Dr.Pepper Snapple Group Case Study

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Problems and Opportunities It is important to understand the primary problem being addressed throughout this case study: Whether or not a profitable market opportunity exists for a new energy beverage brand to be produced, marketed and distributed by the Dr. Pepper Snapple Group. In order to effectively answer the above question, there are a number of secondary questions that need to be answered to get the full picture. They are as follows: Who would the target market be? What would be the full product line and how would it be positioned within the market place? What marketing channels would be used? How would it be advertised and promoted? What would be the RSP and within which margins can it operate to remain profitable? Before…show more content…
As with all consumer products, the performance of the global economy has the ability to directly impact sales. Energy drinks are no different. Given that energy drinks are a premium product with a relatively high price compared to other drinks available, the market is sensitive to economic conditions that would impact the purchasing power of consumers. Another area where fluctuations in the economy could really hurt the energy drink industry is in the changes in price of aluminum and plastic, along with the price of oil affecting their distribution costs. Socio-culturally, trends that emerge can drastically affect consumer patterns. The health concerns of the public are a factor, with people having doubts about the health aspects of energy drinks. The ageing population phenomenon is something that DPSG needs to be aware of also, as the more populous, older generations move out of the target demographic for energy drink manufacturers. There is however a consumer trend emerging with combining energy drinks with alcohol which the energy drink companies can take advantage of. The technological progress that the world has seen affects the energy drinks industry through their production and distribution processes, with improved CRM and stock control systems, amongst others. It is also important that the brands have a strong presence in social media due to the age group of their target market. Threat of new entrants – the threat of new

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