Diana Herrera, Snow Jingxue Wang

Dec 2015

History ....................................................3Brand Inventory........................................5

Transition of logos..................5Product Extension..................6Price & Distribution.................8Promotion & Social Media......9 Current Campaigns................8

Competitors.............................................12Brand Identity Prism..................................14SWOT Analysis.........................................15Brand Voice & Mission..............................16Marketing Strategy Recommendations......18

CSR...................................18Snapple Emoji.....................19Asian Tea Drinkers.................8Hispanic Target Market.........11

2 Table of Contents

Snapple was founded in 1972 by Matthew Smith, Hyman Golden, and Arnold Greenberg in Valley Stream, New York with the core

idea of creating a healthier alternative to sugary sodas and providing consumers with an “all-natural beverage that New Yorkers would love.” The Long Island friends also founded the Unadulterated Food Corporation, Inc. in order to sell beverages made with unusual blends. In 1978, Unadulterated Foods Inc. began to sell and distribute their first carbonated apple juice, they called it “Snapple” the same name that would replace Unadulterated Food Corp Inc. Slowly but surely, Snapple started gaining a good reputation and moving market share. One of the reasons why Snapple stood out from other juice beverages was that the juice was allowed to ferment.

HistoryBackground

3

“One day we woke up. We realized we had a business,” Marsh told Newsday in an

interview. As the company kept expanding, the Snapple guys started experimenting with a wide variety of natural juices, fruit drinks as well as natural sodas. The names of the beverages were also quirky and full of creativity.

In the early 90’s, Snapple saw the perfect opportunity to counteract both the Coke and

Pepsi challenges. They entered the advertising platform and started running ads that made fun of beer and sports drinks. Their famous trademark slogan “made from the best stuff on earth” was not well received by the advertising industry observers. Even though their ads were not as efficient as Pepsi’s and Coke’s, they still managed to move market share and get their name out there, increase brand awareness and still be the leader market of ice tea beverages.

In 1998, Snapple had a huge demand for a summery drink, and this gave birth to lemon

flavored ice tea. “We made the first ready-to-drink tea that didn’t taste like battery acid,” Greenberg

later told the New York Times. “We came up with the first real brewed tea that was cooked.” By the end of 1988, Snapple’s sales had increased by 60 percent over the previous 12 months to $13.3 million. This strong trend continued in the following year. The line of ice-teas became wildly popular and became the market leader of the tea category in the New York area. By 1999, Snapple was unable to fulfill the big demand of their ice tea products therefore they had to expand not only geographically but also to move and acquire an influx of capita.

In 2008, Snapple was acquired by Dr. Pepper company and became Dr. Pepper Snapple Group.

With a continuous steady growth, Snapple keeps proving to be the leader of the ice-tea / non-carbonated beverages in the Northeastern part of the United States. In addition, according to a study conducted in North Carolina University, “the average American now drinks 25 per cent less soda than since the late 1990s, when he or she drank an astonishing 40 gallons of soda per year”. For such reason, Dr. Pepper found Snapple to be the perfect addition to their brand portfolio.

4

Brand Inventory2000 - 2008

1987 - 2000

2008 - 2015

2015 - Present

5

Transition of Logos

Product Extension6

77Snapple’s products range from juice drinks

and all-natural sodas and seltzers, to teas and lemonades. Recently,

Snapple started selling bottled water as part

of the health and wellness goals of Dr. Pepper Snapple group. The initiative focuses on reducing calories, offering smaller sizes and supporting local and national programs that encourage an active lifestyle.

Distribution: (North East USA)

Heart Land: New York City (NYC is roughly 25% of Heartland volume), Boston, Philadelphia, Buffalo, Baltimore, Hartford, Syracuse, Albany, Washington D.C.

This is partly due to the merger of Dr. Pepper Snapple Group. Shared distribution facilities has enabled Snapple to take advantage of a bigger distribution route.

8 Price & Distribution

9

Promotion & Social MediaSnapple’s social media content is consistent across various platforms. All platforms use same logo and the same color

palette. The hand-drawn style makes it highly identifiable. Consumers are able to recognize the brand at glance because of the consistency employed. All of the platforms are updated daily and there is a high response rate.

