...Case: Dr Pepper Snapple Group, Inc.: Energy Beverages Texas A&M Corpus Christi Marketing Management MKTG-5320 Case: Dr Pepper Snapple Group, Inc.: Energy Beverages Introduction Dr Pepper Snapple Group, Inc. decided in September of 2007 to explore the profitability of expanding into the energy beverage market. Dr Pepper Snapple Group, Inc. is a major competitor in the flavored carbonated soft drink (CSD) market, and also has a strong presence in the non-CSD market. The energy beverage market had an estimated $6.2 billion in retail dollar sales in 2006. The market grew at an average annual rate of 42.5 percent between 2001 and 2006, however, market industry experts estimated an average annual growth rate of 10.5 percent between 2007 and 2011. This slowing of growth was due to a number of factors: market maturity, an increase in price and packaging competition, and new entrants to the market in hybrid energy drinks, ready to drink energy teas, and energy colas. Analysis Strengths The strengths of Dr Pepper Snapple Group, Inc. include: * A network of bottling and distribution throughout the United State, Canada, and Mexico * Stable cash flows * Substantial portfolio of diverse and well known CSD and non-CSD brands with a position as the number one CSD company in the United State. * Dr Pepper Snapple Group, Inc. believes is holds a competitive advantage with its integrated business model * Strong customer relationships Opportunities ...
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...According to the article, Dr. Pepper Snapple Group is one of the largest integrated brand owners, bottler, and distributor of nonalcoholic beverages. The company analysis highlights seven strengths that Dr. Pepper Snapple Group Inc. possess, which include a strong portfolio of leading, an integrated business model, consumer-preferred brands, customer relationships, stable cash flows, manufacturing and distribution coverage, attractive positioning, and experienced management. In addition, they are not just gaining sales in the United States, but sales are being acquired within Mexico and Canada as well. In 2007, the company accumulated a net sales over five billion dollars. Per the support of Brand manager Andrew Baker, Dr. Pepper Snapple Group focused on six key elements...
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...CASE #1 DR. PEPPER SNAPPLE GROUP, INC. ENERGY BEVERAGES DEFINITION OF THE PROBLEM: Dr. Pepper Snapple Group, Inc. is a major integrated brand owner, bottler, and distributor of non-alcoholic beverages in the United States, Mexico and Canada. Recently, Andrew Baker, brand manager for the company, has been tasked with formulating a marketing strategy to determine whether or not launching a new energy beverage would be profitable in 2008. To date, Dr. Pepper Snapple Group, Inc. is the only major domestic non-alcoholic beverage company in the U.S. that did not have an energy drink of its own. The decision to explore the energy beverage market is based on a business strategy that focused on the opportunities in high-growth and high-margin areas of opportunity. A primary concern facing this decision lies in the fact that the energy beverage industry is already established. The problem lies in whether or not it is worth their time and funds to explore a new product and venture into the energy beverage market. Alternatives Essentially, there are two basic alternatives to consider when evaluating this decision: (1) continue business as usual and don’t get involved with the energy beverage industry or (2) enter the energy beverage market. Evaluation of Alternatives In the first alternative, they’d continue to ride their juggernauts. Stick with their established brands and stay the course. It’s important to note...
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...Dr. Pepper Snapple Group, Inc.-Energy Beverages Teshia McSwain Columbia Southern Introduction Dr. Pepper Snapple Group, Inc.-Energy Beverages initiated its triumph in business back in 1983 offering some of the most well-known beverages. Like any other businesses, this company has extreme competitors including Coca Cola and Pepsi, among others. However, the company faces challenges with an absence for energy drinks among its products (Hitt et al. 2013). Not only does Dr. Pepper Snapple Group not offer any energy drinks in their product offering; but they are a late adopter into the business. In addition, some of the other challenges Dr. Pepper Snapple Group, Inc. face include competition by major companies like Redbull, Coca Cola’s “Full Throttle”, and Pepsi’s “Amp Energy” among others. Another major threat is the pricing competition that tends to lower the company’s profits. Brand loyalty may be a major hindrance for this company, although their strategy in market entrance will determine their success. Another factor that will hinder Dr. Pepper Snapple group is the lack of as global presence like its competitors. A study by Smith (2013) asserts that the energy beverage market is a growing market because it is the 4th largest nonalcoholic beverage category and the fastest growing one after the carbonated soft drinks and sports drinks among others. Further study shows that 2001-2006 the total energy beverage retail sales increased to 42.5% annual rate with a further...
