...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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...7: 9 i. Part A: 9 ii. Part B: 9 iii. Part B: 10 8. Question 8: 10 9. Bonus Question 10 10. References: 11 MBA Marketing Exam Take-Home Exam Feel free to use lecture notes, the text book, and any other source. I am looking for your line of reasoning and applications rather than listing of what is already found in the book or slides. Question 1: Do you think this company is following the differentiation or cost leadership strategy? Why? Which growth strategy (market development, product development, diversification and market penetration) did they follow to improve their product portfolio sales? Reviewing Dr. Pepper Snapple Group Inc. case and assessing the situation to dr. Michael Porter generic strategies of achieving and maintaining competitive advantage, we may see that the company mostly was following the differentiation strategy as it is offering differentiated products from its competitors in many terms including the packing and pricing [pic] As for part two ,and regarding the Ansoff's product/market Expansion Grid [pic] Some may be puzzled and think that the company was applying a Diversification strategy as it was introducing new branded product(Venom ) into a new beverage market to the company (Energy beverage market), but that's flawed as the company did not leave its current product lines(beverages) to new...
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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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...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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...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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...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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...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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...Dr Pepper Snapple Group is the No.1 flavored carbonated soft drink (CSD) company in the Americas and a leading innovator and marketer of functional/non-carbonated beverages. DPS serves consumers throughout North America via a broad and flexible route to market. This includes a combination of direct store delivery and warehouse delivery capabilities supported by our 21 manufacturing centers, more than 115 distribution centers and approximately 19,000 employees across North America, in addition to the operations of hundreds of third-party bottlers and distributors. operations map United States In the U.S., DPS markets, bottles and distributes a broad range of soft drinks, non-carbonated beverages and mixers, from iconic national brands to regional favorites. In addition, we distribute a number of licensed brands in various territories, such as Fiji Water, Sunny Delight and Big Red. Nearly half of DPS' annual volume is distributed through our company-owned bottling and distribution network. The remainder is driven through third-party/licensed bottlers and distributors, including those in both the Coca-Cola and Pepsi bottling systems, as well as independent bottlers, brokers and distributors. Dr Pepper Snapple Group Caribe & Latinoamérica In Mexico and the Caribbean, DPS operates primarily in the carbonated mineral water, flavored CSD, bottled water and vegetable juice categories. In Mexico, where we do business as Grupo Penafiel, our key brands include Peñafiel, Squirt...
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...in Strategic Management Spring Arbor University Jaspreet Kaur (Jas) Terry A. O’Connor, Ph.D. September 6, 2010 Abstract Cadbury Schweppes formed its joint venture in 1969. The company went through several mergers and acquisitions from 1969 to 2008, but the company was able to survive and became the global leader in confectionery and soft drink business. In the early stage, the company had to struggle but by the late 1900’s Cadbury Schweppes started to expand its business worldwide. The company had franchises in United States and Europe and acquired various businesses in other parts of the world. By the early 2000’s the company decided to demerger. In 2008, the beverage site of the business (Schweppes) became Dr Pepper Snapple Group and confectionery (Cadbury) was bought by Kraft Foods the very next year. Cadbury Schweppes: Capturing Confectionery Introduction The purpose of this document is to analyze the existence of Cadbury Schweppes. This paper will describe the history and background of the company. In addition, the document will identify and discuss the global initiatives of Cadbury Schweppes. And finally, the document will discuss the recommendations for the corporation. History and Background Cadbury Schweppes began its journey in 1969 with the merger of a beverage company started by Jacob Schweppe in 1783 in Geneva, Switzerland and a chocolate business started by John Cadbury in Birmingham, U.K. in 1824 (Hill and Jones, 2010...
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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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...grocery stores and Hawaiian Punch became a national brand. Soon after “Punchy,” the mascot, was introduced, and the companies brand image and advertising identified it a successful product (Kerin, 2007). Over the next 30 years, Hawaiian Punch was bought out by RJ Reynolds (RJR) Company, Del Monte, who expanded distribution channels and introduced new flavors, Proctor and Gamble, who established the gallon bottle as a leading juice drink package and distributed at supermarkets and retail outlets via its bottle network in the carbonated drink aisle and independent food broker and warehouse networks in the juice aisle, and lastly Cadbury Schweppes, PLC (Kerin, 2007). In 2004, three Cadbury Schweppes, PLC business units—Dr Pepper/Seven Up; Snapple Beverage Group; and Mott’s—integrated to form Cadbury Schweppes Americas Beverages (Kerin, 2007). At the time, the Hawaiian Punch line consisted of 11 flavors and packaging included a 1-gallon bottle, a half-gallon bottle, a 2-liter bottle, a 20-ounce bottle, a 6.75-ounce single-serve standup pouch, and a 12-ounce can. Hawaiian Punch Lite had also recently been introduced and contained 60 percent less sugar (Kerin, 2007). Fruit juice market Labeled a juice drink, Hawaiian Punch is manufactured with fresh juice or concentrate, not exceeding 24 percent, to...
