...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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...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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...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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...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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...MKT750 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...
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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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...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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...MARKETING CASE NO. 1 DR PEPPER SNAPPLE GROUP, INC. ENERGY BEVERAGES Definition of the problem The Dr Pepper Snapple Group, Inc. senior company management has developed a corporate strategy to target high-growth and high-margin beverage businesses. The firm is the only major domestic nonalcoholic beverage company in the US without a significant branded energy drink of its own while this beverage market is the fastest growing category. Dr Pepper Snapple group needs to determine if a market opportunity exists to introduce its own, new energy drink brand. In order to effectively evaluate the benefits of entering the energy beverage market, the company needs to identify a consumer group where a favorable opportunity exists, and develop a brand differentiation strategy that effectively appeals to that market. Alternatives 1. The company may choose to remain inactive in the energy drink market. The company has a significant market share in the carbonated soft drink (CSD) segment and participates in other major beverage markets as well. The company achieves strong operating margins and stable cash flows from other businesses. Choosing not to enter the energy drink market is unlikely to impact the company’s performance in these other successful businesses. 2. The company may choose to introduce a new energy drink brand to the market. This alternative would expose the company to the fastest growing and fourth largest nonalcoholic beverage category in the United...
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...Competition 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:...
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...What is the problem? Dr. Pepper Snapple Group, Inc. Marketing Executive Andrew Barker led the launch of Accelerade RTD into the USA market, this company is the only major non-alcoholic beverage company in the USA and they are entering a new segment, stepping into new waters from their usual CSD (carbonated soft drinks) and ready-made tea market. The idea to enter this market leads to a huge doubt as the Energy Beverages segment is a field with very well established competitors and up and coming fierce medium sized companies (Vendite, 2010). a) Alternative one We can confidently say that an open door for the brand RTD Accelerade exists, since it would separate effortlessly from other energy refreshments as sound item, and item that is intended to fulfill needs of the individuals who needs to frequently do sports which is a huge business sector comprised of 35,000 Americans who practice consistently. The essential advantages of item are unmistakable in its belongings such are: Extends Endurance, Speeds Muscle Recovery, Reduces Muscle Damage, improves Recovery. As indicated by specified certainties about the business, item and organization, presenting RTD Accelerade appears to be as an alluring option for Dr Pepper Snapple Group, Inc (Vendite, 2010). b) Alternative two Energy beverages have turned reality into a multibillion-dollar industry in the US. Drink Digest reported that retail offers of caffeinated beverages in the US expanded by 16 percent...
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...| Dr. Pepper Snapple Group Inc | Financial Analysis | | Mahruf Rashid Ratul | Wilmington UniversityMBA - 7200Professor Bruce Martin05/03/2015 | | Abstract Carbonated soft drinks are a norm in our everyday lives. With so many brands out there sometimes it is difficult as a consumer to pick a favorite. However, as an investor one must be careful and perform a financial analysis of the company one wishes to invest in. This paper focuses on the financials of Dr. Pepper Snapple, a leading CSD brand in north America. A brief introduction of the company and its business operations is followed by detailed financial analysis. Income statement and balance sheet analysis explains the company's health while the cash flow gives a clearer picture of the firms activities. Ratio analysis provides a tool to judge the firm performance over time including against its competitors and the industry. Comparison to competitors and the industry is can also be done by stock price, EPS and beta analysis. In conclusion, DPS is a stable and healthy firm as it will be shown in this paper. Company Overview Dr Pepper Snapple Group, Inc. is a leading integrated brand owner, manufacturer and distributor of non-alcoholic beverages non carbonated beverages and carbonated soft drinks in the United States, Canada and Mexico. Its product line also includes ready-to-drink teas, juices, juice drinks, water and mixers. some of its famous brands in the US are Dr. pepper, Schweppes, Sunkist, Snapple...
