...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 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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...Dr. Pepper Snapple Group Case Study 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...
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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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...cadbury Running head: Case Study Cadbury Schweppes: Capturing Confectionery Case Study: Cadbury Schweppes: Capturing Confectionery ORM 680: Capstone 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...
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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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...UNIVERSITI TEKNOLOGI MARA KOTA SAMARAHAN CAMPUS 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...
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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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...Challenges in the Global Business Environment Code of Ethics Conduct Coca-Cola Company Richard Bonds Dr. J. A. Anderson, Sr. Date May, 31 2014 Abstract Coca-Cola Company or Coke s the largest distributor of soft drinks in the world. Businesses such as Coke and other corporations set a strict code of ethics laws to live by and operate upon. This paper will illustrate the code of ethics of Coke the industry leaders and two of its partners/competitors PepsiCo and Dr. Pepper/Snapple Co. and the similarities of their ethics code for operations as American multination companies. Coca-Cola Company or Coke is the largest distributor of soft drinks in the world. A successful businesses like Coke and other large corporations set a strict code of ethics laws to live by and operate upon. A brief look at the industries three largest leaders in the soft drink industry, with Coke being the front runner followed by the PepsiCo Groups and Dr. Pepper/Snapple Group all unique in their own way with a variety of products consumers have been using for nearly 100 years. All three companies born in the southern part of the United States has provided different brands names under different company logos worldwide. Coke has such names in the soft drink industry like Sprite, Minute Made, Fanta, Power Aide, an Simple Orange to name a few of the 3500 plus products they produce worldwide. The largest and closest competitor of Coke is a bit more diverse in the product...
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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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... Lipton is famous for its various aspects. For instance it focuses strongly on innovation and has become a dominant tea brand. This point is proved by launching the varieties of products ranging from leaf tea to ready-to-drink tea products. Secondly it targets the mass market. Thirdly, due to its size, Lipton is seen as dominant player in the tea market as its size and quantity vary according to the buying behavior of the consumers. Lastly, the Lipton tea company employs professionals in tea growing, Research &Development teams, testing, blending as well as marketing. So to fulfill the criteria of the report, we have chosen Lipton tea as health and wee-being product. The report highlights different marketing theories applied in the case of Lipton. The report also clarifies the position of it in the market. Furthermore it describes where and how the consumers want this product. The report is separated into four parts incorporating primary as well as secondary sources of data. The questionnaire approach is used as primary source of data. Books, journals and online materials are used as secondary sources of data. This report gives some insights on Lipton as a brand of tea. So it can be referred in future for the further research. Most of the information is used based on the past events which can be seen as shortcoming of the report. PART A 1. Introduction to major macro environment forces Macro environment forces can be explained as external environment and characterized...
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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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...to 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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...platforms daily, making it necessary for companies to not only be familiar with those platforms, but also know how to reach the consumer through them. This paper explores the concept of social media and its users with a case study of Coca-Cola’s web presence. Two of the most recent social media campaigns, Expedition 206 and 24-Hour Session with Maroon 5 will be examined. Questions that will be answered throughout the paper will identify the effects social media has, if companies can reach their audiences effectively through social media, and what will make social media better by research on best practices. Social media marketing helps a company form a relationship and connect with their audience. Tools such as Twitter, Facebook, various blog sites and Foursquare are used to fuse a connection. It is then up to the company to ensure that a relationship develops. Social media is widespread and it is imperative to remain ahead of the competition. Coca-Cola’s competitors, Pepsi Co., Nestlé and Dr. Pepper Snapple Group all have a presence on social media sites and engage in social media marketing. Coca-Cola is a market leader in the carbonated beverage industry not only in numbers, but also with their presence on social media. Companies in any industry can study their social media presence and interaction and form their own social media guidelines based on Coca-Cola’s current presence. The company’s presence on social media engages fans and followers while...
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...Background of the company chosen: Hawaiian Punch is a well-known brand of fruit punch drinks owned by Dr. Pepper Snapple Group, Inc. (DPS). The company experienced several ownership handovers and some of the most recent ones include Procter & Gamble sold Hawaiian Punch to Cadbury Schweppes in 1999, and Dr. Pepper Snapple was spun off from Cadbury Schweppes in 2008. The Current Situation of the Company: The main source of our study comes from an intensive case study that illustrates Hawaiian Punch’s “Go-to-Market Strategy” decision option, faced by the company’s Marketing Director Kate Hoedebeck during the time span from year 2004 to 2005. As the number one fruit punch drink sold in the United States, Hawaiian punch enjoyed its continuous success. Its goals are very much aligned with the customers’ needs, in the long-term it aims to maintain its competitiveness through high customer satisfaction, extensive product development, easy accessibility and better profits attainable for retailers to stock and sell. In terms of its strengths, it has already become Cadbury Schweppes’ fourth largest brand by volume. Since the acquisition of Hawaiian Punch by Cadbury Schweppes from Procter & Gamble in 1999, the company had employed two distinct and separate manufacturing, sales and distribution networks to stock and serve identical or similar beverages for the same retail customer. This dual distribution strategy by many has been seen as one of Hawaiian Punch’s strength, leading it towards...
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