Case Dr Pepper Snapple Group

Case: Dr Pepper Snapple Group, INC-Energy Beverages

Date: October 15, 2012

Introduction

Dr. Pepper Snapple Group is a major domestic nonalcoholic beverage distributer company in the United State without a significant branded energy drink of its own. In the earlier September 2007, Dr. Pepper Snapple under the management of Andrew Barker was charged with evaluating whether or not profitable market opportunity existed for a new energy beverage to be produced, marketed and distributed by the company in 2008. This process brought up a major question, should Dr. Pepper Snapple enter the energy drink industry? What are strategic solutions should be addressed for them to be successful?

Marketing strategy

Goals and Objectives

If the product will be successfully introduces, the net profit would be $9,615,683 after cost of goods sold and all the advertisement expenses have been deducted. With good marketing plan and strategy, this figure will be easily achieved.

Target Market

Dr. Pepper Snapple target market should be 25-44 segments. This segment may not necessarily constitute the heaviest users; even though their consumption is moderate and they make up % of the US population.

Positioning

First, Dr. Pepper Snapple energy drink is going to use new reusable package to add value and more convenient to customers. Reusable packaging is not very popular in energy drink industry. In addition, for Dr. Pepper Snapple energy drink accommodates 25-44 segments, may also focus on position it has a healthy energy drink, using similar healthier original formula of Snapple but improved it with caffeine and vitamin B for mental alertness and energy stimulation.

Product

Brand new energy product, 16.9 ounce, reusable bottle that is not only very attractive but also will provide convenient to different type of users. Dr Pepper Snapple energy drink will also come in one flavor and two versions; regular and low carbohydrate or diet.

Price

Due to its uniqueness...