The Energy Beverage Segment Burst

794 Words Aug 16th, 2015 4 Pages
The energy beverage segment burst on the scene in the early 2000’s to sky rocket to the top in the fastest growing nonalcoholic segment. The case study of Dr. Pepper Snapple Group’s senior management wanting to enter with their own brand to compete against the competition makes sense to try and capitalize on a growing market that is not demonstrating that it will decline in sales.
The challenges that Dr. Pepper Snapple Group (DPS) would have to overcome in the energy beverage market will be similar to those in the launch of Accelerade RTD (Kerin, R., & Peterson, R. 2013). PepsiCo and Coca-Cola owned the majority of the Sports Drink Market, similar to how Red Bull, Hansen, PepsiCo, and Coca-Cola would be the segment holders for the energy drink. DPS would have to develop a tagline for the brand, pick a target market to focus on, positioning choice and ultimately the pricing.
The energy beverage market is a growing market. The energy drinks and shots market is expected to grow in the coming years. As per industry sources, the US energy drinks market grew by 16% in the first six months of 2011. The energy drinks and shots market generated about $7 billion in 2011 and the sales of these products are expected to grow by more than 10% annually until 2016 according to industry experts (SWOT, 2010). Monster Energy posted in 2015 that, “Monster 's international sales have already been growing faster than domestic sales. Sacks said in the call that Japan is "becoming one of our…
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