Dr. Pepper Case

III. Internal Analysis:

  a. Performance analysis
  Profitability: Reduce cost and increase profit.

  First, Dr. Pepper’s warehouses are located or near bottling plants and they have their own trucks, so they reduce a lot of transportation cost. Second, they have bottling and distribution network so they don’t need to pay any bottler and distribution. Third, Dr. Pepper is a beverage company, so they have skill and machines to produce new product. All of these, Dr. Pepper save lots of cost to make their product more high margin.

  Sale: Company has wild range customers.

  Company has good distribution to sell their products to national retailers, such as Wal Mart, Target, Safeway. They also sell products in convenience store and night club that let customers easy to buy their products anytime.

  Marketing mix assessment: Make a decision in product line and positioning.

  According to the energy beverage market analysis (Lilian mentioned before), company need to decide the package, size, and version that most consumers like because retailers only can produce two SKUs of a new energy drink brand.

  For the position, company is thinking about target to adult group because most of energy drink brand are focus on the group by age 12-34. So there will be an opportunities in energy drink market.

  Employee capabilities: Has a strong management team in company.

  The management team of the company has an average more than 20 years experience in brand ownership, bottling, and distribution and their major customers.

  b. Determinant of strategic options
  Past strategies: focus on build and enhance leading brand.

  In past, Dr. Pepper focus on build and enhance leading brand. They use an ongoing process of market and customer analysis to identify the key brand. They want their sales to grow along with customer trend by improving distribution, and increasing promotional effectiveness.

  Current strategies: focus on... [continues]

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