Dr. Pepper Case Analysis Essay - 2856 Words

I. Define the Problem Central Problem Dr Pepper Snapple faced problems deciding whether the company should enter into the energy drink market. The energy drink market is a high growth and high-margin business. Recent rise in such functional drinks has Dr Pepper wanting to tap into this fast growing market. Dr. Pepper is one of the only major domestic carbonated soft drink companies that have not introduced a line of energy drinks. The challenge Dr Pepper Snapple faces is what would be the best way for it to market a new energy drink product. The company simply does not have the income to compete in advertising against Red Bull. Sub Problem Dr Pepper is indecisive about what market it wants to target. The energy drink†¦show more content†¦There are some female consumers, but the male outnumbers them. Males were estimated to account for about 70 percent of energy beverage consumption. Future customers will be in the age range of 34 to 54, both male and female. Some other demographics are athletes and roc k stars which were targeted by the Rockstar brand. Consumers’ Perception Consumers’ perception of the energy drink is positive being that they have proved to provide a great deal of energy. The drinks actually boost energy and increase alertness. Dr Pepper Snapple being the third largest soft drink company positioned in United States, Canada, and Mexico. Dr Pepper Snapple has some of the leading soft drinks with 7 Up, AW Root Beer to name a few. So it is no stranger to the consumer market. The company has strong customer relationships with some of the largest bottlers and distributors. Dr Pepper Snapple is affiliated with major retailers such as Wal-Mart, Safeway, Kroger, and Target. Major Influences on Consumers The pricing in the energy drink market is low and competitive, with the suggested retail price of about two dollars per single serve package. There was a decline in the price of the energy drink from 2001 to 2006. Attributes such as, larger packages, multi-packs, and increasing availability in supermarkets and other stores caused the prices to decline. The ratings of such energy drink are relatively high and users are generally loyal to a certainShow MoreRelatedDr. Pepper Case Analysis3187 Words   |  13 PagesDr. Pepper Company I. Case Summary From being a practically unknown soft drink company to now being one of the highest performing of the 1000 largest manufacturing firms, Dr. Pepper has evolved to become an international beverage organization. Dr. Pepper began its roots back in 1880, in Waco, Texas, when a young soda jerk invented a soft drink which he named after his father-in-law (Dr. Pepper). Robert Lazenby began to market the drink on commercial basis in 1885, and it was not until 1922 thatRead MoreDr Pepper Snapple case analysis1077 Words   |  5 Pagesï » ¿TEXAS AM UNIVERSITY CORPUS CHRISTI Case 1 Dr Pepper-Snapple Inc: Energy Drinks MKTG 5320 Wesley Gordon Introduction In the ever changing world of customer needs and expectations Dr Pepper-Snapple was faced with an increased customer focus on energy drinks. This area, when exploited correctly, is a high growth and high margin beverage business. In early September 2007, Andrew Baker had his marching orders. He emerged out a long discussion about entering the energy drink businessRead MoreDr. Pepper/ 7up Case Analysis1436 Words   |  6 PagesDr. Pepper/ 7up Case Analysis MKTG 610 Online December 4, 2011 Introduction: Doctors recommend that to stay healthy one should consume about 8-9 cups of fluid a day but in todays world most of those fluid are consumed in form of soft drinks. 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In comparison PepsiRead MoreDr Pepper/7 Up, Inc Squirt Brand Case1652 Words   |  7 PagesDr Pepper/7Up, Inc. Squirt Brand Case Analysis SOFT DRINK INDUSTRY The soft drink industry in the United States is a highly profitably, but competitive market. In 2000, carbonated soft drink retail sales were estimated $60.3 billion, however, soft drink consumption growth has slowed in recent years. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the U.S. They are the Coca Cola Company with 44.1% market share, The Pepsi-Cola Company