Ravi Sockalingam, PhD
Dr Pepper Snapple Group, Inc.’s brand manager Andrew Barker was tasked with recommending the company’s top management if it should decide to introduce a new branded product into the energy beverage market.
A brief overview of the company’s position
Dr Pepper Snapple Group, Inc. maintains a well-entrenched position in the flavored carbonated soft drink (CSD) market. In 2007 he held a market share of the US CSD market. And this share had been steadily growing year to year. The company is also a leader in the non-CSD drink category that comprises ready to drink tea, juice, juice drinks, enhanced water, drink concentrates and mixer categories. In addition …show more content…
Despite its robust integrated business model, and despite being a leading bottler and distributor in the beverage industry, the company does not seem to have access to all regions of the US especially in the off premise retail channels where the profit margins are the highest.
The new product that Dr Pepper Snapple Group Inc. brings to the market has to bring functional benefits to the consumers. It should consider adding vitamins proteins to the energy drink in an effort to bring more value to its customers. This strategy has been tried with success by the company with its sport drinks offerings. The younger demographic (aged between12 and24) constitute 65% of consumers of energy drinks. In terms of ethnicity, Hispanic and African Americans are by far