Case Study - Dr Pepper

873 Words Oct 15th, 2014 4 Pages
Practice Case 1: Dr Pepper Snapple Group, Inc: Energy Beverages

1. How would you characterise the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007?
Energy Beverage
Category: Energy drinks provide consumers with a boost of energy and they fall under the category of functional drinks. Functional drinks are non-alcoholic drinks which include ingredients such as herbs, vitamins, minerals, amino acids or other nutritional ingredients. Other functional drinks include sport drinks, teas, fruit drinks and enhanced water drink.
DPSG participation → In the US and Canada, Dr Pepper Snapple Group participated primarily in the flavoured carbonated soft drink (CSD) market segment
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Yes it does. Although it is now a very competitive market. Dr Pepper Snapple Group has a reputable established image in the industry which eases most of its operations. Healthy drinks are a trending with the clean eating trend as more people are aware and cautious of their health. Hence, introducing an energy drink as a healthy- no sugar alternative is a way of responding to market trends.

3. What target consumer market should be chosen for a new energy beverage brand?
As stated previously, consumption reasons include energy boost and mental alertness, although predominantly men. This new energy drink can target women as well. The consumer market for the drink would consist of uni students, late shift workers and people participating in a healthy lifestyle.

4. What product should be introduced and how should it be positioned/differentiated?
A healthy alternative for an energy drink including organic ingredients which give an energy boost. For example yerba mate, a traditional Argentina /Syrian drink which has caffeine properties. Yerba mate boosts energy and is great for those who need to study or stay focused. It can differentiate itself as an organic energy drink using only natural ingredients.

5. Through which channel(s) should a new energy beverage brand be distributed?
Universities, train station vending machines, corporate parks and gyms. These are the areas where it is most likely to be exposed to its target

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