Business Analysis Dr. Pepper Essay

1841 Words Apr 20th, 2013 8 Pages
Dr Pepper Snapple Group, Inc.
Energy Beverages

Table of Contents STRATEGIC ISSUES AND PROBLEMS 2 DR. PEPPER SNAPPLE GROUP, INC. 2 PLAN OF ACTION 3 RECOMMENDED ENERGY BEVERAGES MARKETING STRATEGY 3 Goals and Objectives 3 Target Market 3 Marketing Mix 4 Product Strategy 4 Price Strategy 4 Distribution and Sales 4 Advertising and Promotion 4

STRATEGIC ISSUES AND PROBLEMS
Andrew Barker, brand manager for Snapple beverages at the Dr Pepper Snapple Group, Inc., has been charged with the task of assessing a new market opportunity for the brand. The decision has been made by senior company management to explore a new energy beverage as a part of a corporate business strategy to focus on opportunities in high-growth
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While sales in the energy beverage market are not as high as in the carbonated beverage market, the profit margins in the energy beverage market is substantially higher. Therefore, it makes sense to enter into the market with a product line extension.
We have chosen to pursue a product line extension rather than a new brand altogether based on the start up costs we are anticipating for the product. If Dr Pepper Snapple Group, Inc. were to pursue a completely new brand, it would take an extensive amount of time to develop new packaging, create new flavors, and invest in a new plant and new equipment for production among other issues. By extending upon Snapple’s current brand to create Snapple Plus, the company will use current plants and equipment, keep the same glass bottle, and be able to enter into production and into the market more quickly.
In order to launch into the market quickly, we will begin with launch of Snapple Plus with three flavors: Lemon Tea, Green Tea, and Raspberry Tea. In the initial phases of development after the launch, Dr Pepper Snapple Group, Inc. will invest time and money into marketing research to determine what flavors are most consumed by customers, which will decide what the next flavors will be.
RECOMMENDED ENERGY BEVERAGES MARKETING STRATEGY
Goals and Objectives 1. Dr Pepper Snapple Group, Inc. should launch a new line extension as a part of the Snapple brand division

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