...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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...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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...Management Project/Presentation The Dr. Pepper Snapple Group History Overview From the invention of the first soft drink more than 200 years ago to some of the industry's most beloved beverage brands, Dr Pepper Snapple Group (DPS) has a proud legacy of innovation, bold and distinct flavors, and entrepreneurial spirit. On May 7, 2008, DPS became a stand-alone, publicly-traded company on the New York Stock Exchange as the result of a spin-off by Cadbury, plc which held the Cadbury Schweppes Americas Beverages business group of entities. One of North America's leading refreshment beverage companies, DPS markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a strong, sustainable and profitable business. The company's integrated business model enables the company to manage the entire value chain from innovation to the store shelf. History The company now known as DPS has evolved from a combination of discovery, invention and collaboration. This rich history includes the very birth of the soft drink in 1783, when Jean Jacob Schweppe perfected the process for carbonating water and created the world's first carbonated mineral water. Dr Pepper and Snapple, the flagship brands of DPS, have origins that share Schweppe's entrepreneurial spirit. Charles Alderton, a young pharmacist in Waco, Texas, invented Dr Pepper in 1885. It was served at the drug store...
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...According to the article, Dr. Pepper Snapple Group is one of the largest integrated brand owners, bottler, and distributor of nonalcoholic beverages. The company analysis highlights seven strengths that Dr. Pepper Snapple Group Inc. possess, which include a strong portfolio of leading, an integrated business model, consumer-preferred brands, customer relationships, stable cash flows, manufacturing and distribution coverage, attractive positioning, and experienced management. In addition, they are not just gaining sales in the United States, but sales are being acquired within Mexico and Canada as well. In 2007, the company accumulated a net sales over five billion dollars. Per the support of Brand manager Andrew Baker, Dr. Pepper Snapple Group focused on six key elements...
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...Dr. Pepper Snapple Group, Inc.-Energy Beverages Teshia McSwain Columbia Southern Introduction Dr. Pepper Snapple Group, Inc.-Energy Beverages initiated its triumph in business back in 1983 offering some of the most well-known beverages. Like any other businesses, this company has extreme competitors including Coca Cola and Pepsi, among others. However, the company faces challenges with an absence for energy drinks among its products (Hitt et al. 2013). Not only does Dr. Pepper Snapple Group not offer any energy drinks in their product offering; but they are a late adopter into the business. In addition, some of the other challenges Dr. Pepper Snapple Group, Inc. face include competition by major companies like Redbull, Coca Cola’s “Full Throttle”, and Pepsi’s “Amp Energy” among others. Another major threat is the pricing competition that tends to lower the company’s profits. Brand loyalty may be a major hindrance for this company, although their strategy in market entrance will determine their success. Another factor that will hinder Dr. Pepper Snapple group is the lack of as global presence like its competitors. A study by Smith (2013) asserts that the energy beverage market is a growing market because it is the 4th largest nonalcoholic beverage category and the fastest growing one after the carbonated soft drinks and sports drinks among others. Further study shows that 2001-2006 the total energy beverage retail sales increased to 42.5% annual rate with a further...
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...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...
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...1) What is the problem? Dr. Pepper Snapple Group, Inc. Marketing Executive Andrew Barker led the launch of Accelerade RTD into the USA market, this company is the only major non-alcoholic beverage company in the USA and they are entering a new segment, stepping into new waters from their usual CSD (carbonated soft drinks) and ready-made tea market. The idea to enter this market leads to a huge doubt as the Energy Beverages segment is a field with very well established competitors and up and coming fierce medium sized companies (Vendite, 2010). a) Alternative one We can confidently say that an open door for the brand RTD Accelerade exists, since it would separate effortlessly from other energy refreshments as sound item, and item that is intended to fulfill needs of the individuals who needs to frequently do sports which is a huge business sector comprised of 35,000 Americans who practice consistently. The essential advantages of item are unmistakable in its belongings such are: Extends Endurance, Speeds Muscle Recovery, Reduces Muscle Damage, improves Recovery. As indicated by specified certainties about the business, item and organization, presenting RTD Accelerade appears to be as an alluring option for Dr Pepper Snapple Group, Inc (Vendite, 2010). b) Alternative two Energy beverages have turned reality into a multibillion-dollar industry in the US. Drink Digest reported that retail offers of caffeinated beverages in the US expanded by 16 percent...
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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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...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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...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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...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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...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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...“Friendly Pepper Upper”, “Always One of a Kind”, and “Just What the Doctor Ordered”. Being the oldest major manufactured soft drink in America (History of Dr Pepper), Dr Pepper is all of those past slogans, and more. It's the greatest soft drink on the planet, and it will stand the test of time. Dr Pepper has come a long way from Morrison's Old Corner Drug Store in Waco, Texas back in 1885. According to the Dr Pepper Museum website, under “History of Dr Pepper”, the inventor was Charles Alderton, who was a young pharmacist working in the drug store. In his spare time, he had a hobby of mixing carbonated beverages for customers. Apparently, he loved the smell of the drug store so much, with all the fruit flavored smells in the air, that he wanted to create a carbonated drink that captured the scent of the store. After a few tests, Alderton finally became satisfied with his flavor, and offered a sample to his boss, Wade Morrison, who loved it. Alderton soon became confident enough to offer his new drink to his customers, who, in return, offered positive feedback. Dr Pepper officially became a soft drink on December 1, 1885 (History of Dr Pepper). While Morrison is credited as given Dr Pepper the name, the meaning behind the name remains a mystery with a lot of theories. One theory is that Morrison named the drink after his friend, Dr. Charles T. Pepper. There is a legend that Morrison was in love with Pepper's daughter, and that Morrison named the beverage after Pepper for...
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...Dr Pepper Snapple Group is the No.1 flavored carbonated soft drink (CSD) company in the Americas and a leading innovator and marketer of functional/non-carbonated beverages. DPS serves consumers throughout North America via a broad and flexible route to market. This includes a combination of direct store delivery and warehouse delivery capabilities supported by our 21 manufacturing centers, more than 115 distribution centers and approximately 19,000 employees across North America, in addition to the operations of hundreds of third-party bottlers and distributors. operations map United States In the U.S., DPS markets, bottles and distributes a broad range of soft drinks, non-carbonated beverages and mixers, from iconic national brands to regional favorites. In addition, we distribute a number of licensed brands in various territories, such as Fiji Water, Sunny Delight and Big Red. Nearly half of DPS' annual volume is distributed through our company-owned bottling and distribution network. The remainder is driven through third-party/licensed bottlers and distributors, including those in both the Coca-Cola and Pepsi bottling systems, as well as independent bottlers, brokers and distributors. Dr Pepper Snapple Group Caribe & Latinoamérica In Mexico and the Caribbean, DPS operates primarily in the carbonated mineral water, flavored CSD, bottled water and vegetable juice categories. In Mexico, where we do business as Grupo Penafiel, our key brands include Peñafiel, Squirt...
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...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 company started by Jacob Schweppe in 1783 in Geneva, Switzerland and a chocolate business started by John Cadbury in Birmingham, U.K. in 1824 (Hill and Jones, 2010...
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