NO PLAGERISM!!!!!!!!!!!!!!!!!! Needs to be masters level work !! i will give you
ID: 392229 • Letter: N
Question
NO PLAGERISM!!!!!!!!!!!!!!!!!! Needs to be masters level work !! i will give you a thumbs up once answered ! Please use marketing strategies as this is a CASE ANALYSIS!!!!! Use stats and demographics but nothing outside of this reading!!! Thanks in advancePlease refer to the case on 'Dr Pepper Snapple Group, Inc.,' and answer the following questions:
1) How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG's category participation in late 2007?
2) Is there an opportunity for Dr Pepper Snapple Group, Inc. to introduce a new energy beverage? If so, what target consumer market should be choosen for a new energy beverage brand?
3) What product should be introduced and how should it be positioned/differentiated?
4) Through which channel(s) should a new energy beverage brand be distributed?
5) What suggested retail price should be recommended for a new energy beverage brand? Dr Pepper Snapple Group, Inc. Energy Beverages In early September 2007, Andrew Barker emerged from a lengthy discussion on the energy beverage market in the United States. As a brand manager for Snapple beverages at the Dr Pepper Snapple Group, Inc., he was charged with assessing whether or not a profitable market opportunity existed for a new en- ergy beverage brand to be produced, marketed, and distributed by the company in 2008. Dr Pepper Snapple Group, Inc. was the only major domestic nonal- coholic beverage company in the United States without a significant branded energy drink of its own. Energy beverages are broadly defined as drinks that provide a consumer with a boost of energy. The central ingredient in most energy beverages is caf- feine derived from the guarana bean. Other common ingredients include tau- rine, ginseng, carnitine, and B vitamins. Energy drinks are considered functional beverages. Other functional beverages include sports drinks, ready-to-drink tea, enhanced fruit drinks, soy beverages, and enhanced water The decision to explore a new energy beverage was made by senior com- pany management as part of a corporate business strategy to focus on oppor tunities in high-growth and high-margin beverage businesses. As part of this strategy, Dr Pepper Snapple Group, Inc. launched the Accelerade RTD brand, a 2007. Barker that the decision ready-to-drink sports drink, in late May to introduce the Accelerade RTD brand into a new beverage market for the com- pany (sports drinks) was similar to the situation he faced with recommending whether or not Dr Pepper Snapple Group, Inc. should introduce a new branded product into the energy beverage market. The cooperation of Dr Pepper Snapple Group, Inc. in the preparation of this case is grate- fully acknowledged. This case was prepared by Professor Roger A. Kerin, of the Cox School of Business, Southern Methodist University, as a basis for class discussion and is not designed to illustrate effective or ineffective handling of an administrative situation. Certain case information is disguised and not useful for research purposes. All financial, market, and other information is through 2007, unless otherwise noted. Brand names of Dr Pepper Snapple Group, Inc. are regis tered trademarks and used with permission. Copyright O 2009 by Roger A. Kerin. No part of this case may be reproduced without written permission of the copyright holder 91
Explanation / Answer
1. Rising to the need to enter into a new profitable business and to diversify the product portfolio Dr.Pepper Snapple Group Inc launched Accelerade RTD a sports drink which is ready to consume. The market was lucrative for new entrants as it showcased huge potential for growth and high-profit Margin. The market has had a large variety of energy drinks offered by by some of the Major global leaders in the business like Redbull, Monster Energy, Gatorade and Rockstar. These had been the majors who had been running the market in the energy/sports drink category. Dr.Pepper Snapple Group Inc will have to face huge competition from these giants and will have to make efficient pricing, Distribution and Differentiation strategies in order to penetrate into this market. The energy drinks are mainly targeted towards the sports people, the adventure-seeking youth. But recent trends in the category brands have targeted everyone from school going, office going people and sports enthusiasts to consume it when they required a sudden rise in energy for their daily tasks.DSPG carries out the distribution through its own networks, third parties and by means of directly selling to the customer. In 2007, DSPG was entering the market with the launch of Accelerade RTD. With huge investments in advertisements and Marketing Accelerade took on the industry leaders like Redbull, Monster, Gatorade and Rockstar.
2. Yes, DSPG has the opportunity to introduce a new Drink. At present energy drinks are aimed at youth and the adventurous who mainly fall under the 17-40 age category. DSPG can introduce a lite variant of the energy drink which can be targeted at students. The school going students form a huge population and are a highly potential market. Students are often tired and worn out after a hectic day at school and if DSPG can introduce a product for the students which can give them a huge energy boost, DSPG can be the leaders in this untapped market and all the competitors are sure to follow.
3)DSPG should introduce a lite variant of the energy drink. Energy drinks contains artificial sweetening agents, Caffeine and other artificial energy boosters. With the focus of the customers shifting towards a more natural and health-oriented lifestyle, DSPG should introduce a product which is natural and healthy. This product can be aimed at everybody starting from teenagers to the elderly. If DSPG can bring out a product which can be used by the teenagers and the elderly DSPG can turn its energy drink into a daily household commodity which can substitute juices/coffee/Tea.
4)DSPG with its well laid out networks, through third parties and by directly selling it to the customers can distribute its product. As a new product if DSPG can sell its products directly to the customer DSPG can receive immediate feedback and market its product more efficiently. But this channel of distribution may not be able to reach the customers broadly and may be slow.DSPG can distribute their products through third parties and can effectively motivate them by paying good commissions and extra benefits and discount to the best distributor.
5)DSPG can exploit the market with effective marketing strategies. DSPG should differentiate the product as superior, natural and healthy for daily consumption. No much product differentiation happens in this category of Beverages. Considering the beverage is new and that if it can effectively differentiate their product DSPG can price them on par with the existing products.DSPG can provide combo offers or clubbed offers and discounts when purchased in quantities more than 2. If DSPG can influence the customer's purchase in Bulk DSPG can soon become a household brand.