...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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...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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...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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...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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...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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...CUSTOMER SATISFACTION TOWARDS CADBURY’S CHOCOLATES ACKNOWLEDGEMENT The satisfaction and euphoria that accompany the successful completion of any task is incomplete without the mention of people who made it possible. So I take this as a great opportunity to pen down a few lines about the people to whom my acknowledgement is due. It is with the deepest sense of gratitude that I wish to place on record my sincere thanks …………………………………………………., my project guide for providing me inspiration, encouragement, guidance, help and valuable suggestions throughout the project. I would also like to thank all my respondent for giving me their valuable time and information. OBJECTIVE TO KNOW THE CUSTOMER PREFERENCE TOWARD THE CADBURY’S CHOCOLATES. TO KNOW THAT THE CONSUMERS ARE FULLY AWARE ABOUT THE CADBURY’S CHOCOLATES. Introduction The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury India’s no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both, the confectionary and soft drink market in tech UK and becoming a major force in the international market. Cadbury Schweppes...
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...Introduction Since 1885, Dr. Pepper Snapple Group (DPS) has established a firm reputation for quality. It has strove to become a key competitor in the soft drink industry, and is now one of the largest in the world. This document will serve as a strategic analysis of DPS, and will provide a critical analysis of the company’s strategies, resources, and financial data. In this paper, we will display, DPS’s mission, vision, history, and major competitors. We will explain, in detail, everything that helps contribute to the soft drink giant that we all know today. Background Vision Statement 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. Mission Statement Our strategy reflects and builds upon our position as the leading flavored beverage business in the U.S. Accordingly, we focus on: 1. Building and enhancing our leading brands 2. Pursuing profitable channels, packages and categories 3. Leveraging our integrated business models 4. Strengthening our route to market 5. Improving operating efficiency Components 1 2 3 4 5 6 7 8 9 Company NO YES YES YES YES NO YES NO NO Given the mission of Dr. Pepper only has 5/9 of the components; the mission may need some revision. History/Timeline 1885: Charles Alderton, of Waco, Texas invents Dr Pepper. Late 1880s: Morrison, the owner of the...
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...the behaviour of suppliers and distributors. For example, it performs due diligence on potential suppliers by requesting them to complete a questionnaire prior to engagement. This enables Cadbury Schweppes to monitor a supplier and check they adhere to stringent standards in particular criteria. One criteria, for example, may be the environment and the questionnaire allows the supplier to express whether they carry out audits or have an environmental policy. a) Dealing with suppliers Cadbury Schweppes deals with tens of thousands of suppliers around the world and aims to work closely with them to ensure they receive fair treatment. In the case of cocoa farmers for example, Cadbury Schweppes is a member of a global coalition, which is comprised of industry, governments, non-government organisations and special interest groups created to improve working practices on cocoa farms. The coalition has funded independent surveys into cocoa farming in West Africa that have contributed to the development of programmes to help local communities. In 2003, the coalition also established a foundation, the International Cocoa Initiative - Working Towards Responsible Standards for Cocoa Growing, which aims to support field projects and will act as a clearinghouse for best practices to ensure that cocoa is grown responsibly. The work of the coalition, however, is only one way to support cocoa farmers and their families. Another practice is Fair Trade. Under this scheme cocoa is paid for...
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...In: Business and Management Snapple BRAND MANAGEMENT Case No. 3 SNAPPLE: REVITALIZING A BRAND INTRODUCTION In the 1990s, Snapple Corporation was one of the leading “New Age” beverage brands when the category was just beginning to take off. With the combination of a unique product, package design, and quirky advertising, the company grew form a regional underground favorite toa nationally recognized brand. Snapple’s rise in the beverage industry was crowned in 1994, when the Quaker Oats Company purchased Snapple for $1.7 billion. Quaker expected to make Snapple a major player in the industry, as it had done with GAatorade. However, the company was unable to capitalize on the brand’s previous success. In 1997, Quaker sold Snapple to Triarc Beverage Group for $300 million. Triarc faced a number of challenges, including reversing the sales slide, revamping the distribution system, and creating new products that will enable growth. Most importantly, Triarc had to find a way to reconnect the brand with its consumers. Triarc successfully resurrected the Snapple brand, and in 2000 sold Snapple to Cadbury Schweppes for $1.45 billion. Cadbury Schweppes then faced the challenge of maintaining Snapple’s brand strength in an increasingly competitive beverage environment. THE EMERGENCE OF SNAPPLE The roots of Snapple Corporation date back to 1972 in Brooklyn, New York when brothers-in-law, Leonard Marsh and Hyman Golden, left their window-washing business and teamed up with...
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...INITIAL MOVES WITH SNAPPLE At the time of Tricac's purchse of Snapple, consumers ha 1 more choices between ready-to-drink beverages than ever before. By mid 1997, the New age market had undergone yet another shake-up. Pepsi stopped distributing fruit drinks from Ocean Spray and launched its own Fruit Works brand. Other new brands like Nantucket Nectars, a line of 100 percent juice drinks packaged in unique bottles, and Campbell Soup Co.'s V8 Splash, a carrot-based blend of fruit juices targeting younger consumers, were entering the marketed threatened to squeeze out even more market share from Snapple. To breathe life back into Snapple, Traiarc had to invest heavily in new product development and employ dynamic marketing strategies that would differentiate Snapple from competitors and recapture the attention of consumers. Triarc soon announced that it would apply the same marketing principles to Snapple that it used to turn around its successful Mistic beverage line: edgy advertising, strong distributor relationship, colorful labels and focused street sqles. The first set of Snapple ads under Triarc's direction featured Wendy's reappearance on a desert island and the on a desert island and the labels of several of Snapple's products fotured Wendy's face to symbolize the return of Snapple to its core values. Whipper Snapple. Perhaps the most innovative and important development to emerge out of Triarc's product development efforts was the Whipper Snapple, a ruit smoothie...
