...What would be the RSP and within which margins can it operate to remain profitable? Before answering these questions, it is important to highlight some of the external challenges that would face the company were they to go ahead and introduce a new energy drink. Firstly, there has been significant price erosion within the energy drink market, with energy drink prices declining by 30% between the years 2001 and 2006. This has been attributed to larger package sizes, the introduction of multi-packs, and the increasing availability in supermarkets, which operate with lower retail gross margins. Secondly, the market has also experienced product proliferation due to line extensions, new packaging and sizes, and market segmentation. Thirdly, DPSG needs to be aware of the changing attitudes of the consumer. The consumer is becoming more and more health conscious and while energy drinks are not perceived as unhealthy as other soft drinks, there are certainly healthier options becoming more readily available and so the brand positioning will need to be carefully thought out to combat this. Having looked at the overall challenges faced with entering the energy drinks market, there are also opportunities. The energy drinks category...
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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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...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...
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...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 stores and supermarkets, which are the dominant off-premise retail channels for energy beverages. Industry analysts expect continued sales erosion in the convenience channel in the future. Hence, companies in this category should work to broaden their distribution channels in order to gain more exposure. DPSG participation → Broad geographic manufacturing and distribution coverage 2....
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...pg. 88 “posted total retail ….. Gatorade” pg. 89 “…. decide upon a product line.” pg. 90 “…. distribution system supplied both off-premise and on-premise retailers.” 1. How would you characterize the energy beverage category, competitors, consumers, channels, and DPSGs category participation in 2007? * Energy Beverage Numbers 2006 * retail sales * $6.2 Billion * retail product sold * 153 Million cases * past growth * 2001 – 2006: average annual rate of 42.5% * future growth * 2007 – 2011: average annual rate of 10.2% * decrease rate due to * maturity of market * increase competition * hybrid products * price erosion * 2001 – 2006: 30% decline * decrease in price due to * larger packaging sizes that have lower price per ounce * introduction of multi-packs * increased availability in mass merchandisers * Manufacturers with a broad product line and extensive distribution have greatest chance of gaining shelf space with high turnover rates * Competitors * Five dominate with 94% of sales and volume in US market * Red Bull North America * pioneer when it was introduced to the US in 1997 * leader in dollar sales and unit volume * dollar market share * 2000 – 82% * 2006 – 43% * US media expenditures * 2006 – $39.6 million * 2007 – $60.9 million * Hansen Natural Corporation * Monster Energy released in 2002 * distributors aided with increase...
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...beverage consumers. Of the energy drinkers the majority were male, ranging ages twelve to thirty-four years old. Consumers were pursuing a drink with a larger dose of caffeine for a longer lasting energy boost and better taste. In the midst of discovering a new energy beverage, Dr. Pepper Snapple Group relaunched Accelerade, a recently acquired asset, as Accelerade RTD. Accelerade had been already popular with hard core athletes, who participated in regular exercise. DPSG initiated marketing and branding campaigns and reintroduced the product as a drink targeting more than just hard core athletes. Distributing product to off-premise and on premise retailers, in which off-premises retailers were the preferred and most profitable choice. All in all, the current energy beverage category lacks differentiation between brands, introducing a new product into the market would be a great opportunity for a company. Specifically referring to DPSG, focusing on differentiating their product will make them stand out in the category. DPSG now has an advantage since they have yet to enter the energy beverage category. The company is known for its success rates with introducing new products and prepared to introduce a new and innovative energy beverage. Andrew Baker is the brand manager at Dr. Pepper Snapple Group Inc., him and his team must conduct a series of research to determine whether they need to move forward with a new project of introducing an energy beverage to be sold in 2008. Dr. Pepper...
