Dr Pepper Case Study

5109 Words21 Pages
1.0 Company background
1.1 Overview
From the invention of the first soft drink more than 200 years ago to some of the industry's most beloved beverage brands, Dr Pepper Snapple Group (DPS) has a proud legacy of innovation, bold and distinct flavors, and entrepreneurial spirit.

On May 7, 2008, DPS became a stand-alone, publicly-traded company on the New York Stock Exchange as the result of a spin-off by Cadbury, plc which held the Cadbury Schweppes Americas Beverages business group of entities.

One of North America's leading refreshment beverage companies, DPS markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a
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Accordingly, they focus on:
i. Building and enhancing our leading brands ii. Pursuing profitable channels, packages and categories iii. Leveraging our integrated business models iv. Strengthening our route to market
v. Improving operating efficiency

They own a diverse portfolio of well-known carbonated soft drinks and non-carbonated beverages brands. Many of their brands enjoy high levels of consumer awareness, preference and loyalty, which drive their market positions. Their diverse portfolio provides their bottlers, distributors and retailers with a wide variety of products and provides us with a platform for growth and profitability. They believe their brand possession, manufacturing and distribution are more integrated than the United States operations of their principal competitors and that this differentiation provides them with a competitive benefit. The energy beverages market experienced product proliferation and price erosion in recent years. Product proliferation resulted from line extensions, new packaging, and sizes, and market segmentation. There has also been some significant price erosion when prices declined 30 percent from 2001 to 2006.

The company delivers to all types of off-premise retailers where energy beverages are sold. Dr Pepper Snapple Group, Inc. is distributing Monster Energy in selected US territories on behalf of Hansen Natural

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