CASE ANALYSIS:

DR. PEPPER SNAPPLE

GROUP, INC
ANIS EMALINA BINTI MARZUKI
SITI MAISARAH BINTI BAHARIM
MUHAMMAD AFIQ BIN ABDULLAH
WAN MOHD FARID HAKIMI BIN WAN DAUD

INTRODUCTION OF CASE STUDY
Dr. Pepper Snapple Group- Major
domestic non-alcoholic beverage
company in US
Example of carbonated soft
drinks: Dr. Pepper, 7UP, Sunkist,
A&W and Canada Dry
Example of non- carbonated soft
drinks: Snapple, Motts, Hawaiian
Punch and Clamato
Want to explore energy beverage
market
3
DECISION MAKING PROCESS
D Define the problem
E
C
I
D
Enumerate the decision factors
Consider relevant information
Identify the best alternative
Develop a plan for implementing chosen alternative
Evaluate the decision and the decision process E
Define the problem
Objective
To enter the energy beverage market.
Challenge
The establish competitors that already sustained in the
energy beverage market.
Problem statement
To enter the energy beverage market whether or not a
profitable market exist for the new beverage brand (energy
drinks) to be produced, marketed and distributed by the
company even though has greater competitors.
Existing New
Existing Market Penetration
Market
Development
New
New Offering
Development
Diversification
Markets
O
f
f
e
r
i
n
g
s


Product-Market Strategies
ENUMERATE THE DECISION FACTOR
CONTROLLABLE UNCONTROLLABLE
PRODUCT

COMPETITORS
PRICE

RESPOND FROM BUYER
PLACE/DISTRIBUTION MARKET SIZE
PROMOTION
Consider relevant information

INTERNAL
Strengths
Strong portfolio

Customer loyalty

Strategic operating area

Experience management
team

Health benefit


Weaknesses
Lack of traditional media
element

Price are twice higher

Lack of uniqueness

Lack of funds to advertise
EXTERNAL
Opportunity
51% male users

80% share market on
regular energy beverage

Enhance on media
advertisement

Public involvement

60%-66% gross margin
wholesalers
Threats
5 major dominant
competitors

Obtain a new potential
consumer

Price that can make them
lost potential customer


Identify the best alternative
9
Description Alternative A Alternative B
Gender Male Female
Age 12 34 35 54
Packaging Single-serve Multi-serve
Version Regular Sugar-free
Brand Positioning Packaging Ingredients
Stock-Keeping Unit
(SKU : 2 types)
1 size, 2 flavors 1 flavor, 2 sizes
Marketing Channel Off-premise retailers On-premise retailers
Demand-Supply Relationship
Price (Dollar)
Quantity (unit)
2.00
1.40
2.79
Supply
Demand
EVALUATE THE DECISION &
THE DECISION PROCESS
1. Distribution
The companies impressive distribution chain would
allow them to provide a product to consumers and be
readily available to meet any rising demands.

2. Customer relationship/marketing channel
Have strong relationship
MANUFACTURER
DISTRIBUTOR WHOLESALER
RETAILER
CUSTOMER
3. Marketable
Launching a new product is a risk but not give a
bad consequences if it not produce high profit for
the company.

4. Advertising/ promotion
When the company is at stable and one of the top
competitor in the beverage industry, choice to
promote the promotional items will be possible.