Dr Pepper Snapple Group

Snapple offers more than 50 different tastes of its beverages. The brand offers its consumers tea, water, juice, and diet products. All products are called 100 % natural and Snapple’s slogan says that it is "Made from the Best Stuff on Earth".

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.

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.

Once Quakers took control of snapple they made many mistakes that caused Snapples value to decrease by $1.4B. A lot of these mistakes can be contributed to the fact that they tried to use identical 4 P methods for Snapple and Gatorade. Quakers belived since these methods worked so greatly for Gatordade that they would also work for snapple. In terms of product and price they tried to introduce snapple in a bigger size. Quakers tried to get consumers to buy the more profitable size of Snapple which was 32 and 64 ounces. They believed since these sizes worked so well for gatorade they would also work for Snapple. However, Quakers didn’t take into account that people drink Gatorade when they are extremely thirsty from things such as exercise so they need

The Dallas-Fort Worth Metroplex is a great place for business. It is home to multiple companies and their corporate headquarters – and with an international airport, open trade routes, multiple universities and academic institutions – it proves to be the perfect location for businesses and professionals alike. One such company that is headquartered in Plano, TX, and is an example of a thriving organization in the area, is the Dr Pepper Snapple Group. A mostly domestic company, with most of its business located in North American and Mexico, the DPS Group is a manufacturer of nonalcoholic beverages in the beverage industry and is third in overall market share (after Coca-Cola and Pepsico). The beverage industry is steady and growing, but the nonalcoholic beverage portion of the industry is facing many challenges with carbonated soft drinks declining in sales due to a more health-conscious population. Analyzing the DPS Group and how they are dealing with these challenges was very interesting, as I have always been a Dr Pepper fan and would hate to see them go out of business or die out in the market. I have known people who have worked for the company and loved it, and I hope to work for them someday as well. I collected my research on the company through their website, articles and journals, and my own knowledge of the company and research into the company history through a visit to the Dr Pepper museum.

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 was created at Morrison¡¯s Old Corner Drug store in Waco Texas in 1885, making it the oldest soft drink in the United States. It was first created by Charles Alderton, a pharmacist, when he mixed several fruit flavored carbonated beverages. After creating a flavor he liked his boss test-tasted it and decided to serve it at their soda fountain. Popularity grew and soon other soda fountain operators wanted to sell it so Morrison began producing syrup for the drink. Robert Lazenby a beverage chemist and proprietor of The Circle ¡°A¡± Ginger Ale Company tasted the drink and offered to produce the syrup at his bottling plant. In 1904 Lazenby and his son-in-law J.B O¡¯Hara

D.) Competitive Analysis: Some of Snapple’s key competitors in the non-alcoholic beverage industry are: Napa Naturals, Lipton, Natural Quenchers, Nestea, SoHo, Fruitopia, Arizona, Sobe and Ocean Spray. All of these brands are also alternatives to carbonated beverages. These brands compete in the categories of water, diet drinks, fruit drinks, and teas. Snapple differentiates its brand from the others with its natural, personal, and real image.

| Weaknesses: * Pays extra payment for new flavor. * More expensive to produce than other sports drinks. * Deciding the segment to target. * How to position the product in the mind of its potential consumers

DPSG on the other hand has the brand loyalty, equity, image, and budget to support such a venture. It also has some unique qualities such as the addition of protein, a larger, re-sealable bottle, and an emphasis on performance over simply something to perk the consumer up. Since DPSG already has a target market, distribution network, and manufacturing set up, it could feasibly enter the market on the shoulders of its good name. The fact that DPSG has differentiated itself from the other brands also gives them a leg up. If it could successfully attract more consumers from the 35-54 year old range by riding its healthy image and promoting a healthier, more fulfilling energy beverage, it could that target market and become a great competitor.

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

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.

Quaker wanted to expand their footprint in the beverage industry and add Snapple to create the most innovative distribution system in the industry. They expected the following benefits:

Other key marketing mix failures that affected Snapple in the Quaker era fall under the promotion and product umbrellas. Quaker did not follow regular advertising schedules, ceased Snapple’s partnership with Wendy Kaufman, and beside reducing the numbers of flavors available, was also unable to introduce new ones quickly enough. The started selling the product in larger sizes (32 and 64 ounces bottle), but this initiative was another flop: bottles of that size were suitable for Gatorade, not for a leisure beverage like Snapple, customers simply would not buy it. These choices elicited negative response in consumers who stopped perceiving Snapple as a funky and fashionable brand; the beverage’s healthy reputation was damaged too. It is rather clear that Quaker’s executives did not fully understand the Snapple brand and erroneously modified its marketing mix. This failure resulted in the rise of a deleterious discrepancy between the experiential value and benefits customers were used to and expected form Snapple, and the brand’s altered nature. In synthesis, Quaker tried to transplant a marketing mix and execution strategy to a recipient who was not suitable for it, and Snapple, its distributors, and its customers ultimately suffered from

PepsiCo has the potential to encourage consumers into drinking water and eating healthier snacks that they promote. Bottled water is rising and it is a healthy substitute to sugared drinks. Restaurants, clubs and venues are using their beverage to make special drinks. This is where alcohol industries gains more profit to their company. However, with the ability to adjust customer’s demands with new and appealing products it can dominate to success.