preview

Dr. Pepper Case Analysis

Better Essays

Dr. Pepper Company

I. Case Summary
From being a practically unknown soft drink company to now being one of the highest performing of the 1000 largest manufacturing firms, Dr. Pepper has evolved to become an international beverage organization. Dr. Pepper began its roots back in 1880, in Waco, Texas, when a young soda jerk invented a soft drink which he named after his father-in-law (Dr. Pepper). Robert Lazenby began to market the drink on commercial basis in 1885, and it was not until 1922 that an extensive sales and distribution program was initiated. The current president of the organization is Mr. Woodrow Wilson Clements together with Joe K. Hughes who is the executive VP of the firm. The firm is facing a pressure of product …show more content…

This will ensure consumers that they are getting a greater quality at cheaper price and boost consumer morale.
3. An opportunity exists for the firm to venture into new product lines like energy drinks and other culinary applications.

C. Internal Weakness
1. The biggest weakness of Dr. Pepper is that it is not diversified. The firm is finding hard to differentiate its products from that of the competitors. The potential of firm is not being tested and evaluated properly on which even Mr. W.W Clements says, “It would be criminal to branch off into something else”.
2. Another weakness in the firm comes from the ages of the executive officers. Most of the professionals in the firm are growing old and close to their retirement age. Since they have a lot of experience and may work beyond their retirement age, but it would be wise for the firm to take young professionals under their guidance.
3. The firm is producing and wasting its effort and resources in Salute and Waco, fountain syrups, which only accounts for one percent of dollar sales.
4. Dr. Pepper is one-brand domestic company. Lack of product diversification and differentiation, and also because of the disadvantage against multination organizations like Coca-Cola and Pepsi CO., Dr. Pepper is not the leading seller in any major United States market.
5. Dr.

Get Access