Four Ps

1. In the period of 1972 to 1993, why do you think Snapple flourished when so

Many small startup premium fruit drinks stayed small or failed? Explore each of the Four Ps (as you decide where to give credit).

• Intelligent and controlled growth :

The creator of Snapple understood that they didn’t need to build their brand on precipitation like many others did.

- Internally generated funds

One of the mistakes that many small startups were making is a too fast expansion on the American market. Again Snapple choose the best strategy: Stay focus on east coast. They prefer put their energy and money to build a strong network in New York City.

- Stay focus on east coast

- Built a network in NYC

• Premium Pricing on the successful products: Covered losses on the failures

Another good idea which avoids Snapple to fail like many others was the price of Snapple products. Higher than the competition it gave the image of a quality product but above all this premium price covered losses on the failures because Snapple was launching a lot of new products and only a few was successful.

• Professional management :

Finally Snapple understood that to survive in this market, they had to implement a professional management while many others startup continued to manage their business unprofessionally.

- Increase advertising budget to 1 million $

- Blend of public relation and advertising

These two steps were really successful and permit to Snapple to multiply his sales while many startup was closing.

2. Now look at the period from 1994 to 1997. What did Quaker do wrong?

• Integrate Snapple’s