10 Twitter is Snapple’s most frequently updated social media account. Snapple updates

and promotes their products by having active conversations and engaging with their fans and customers. Snapple is able to provide fast-feedback which ultimately helps the brand establish a stronger relationship with its customers.

SEO: Snapple has a very active SEO. The official Snapple website appears on the first place, followed by their Twitter page.

Snapple has implemented a lot of successful marketing campaigns, including Wendy “the Snapple lady” and “snapple facts”. Snapple also has promotional

vending machines across offices, parks, malls and even partnered up with the New York City public school system to be the only choice of vending machines allowed in NYC public School cafeterias.

Since early 2015, Dr. Pepper Snapple Group tea and juice brand Snapple are pushing their hashtag #LoveSnapple with the effort of persuading millennials

to share why they love the brand. This campaign is being executed using celebrity spokespeople such as Jimmy Fallon and Nick Cannon on Tumblr. The Tumblr page offers easy participation with links to post and share content on user’s personal social media pages.

Current Campaigns 11

12 CompetitorsSnapple’s competitors include: juice brands such as Minute

Maid, tea brands such as Lipton, lemonade brands such as Country Time and carbonated brands like Coke and Pepsi. Snapple has been able to differentiate itself from its competitors because of their strong brand recognition attributes as well as their advertising campaigns and their creative packaging. For example, one of the most loved campaigns is the “Snapple Facts” These Snapple facts are fun and educative facts that can be found under the cap in every bottle.

“I wish Snapple facts would’ve been around when I went to school. The vast majority of

the Snapple facts are extremely educational.” ------ Robert Witherspoon, Snapple aficionado

For example, one of the most loved campaigns is the “Snapple Facts”

13

Glass BottleQuality and wide range of beverages Exciting colors

TrustworthyFair exchange of value ConvenientNYC heritage

Quality-orientationedHealtyNature

TrendyDynamicSelf-confidence

UrbanCommintment

Quality orientedHappySocial dynamicCreative

14 Brand Identity Prism

Snapple has been able to establish itself as the market leader as in the alternative or “healthier” beverage industry. This means that Snapple is trusted.

StrengthWide product line category

Strong brand image/ heritage/ creativity

Healthy lifestyle boomingDeclining soda consumption

Distribution increased do to merger with Dr. Pepper

WeaknessWeak in “warm channels” (supermarkets) as opposed to “cold channels” (grocery stores, vending machines)

Brand is not well-known outside of the North East (lack of brand awareness)

OpportunitiesEstablish a nutritional educational program with emphasis on health education (help people reach personal goals)

Create CSR initiatives (buy one and Snapple will provide one to a child in need in Africa- to increase consumption by Millenials)

Increase engagement with millennials (emoji’s)

Target Asian Americans as well as Hispanic Americans

Threats Competitive market

Volatile consumer preferences

1515SWOT Analysis

16

With over 40 years of heritage, Snapple has stayed true to who they are at heart: a fun brand that is quirky,

positive, flavorful and playful.

We are a glass-half-full, humble, and fun-loving brand that tries not to take anything too seriously.

Snapple stands out from the crowd by differentiating itself as natural, real, and personal.

“Made from best stuff on earth”

Brand Voice

Mission & Vision

Dr. Pepper-Snapple BrandDr. Pepper Snapple brand: “At Dr. Pepper Snapple Group, it is our vision to be the best beverage business in the Americas. Our brands have been synonymous with refreshment, fun and flavor for generations, and our sales are poised to keep growing in the future.”

Dr. Pepper Snapple Group Mission StatementBuilding and enhancing our leading brandspursuing profitable channels, packages and categories.Leveraging our integrated business model.Strengthening out to market.Improving operating efficiency.

Employee Code of ConductAccountableCustomer-centricTransparent and honestInspect what we expect Our own decisionsNo blame fixing

1717Dr. Pepper Snapple Group

Over $ 6B in sales (2014)

20,000 employees

Began public trading as DPS on May 7th, 2008

Dr. Pepper is the oldest soft drink in the US

Dr. Pepper is acquiring “healthier options” such as Snapple and Mott’s to increase market share due to the “health trend” that America is undergoing.

This means that their brand portfolio is quickly changing and growing.

