Dr Pepper Snapple case analysis

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TEXAS A&M UNIVERSITY CORPUS CHRISTI

Case 1
Dr Pepper-Snapple Inc: Energy Drinks

MKTG 5320
Wesley Gordon

Introduction
In the ever changing world of customer needs and expectations Dr Pepper-Snapple was faced with an increased customer focus on energy drinks. This area, when exploited correctly, is a high growth and high margin beverage business. In early September 2007, Andrew Baker had his marching orders. He emerged out a long discussion about entering the energy drink business and off he went.
First let’s understand that an energy drink simply does as its title suggest, gives the consumer energy. This is accomplished most of the time with caffeine from a guarana bean. Some of the other players in this market
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This could be company strengths, current market penistrationpenetration, supplier agreements and simply all of the business and/or customer loyalties that they have had. Also in today’s market the consumers are looking for the “next new thing”. They no longer want an extension of what they already have. The consumers are loyal to a company, but can quickly change focus if a company fails to continue to change to meet their needs and/or demands for change.
3. Do nothing
Dr Pepper could always do nothing at this time. During the stand down they could evaluate mergers, joint ventures, or buyouts as they market strengthens.
Making a decision 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.
Implement the choice FDr Pepper has a great opportunity to penetrate the energy drink market. They could quickly take a major market share and continue to support the ever changing customer needs and ever changing expectations. The only remaining concept is how to do it.
1. Target Market Selection – Who is to be serviced needs to be determined. Target heavy users, all users, or even what age and gender to focus on.
2. Product Line and Positioning Choice – The product line itself has to be determined. Is it

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