Case Study on Dr Snapple Group Inc.

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UNIVERSITI TEKNOLOGI MARA KOTA SAMARAHAN CAMPUS MKT750 MARKETING MANAGEMENT CASE STUDY DR PEPPER SNAPPLE GROUP, INC. ENERGY BEVERAGE PREPARED BY: RAMSIS ANAK WILLIAM AGIM 2012402536 Strategic Issues and Problems Being the consultant of Dr Pepper Snapple Group, Inc. (DPSG), I am charged to assess whether or not a profitable market opportunity existed for a new energy beverage brand to be produced, marketed, and distributed by the company. The decision to explore a new energy beverage was made by senior company management of DPSG as part of a corporate business strategy to focus on opportunities in (1) High Growth and (2) High Margin beverage businesses. My tasks involve a number of important factors. I…show more content…
| Dependent on a small number of large retailers for a significant portion of their sales | Attractive positioning with large, growing and profitable market | Total indebtedness could affect our operations and profitability | Volatility in raw material costs | Financial results may be negatively impacted by some economicconditions | Broad geographic manufacturing and distribution coverage | They may not comply with applicable government laws | New distribution channels | Substantial disruption to production at the manufacturing could occur | Experienced Executive Management team | Products may not meet health and safety standards | | Costs for raw materials may increase substantially | Strong operating margins and significant, stable Cash - flows | They could lose key personnel or may be unable to recruit qualified personnel | | Weather and climate changes could adversely affect the business | Porters Five Forces Analysis The bargaining power of customers In the energy beverage industry customers have the bargaining power. Energy drinks are an elastic product, and are not necessity for daily life. Customers however do not usually want to buy in bulk, and prefer soft

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