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...MARKETING PROBLEM DEFINITION Dr. Pepper Snapple Group, Inc, encouraged by its long-lasting history, experience, and favorable market conditions has decided to enter a new market segment, launch energy drink beverage and they are facing several dilemmas. A thorough analysis of company’s internal conditions, industry facts, market conditions and trends, is needed in order to develop possible alternatives, realize the possible outcomes of those alternatives, and finally to choose the most convenient options. To be specific, company needs to make decision about the following: * Choice of Target Market * Product Line and Positioning Choice * Marketing Channel Choice * Advertizing and Promotion * Pricing and Profitability COMPANY FACTS 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 throughout the years. The company today 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 Schweppes perfected the process for carbonating water and created the world's first carbonated mineral water. In 2000, Cadbury Schweppes acquired Snapple Beverage Group, which included the namesake brand as well as RC Cola, Diet Rite and Stewart's, among...
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...Harvard Business School 9-898-171 Rev. December 11, 2000 Nantucket Nectars Well, we knew we were in an interesting position. We had five companies express interest in acquiring a portion of the company. Sometimes you have to laugh about how things occur. Tropicana (Seagram) and Ocean Spray became interested in us after reading an article in Brandweek magazine that erroneously reported that Triarc was in negotiations to buy us. (See Exhibit 1 for a copy of this article.) At the time, we hadn’t even met with Triarc, although we knew their senior people from industry conferences. We have no idea how this rumor began. Within weeks Triarc and Pepsi contacted us. We told no one about these on-going negotiations and held all the meetings away from our offices so that no Nectars employee would become concerned. It was quite a frenetic time. The most memorable day was just a few days ago actually. Firsty and I were in an extended meeting with Ocean Spray, making us late for our second round meeting with Pepsi. Ultimately, Tom and I split up: Firsty stayed with Ocean Spray and I met with Pepsi. Ocean Spray never knew about the Pepsi meeting. Tom and I have learned under fire throughout our Nectars experience, but this experience was a new one for us. —Tom Scott, co-founder of Nantucket Nectars Research Associate Jon M. Biotti prepared this case under the supervision of Professors Joseph B. Lassiter III and William A. Sahlman as the basis for class discussion rather...
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...accompany the successful completion of any task is incomplete without the mention of people who made it possible. So I take this as a great opportunity to pen down a few lines about the people to whom my acknowledgement is due. It is with the deepest sense of gratitude that I wish to place on record my sincere thanks …………………………………………………., my project guide for providing me inspiration, encouragement, guidance, help and valuable suggestions throughout the project. I would also like to thank all my respondent for giving me their valuable time and information. OBJECTIVE TO KNOW THE CUSTOMER PREFERENCE TOWARD THE CADBURY’S CHOCOLATES. TO KNOW THAT THE CONSUMERS ARE FULLY AWARE ABOUT THE CADBURY’S CHOCOLATES. Introduction The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury India’s no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both, the confectionary and soft drink market in tech UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story...
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...potential suppliers by requesting them to complete a questionnaire prior to engagement. This enables Cadbury Schweppes to monitor a supplier and check they adhere to stringent standards in particular criteria. One criteria, for example, may be the environment and the questionnaire allows the supplier to express whether they carry out audits or have an environmental policy. a) Dealing with suppliers Cadbury Schweppes deals with tens of thousands of suppliers around the world and aims to work closely with them to ensure they receive fair treatment. In the case of cocoa farmers for example, Cadbury Schweppes is a member of a global coalition, which is comprised of industry, governments, non-government organisations and special interest groups created to improve working practices on cocoa farms. The coalition has funded independent surveys into cocoa farming in West Africa that have contributed to the development of programmes to help local communities. In 2003, the coalition also established a foundation, the International Cocoa Initiative - Working Towards Responsible Standards for Cocoa Growing, which aims to support field projects and will act as a clearinghouse for best practices to ensure that cocoa is grown responsibly. The work of the coalition, however, is only one way to support cocoa farmers and their families. Another practice is Fair Trade. Under this scheme cocoa is paid for at a fixed minimum price with a premium going to the farmer co-operatives in...
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