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...TEXAS A&M UNIVERSITY CORPUS CHRISTI MARKETING MANAGEMENT - MKT 5320 CASE STUDY ANALYSIS: Dr Pepper Snapple Group, Inc: Energy Beverages OLUSUBOMI Y. ADETUNJI STUDENT ID: A03936869 PROBLEM DEFINITION. Dr Pepper Snapple Group Inc., a non-alcoholic beverage producing company decided to enter into the market with a new product (energy drink) and they were faced with some problems along the line. They decided to introduce an energy beverage brand to the market (existing market) which already has competitors. With this as focus, it was important to choose best market and distribution channels and some other business strategies for the product in order for it to be a success. The problem faced includes retainment of its present competitive position in the market with other energy drink companies and at the same time preserving profitability and customer base. In order to maintain the market competition, the business strategy to launch the new products into the market was very vital. Some of the factors that has to be considered before the product launch is considered are: * Industry Experience * Customer base * Profitablity growth * Favorable market condition * Core competencies * Management Team Decision. ALTERNATIVES PROVISIONS FOR PRODUCT SUCCESS The company could carefully select the strategy to launch the new product into the market to understand both the strength of their current competitive position and the strength of the...
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...Practice Case 1: Discussion Seminar 2 - Dr Pepper Snapple Group, Inc: Energy Beverages– Kerin & Peterson page 105. Case Questions: How would you characterise the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007? Beverage category: the energy beverage market produced estimated retail dollar sales of $6.2 billion in 2006. Off premise sales through convenience stores, supermarkets and mass merchandisers accounted for 71% of total retail sales in 2006. On premise retailers, such as restaurants and nightclubs, accounted for 29% of total retail sales. From 2001-2006, total energy beverage retail sales grew at an average annual rate 42.5% Industry analysts were projecting an average annual growth rate of 10.5% from 2007-2011. The slower growth rate was attributed to market maturity, increased price and package competition, and the entrance of hybrid energy beverages such as energy water, energy fruit drinks, ready to drink energy teas, and energy colas. Intense competition Competitors: 5 competitors dominate the US beverage market: Redbull (market leader), North America, Hansen Natural Corporation, Pepsi Cola, Rockstar, Inc. and Coca Cola. Consumers: Males between ages of 12 and 34 as they are the heaviest users, most consumed in the afternoon followed by morning consumption. Most consumers drink energy beverages at home, in the car, and at work/school. Channels: convenience stores and off premise...
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...Marketing Management: Case Analysis: Janmar Coatings, Inc. Presented by, Uma M. Venkatesan Tuesday 17th 2015 Case Summary This case is about an organization doing business on paint coatings market served by company in the southwestern United States. The organization has some challenges on how to deploy marketing efforts among the various architectural paint coatings markets served in the southwestern United States. Janmar Coating, Inc. is a privately held organization that produces and markets architectural paint under Janmar brand name. In addition to producing a full line of architectural coatings, the company sells paint sundries (brushes, rollers, thinner, etc.) under the Janmar name, even though these item are not manufactured by the company. Problem/ Issues The current problem that is facing Janmar Coatings is how to cost effectively market the products and what area is the best place to market. Companies rely on the leadership to help make decisions regarding the market and after two senior executive meetings, there...
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...Lipton and AriZona: price competition and equilibrium in the Unites States RTD market. Group essay for Managerial Economics Authors: Serebrennikov Artem, Salzberg Arthur MIM-2015 Contents Abstract 3 Introduction 3 RTD Tea Industry Profile in USA market 5 Price competition on USA market 2010-2014 6 Marginal Costs 9 Using Cournot and Bertrand models 10 Abstract The purpose of this essay is to investigate price strategies of Uniliver (Lipton Iced Tea) and Arizona Beverages USA (stylized as AriZona) and find equilibrium in the ready-to-drink (RTD) market. These two companies compete in USA market and possess great market power. Our team use Cournot and Bertrand approaches to find equilibrium. We have completed a thorough analysis of : * Ready-to-Drink (RTD) tea industry * Competitive landscape * AriZona and Lipton brand perception * AriZona and Lipton sales and financial position We also believe that we can revitalize these brands through : * A better focused target market * Rebranding * Reformulation and new flavors * Increase in marketing expenditures * New line extensions * Building stronger partnerships with distributors Introduction In 2005, the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely. Market analysts believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. Unilever is aiming for global processes...
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