Running Head: TiVo: Snapple 2018: Healthy Juice Reimagined
B110/Market Dynamics and Product Analytics
Snapple 2018: Healthy Juice Reimagined
Anggun Citra Berlian
Minerva Schools at KGI - Class of 2021
Fall 2018
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Snapple, a beverage brand founded in the West Coast that initially positioned itself as 100% natural
juice products. After its succeed gaining 30-40% of the alternative beverage industry, Snapple was
bought by Quaker for $1.7 billion in 1994. However, despite Quaker experienced in its beverage
product line, it failed in continuing the glory years of Snapple and sold to Triarc in 1997 for $300
million. This paper will discuss if Triarc were acquiring Snapple in 2018 instead.
Prior Quaker, Snapple was once loved by its customers; hence, it gives a reason to discuss the initial
value it strived to provide and its brand image. Snapple highlighted itself as 100% natural juice
products and wanted to appeal to health-conscious urban young adults. It was a success because of
various reasons, including 1) Snapple was one of the early brands that offer healthier beverage
alternatives, 2) the close relation of Snapple to the distributors (in which allow Snapple to receive
feedback on which products worked and which did not), and 3) unique marketing approach, e.g.,
Snapple lady.
Before deciding a new marketing strategy, we will discuss the information related to the current
market. Among fruit beverages, KeVita and Minute Maid are leading regarding growth in 2017
(Figure 1). Interestingly, Snapple might have a chance in this market considering its unique position
among KeVita and Minute Maid. Figure 2 shows how Snapple has a more similar product to
Minute Maid, but its core audience has always been young adults in which it is more alike to
KeVita.
Next, we will discuss the marketing strategy with 4Ps marketing mix which comprises of product,
promotion, place, price.
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Figure 1. Data visualization of year-on-year growth of the leading refrigerated fruit drink brands
in the United States in 2017 (Statista, 2018).
Figure 2. A Venn diagram that shows how Snapple is related to its competitor in some ways as it
has similar product with Minute Maid but similar audience as KeVita.
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Product
The relevant question to ask is what Snapple consumers’ jobs to be done is. The basic value is to
relief thirst with healthy juice in which Snapple has collected information over time which flavors
that work. However, to give a long-term value, Snapple should not only about fruit beverage. From
the case study, we can infer that Snapple is mostly consumed in single bottles for individual
consumption and purchased in cold channels, including street vendors, delicatessens, restaurants,
recreation areas (Deighton, 1999). This gives us a hint that Snapple could maximize this channel
and incorporate it as part of product offering or jobs to be done.
Additionally, this information along with the characteristics and keywords of our core customer and
target (urban youth, young professional, active and healthy, sense of moving forward) brings us to
understand the customers need or jobs to be done. Using the revision of the Maslow hierarchy of
needs by Kenrick, et al., 2010, Snapple can appeal to the needs of affiliation and belongingness and
status (Figure 3). Additionally, as explained by Dunn, Gilbert & Wilson (2011), people are happier
when they buy experiences than material goods. Although Snapple bottles are material goods, it can
also be an experience depending on the distribution channels along with their offered activity, e.g.,
beach street vendor that allows one to purchase and drink Snapple by the sea. Furthermore, through
promotion and distribution channels, Snapple can further associate itself with a youthful and fun
outlook. Again, the product that Snapple sells would be the juice itself and the experience that
comes with it.
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Figure 3. An updated hierarchy of needs (from Maslow’s version) by Kenrick et al., 2010.
Promotion
The objective of promotion in this stage would be to stimulate demand as people have been aware
of the product but the revenue has been low under Quaker’s management. Brand awareness is an
asset that might not be reflected in the financial statement in, but it could give us confidence in
reentering the market. Hence, the new promotional should embody the message of marking the new
Snapple era but also carrying the old Snapple’s lovable qualities. Snapple used to have Wendy
Kaufman as its figure with her persona of being quirky and welcoming. It was appropriate at that
time to have her as she was the out-of-the-box person and around the same age as the core
customers. For the relaunch, we could have a new persona that has the quality of being youthful and
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being difference in the current time alongside with Wendy, giving the impression of both new and
same old but likable Snapple. Next, how are these two personas going to collaborate? Bringing the
old tradition of Wendy interacting with customers, Snapple can create a video series on Youtube of
Wendy and New Snapple Lady having Questions and Answers while doing something fun (instead
of the TV like an old Snapple era). There are two reasons why this could be a great idea. First,
nearly one-third of total internet users, over one billion people, are on YouTube (Youtube, 2018).
Second, it is predicted that online videos will make up more than 85% of all consumer internet
traffic in the US (Cisco, 2018).
Place
Throughout Snapple’s journey place aspect has played important roles not only in distribution but
also promotion and product development. Original channel in which Snapple was distributed is a
cold channel, non-mass market retailers. Hence, it is important to consider them as a target of the
promotional campaign, ensuring that they are valued as partners. The reason to keep this channel as
follows:
a. this smaller but diverse distributors have the autonomy in choosing the products they
display or encourage customers to buy (Martin, 2014);
b. these channels have been contributing to product selection as they give feedback on what
sells more;
c. these channels are mostly recreational channels in which it aligns with the brand image of
being fun and youthful.
Price
Related to the brand image we wish to establish which is different than any juice and somewhat
extraordinary, charging premium price could be the most optimum option. It will give the
impression of the product as being exclusive. However, this price should still be reasonable as today
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is the era when information is highly accessible through the internet. 76.2% of Americans accessed
the internet in the latest report from the Statista (2016). Therefore, it is important to maintain the
company integrity and reputation by not setting the price significantly higher than the competitors
nor keeping a high margin.
Finally, considering the reason of existence of Snapple and the values it provides, this paper covers
the marketing mix strategy that Snapple could employ to reenter the market. The goal is to portray
Snapple as a product young adults want to identify themselves with as it symbolizes the traits of
being healthy, fun, optimistic, and youthful.
Word count: 1023
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Reference
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