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...The purpose of this paper is to provide a documented overview of the major "Christian" sects, or what some have called cults. We are using the term sects to avoid the much more complicated concept of cults. Specific attention is given the essential biblical doctrines which they deny. No information is given on the origin and founders of the sects, since this is of relatively minor importance to the apologetic task. Guidelines are supplied to help the Christian worker in his communication of this information. An extensive bibliography is provided and recommended for further study. The source of doctrinal authority for spiritual truth is crucial. The source(s) which a group acknowledges will tend to determine the entire doctrinal framework of that group. This area, therefore, is the foundational issue between biblical Christianity and the sects. Biblical Christianity acknowledges the Bible alone as authoritative, because it alone is inspired by God. The sects also usually acknowledge the Bible as the inspired word of God. However, most of them claim that other writings are also inspired. These writings become the final doctrinal authority, since they are usually the grid through which the Bible is interpreted. Some sects ("Jehovah's Witnesses" and "The Way") believe that the Bible alone is inspired, but claim to have the uniquely correct interpretation and/or translation of the Bible. This interpretation becomes in practice the final authority of the sect. A. Acknowledgement...
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...(GAAP). The auditors provide the opinion by better understanding the internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk (PepsiCo, 2012 Annual Report, p. 102). PepsiCo hired KPMG for the auditing and the auditors came to the conclusion that PepsiCo’s financial statements present the company’s financial position correctly following GAAP. PepsiCo’s most successful and known products/brands are Pepsi-Cola, Mountain Dew, 7 Up, Aquafina, Doritos, Cheetos, Gatorade, and many others. PepsiCo’s main beverage competitor is Coca-Cola Company and the main food competitors are Nestlé S.A., Danone, DPSG, Kellogg Company, General Mills, Inc. and Mondelēz International, Inc. (PepsiCo, 2012 Annual Report, p. 39). The closing price for PepsiCo on Friday, March 1, 2013 was $75.93. Developments relating to the Company PepsiCo has been a well-established company for several years. Their products are all recognized and have a relatively steady demand. They try to increase their demand by creating new products. Surprisingly, over 50% of their revenue is made from the sale of food. They continue to implement new products and try to reach a larger target market. Also, they have expanded their products globally and their market continues to expand. They now have 22 brands that each make over a billion dollars a year. In...
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...Motivation Plan Kendre Adams LDR 531 March 20, 2015 Dr. Ali Yallah Motivation Plan Crafting a motivational plan is very helpful for any organization as well as for its employees. This paper discusses the summary of the mentor's interview including information about mentor's organization, the department in which mentor works in, and his job description. The paper further analyses specific differences in attitudes, emotions, personalities, and values among the learning team members based on DISC assessment, and address how each difference might be used to positively influence behavior. Lastly, the paper develops a plan that may be applied to the mentor's department and that would increase the learning team member's motivation, satisfaction, and performance based on their personal profiles, as if they were employees of that department. Mentor's Organization Assessment Ed Klein works for Dr. Pepper Snapple Group, which is an American soft drink company. There are two primary businesses of the company: Packaged Beverages and Beverage Concentrate. Packaged beverages sell finished goods to brokers and distributors. Beverage concentrate sells the authentic concentrate of the carbonated soft drinks. Mentor's Job Profile He is associated with the Cold Drink channel. His job description is of a Regional Immediate Consumption Manager and it involves activities like ensuring the development of the region’s On Premise market channels to contribute to the company’s return...
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...Entity: PepsiCo, Inc. Source: Form 10-K filed with SEC for fiscal year ended December 27, 2014 (via SEC Edgar) PepsiCo has six (6) (divisions) segments, which they report on all of them. Frito-Lay North America (FLNA): makes, markets, distributes and sells branded snack foods. These foods include Lay’s potato chips, Doritos tortilla chips, Cheetos cheese-flavored snacks, Tostitos tortilla chips, branded dips, Ruffles potato chips, Fritos corn chips and Santitas tortilla chips. FLNA’s branded products are sold to independent distributors and retailers. In addition, FLNA’s joint venture with Strauss Group makes, markets, distributes and sells Sabra refrigerated dips and spreads. Quaker Foods North America (QFNA): makes, markets, distributes and sells cereals, rice, pasta, dairy and other branded products. QFNA’s products include Quaker oatmeal, Aunt Jemima mixes and syrups, Quaker Chewy granola bars, Quaker grits, Cap’n Crunch cereal, Life cereal, Rice-A-Roni side dishes, Quaker rice cakes, Quaker oat squares and Quaker natural granola. These branded products are sold to independent distributors and retailers. Latin America Foods (LAF): markets, distributes and sells a number of snack food brands including Doritos, Cheetos, Marias Gamesa, Ruffles, Emperador, Saladitas, Lay’s, Rosquinhas Mabel, Elma Chips and Sabritas, as well as many Quaker-branded cereals and snacks. These branded products are sold to independent distributors and retailers. PepsiCo Americas...
