the beverage’s relatively high price, Snapple marketers responded that it was a premium product that was “available to anyone,” as opposed to traditional luxury goods, such a Porche automobile, which were out-of-reach of the average consumer. But critics wondered whether the company could sustain such a high price premium, especially in the iced tea segment, which could easily be prepared at home. Consequently, many analysts believed that in order to successfully enter the supermarket business, Snapple management would have to reposition the brand and sell product in multi-packs, in cans, and at a lower price.
Snapple Brand Equity
In 1994, Snapple was experiencing tremendous growth. Jude Hammerle, Snapple’s Director for Advertising and Promotion commented, “The velocity at which the brand is growing now is so monumental “that you could get dizzy just thinking about that.” Michael Bellas, the President of Beverage Marketing agreed, “Snapple has made us all believers.”
Consumers loved Snapple. Fan clubs, testimonials, letter writing, some considered it a kind of Snapple cult. Snapple appeared on license plates and even became the middle name for a New Jersey baby boy. Consumer surveys suggested that the Snapple name was catchy and popular and engendered positive feelings in consumers. As Hammerle explained, “The name is really one of the most user-friendly, consumer-friendly names that you can ever find.” The company’s marketing targeted mostly teens, 18 to 30 year olds, and the “traditional iced tea consumer.”
During the early 1990s, Snapple ran a series of very successful ad campaigns, and had a great deal of success advertising on national radio and television, user off-beat humor and consumer-composed jingles. One advertisement the company invited an art critic to analyze the Snapple label. Snapple also gained appeal through product placements in popular shows such as Seinfeld, movies such as Sleepless in Seattle, as well as official sponsorship of...