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...Dr Pepper Snapple Group, Inc. Energy Beverages Author: Ravi Sockalingam, PhD Dr Pepper Snapple Group, Inc.’s brand manager Andrew Barker was tasked with recommending the company’s top management if it should decide to introduce a new branded product into the energy beverage market. A brief overview of the company’s position Dr Pepper Snapple Group, Inc. maintains a well-entrenched position in the flavored carbonated soft drink (CSD) market. In 2007 he held a market share of the US CSD market. And this share had been steadily growing year to year. The company is also a leader in the non-CSD drink category that comprises ready to drink tea, juice, juice drinks, enhanced water, drink concentrates and mixer categories. In addition to these beverages, the company also manufactures Mott’s apple sauce. Why Dr Pepper Snapple Group, Inc. is considering introducing a new energy drink? There are several strengths the company has. There is high brand awareness and a strong diverse portfolio of consumer preferred products. Their business model as far as ownership, bottling and distribution go, is very well integrated and robust. The top management is also very experienced with an average of 20 years in the food and beverage industry behind them. Plus, the company has a long standing relationship with major retailers and third party distributors. Through their extensive networks they have the capability to reach out to most geographical areas of the US. The company has been...
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...Dr Pepper Snapple Group: Fighting to Prosper In a Highly Competitive Market June 2011 Written by Joseph S. Harrison under the direction of Jeffrey S. Harrison at the Robins School of Business, University of Richmond. Copyright © Jeffrey S. Harrison. This case was written for the purpose of classroom discussion. It is not to be duplicated or cited in any form without the copyright holder’s express permission. For permission to reproduce or cite this case, contact Jeffrey S. Harrison (RCNcases@richmond.edu). In your message, state your name, affiliation and the intended use of the case. Permission for classroom use will be granted free of charge. Other cases are available at: http://robins.richmond.edu/centers/center-‐for-‐active-‐business-‐education/research/case-‐network.html Larry Young, President and CEO of Dr Pepper Snapple Group, Inc. (DPS) seemed to be on a roll. Named 2010 Beverage Executive of the Year by Beverage Industry Magazine, he led the company through three very difficult...
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...Dr. Pepper-Snapple Company Kim Hayes Deonta Samilton Jordan Narcisse Tori Wallar Professor Cary Accounting November 11, 2013 Section 2: Introduction Dr. Pepper-Snapple Group, Inc. 5301 Legacy Dr. Plano, TX 75024 Industry: Beverages (Non-Alcoholic) Sic Code: 2080- Beverages Major Products: Canada Dry (Ginger ale,) 7-up (lemon-lime,) A&W (Root beer,) Sunkist (Orange,) and Sun Drop (Citrus.) Competitors: Coca-Cola and PepsiCo. Stock exchange: 47.33 Ticker symbol: DPS Name of outside auditors: Deloitte & Touche, LLP SIC (Standard Industry Classification): 2080 Beverages * History: Today, Dr Pepper Snapple Group is one of the leading producers of flavored beverages in North America and Caribbean. The have 6 of the top 10 non-cola drinks, and 13 of their 14 leading brands are ranked in the top two of its flavor categories. The DPS market more than 50 brands of carbonated soft drinks, juices, teas, mixers, water, and other premium beverages. Dr Pepper Snapple group include: 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr. & Mrs. T mixers, Penafiel, Rose's, Schweppes, Squirt and Sunkist soda. We are able to thank DPS for inventing the first carbonated drink. In 1783, Jean Jacob Schweppes created the world’s first carbonated mineral water. Schweppes’s was the original inventor of this new product, shared his invention with a young pharmacist in Waco, Texas, named Charles Alderton. They both invented Dr Pepper in...
