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Case Study on Dr Snapple Group Inc.

In: Business and Management

Submitted By ramsis1969
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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 and its customer base.

Insights from the Dr Pepper Snapple Inc
The energy drink experience, based on the data in the report of the marketing division, reveals the following:

1. It is the fourth largest non-alcoholic beverage category, after carbonated soft drinks, sport drinks, and bottled water, but the…...

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