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...Dr. Pepper Snapple Energy Marketing Plan Executive statement: At Dr. Pepper Snapple we are releasing a new energy drink product line in which we will be appealing to the needs of those over the age of 25. We are releasing two new types and flavors of drinks. The first is the low calorie low sugar named; AcaiPom Berry. This will be a mix of acai berry fruit and pomegranates. We strive to use all natural fruits and products when producing our energy drinks. No high fructose corn syrup will be used in either product. The second product we are releasing is our Citrus Refresh Absolute Zero. This product is a zero everything citrus flavored drink. It is designed to energize and refresh its consumers. The citrus refresh line will be most appealing to those in the 30-60 age range, but will also suffice for those who chose healthy life styles in any age range. It is important that individuals understand that we are producing a “Clean” energy product that will not place all the harmful sugars in the bodies of its consumers. “Clean energy is not only important for our environment, it is important for our bodies as well.” Clean energy is upon us in all forms, so why not in our bodies as well. Individuals of the sophisticated and aged market cannot break down complex carbs and sugars. Our marketing plan for our products will be to target places the desired age group is. Our drinks will come in 12 Oz quantities focusing on a leek slender design that for the sophisticated market. The drinks...
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...Founders Tom Scott and Tom First opened Allserve, a minimart on the water, which catered to boats and other water vessels in the Nantucket Harbour. They began serving the Nantucket Harbour area during the summer vacation in college. Their first product was released after graduation in 1990, and consisted of a recreated peach fruit drink. In fact, the product was first founded in Spain during Tom’s travels, and was thought of as a way to make extra money while abroad. Everyone admired the product resulting in the first Allserve General Store on the wharf on Nantucket Harbour. That is where the first juice name was established, Nantucket Nectars. The two gentlemen began the company with their life savings of $17,000, and contracted a bottler, along with a finance inventory. All this happened within the first two years of operations. The following two years displayed affects of undercapitalization. They had been operating on a small bank loan, which was clearly not enough to improve distribution and increase inventory. With that said, Scott and First had to sell 50% of their company to Mike Egan. The transaction gave Mike Egan 50% of the company for $600,000 of investment. Upon completion, the company showed it’s first profits in the fiscal year of 1995. Moving forward, through 2000, the company had been growing and gaining interested from outside buyers. Scott and First had to make a decision at this point: whether to 1) sell a portion of the company 2) partake in IPO or 3) remain...
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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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...Cadubry Beverages Inc. Crush Brand #3 Company History * The company has the distincition of being the worlds first soft drink maker * It first started in London in 1783 where Jacob Schweppe sold artifical minderal water * After introducing many other products inclduing water, lemonade, gingerale, and food products they merged with Cadbury a major British candy maker in 1969 * 1989 one of largest multinational firms and ranked 457th in BusinessWeek’s Global 100 * in 1989 the company purchased Crush, Hires, and Sundrop soft drink brands from P&G for $220 Million * this is when our case takes places, the marketing excutives at Cadbury are left the with task of relaunching these brands and we will be focusing on crush * they also own brands such as schweppes, mott’s, Holland House, Hires, and many more * currently bevarges make up 60% of sales and confectionery items make up the rest * they are also the market leader is some of their categories such as Canda Dry leading in ginger ale maket, which accounts for 39% of Cadbury soft drink sales in U.S. * worldwide headquarters is in Stamford, Connecticut #5 Strengths * high brand: many of their current brands and ones they recently purchased have high * first soft drink maket: which gives them a trusting reputation * 3rd largest soft drink mareter: behind coke and pepsi Weaknesses * Due to decision that P&G made when the had owned Crush they stopped using bottling...
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...Dr. Pepper-Snapple Company Kim Hayes Deonta Samilton Jordan Narcisse Tori Wallar Professor Cary Accounting November 11, 2013 Section 2: Introduction Dr. Pepper-Snapple Group, Inc. 5301 Legacy Dr. Plano, TX 75024 Industry: Beverages (Non-Alcoholic) Sic Code: 2080- Beverages Major Products: Canada Dry (Ginger ale,) 7-up (lemon-lime,) A&W (Root beer,) Sunkist (Orange,) and Sun Drop (Citrus.) Competitors: Coca-Cola and PepsiCo. Stock exchange: 47.33 Ticker symbol: DPS Name of outside auditors: Deloitte & Touche, LLP SIC (Standard Industry Classification): 2080 Beverages * History: Today, Dr Pepper Snapple Group is one of the leading producers of flavored beverages in North America and Caribbean. The have 6 of the top 10 non-cola drinks, and 13 of their 14 leading brands are ranked in the top two of its flavor categories. The DPS market more than 50 brands of carbonated soft drinks, juices, teas, mixers, water, and other premium beverages. Dr Pepper Snapple group include: 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr. & Mrs. T mixers, Penafiel, Rose's, Schweppes, Squirt and Sunkist soda. We are able to thank DPS for inventing the first carbonated drink. In 1783, Jean Jacob Schweppes created the world’s first carbonated mineral water. Schweppes’s was the original inventor of this new product, shared his invention with a young pharmacist in Waco, Texas, named Charles Alderton. They both invented Dr Pepper in...
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