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...food and snack businesses in North America and Latin America. PepsiCo Americas Beverages, which includes all of their North American and Latin American beverage businesses. PepsiCo Europe. PepsiCo Asia, Middle East and Africa. PepsiCo’s main competitors in the non-alcoholic beverage industry are the Coca-Cola Company and Dr. Pepper Snapple Group Inc, their main competitor and long time rival is Coca-Cola. Coca-Cola has the larger market share of carbonated soda drinks, however; PepsiCo holds strong with its larger market share in liquid refreshment beverages like Gatorade and Tropicana. PepsiCo also has a leadership position in the snack industry world wide, against other food and beverage competitors such as: ConAgra Foods, Inc., DPSG, Kellogg Company, Kraft Foods Group, Inc., International, Inc., Monster Beverage Corporation, Nestlé S.A., Red Bull GmbH and Snyder’s-Lance, Inc. They also receive competition from regional and local companies in many markets. Although Coke has remained victorious as the world’s number one cola of choice it does not mean it is the...
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...011))* @KIiXHZLS3 CSLgUH I(Y ULIV */ >I(Y H F7C= Y X_JOSVYZj Hc +. >I(Y’ FjJ ‘QPYZjZL UH ]]]’\VKHMVUL’J‘(HKYS ?fDAIE OND JNMRPNKNS 5PYRE QT] TfDAIE VJP[RJA$ :[LE OPN T[Q GMED DTA XHJNTM] M[QRPNIE" Q MHLHY LdYERE e\RU IEDMNDSXE GK_DAR$ 8SL^P=PTPZ \fY [WV‘VXUj UH WXV\VSfUj gfYZR_% RZLXV[ YP WlLKLT UHYZH\jZL \ :UZLXULZV\h YHTVVIYS[‘L’ 4 RK_c I[KLZL JOZjZ% TmcLZL YP OV RK_RVSP ‘TiUPZ% ULIV ‘X[aPZ’ 8SL^PCZXVW YL \fT ‘HYL WVYZHXf V ZV% cL ULWXV\VSfZL \jJ% ULc QL \fT TPSh’ AV QLOV KVYHcLUj YL \fT VKJOV‘j \VSfUj ‘HISVR[QL Hc KV RVUJL ngZV\HJjOV VIKVIj’ 8SL^P=PTPZ P 8SL^PCZXVW YP TmcLZL UHYZH\PZ% ‘TiUPZ ULIV ‘X[aPZ UH YHTVVIYS[OH’\VKHMVUL’J‘’ 8DE MAIDERE QKNYEMJS1 AVR[K QYZL ‘\_RSj WSHZPZ WVaZV\Uj WV[Rf‘RV[% OcHOPATHKH IQLE IH OPN T[Q MA DPSG]L KHQRS ?Ue\RNT[M_ ’ CZHgj QP QLU VKZXOUV[Z H YZH\PZ YL UH WVaZi’ eOXHK[ F_ngZV\fUj YHTV‘lLQTi S‘L WXV\hYZ P QPUoTP ‘WmYVI_3 3AMJNTM_L OcETNDEL #KSL WSHZLIUjJO nKHQm [\LKLUoJO \L F_ngZV\fUj$% ;PNQRcEDMHCRT_L QKSYBU : W;KARBU MEBN :#3AMJA #YZHgj TjZ C:> WS[Y RHXZ[$% ;KARBNS OcEQ BAMJNLAR #V‘UHgLUoT SVNLT FVKHMVUL$% ?JKADEL T GNRNTNQRH MA e\ER T C KV QPUoJO YjZj 4EKJEL VA =:= QKSYBU 4EKJEL VA =:= 4EKJEL VA QKSYBU ?NDAFNME ;N\ER =:= +1 0 2* ’(, @[JKADM_ QAVBA *1%0. 1%0. *12%.1 (’-"&. ?U\EPOAM] TNKM] =:= =KETA =AVBA 5;6 +) " +) " +) " 8\ BEV 5;6 *1%0. 1%0. *12%.1 (’-"&. (’-"&. (+("+, ;KARBU RcER_L QRPAM[L ;KARBU RcER_L QRPAM[L ;NSY_T[M_ QKSYEB 4E 2))+)22 C>C WSHZIH & Xm‘Uh 4EKJEL VA ;KARBU RcER_L QRPAM[L 4EKJEL VA ;KARBU RcER_L QRPAM[L ;N\ER...
