Introduction to Problem
Dr. Pepper Snapple, Inc. is a leading producer of flavored beverages in North America and Caribbean. The success of the company is characterized by more than 50 different brands that are synonymous with the refreshment, fun and flavor. Some of these brands include: Dr. Pepper, 7UP, Sunkist; A&W. Some of the leading brands are number one in the market. The issue Dr. Pepper faces is related to whether or not the company should enter into the energy beverage market. In 2007, Dr. Pepper Snapple, Inc. was the only major domestic carbonated soft drink company (CSD), which did not introduce a line of energy drinks. Dr. Pepper Snapple, Inc. needs to determine the most effective and efficient way to enter the market.
The alternatives Dr. Pepper Snapple, Inc. faces are whether or not to enter into the energy drink market. It seems that launching a new product with the energy beverage market would be a good idea for Dr. Pepper Snapple because their strengths are strategically aligned with what makes a competitor successful within this market. The major challenges within the energy beverage market are identifying the target market, distribution, and advertising. If these challenges are approached correctly they can lead to a competitive advantage within the industry. This could be true in the following ways for Dr. Pepper Snapple, Inc.: •
Customer Relationships – Dr. Pepper Snapple, Inc. has strong relationships with their long-standing customers who can provide them with a likely advantage to gain shelf space within all different types of channels including convenience stores, retailers, and restaurants. This is an advantage to the company since the energy beverage market is dominant within the convenience stores and supermarkets channels. •
Advertising - Since the company is stable and well know within the beverage industry, the option to offer promotional items to market their product will be possible. •
Diverse Portfolio and...
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