Dr. Pepper Snapple Group Case Analysis

Introduction

Dr. Pepper Snapple Group, Inc. is a major brand owner, bottler and marketer of nonalcoholic in America, Mexico and Canada. Dr. Pepper Snapple Group, Inc. was the only major domestic nonalcoholic beverage company left in the United States without a successful and famous energy drink of its own.

Andrew Barker, as the brand manager of the Snapple beverages at the Dr. Pepper Snapple, Inc. found a need that a new energy beverage should be introduced in the market and then he began to research whether there was a profitable opportunity in the market or not for a new energy drink to be introduced, marketed and distributed by the company in 2008. A decision was made by the senior management of the company to introduce a new energy beverage and make it a part of the company's corporate business strategy to emphasize on opportunities in high profit and growth beverage business (Brooke, 20). And then Dr. Pepper Snapple Group, Inc. decided to launch a product named Accelerade RTD in May, 2007, which was a new sports drink in the beverage market. Then with the introduction of this drink into the market and other beverages prevailing in the market, the group started to grow in the market and 89 percent of the total sales were generated in United States, 7 percent in Mexico and 4 percent in Canada in the year 2007.

Discussion

We will be discussing the strengths, weaknesses, threats and opportunities available for the company and the strategies which the company follows to be recognized in the market.

History of Company Operation

Dr. Pepper Snapple Group, Inc. contributed mainly in the market segment of flavored carbonated soft drinks in the U.S. and Mexico. The important products of this company include Dr. Pepper, Sunkist, 7 Up, Canada Dry and A&W. The company also manufactures fountain syrups and beverage concentrates. The company has also contributed in juice, juice drinks, ready-to-drink tea and mixer categories in the United States. The company's key non carbonated soft drinks brand includes Mott's, Snapple, Clamato and Hawaiian Punch (Rockville, 75).

In Mexico, this group contributed flavored carbonated soft drink, bottled water, vegetable juice and carbonated mineral water categories. The key brands of this company include Squirt, Clamato, Penafiel and Aguafiel.

Strengths of the Company

A few key strengths of the company are discussed here which are recognized by the senior management of this group. These company strengths that the company brings to the market add an advantage to the company's business operations.

Integrated Business Model

The company believes that their brand ownership, distribution and bottling are more organized and structured than the U.S. operations of its main competitors. The group's structured business model and strategies also provide opportunities for them to increase their net sales and profit. This differentiation provides the company an edge over its competitors.

Consumer Preferred Brands

The company has a diverse portfolio of brands ranging from non carbonated soft drinks to carbonated soft drinks. This widely ranged portfolio of the company provides retailers, bottlers and distributors with a huge ...