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Essay / Research Paper Abstract
This 4 page paper examined Snapple and its products in the year 1992/3 immediately before the company was bought by Quaker looking at the structure of the product base according to the Boston Consulting Group matrix and then by the GE Matrix. The bibliography cites 6 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEsnapple.rtf
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Unformatted sample text from the term paper:
doubt that the brand and products within the brand were growing, some of which according the BCG matrix would have been stars, but the purchase by Quaker was a disaster
and they ended up selling the brand only two years later for a fraction of the cost they paid, the arguments may have been that they did not analysis the
company and the brand sufficiently or manage the brands in the right way. If we look at Snapple they were a company offering "sodas, juices, fruit drinks and real
brewed iced tea" (Lippert, 1992). If we make use of the Boston Consulting Group (BCG) matrix we can examine the range prior to the acquisition by Quaker.
Under the BCG there are four descriptions categories to which products may belong; Stars, Cash Cows, Question Marks and Dogs (Mintzberg et al, 2004).
Stars are the units that every company would like to have. These are as their name indicates the stars of the portfolios ferment. Stars grow quickly and gain a large
market share. These units may need high levels of investment to gain this market share and support fast growth and may retain sales later and become long term sellers or
may fail. The iced tea was a star due to the product and the investment in the marketing. In a campaign a
few years prior to the acquisition there was an endorsement with Ivan Lendl, three times winner of the US Open (Flatlow, 1990). He endorses the drink and was
seen drinking it, claiming his favourite drink was three parts ices tea and one part lemon and lime. This marketing cost Snapple $2 million, but resulted in a 94% increase
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