Dr. Pepper Snapple Group, Inc.

Topics: Marketing, Advertising, Energy drink Pages: 3 (996 words) Published: February 23, 2012
Dr. Pepper Snapple Group, Inc.
1. How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007? § Five dominant competitors: Red Bull, Hansen Natural (Monster), Pepsi (Sobe Adrenaline Rush, AMP), Rockstar, and Coke (Tab, Full Throttle) § $6.2 billion industry in 2006

§ Grew at a rate of 42.5% from 2001 to 2006, 10.2% from 2007-2011 Consumers limit their choices to only 1.4 different brands indicating brand loyalty
§ Red Bull, Hansen, Pepsi, Rockstar, and Coke accounted for 94% of dollar sales and unit sales
§ Heaviest users are males ages 12 to 34; 43 million total US energy beverage users
§ 153 million cases of energy beverages were sold during 2006 (5.5 billion 8 oz. cans)
§ Off-premise retail channel dominated by convenience stores and supermarkets; department stores like Wal-Mart seeing an increase in their share of sales i. “Energy beverage manufacturers with a broad product line and an extensive distribution network have had the greatest success in gaining shelf space in supermarket and mass merchandisers for their brands” § DPSG

i. Flavored carbonated soft drink (CSD) market segment
1. Dr. Pepper, 7UP, Sunkist, A&W Root Beer, Canada Dry ii. Non-CSD brands 1. Snapple, Mott’s, Hawaiian Punch, Clamato
iii. 18% share of CSD market in 2007, a 1.62% increase from the previous year
iv. No. 1 flavored CSD company in the US; Dr. Pepper is No. 2 flavored CSD in the US, Snapple is leading ready-to-drink tea v. Integrated business model; bottling and distribution
1. Broad geographic coverage
vi. No. 3 in all beverage markets in North America
vii. Does not participate in bottled waters or colas
viii. Focused on high growth, high margin categories
2. Does your characterization bode well for a new energy beverage brand introduction generally and for Dr. Pepper Snapple Group, in particular? § With five competitors with approximately 94% of the market share, limited growth...
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