Case Paper

MARKETING MANAGEMENT BUS506

Case Study Analysis: Dr. Pepper Snapple Group, Inc.: Energy Beverages

Aida Nusinovic, Aida Bulbul, Alen Husukic

International Burch University, Sarajevo

MARKETING PROBLEM DEFINITION

Dr. Pepper Snapple Group, Inc, encouraged by its long-lasting history, experience, and favorable market conditions has decided to enter a new market segment, launch energy drink beverage and they are facing several dilemmas. A thorough analysis of company’s internal conditions, industry facts, market conditions and trends, is needed in order to develop possible alternatives, realize the possible outcomes of those alternatives, and finally to choose the most convenient options. To be specific, company needs to make decision about the following:

* Choice of Target Market

* Product Line and Positioning Choice

* Marketing Channel Choice

* Advertizing and Promotion

* Pricing and Profitability

COMPANY FACTS

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 throughout the years.

The company today 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 Schweppes perfected the process for carbonating water and created the world's first carbonated mineral water.

In 2000, Cadbury Schweppes acquired Snapple Beverage Group, which included the namesake brand as well as RC Cola, Diet Rite and Stewart's, among others.

During the 2007 year management made decision to launch new product, and in late may they lunched ready to drink (RTD) sport drinks. After that, they were thinking about aggressive strategy and had to make decision about branding new product, energy beverage.

Energy beverage market was growing...