Dr Pepper Snapple Group Inc Case Solution

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Pages: 8

Dr Pepper Snapple Group, Inc.
Energy Beverages

Table of Contents STRATEGIC ISSUES AND PROBLEMS 2 DR. PEPPER SNAPPLE GROUP, INC. 2 PLAN OF ACTION 3 RECOMMENDED ENERGY BEVERAGES MARKETING STRATEGY 3 Goals and Objectives 3 Target Market 3 Marketing Mix 4 Product Strategy 4 Price Strategy 4 Distribution and Sales 4 Advertising and Promotion 4

Andrew Barker, brand manager for Snapple beverages at the Dr Pepper Snapple Group, Inc., has been charged with the task of assessing a new market opportunity for the brand. The decision has been made by senior company management to explore a new energy beverage as a part of a corporate business strategy to focus on opportunities in high-growth
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3. Dr Pepper Snapple Group, Inc. should aim to break even the first year after launch.
Target Market The target market for Dr Pepper Snapple Group, Inc.’s new energy drink product line extension should be a current customer with high brand loyalty and also adult energy beverage users 25 years old and older. These users make up approximately 59% of the current energy beverage user market and about 66% of the total US population. By tapping into this segment of the market and attracting new customers within this population, Dr Pepper Snapple Group, Inc. will be able to create a substantial market share.
Marketing Mix
Product Strategy
In order to differentiate their product from the rest of the energy beverage market, Snapple Plus will be a more natural and holistic approach to energy. This line extension will be a tea and juice based product, rather than a high-sugar, heavily carbonated product like that of other energy beverage brands. It will use the yerba-mate tea extract for a natural energy boost rather than synthetic additives that lead to unnatural energy crashes. Packaging will also be important; the can will be re-sealable with a screw top, and will be more neutral in color to emphasize the healthy nature of the beverage. The product will be packaged in the glass bottles that Snapple is so famous for. These bottles are already heavily