Dr Pepper Snapple Case

Case Summary 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 energy beverage brand to be produced, marketed, and distributed by the company in 2008. Dr Pepper Snapple Group, Inc. was the only major domestic nonalcoholic beverage company in the United States without a significant branded energy drink of its own. The decision to explore a new energy beverage was made by senior company management as part of a corporate business strategy to focus on opportunities in high-growth and high-margin beverage businesses. After launching a ready-to-drink sports drink, the Dr Pepper Snapple Group, Inc. believed they should put into consideration of introducing a new energy drink beverage. 1. Decision problem: In the decision process, I am going to explain the key decision issues that Dr Pepper Snapple Group, Inc. will be faced with when launching their new energy drink “Rush.” The first key thing to ask your self (as the decision maker) is when launching a new energy drink will it be profitable? Obviously if your company will not make a profit from launching a new product, it does not seem feasible to do so. Next, if it does seem feasible to do so, as the decision maker, I will need to take initiative and see if top management thinks there is an opportunity that exists in launching Rush NRG drink. If top management believes that there is an opportunity that exists, I need to think about the marketing strategies for Rush NRG drink. First, I will need to formulate a target market: a group of people that I have decided to aim towards. Target markets can also be grouped by: geographic locations, demographics (age, gender, income, occupation, education, etc.) and psychographics (attitudes, values and lifestyle). Then, I