The problem associated with this case is whether or not the company should introduce a new energy beverage brand into the market. If a profitable market opportunity exists for the company to enter the energy beverage market the next step would be to identify a target market and marketing mix along with a product line and brand positioning.
The best opportunity for the company to gain market share is to target adult energy drinkers from ages 35 to 54 since none of the competitors are catering towards this segment. Bottlers, distributors, and retailers are unlikely to produce and stock more than two SKUs of a new energy drink brand so it would be best to introduce a regular 16ounce single-serve package that consists of two different flavors. Since regular energy beverages hold 80% share of the market selecting regular is best, and since the 16ounce energy drinks represent 50% of case sales in convenience stores and want a high turnover to maintain prevalence in convenience stores its best to go with a 16ounce size. Also having two different flavors to choose from will help increase chance of trial rather than have only one flavor and have regular and sugar free or have one flavor and two different sizes. In positioning the brand the company should differentiate the energy drink from competitors by basis of packaging and select the 16.9ounce single-serve aluminum bottle with a resealable screw cap, and also by ingredients in having lower carbohydrates in the formulation. The energy brand should be distributed to all types of off-premise retailers where beverages are sold for maximum sales. The company’s U.S. media expenditure should be $12.6 million, equal to that of Tag Energy’s U.S. media expenditure which lead to a 2.3% dollar market share, because Tag Energy was also new to the energy beverage market and targeted to a certain demographic the company should experience a similar...
...Action Plan: DrPepperSnappleGroup, Inc. Energy Beverages
Action Plan: DrPepperSnappleGroup, Inc. Energy Beverages
The Market. 3
Customer behaviour. 4
Marketing Mix 4ps. 5
Target Market. 6
Product Line and Positioning. 6
Advertisements and Promotion. 6
The history of DrPepperSnappleGroupInc. is very complex, but all started when Jean Jacob Schweppe invented the world’s very first carbonated mineral water in 1783. A young pharmacist, Charles Alderton from Waco, Texas made DrPepper in 1885. It was only sold in the pharmacy where Alderton worked. In 1970 in the New York -region health food store owners invented a new apple soda, Snapple. The Unadulterated Food Corporation owned Snapple and later it becomes Snapple Beverage Corp. Within the years companies were growing and ownerships have been changed and DrPepperSnappleGroupInc. has formed from different beverage companies. Today DrPepperSnapple...
DrPepperSnapplegroup, Inc. is a major integrated brand owner, bottler, and distributer of nonalcoholic beverages in the United States. In 2007 they had net sales of $5.748 billion, 21 manufacturing facilities and approximately 200 distribution centers in the United States. They are the number one Company in carbonated soft drink products in the United States.
Their business strategy is to invest most heavily in their key brands to drive profitable and sustainable growth by strengthening consumer awareness, developing innovative products, and brand extensions to take advantage of evolving consumer trends, improving distribution and increasing promotional effectiveness.
DrPepperSnappleGroup, Inc. also wants to focus on driving growth in their business with emerging categories, through brand extensions, new product launches, and selective acquisitions of brands and distribution rights. The company has a future goal of significantly increasing the number of branded coolers and other cold drink equipment over the next few years, which is expected to provide an attractive return on investment. The company also intends to leverage its integrated business model to reduce costs by strategically creating greater geographic manufacturing and distribution coverage and to be more flexible and responsive to the changing needs of large...
Dr. PepperSnappleGroup, Inc. is a leading intergraded brand owner, manufacturer and distributor for non-alcoholic beverages in the U.S., Canada and Mexico. They have been around since the 1980’s and have expanded throughout the years. They have a range of flavored carbonated drinks. Some significant highlights of the company are their #1 flavored carbonated soft drinks. Dr. PepperSnapple, GroupInc. are rated #3 in North American for their liquid refreshment beverage business. In 2008 they formed with Cadbury. Dr. Pepper & SnappleGroup, Inc. sell brands such as; Dr. Pepper, 7UP, Sunkist, A&W, Canada Dry, Crush, Schweppes, Squirt, RC Cola, Diet Rite, Sundrop, Welch’s, Vernors, Country Time and Hawaiian Punch.
Dr. Pepper & SnappleGroup, Inc. strength is their diverse port-folio of very popular soft drinks. Their portfolio provides their bottlers, distributors and retailers with a wide range of different products and provides the availability for growth and a larger profit margin. They are the #1 carbonated soft drink company in the U.S. and are the only beverage company with year to year market share...
Case 1: DRPEPPERSNAPPLEGROUP, INC. ENERGY BEVERAGES
The DrPepperSnappleGroup, Inc. (DPS) was incorporate in Delaware in 2007. The company was spun-off from Cadbury Schweppes, the British company and public on May, 2008. Being one of big beverage companies, DPS is major integrated brand owner, bottler, and distribution of nonalcoholic beverage in the United State, Canada and Mexico and the Caribbean
In the United State, the company’s net sales is 89%. The company participates in both the flavored carbonated soft drink (CSD) and non-CSD market segment. The CSD’s key brands are DrPepper, 7UP, Sunkist, A&W. The non-CSD’s key brands are Snapple, Mott’s, Hawaiin Punch, Clamato.
