Dr Pepper Snapple Group Analysis

829 Words Jun 11th, 2013 4 Pages
Dr Pepper Snapple Group
Introduction
Dr Pepper Snapple Group (DPS) is one of North America’s leading refreshment beverage companies, manufacturing, bottling and distributing more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. With a brand heritage spanning more than 200 years, the DPS portfolio includes some of the most recognized beverages in the Americas. The company have 6 of the top 10 non-cola soft drinks, and 9 of 12 leading brands are No.1 in their flavor categories. In addition to its flagship Dr Pepper and Snapple brand, the DPS portfolio includes Sunkist soda, 7UP, A&W, Canada Dry, Crush, Mott’s, Squirt, Hawaiian Punch, Penafiel, Clamato, Schweppes, Venom Energy,
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If DPS bottles it owns beverage then it can increase it profit margin. This can reduce their risks if the bottlers refuse to distribute their products. Coca-cola and PepsiCo are two of DPS’s bottlers and they also produce their own beverages. Their profit margin is high because they can bottle and distribute their own products through their distribution channels.
Market penetration is the effort of increasing the market share in the existing market with the existing products. Dr Pepper Snapple group has been exporting its products to foreign markets and domestic market and DPS is the leading producer of flavoured beverages in North America and the Caribbean. However, Dr Pepper Snapple group should keep on its effort to increase its market share in the existing market by attracting more new consumers to buy its existing products. Some of the action can be taken by Dr Pepper Snapple group included increasing the number of salespersons, increasing advertising expenditure. With the capabilities and resources of Dr Pepper Snapple group, this strategy is not risky because Dr Pepper Snapple group do not need to do anything unless increase its products' quality to meet the consumers' needs and wants. Improving its quality is not a problem to Dr Pepper Snapple group as it has professionals for R&D.

Conclusion and Recommendation
In conclusion, DPS have high potential to improve its performance if DPS continue moving forward with the innovative
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