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...Re: Dr Pepper Snapple Group, Inc. – Memo of Recommendation Strategic Issue Energy beverages in 2006 were the fourth largest nonalcoholic beverage category in the United Sates after carbonated soft drinks (CSD), bottled water, and sport drinks. Currently the company sells ready-to-drink tea, juice, juice drink, and mixer categories. The main issue is Dr Pepper Snapple sells four categories which are not among the top four. Therefore, they are missing out on a huge opportunity in the market. It would be in their best interest to penetrate the energy beverage market based on their current standing. Dr Pepper Snapple should enter into the energy beverage market with an all-natural, non-carbonated energy beverage. The Market and Competitors The energy beverage market is expected to grow at an average annual rate of 10.2% until 2011. It has slowed down recently due to the maturing of the market as well as new competitors to the market of hybrid energy beverages. Dr Pepper Snapple major competitors in the energy drink market are Red Bull North America, Hansen Natural Corporation, Pepsi-Cola, Rockstar Inc., and Coca-Cola. Each competitor is very power and influential in the drink, but each also have their own strengths and weaknesses. Every competitor struggles in this market due to brand loyalty, Dr Pepper Snapples most challenging obstacle to overcome. Competitors offer very similar product which provide consumers with an energy boost, mental alertness, refreshment, and...
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...Practice Case 1: Dr Pepper Snapple Group, Inc: Energy Beverages 1. How would you characterise the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007? Energy Beverage Category: Energy drinks provide consumers with a boost of energy and they fall under the category of functional drinks. Functional drinks are non-alcoholic drinks which include ingredients such as herbs, vitamins, minerals, amino acids or other nutritional ingredients. Other functional drinks include sport drinks, teas, fruit drinks and enhanced water drink. DPSG participation → In the US and Canada, Dr Pepper Snapple Group participated primarily in the flavoured carbonated soft drink (CSD) market segment Competitor: The largest non-alcoholic beverage category, after carbonated soft drinks, sport drinks, and bottled water, but the fastest growing one. DPSG participation → their major competitors include Red Bull, Monster Energy, and Coca Cola. Consumers: Average US per capita consumption of energy beverage drinkers increased by 14% since 2004. Predominantly consumed by males aged between 12- 34 during the afternoon or morning. The reasons for consumption include energy boost, mental alertness and taste. Most limit their options to 1.4 different brands which sheds light on strong brand loyalty. DPSG participation → DPSG have an attractive positioning within a large, growing, and profitable market. Channels: Distribution channels include convenience...
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...Marcela Beas Dr. Pepper Snapple Group March 5th, 2013 Current Situation Analysis Mission/Vision Statement The Dr. pepper Snapple Group fuses its vision and mission statements saying, “At Dr. Pepper Snapple Group, it is our vision to be the best beverage business in the Americas. Our brands have been synonymous with refreshment, fun and flavor for generations, and our sales are poised to keep growing in the future.” This stamen is straightforward and informatively average. It establishes the company’s goal and core values. Also, it highlights DPS’ interest in future sales growth. The company includes its business strategy stating that it focuses on building and enhancing leading brands, pursuing profitable channels, packages and categories, leveraging an integrated business model, strengthening routes to markets, and improving operating efficiency (Dr. Pepper Snapple Group). External Analysis Government policies and regulations affect business development and growth. Products have to be consistent with the USDA’s dietary guidelines and adhere to the FDA’s standards for health claims. Due to the current post-recession economy, growth is expected to be slow since existing demand patterns are expected to change as consumers become more health conscious. Moreover, global awareness and concern regarding the impact of climate change continues to be a focal point as business seek to achieve better business in terms of reduced cost and risk while achieving positive impact on...
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...Management Project/Presentation The Dr. Pepper Snapple Group History Overview From the invention of the first soft drink more than 200 years ago to some of the industry's most beloved beverage brands, Dr Pepper Snapple Group (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. History 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. Dr Pepper and Snapple, the flagship brands of DPS, have origins that share Schweppe's entrepreneurial spirit. Charles Alderton, a young pharmacist in Waco, Texas, invented Dr Pepper in 1885. It was served at the drug store...
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...MARKETING MANAGEMENT CASE STUDY DR PEPPER SNAPPLE GROUP, INC. ENERGY BEVERAGE PREPARED BY: RAMSIS ANAK WILLIAM AGIM 2012402536 Strategic Issues and Problems Being the consultant of Dr Pepper Snapple Group, Inc. (DPSG), I am charged to assess whether or not a profitable market opportunity existed for a new energy beverage brand to be produced, marketed, and distributed by the company. The decision to explore a new energy beverage was made by senior company management of DPSG as part of a corporate business strategy to focus on opportunities in (1) High Growth and (2) High Margin beverage businesses. My tasks involve a number of important factors. I must assess the likelihood that DPSG Competitive environment will be liberal or conservative in its marketing of the new energy beverage. An important consideration is DPSG role in affecting this environment, given its strong presence in the CSD market and utilizing that strength to push the new energy beverage. Ultimately I must make a “go-no go” decision. A “go” decision requires a recommendation in the form of the new energy beverage, its target market, its price, and promotion. A “no go” decision must take into consideration Dr Pepper’s profit and growth position without the new energy beverage and measures to minimize their impact. The problem facing Dr Pepper’s is how to retain its present competitive position given an environmental threat (other energy beverage) while at the same time preserving profitability...