Dr. PepperBrand Portfolio

Dr. Pepper Snapple Group’s portfolio includes more than 50 brands and hundreds of flavors of carbonated soft drinks, juices,

teas, mixers, waters and other beverages.

Recommendations1. CSR: “buy one, help one”Implement a Corporate Social Responsibility campaign that will give back to those in need. “Buy One, Help One” campaign. Buy one Snapple water

bottle and Snapple will give one to a child in Africa. According to a study conducted by Forbes, “75% of millennials expect brands to give back to society”. Millennials love brands that support local communities and would rather purchase from them than competitors.

18

2. Snapple EmojiIncrease engagement with millennials using emoji’s. According to Marie

Dolle, a digital media content specialist at Kantar Media in Japan, “Emoji advertising is just as much about communication and having a sense of humor as it is about branding. The latest advertising trend is mainly logo-free, giving emoji users on both ends of the chat more freedom.’

Designing a Snapple keyboard campaign will allow millennials to

communicate with their peers, and enable them to include Snapple in their interactions.

19

20 3. Asian-American Tea Drinkers

Increase distribution to target Asian-

Americans that are already tea-

drinkers in California and the West

Coast. According to Hak Teng and Lim,

Tai Wei “tea is an indispensable part

of the life of the Asian culture. There

is a Chinese saying that identifies tea as being part of the seven basic daily

necessities: fuel, rice, oil, salt, soy

sauce, vinegar, and tea. The custom

of drinking tea is deeply ingrained in

almost every Chinese, and has been

for over a thousand years.”

Train & Bus StationIn-store DIsplayImplement an in-store display

that highlights the product and also give out samples. An outdoor campaign that will be present on the top 3 Asian-American majority communities, such as San Mateo, California, Flushing, New York and Palisades Park, New Jersey.

21

22

Lastly, target hispanics living in the Unites States. Fruit drinks are very popular among Hispanics because fruity

juice drinks reflect the flavor and tastes of the fresh fruit drinks from their homeland. According to a 2015 Study on America’s Consumption of Fruit & Vegetables, “the average daily consumption of juice by Hispanics in the United States is far greater than any other race”.

Design digital ads to target Hispanics. According to the American Press Institute, “the two largest minority

groups in the United States — African Americans and Hispanics — are in many ways using digital technology for news at similar rates as the American population overall”.

4. Hispanics Target Market

23

24 Works CitedAfa, Jiji. “Let’s Discuss Emoji in Ads.” Japan Times RSS. N.p., 17 Aug. 2015. Web. 02 Dec. 2015.

“Dr Pepper Snapple Group.” DrPepperSnappleGroup.com. N.p., n.d. Web. 02 Dec. 2015.

Hak Teng, Quah,, and Lim Tai Wei. “Chinese Tea: The Art Of Drinking Tea.” Chinese Tea: The Art Of Drinking Tea. N.p., n.d. Web. 02 Dec. 2015.

“How African Americans and Hispanics Consume News.” American Press Institute RSS. N.p., 16 Sept. 2014. Web. 02 Dec. 2015.

Produce For Better Health Foundation (Pbh). “2015 Study on America’s Consumption of Fruit & Vegetables.” 2015

Study on America’s Consumption of Fruit & VegetablesProduce for Better Health Foundation (n.d.): n. pag. Produce for Better Health Foundation. Web. 2 Dec. 2015.

Schawbel, Dan. “10 New Findings About The Millennial Consumer.” Forbes. Forbes Magazine, 20 Jan. 2015. Web. 02 Dec. 2015.

“Snapple Museum of Best Stuff on Earth.” Snapple. N.p., n.d. Web. 02 Dec. 2015.

Jaekel, Brielle. “Snapple Encourages Fans to Do the Talking and Showcase the Brand.” Mobile Marketer. N.p., 15 May 2015. Web. 02 Dec. 2015.

SMU Temerlin Advertising InstituteStrategic Brand Management Class Project

Dec 2015

D i a n a H e r r e r a

h e r r e r a d @ s m u . e d uh t t p : / / d i a n a - h e r r e r a . c o m /

S n o w J i n g x u e Wa n g

j i n g x u e w @ s m u . e d uh t t p : / / s n o w w a n g . p r o s i t e . c o m /

G r o u p M e m b e r s