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...Table of Contents 1.0 Company profile 2 1.1 PepsiCo Mission: 2 1.2 PepsiCo Vision: 3 2.0 Product Group 3 3.0 Foreign market expansion 4 3.1 Our performance in 2013 was strong: 4 3.2 Frito-Lay North America 5 3.3 Quaker Foods North America 5 3.4 Latin America Foods 6 3.5 PepsiCo Americas Beverages 6 3.6 Europe 6 3.7 Asia, Middle East and Africa 7 4.0 ORGANIZATIONAL STRUCTURE 7 4.1 STRATEGIES 7 4.2 Supply Chain of PepsiCo. And Supply Chain Strategy 8 4.3 Supply Chain Planning 8 4.4 Supply Chain Operation 8 4.5 Process Views of a Supply Chain 8 4.6 Competitive Advantage to PepsiCo. 9 4.7 Distribution Channels 9 4.8 Customers 10 4.9 Competition 11 5.0 Financial Performance 11 5.1 2013 13 5.2 2012 14 6.0 Corporate Governance 16 7.0 Conclusion 16 1.0 Company profile Pepsi co. Inc. was established through the merger of Pepsi cola. Pepsi cola was created in the late 1890s by Caleb brad ham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer doling in 1932, and the H.W. lay company, founded by Herman W. lay, also in 1932. Herman lay, former chairman and CEO of Frito-Lay, was chairman of the boards of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi cola, was president and chief executive officer. PepsiCo, Inc. was in corporate in Delaware in 1919 and was reincorporated in North Carolina in 1986. When used in this report, the terms “we...
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...Final Project - Financial Analysis XACC/280 Within each company there will always be places that can be improved upon in order to gain a healthier financial status. I will be evaluating PepsiCo, Inc. and The Coca-Cola Company, and their current financial situations to see if or where each company can improve. I will also evaluate each company to see which is more financially stable based upon their current financial reports. You will find not only data from 2004-2005, but also data from 2011-2012 in this paper as I feel the past financial statements can be just as important when trying to determine the stability of a company. The Coca-Cola Company A well known company that produces more than 500 nonalcoholic beverages openly stated within their 2012 Financial Report that: Increased competition could hurt our business. The nonalcoholic beverage segment of the commercial beverage industry is highly competitive. We compete with major international beverage companies that, like our Company, operate in multiple geographic areas, as well as numerous companies that are primarily local in operation. In many countries in which we do business, including the United States, PepsiCo, Inc. is a primary competitor. Other significant competitors include, but are not limited to, Nestlé, DPS, Groupe Danone, Kraft Foods Group, Inc., and Unilever. In certain markets, our competition includes major beer companies. Our beverage products also compete against local or regional brands...
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...Financial Reporting And Analysis Name: Instructor’s Name: Course Title: Date: BYP13-1 Financial Reporting Problem PepsiCo, Inc. (a) Our financial statements include the consolidated accounts of PepsiCo, Inc. and the affiliates that we control. In addition, we include our share of the results of certain other affiliates based on our economic ownership interest. We do not control these other affiliates, as our ownership in these other affiliates is generally less than 50%. Equity income or loss from our anchor bottlers is recorded as bottling equity income in our income statement. Bottling equity income also includes any changes in our ownership interests of our anchor bottlers. Bottling equity income includes $147 million of pre-tax gains on our sales of PBG and PAS stock in 2008 and $174 million of pre-tax gains on our sales of PBG stock in 2007. There were no sales of PBG or PAS stock in 2009. Income or loss from other noncontrolled affiliates is recorded as a component of selling, general and administrative expenses. Intercompany balances and transactions are eliminated. Our fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six years. Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw material handling facilities are included in cost of sales. The costs of moving, storing and delivering finished product...
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