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...in the Soft Drink Industry: Case Study of Coca-Cola, Pepsi, and Dr. Pepper Krisadee Rungsatcha MBA 500: Essentials of Business Management June 23, 2013 Larry Frazier Abstract The beverage industry nowadays is very competitive. Each brand pushes all strategies to be the number one in the market and try to win more consumers and achieve their goals. The main competitors in these industries are Coca-Cola Company, PepsiCo, Inc., and Dr. Pepper Snapple Group. Coca-Cola is the largest beverage company in this market and provides the most market share that PepsiCo, Inc. PepsiCo is the second leading company, and Dr. Pepper Snapple Group is the third leading company in soft drink beverage industry. This paper presents three main competitors and focuses on competitive strategies, market strategies, and overall strength of the companies. Also, it discusses a recommendation to improve the Coca-Cola Company’s competitive position. Company Summaries Coca-Cola Company. The Coca-Cola Company is the largest beverage company in the world. The Coca-Cola Company is the leader in the market of nonalcoholic beverages and owns market shares than 500 beverage brands, including sparkling drinks, juice drinks, ready to drink, teas, coffees, and energy drinks, such as vitamin water and Powerade. The Coca-Cola Company also owns the leading brands of the diet and light beverage market, such as Diet Coke and the top five soft drinks: Fanta and...
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...Introduction Since 1885, Dr. Pepper Snapple Group (DPS) has established a firm reputation for quality. It has strove to become a key competitor in the soft drink industry, and is now one of the largest in the world. This document will serve as a strategic analysis of DPS, and will provide a critical analysis of the company’s strategies, resources, and financial data. In this paper, we will display, DPS’s mission, vision, history, and major competitors. We will explain, in detail, everything that helps contribute to the soft drink giant that we all know today. Background Vision Statement At Dr. Pepper Snapple Group, it is our vision to be the best beverage business in the Americas. Our brands have been synonymous with refreshment, fun and flavor for generations, and our sales are poised to keep growing in the future. Mission Statement Our strategy reflects and builds upon our position as the leading flavored beverage business in the U.S. Accordingly, we focus on: 1. Building and enhancing our leading brands 2. Pursuing profitable channels, packages and categories 3. Leveraging our integrated business models 4. Strengthening our route to market 5. Improving operating efficiency Components 1 2 3 4 5 6 7 8 9 Company NO YES YES YES YES NO YES NO NO Given the mission of Dr. Pepper only has 5/9 of the components; the mission may need some revision. History/Timeline 1885: Charles Alderton, of Waco, Texas invents Dr Pepper. Late 1880s: Morrison, the owner of the...
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...MARKETING PROBLEM: Energy Beverages Dr. Pepper Snapple Group, Inc. Note by authors For analyzing of this case and solving this Marketing Problem, we used steps of Decision Making Process for a Marketing Problem known as „DECIDE“. In other words, we covered the case through following sections: 1. Defining the problem 2. Enumerating the decision factors 3. Considering relevant information 4. Identifying the best alternative 5. Developing a plan for implementing the chosen alternative 6. Evaluating the decision and the decision process 1. Defining the problem Andrew Barker, Marketing Executive of Dr. Pepper Snapple Group, Inc. only major nonalcoholic beverage company in USA launched Accelerade RTD brand. Launching such a product is not only creating a new brand, it is entering new segment of market, going from CSD (carbonated soft drinks) and producing ready to drink tea to new segment, segment of Functional Beverages. The market segment of Energy Beverages (Functional Beverages) is field of huge battle field of many competitors, and idea to enter it is under question mark. There are few questions to answer in order to solve this Marketing Problem: a) Shall Dr. Pepper Snapple Group, Inc. launch a new brand? b) If answer on question „a“ is yes, answer on the following questions: a. What should be the target market? b. How should brand be positioned? c. What kind of Marketing Channel should be used? d. What should...
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