Dr Pepper Snapple Group Analysis

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  • Topic: Dr Pepper Snapple Group, Dr Pepper, Soft drink
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  • Published : May 31, 2013
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Dr Pepper Snapple Group
Introduction
Dr Pepper Snapple Group (DPS) is one of North America’s leading refreshment beverage companies, manufacturing, bottling and distributing more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages.

With a brand heritage spanning more than 200 years, the DPS portfolio includes some of the most recognized beverages in the Americas. The company have 6 of the top 10 non-cola soft drinks, and 9 of 12 leading brands are No.1 in their flavor categories. In addition to its flagship Dr Pepper and Snapple brand, the DPS portfolio includes Sunkist soda, 7UP, A&W, Canada Dry, Crush, Mott’s, Squirt, Hawaiian Punch, Penafiel, Clamato, Schweppes, Venom Energy, Rose’s, and Mr. & Mrs. T mixers.

SWOT Analysis
Strengths * Experienced management * Strong portfolio of brands * Strong position in each product niche * Healthy cash flow| Opportunities * Expansion into international markets * New product launches and line extensions * Growth into functional(energy drink) market| Weaknesses * Minor compared to larger peers * Heavy rely on 3rd party bottlers for packaging and distribution * Lack of exposure to some fast growing segment * Concentrated in US, Canada and Mexico and lack of international exposure| Threats * Loss of partner bottlers * Socio-cultural trends towards healthier lifestyles.|

Strategic Direction
Forward integration is a business strategy in which companies’ activities are expanded to include control over distributors or retailers such as the shipping of own products directly to customers. DPS may use forward integration as strategic initiatives to reduce risks and interdependencies with external business partners in the supply chain. DPS may increase their control over a wider scope of the supply chain by increase their own decision-making power over their key resources. DPS can become a bottler instead of relying on third party...
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