Snapple

1. From 1972 to 1993, why did Snapple flourish when so many small start-up premium fruit drinks stayed small or disappeared?

The reason behind the Snapple’s success can be understood by evaluating 4Ps of marketing. First of all, Snapple Product came with a motto “100% Natural” and therefore took the attention of young and health-conscious people. They broadened the product line with numerous beverages with their iced teas particularly in demand. They gained competitive advantage by differentiating the products by claiming the beverages are totally natural, taste better, fun and personal. As Leonard Marsh told once that “Tea was around for many years. We made it better.” they differentiated their iced tea product. They also improved the label design of the bottle. They were placed in Alternative Beverage Category where at the time Coke and Pepsi did not have a share in the market. Snapple was in the middle where it was neither like Coke with unhealthy drinks nor the healthiest drinks in the market. As for the Price, it applied premium pricing for its successful products which enabled it to be profitable and cover losses from failures. Its Promotion method was one of the key elements that made the company achieve success. Snapple created an offbeat, fun, different and real image which appealed many people. Its advertisements were quirky and unusual; however they were real with real people under real circumstances which attracted many regular people and made them feel a connection to the brand. It hired professional management to run sales and marketing while increasing the advertising budget to $1 million. It succeeded to take attention of the media and worked with the celebrities to gain national attention. It sponsored radio programmers of two popular shows and was very active in promoting the products. It also held a Snapple-themed fun and games day. Lastly, Place they wanted to operate was crucial. Snapple’s proximity to New York was an advantage for them to...