In Canada, the net sales is 4%. The firm participates in both CSD and non-CSD market segment as the United State market.
In Mexico and Caribben, the net sales is 7%. The company participates in carbonated mineral water, flavored CSD, bottled water, and vegetable juice categories. Some key brands include Penafiel, Clamato, and Agufiel.
1. Internal factors:
Strengths: DPS holds the outstanding strengths more than other competitors in the beverage market about management, marketing, manufacturing and finance.
Experienced executive management team: the company...
DrPepperSnappleGroup (DPS) is one of North America’s leading refreshment beverage companies, manufacturing, bottling and distributing more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages.
With a brand heritage spanning more than 200 years, the DPS portfolio includes some of the most recognized beverages in the Americas. The company have 6 of the top 10 non-cola soft drinks, and 9 of 12 leading brands are No.1 in their flavor categories. In addition to its flagship DrPepper and Snapple brand, the DPS portfolio includes Sunkist soda, 7UP, A&W, Canada Dry, Crush, Mott’s, Squirt, Hawaiian Punch, Penafiel, Clamato, Schweppes, Venom Energy, Rose’s, and Mr. & Mrs. T mixers.
Strengths * Experienced management * Strong portfolio of brands * Strong position in each product niche * Healthy cash flow | Opportunities * Expansion into international markets * New product launches and line extensions * Growth into functional(energy drink) market |
Weaknesses * Minor compared to larger peers * Heavy rely on 3rd party bottlers for packaging and distribution * Lack of exposure to some fast growing segment * Concentrated in US, Canada and Mexico and lack of international exposure | Threats *...
...TEXAS A&M UNIVERSITY CORPUS CHRISTI
DrPepper-SnappleInc: Energy Drinks
In the ever changing world of customer needs and expectations DrPepper-Snapple was faced with an increased customer focus on energy drinks. This area, when exploited correctly, is a high growth and high margin beverage business. In early September 2007, Andrew Baker had his marching orders. He emerged out a long discussion about entering the energy drink business and off he went.
First let’s understand that an energy drink simply does as its title suggest, gives the consumer energy. This is accomplished most of the time with caffeine from a guarana bean. Some of the other players in this market also use taurine, ginseng, carnitine, and B Vitamins
Let’s also take a look at DrPepperSnappleGroupInc. They are a major integrated brand owner that also performs bottling and operates strong distribution capability in the United States, Mexico, Canada, and the Caribbean. They also have a business model that differs from its competitors. They are a major carbonated soft drink (CSD) business but they put theretheir focus and margins in there ready to drink market (RTD). This investment in the RTD sector gives them a strong leverage point when evaluating entering the...
...Dr. PepperSnappleGroup, Inc. (DPS) is an integrated beverage brand owner, manufacturer, and distributor of non-alcoholic beverages in the U.S., Canada, and Mexico and the Caribbean.
Their headquarters is in Plano, Texas, and DrPepperSnappleGroup, Inc. is a leading provider of flavored carbonated soft drinks and non-carbonated beverages. They have built their success through strategically acquiring beverage brands and then building them into leaders in their category. Examples of their notable acquisitions included the Duffy-Mott Company (later known as Mott’s), Canada Dry, Sunkist, Crush and Sun Drop.
According to the text, through focused strategic development the company has sought to continually establish their firm as a leader in the higher margin segments of the non alcoholic beverage industry. Therefore, the company’s corporate level strategy entails building and enhancing their leading brands, as well as focusing on leading opportunities with high growth and high margin. In addition, the company wants to increase their presence in high margin channels and packages. Furthermore, the company wants to strengthen their route-to-market through acquisitions and improve their operating efficiency. Throughout, the current economic downfall, DPS has maintained growth because a key element of their corporate level...
...brands, DrPepperSnappleGroup (DPS) has a proud legacy of innovation, bold and distinct flavors, and entrepreneurial spirit.
On May 7, 2008, DPS became a stand-alone, publicly-traded company on the New York Stock Exchange as the result of a spin-off by Cadbury, plc which held the Cadbury Schweppes Americas Beverages business group of entities.
One of North America's leading refreshment beverage companies, DPS markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a strong, sustainable and profitable business.
The company's integrated business model enables the company to manage the entire value chain from innovation to the store shelf.
The Company now known as DPS has evolved from a combination of discovery, invention and collaboration. This rich history includes the very birth of the soft drink in 1783, when Jean Jacob Schweppe perfected the process for carbonating water and created the world's first carbonated mineral water.
DrPepper and Snapple, the flagship brands of DPS, have origins that share Schweppe's entrepreneurial spirit. Charles Alderton, a young pharmacist in Waco, Texas, invented
DrPepper in 1885. It was served at the drug store where Alderton worked and the first...