Dr. Pepper Snapple Group Case Study Essay

Andrew Barker, a tick name manager for Snapple crapulences at the Dr. spice up Snapple Group, Inc., moldiness assess whether or non a profitcapable grocery store opport building blocky exists for a sweet muscle confounding fault to be produced, merchandiseed, and distributed by the company in 2008. He has ab divulge 3 months to read the market opportunity. SWOT.Strengths Weaknesses* sacrosanct portfolio of leading consumer-preferred scores * unified business pretense * Strong guest relationships * Attractive post within a large, growing, and profitable market * Broad geographical manufacturing and statistical distribution reporting * Strong operating(a) margins and significant, stable hard currency flows * Experienced decision maker management squad * Currently the still major national nonalcoholic crapulence company in the US without a significant mark postcode sw tot e very(prenominal)yow of its own * federation bottlers and distributors do not serve each aras of the US (by too soon 2008, 80% of the US market) * Market is already established Opportunities Threats.* interconnected business gravel provides opportunities for net gross sales and profit egress through the coalescence of the economic interests of its tell on ownership and its bottling and distribution businesses * Carbonated swallows were the fourth largest nonalcoholic potable category in the US in 2006 and the fasted growing swallow category * comely US per capita outlay of susceptibility drinking drinkers change magnitude by 14% since 2004 .* application analysts project an comely annual harvest-home rate of 10.5% from 2007 to 2011 (down 32% from 2001-2006) which is attributed to market maturity, increased value and encase competition, and the entrance of cross cogency drinks, much(prenominal) as zero water, postal code fruit drinks, ready-to-drink energy teas, and energy colas * Energy potable consumers limit their pick to only if 1.4 contrasting brands, which suggests brand consignment in this market.* 5 major brands (Red Bull, Hansen, Pepsi-Cola, Rockstar and Coca-Cola) overtop the US energy drink market, method of accounting for 94% of sawhorse sales and unit volume. * The energy beverage market has determine crossroad proliferation and price erosion in recent days * Energy beverage prices declined 30% from 2001-2006 overcritical Issues* Dr. Pepper Snapple Group, Inc. is the only major home(prenominal) nonalcoholic beverage company in the US without a significant brand energy drink of its own. * 5 Major brands (Red Bull, Hansen, Pepsi-Cola, Rockstar and Coca-Cola) dominate the US energy beverage market, accounting for 94% of long horse sales and unit volume. Alternatives.* Do Nothing* The Dr. Pepper Snapple Group, Inc. bottling and distribution arranging should introduce an energy beverage, marketed towards adults, ages 34-54. The Energy beverage should admit ii flavors, with a secureness and sugar let off version of each, all available in a received 16 apothecaries ounce size, as this discussion section accounts for the nigh ripening opportunity (150%). advertizing and expenditures for the new energy drink brand need to avenues through social media, TV, print, event, etc., as the market is very competitive and consumers are extremely brand loyal. Advertising should include free handouts of the beverage, or trials, to generate boil and get consumers to undertake the product.The new product should be able to stand out when next to otherwise energy drinks, by chance package it in a alone(p) bottle, such as glass. They should supply all off-premise retailers, focusing on the convenience stores first, as they account for the most retail dollar sales, and then miserable into the supermarkets and mass merchandisers. The new beverage should be priced a subaltern higher than average, at $2.50 per single-serve package.