Triarc Beverages’ acquisition of Snapple has allowed it to bring its latest and most important acquisition back to prominence. It also had to deal with Mistic beverages, which is its direct competitor and major brand. Snapple holds 24% market share within the premium alternative beverage category, but sales have dropped dramatically in the past 3 years. In fact, Snapple’s market share has almost been cut to third. Quaker purchased the quirky brand in an attempt to make Snapple mainstream. However, such strategies had severe repercussions. Snapple lost a lot of its fans and, in the process, lost sight of what it stood for, leading to its eventual sale to Triarc.
Snapple’s greatest crime was, according to Snapple consumers, “selling out” on its past values. Triarc should reposition Snapple, stressing its 100% naturalness and quality of ingredients as well as the multitude of occasions when popping open a Snapple can be a great idea. Snapple is a lifestyle brand that appeals to a casual, open-minded, spontaneous, and curious type of person. Snapple is not a brand that has a function. Its appeal lies in the fact Snapple can be enjoyed at any time. Snapple’s value proposition includes offering many flavors and catering to everyone. Snapple should therefore reduce its production by ten- to fifteen flavors. These flavors would only account for 1015% (Ex. 1). Snapple needs to revamp its packaging and design. It should emphasize the bright sophistication and individuality of its customers. Snapple is usually seen as a one-off purchase rather than a bulk buy. Snapple should strive to get significant exposure in the cold channel, which means that it should distribute heavily to delis, gas stations, and street vendors. This exposure would allow Snapple to attract large numbers of impulse buyers, which is a key part of the company’s overall strategy to make Snapple a drink that can be enjoyed at all times. Snapple would need to rebuild its image and launch a unique promotions campaign that is personal yet unusual to win back customers. First, Snapple could host a convention or create a “snap these caps” program where Snapple drinkers can send in caps to exchange for Snapple paraphernalia. This would help build a sense of connection with their customers. A mass media TV campaign with the theme of “My Snapple” (Ex. 2) would emphasise the value proposition of Snapple. A significant step in promoting Snapple would be to install Snapple vending machines at elementary and middle school. Snapple would only be selling 100% natural fruit juice flavors in the vending machines. This will appeal to both children and adults, as well as those who are interested in the health benefits of Snapple.
Snapple was also a competitor to Mistic, Triarc’s other major brand. Triarc should slowly stop and cease production of Mistic over a four-year period to prevent head-to-head cannibalism. Mistic should gradually join forces with Snapple to avoid having to compete in other segments with beverage giants and eventually lose money. Snapple is a stronger brand that has established ties with consumers.
Snapple should initially increase product lines by reducing ten flavors, repackaging their bottles and designing them. Snapple’s $88 million promotional budget (Ex. Snapple should launch several Snapple conventions in the country and its mass advertising campaigns. Snapple should aim for ties with school districts to help get Snapple machines into these locations within the next few months.
Snapple’s high price is not an issue. Snapple is viewed as healthier than sodas. Their ingredients are also 100% natural, as they claim. Mistic appeals to the exact same target market as Snapple. Therefore, their closure is a result of Mistic not having the resources and insight to make beverages to rival the leaders in other segments.