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Snapple Beverage Corporation
What does an up-and-coming beverage company do when demand begins to exceed production? Students must wrestle with the options of cutting back on flavors or product lines and allocating demand to some outlets and geographic areas or coming up with other creative solutions to deal with the problem. Snapple also had to confront strong competitors (Coke, Pepsi, Nestea, Lipton) that were threatening to take share from Snapple in the very category it had created. The system of contract production and independent distributors further complicates Snapple's ability to implement short- and long-term solutions that would balance push-and-pull marketing. A teaching note is available to registered faculty.