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Dr. Pepper Snapple Group

In: Business and Management

Submitted By agarzata
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1. How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007?
- Functional Drinks -> Drinks boost consumers energy, non-alcoholic drinks. o Other Functional Drinks: Teas, enhanced water drink, fruit and sports drinks, o Ingredients: vitamins, herbs, minerals, amino acids. ϖ DPSG -> Dr. Pepper Snapple Group participated in the CSD flavored carbonated soft drink US and Canada market segment.

- Competitor: o Second Largest non-alcoholic drink category. First largest beverage: carbonated soft drinks, sport drinks, and bottled water. o Fastest growing non-alcoholic industry. ϖ DPSG -> Competitors: Red Bull, Monster Energy, and Coca Cola.

- Consumers: o Boosts consumers energy and good taste. o Consumed by males 12-34 years old during the morning and the afternoon. o According to the US per capita, energy drinks consumers increased 14% since 2004. o Average US per capita consumption of energy beverage drinkers increased by 14% since 2004. ϖ DPSG -> engaging position in the profitable, large, expanding market.

- Channels: convenience stores and supermarkets. o Dominant retail channels to sell energy beverages.
DPSG -> Broad distribution coverage and manufacture of the product.
2. Does your characterization bode well for a new energy beverage introduction generally and for Dr. Pepper Snapple Group in particular?
DPSG will need to invest a lot of money, creativity and money in their new product because they will need to compete with other brands. Red Bull, Hansen Natural Corporation, Pepsi-Cola, Rockstar and Coca-Cola are strong in the market and popular energy drink brands and it is difficult for D. Pepper Snapple as a new energy beverage to survive in the market and competing with these brands that have been long enough in the market. People know…...

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