AMB 201 Term Paper

Submitted By Nicklush524
Words: 1341
Pages: 6

Diego Recinos-Walsh
ABM 201
Dr. Phillips
11/17/14

Dr. Pepper Snapple Group

Basic Information:
The Dr Pepper Snapple Group is the third largest marketer, bottler and distributor of non-alcoholic beverages in North America and the leading flavored carbonated soft drink company in the USA . Its carbonated soft drink brands include Dr Pepper, 7UP, Sunkist, A&W, Canada Dry, Crush, Schweppes, Squirt and Penafiel among others. Dr. Pepper Snapple Group’s non-carbonated soft drink brands include Snapple, Mott's, Hawaiian Punch and Clamato. The company also distributes FIJI mineral water and Arizona tea. With more than 115 distribution centers, the majority of their markets are in the U.S.A where 88% of the firms sales are made. The remaining percentages of sales are 4% in Canada and 8% in Mexico and the Caribbean. The corporation itself stations their headquarters in Plano, Texas and the firm in total has an approximate amount of 19,000 employees. The Dr. Pepper Snapple Group shares are sold on the New York Stock Exchange under the ticker DPS. The CEO of Dr. Pepper Snapple Group is Larry D. Young and the firm itself achieves annual sales of 6 billion. In addition the firm also does operations of hundreds of third-party bottlers and distributors.

The Competitive Situation:
The top three carbonated soft drink corporation in America are Coca-Cola Co. Pepsi Co. and Dr. Pepper Snapple Group in that order. Coca-Cola is leading with market share percentages of 42.4% and following behind them is Pepsi Co. with a market share percentage of 27.7%. The Dr. Pepper Snapple Group has two very tough competitors ahead of them while they are still competing and staying the third most carbonated soft drink corporation in the U.S with a market share percentage of 16.9%. These statistics are taken from a statistics portal as well as the Beverage Digest newsletter which also contains information on the top leading carbonated soft drink brands. Again Dr. Pepper Snapple Group is facing very tough competition in the Top 10 CSD Brands of 2013, the powerhouse Coca-Cola has 5 brands of their own on the list, while the other dominant figure Pepsi Co. has 4 brands of their own on the list as well. Dr. Pepper Snapple Group only has one brand on the list with its famous Dr. Pepper coming in 5th place. The reason why these two competitors are so dominant is because of the massive brand legacies they have built on significant advertising budgets, focusing in on the emotional and lifestyle attachments of the product they market.

The Distribution Situation:
Dr. Pepper Snapple Group serves consumers throughout North America via a broad and flexible route to market. This includes a combination of direct store delivery and warehouse delivery capabilities supported by 21 manufacturing centers, and more than 115 distribution centers across North AmericaIn the U.S.A, Dr. Pepper Snapple Group does not have a complete network of bottlers and distributors, so their products are sometimes bottled under Contract by Coca-Cola or Pepsi bottlers.
The Market Situation:
CSDs(Carbonated Soft Drinks) have relatively low price points compared to some other consumer goods categories, thus influencing on brand owner's inclination to add additional costs through packaging innovation. In Dr. Pepper Snapple Group’s most recent period, soda volume rose 2%. The Dr Pepper brand's volume slipped 1%, and 7UP posted flat volumes according to the market analysis. Canada Dry's volume growth was in the high single digits, and A&W experienced a low-single-digit decline. Overall, beverages sold by Dr Pepper and it's bottling partners rose 1%, with non-carbonated drinks suffering a 4% decline. Volume of Snapple fell 3%, and Hawaiian Punch logged a 12% decrease. The current situation of meeting consumers needs for CSD companies are looking for improvements to soft-drinkers’ diets, particularly when it comes to childhood obesity. Consequently, there has been a shift from high-sugar carbonated soft…