Snapple

Snapple developed quickly from 1986 to 1993, due to new product with specific product personality as well independent distribution channel. But from 1994 to 1997, Snapple had experienced a collapse of revenue after it was takeover by Quaker, which resulted Snapple sales from $674 million declined each year until by 1997 sales were $440 million. The main problem was the integration of product strategy between Gatorade and Snapple, which leads product personality and channel changed, so many loyal customer left. But since Snapple is a widely accepted brands, to rebuilt it glorious time is make sense.

Goal: within 5 years, the sales revenue grows up to 700 million dollars, which is the peak of history sales in past fifteen years. All the increasing sales revenue will mainly come from top 10 products and new developed product, the target market segment will be including the old customer who use to drink Snapple and new customer especially young people who are seeking for some indifferent drinks represent themselves.

Impediment:

* Lack of fashionability as before and negative social recognition made Snapple has no more appealing to their old and new customers.

* Too many different flavors products, 20% types occupy 55% sales, which means among rest 80% of flavors there are many products occupy less than 1%. It shows that they are not welcomed by customers, at meanwhile operating all 50 Snapple flavors is a huge cost.

Solution:

* Must move Snapple from “fashion water” to a staple brand like Pepsi, Coke, Sprite with well-defined benefits and image, which can be easily recognized by customers

* Giving up all the products have bad performance, since they are already sunk value. As consequence Snapple must focus on main popular products and use the idle money develop new flavor trending the industry.