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
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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.
The soft drink was first created in 1783 when Jean Jacob schweppe invented Carbonated water. A young pharmacist from Waco, Texas named Charles Alderton invented Dr Pepper in 1885. He served it the drugstore he worked in. The soft drink was named after the owner of the drug store named Dr. Charles Pepper. About a hundred years later three new yorkian health food store owners made a new apple soda and was named Snapple. Snapples were originally sold in health clubs in 1973. The beginning corporation owners of Snapple was known as Unadulterated Food Corporation, then later became Snapple Beverage Corp. In 1995 Dr Pepper was bought by Cadbury Schweppes. Later in 2000 Snapple was also bought by Cadbury Schweppes. “In 2003, the four North American beverage companies under Cadbury Schweppes – Dr Pepper/Seven Up, Inc., Snapple Beverage Corp., Mott's and Bebidas Mexico – were unified under a common vision, business strategy and management structure to become Cadbury Schweppes Americas Beverages” (Dr Pepper Snapple Group). Dr Pepper now “is a leading producer of flavored beverages in North America and the Caribbean. Our success is fueled by more than 50 brands that are synonymous with refreshment, fun and flavor. We have 7 of the top 10 non-cola soft drinks, and 9 of our 10 leading brands are No. 1 or No. 2 in
“Wanna coke?” “Yeah I will take a Dr. Pepper!” Many people, especially from the south, order a coke and a lot of times they want something completely different. The drink Dr. Pepper is a very popular soft drink but it does have a rival in Mr. Pibb. The two drinks are very similar to some people, but to many others they are very different. What can make a difference in the two drinks are the history and the different flavors and companies. There are many similarities with the two drinks as well. The questions to ask is are they the same or are they different.
Cooley's has some great strengths attributed to its traditional method of distilling Irish whiskey in prime climate, which is perfectly suited to distill quality whiskey, further complimented by their access to native materials required for this process. Cooley's competitive advantage arises from the uniqueness of his product coupled with the fact that it was "small, independent, and Irish" (Kennelly, 14). While these strengths have helped Cooley reach where it has today, distribution and mass marketing are a few of the weaknesses holding the company behind as it struggled to get its products on shelves. This can further be attributed to the vast multinational competition and few funding outlets. Due to this limitation in funding, Teeling was in a way forced to reinvest all of Cooley's profits back into the business. As mentioned before, this reinvestment led to no dividends being circulated amongst its shareholders but fortunately, this also led to a loyal base that has supported the company since its inception. Teeling believes that this patience would be rewarded with continual growth of the company. Although the company has no form of funding for its marketing efforts, Teeling has managed to make a few improvements and expansions in its facilities to boost efficiency and provide extra storage in the warehouse. With the high competition in this market, the company had to up its game. For example, providing bulk whiskey sales and private labels in supermarkets and other stores are good ways to curb competition. But even though these strategies might have helped the company in the past, it is important for Coolery to focus on adopting a new strategy that would help the company grow in the long
The third-largest company in the U.S. is Dr. Pepper/ Seven Up, Inc. (DPSU) which consists of 14.7% market share. It is the most famous brands are Dr. Pepper and Seven Up among the Soft Drink Brands. It has been Squirting the market by this company since 1995. The Unit Sales Volume Squirt is $39 million to $54.6 million from the year 1990 to the year 2000.
It's the “Friendly Pepper Upper”, “Always One of a Kind”, and “Just What the Doctor Ordered”. Being the oldest major manufactured soft drink in America (History of Dr Pepper), Dr Pepper is all of those past slogans, and more. It's the greatest soft drink on the planet, and it will stand the test of time.
Dr Pepper has been around for years. Nowadays this beverage might be your favorite soft drink but it wasn’t always so popular. It had to endure many hardships on its journey to where it is today. There was also a lot of luck and dedication involved. You might not even know where the beverage even comes from. Well I think it's about time you found out.
Created, manufactured, and sold as a unique flavor, Dr. Pepper is the oldest in soft drinks in American history. Charles Alderton, the creator of Dr. Pepper, invented his own beverage flavor in the small city of Waco, Texas in the year of 1885.
According to its official website, Dr Pepper original and most well-known product is Dr Pepper with 10 flavors. The company also unveiled Diet Dr Pepper with several flavors with the aim of satisfying customers who seek out a sugar-free soft drink. Another well-known product is 7 Up, a lemon-lime flavored and non-caffeinated soft drink.
Johnny survived the house fire and he convinced Ponyboy to turn himself in with him. The judge showed leniency during the sentencing, because they had become somewhat of heroes. They only had to serve a probation sentence and do community outreach with troubled children. They became mentors to these kids and had a positive impact on the community. Soda Pop went on to attend the local college, transferred to a well known University, and obtained a bachelor’s degree in Science. He fell in love with a girl he met in college. They eloped and moved to California to start new life. Dally continued to work and his business flourished, because of his strong reputation and upstanding character. He also learned to forgive himself for acting cold towards
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten
Dr. Pepper/Seven Up, Inc. is the company which produces the brand Squirt. “Squirt is a caffeine-free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Squirt is the best selling carbonated grapefruit soft drink brand in the U.S.” (Kerin and Peterson, 2010) Kate Cox, the brand manager responsible for Squirt believes that market targeting and product positioning are key elements in Squirt’s advertising and promotional plan development. This case study will provide a summary and analysis of Dr. Pepper/Seven Up, Inc.’s options and the examination into the company’s strengths, weaknesses, threats, and opportunities.
There are more than 900 registered brand names in the US. The top 10 brands are marketed by the 3 leading US soft drinks companies which are Coca-Cola, PepsiCo and Dr. Pepper/7up. The cola flavor is the most popular of carbonated soft drinks in the US with 65.7% of the market share. The orange flavor comes in 3rd with only 3.9% of the market share. As far as market segments are concerned there are only two segments; the regular carbonated soft drink and the diet carbonated soft drink (Kerin & Peterson, 2007).
Given the track record of Dr Pepper-Snapple and looking at the SWOT analysis I feel that Dr Pepper should introduce an entire new product line. They can leverage their ability to manage a diverse brand business, the leverage they have in the RTD segment, and the strengths that the business as a whole has.
* The company has to suffer economical loss due to its cyclic nature of production. The production does not run at full efficiency every time. This leads to the waste of energy, money and resources.
Another weakness was the ability of management. Even the idea of switching from a commission base to a salary should never even have left the closed door meeting. This is their key strength which helped them to generate so many sales. Due to this, it seems like their decision making capabilities seem to be lacking as well as their problem solving abilities.