Rtd Fruit Drinks-Category Attractiveness Analysis

Topics: Marketing, Coffee, Greenhouse gas Pages: 6 (1535 words) Published: May 24, 2013
RTD Fruit Drinks-Case Analysis 2
Category Attractiveness Analysis
Group 4

* Customer needs and behavior
* 100% juiced product in bottle form
* Plastic bottles-enter vending market segment?
* Sugar Free (I don’t know same as diet?)
* Snapple + Energy product
* Powder form to add to bottled water
* Low calorie option (pretty low already 100-120 calories)/low carb * Large carton option in more flavors

* Market or market segment size and growth rate
Market Potential
* Units (in liters): *use market volume from datamonitor report pg. 11? * Revenue: *use market value table from datamonitor report pg. 10? * Number of prospective customers: ???
* Market consumption: 17.5 billion liters by the end of 2014 (1.7% for five year period 2009-2014)(datamonitor) * Market performance: $22 billion by the end of 2014 (0.6% for five year period 2009-2014)(datamonitor) Growth Rate *market forecast datamonitor report pg.29-30?

* Units:
* Revenue:
* Number of prospective customers:

Future Market Expansion
* Snapple’s target segment may constitute a platform for expansion in the smoothie segment of the market (Snapple smoothies has a catchy ring to it and is already an established brand name that consumers know, trust and like). I don’t know if frozen concentrate products are becoming obsolete but expansion into this segment is a possibility as well. Fountain Snapple?

* Macro Trends

| | Attractiveness|
| | High Low|
Market size| | +|
Market growth| | + | Sales cyclicity| | + | Sales seasonality| | +|
Profit level| | +|
Profit variability| | + |

We primarily serve two groups of customers: 1) bottlers and distributors and 2) retailers. Bottlers buy beverage concentrates from us and, in turn, they manufacture, bottle, sell and distribute finished beverages. Bottlers also manufacture and distribute syrup for the fountain foodservice channel. In addition, bottlers and distributors purchase finished beverages from us and sell them to retail and other customers. We have strong relationships with bottlers affiliated with Coca-Cola and PepsiCo primarily because of the strength and market position of our key Dr Pepper brand. Retailers also buy finished beverages directly from us. Our portfolio of strong brands, operational scale and experience in the beverage industry have enabled us to maintain strong relationships with major retailers in the U.S., Canada and Mexico. In 2012, our largest retailer was WalMart, representing approximately 13% of our consolidated net sales. SEASONALITY

The beverage market is subject to some seasonal variations. Our beverage sales are generally higher during the warmer months and also can be influenced by the timing of holidays as well as weather fluctuations. MARKETING

Our marketing strategy is to grow our brands through continuously providing new solutions to meet consumers' changing preferences and needs. We identify these preferences and needs and then develop innovative consumer and shopper programs to address the opportunities. Solutions include new and reformulated products, improved packaging design, pricing and enhanced availability. We use advertising, sponsorships, merchandising, public relations, promotions and social media to provide maximum impact for our brands and messages.

The following information was taken from http://www.dpsgannualreport.com/smedia/www/assets/media/Dr%20Pepper%20Snapple%20Group%2010-K%202012.pdf And is mostly related to risk
Demographic-We believe marketing and product innovations that target fast growing population segments, such as the Hispanic community in the U.S., will drive further market growth (www.dpsgannualreport.com).

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