Brand and Snapple Essay Example

with a Californian juice company to produce and distribute a bottled apple drink. Eventually, they separated from their California partner and established their own company named "Unadulterated Food Products," which introduced the Snapple brand. Snapple's slogan became "100% Natural."

The business expanded gradually by using funds generated internally. It opted to outsource production and product development while establishing a network of distributors throughout New York City. Whenever feasible, the business sought individual distributors who worked independently and discovered that it was necessary to diversify the product line in order to keep distributors engaged. It introduced various beverages including carbonated drinks, fruit-flavored iced teas, diet juices, seltzers, an isotonic sports drink, and even a Vitamin Supreme. While some products were successful and others were not, the profits earned from the successful products compensated for the losses incurred from the failures.

The expansion of distribution into New Jersey and Pennsylvania led to growth in revenues and profits. By 1984, annual turnover reached $4 million, and it doubled to $8 million by 1986. The founders responded to pleas from Snapple's distributors by commissioning advertising. Jonathan Bond and Richard Kirshenbaum, who later managed the Snapple account, described this early advertising as unsuccessful. Tennis star Ivan Lendl mispronounced the name "Snapple" in several ads, but fortunately, these poorly executed ads did not negatively impact the brand.

If those cheesy ads had been just a little better, they would have been even worse for Snapple. The ads' incompetence actually had a charming effect, similar to the cluttered packaging. In the 1980s, Snapple was just one of many small beverage brands trying to attract young, health-conscious urban professionals. There were numerous other

contenders in the New Age or Alternative beverage category, such as Napa Naturals, Natural Quencher, SoHo, After the Fall, Ginseng Rush, Elliot's Amazing, Old Tyme Soft Drink, Manly Sodas, Syfo, and Original New York Seltzer. During 1987-1993, known as the Glory years, many founders aimed to exit through acquisition. For instance, SoHo's founders Connie Best and Sophia Collier achieved $25 million in sales before selling their company to liquor giant Seagram in 1989 for $15 million. They believed that they were handing off to a buyer with more financial resources. Seagram expanded distribution and advertising by dismantling the independent distribution network and relying on its own wine cooler distribution chain. On the other hand, the Snapple founders decided to handle the next phase of growth by hiring professional management.

They sought the expertise of Carl Gilman, a seasoned professional in the beverage industry who previously worked at Seven-Up, to oversee sales and marketing at Snapple. Gilman utilized focus groups to gather insights on enhancing Snapple's label design. Moreover, he bolstered the advertising budget to $1 million and strengthened the independent distributor system across the East Coast.