By- Agnya Patel, MBA-Sem I, R.No- 1531

Snapple Steals Share

About Snapple Snapple is a small entrepreneurial company

housing 87 employees only. It launched ready-to-drink iced tea in the

market in 1988 and immediately captured a large share of the market.

It offers iced tea in 11 different flavors for under $1 per 16 ounce bottle.

Snapple has capitalized on the health conciousness of the 1990’s.

Market for Iced Tea

Iced tea con-

sumers

75%

Poten-tial con-

sumers

25%

Percentage of Households Consum-ing Iced tea in USA

Iced tea consumersPotential consumers

Iced tea is already served in nearly 75% of all households in the United States and the market still appears to be growing.

In 1992, the iced tea market climbed 50 % versus the cola market which grew only 1.5%.

Competition to Snapple Lipton :

Joint venture of Pepsi and Unilever Nestea :

Joint venture of Coca- Cola and Nestle S.A.

Obstacles of Snapple Company has no production facilities

It is a small company and has 87 employees only Lack of national recognition of the product

It is unable to distribute its products in the market Inability to produce products in different

package Inability to break into the vending machine

market. Snapple is only in 51 of the 278 major

supermarket chains

What might Snapple managers do to institutionalize its successful strategy? Strategies are institutionalized when they are

incorporated into a collection of values, norms, roles and groups devoted to reaching a certain goal.

The CEO of Snapple should interpret strategy, demonstrate the firm’s commitment to its values and motivate others.

The Snapple managers should also try to be sure that right people are in key manegerial positions so that the managers be able to connect the strategy to the institution’s culture, and quality system. For example, the promoting innovation viz. different flavors along with health benefits by their products to the customers.

What policies and procedures could help Snapple with national brand recognition?

Perform product phase-out and introduce new product. that promotes health benefits.

Investments on purchasing production facilities. Production of quality products in a low price. Joint alliance with companies which will support

their production. Increase promotion and advertisement of the

products. Promotion of products in a new packaging. Introduction of products in targeted potential

market areas.

How should Snapple design a reward system to fit with its strategy? Snapple should implement well-designed

incentive plans that are consistent with its objectives and structure.

Reward systems should be such that motivate employees to direct their employees towards Snapple’s goals.

To fit with its strategy, Snapple should design a reward system where in the size of salary and incentive award should commensurate with business and personal risks involved.

Thank You!!