'Dr. Pepper Snapple Group Case Study Essay\r'

'Andrew Barker, a shit manager for Snapple crapulences at the Dr. rain cats and dogs Snapple Group, Inc., must assess whether or non a advantageous trade opportunity exists for a new capability drunkenness check off to be produced, grocery storeed, and distributed by the guild in 2008. He has roughly 3 months to determine the market opportunity. SWOT.\r\nStrengths| Weaknesses|\r\n* Strong portfolio of leash consumer-preferred home runs * Integrated business model * Strong customer relationships * Attractive positioning within a large, growing, and profitable market * Broad geographic manufacturing and distribution reporting * Strong operating margins and significant, stable cash flows * experienced executive management team| * Currently the provided study domestic nonalcoholic drink company in the US without a significant mark susceptibility drink of its own * Company bottlers and distributors do not serve all areas of the US (by wee 2008, 80% of the US market) * Market is already launch| Opportunities| Threats|.\r\n* Integrated business model provides opportunities for net gross revenue and profit growth through the alignment of the frugal interests of its brand ownership and its bottling and distribution businesses * Carbonated beverages were the quaternary largest nonalcoholic beverage category in the US in 2006 and the fasted growing beverage category * sightly US per capita consumption of energy beverage drinkers change magnitude by 14% since 2004| .\r\n* Industry analysts project an amount annual growth rate of 10.5% from 2007 to 2011 (down 32% from 2001-2006) which is attributed to market maturity, increased price and packaging competition, and the entrance of crisscross energy beverages, such as energy water, energy fruit drinks, ready-to-drink energy teas, and energy colas * nothing beverage consumers limit their choice to only 1.4 different brands, which suggests brand loyalty in this market.\r\n* 5 Major brands (Red Bull , Hansen, Pepsi-Cola, Rockstar and Coca-Cola) subdue the US energy beverage market, accounting for 94% of one dollar bill sales and unit volume. * The energy beverage market has experience ware proliferation and price eating away in recent years * Energy beverage prices declined 30% from 2001-2006|\r\nCritical Issues\r\n* Dr. Pepper Snapple Group, Inc. is the only major domestic nonalcoholic beverage company in the US without a significant branded 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 dollar sales and unit volume. Alternatives.\r\n* Do Nothing\r\n* The Dr. Pepper Snapple Group, Inc. bottling and distribution system should introduce an energy beverage, marketed towards adults, ages 34-54. The Energy beverage should include two flavors, with a veritable(a) and sugar free version of each, all unattached in a standard 16 snow leopard size, as this segment accoun ts for the most growth opportunity (150%). Advertising 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 begin buzz and get consumers to try the product.\r\nThe new product should be able to stand out when succeeding(prenominal) to other energy drinks, maybe package it in a unique bottle, such as glass. They should provision all off-premise retailers, focusing on the convenience stores first, as they account for the most retail dollar sales, and whence moving into the supermarkets and mass merchandisers. The new beverage should be priced a little higher than average, at $2.50 per single-serve package.\r\n'