their health. The slogan of the brand, which is another brand element, was “The first company to produce a complete line of all-natural beverages” and “Made from the best stuff on Earth”. These slogans...
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...Snapple – The best stuff on earth Snapple was founded in 1972 East Meadow NY as Unadulterated Food Products. It had a huge growth spurt with case sales doubling in 1990. Sales reached $516Mand had a return of 195.8%. Quaker Oats & its Strategy Quaker Oats is an American food conglomerate. The story of Quaker Oats’ success is one of a company led by a strong management effectively growing in the face of increasing competition and economic cycles through internal and inorganic growth. Its non-beverage businesses were growing only at 1% in real terms. It had a 10% growth target set, and that target was accomplished through acquisition strategy. To maintain this growth rate the management felt that Snapple presented highly compatible product offering. Overall, the company has used a growth through acquisition strategy and diversification. Diversity is necessary to secure the whole company’s survival. In addition, Quaker Oats thought they had the resources to make Snapple expand internationally. Gatorade Acquisition - A Huge Success Purchase of Gatorade in 1983 (as part of the Stokely-Van Camp purchase) catapulted Quaker to the top of an untapped beverage segment that, to this day, dominates 80% of the market. This deal was vital to Quaker’s long-term success. The company attributed success to its global sales and marketing team. Quaker acquired Gatorade in 1983 for $238M. Since it experienced a 22% compound growth rate with US Sales going from $122M in 1984 to $1.2B...
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...INITIAL MOVES WITH SNAPPLE At the time of Tricac's purchse of Snapple, consumers ha 1 more choices between ready-to-drink beverages than ever before. By mid 1997, the New age market had undergone yet another shake-up. Pepsi stopped distributing fruit drinks from Ocean Spray and launched its own Fruit Works brand. Other new brands like Nantucket Nectars, a line of 100 percent juice drinks packaged in unique bottles, and Campbell Soup Co.'s V8 Splash, a carrot-based blend of fruit juices targeting younger consumers, were entering the marketed threatened to squeeze out even more market share from Snapple. To breathe life back into Snapple, Traiarc had to invest heavily in new product development and employ dynamic marketing strategies that would differentiate Snapple from competitors and recapture the attention of consumers. Triarc soon announced that it would apply the same marketing principles to Snapple that it used to turn around its successful Mistic beverage line: edgy advertising, strong distributor relationship, colorful labels and focused street sqles. The first set of Snapple ads under Triarc's direction featured Wendy's reappearance on a desert island and the on a desert island and the labels of several of Snapple's products fotured Wendy's face to symbolize the return of Snapple to its core values. Whipper Snapple. Perhaps the most innovative and important development to emerge out of Triarc's product development efforts was the Whipper Snapple, a ruit smoothie...
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