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
STRATEGIC ISSUES AND PROBLEMS
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 and high-margin beverage businesses. Barker must determine whether or not a profitable market opportunity exists for a new energy beverage brand to be produced, marketed, and distributed by the company. He must then make a recommendation as to whether or not the company should introduce a new branded product into the energy beverage market. Any proposal to enter into the beverage market requires a marketing strategy for a branded energy drink, including a first-year sales and profit projection. It is important to note that Dr Pepper Snapple Group, Inc. is the only major domestic nonalcoholic beverage company in the United States without a significant branded energy drink of its own. In order to come to an educated conclusion, Barker must assess Dr Pepper Snapple Group, Inc.’s current situational analysis, analyze the energy beverage market in the United States, and consider the market opportunities available to the company. The problem facing the Snapple brand is how to maintain its competitive position given an environmental threat (energy beverages). They must determine whether or not it is strategically effective to enter the energy beverage market, while at the same time preserving profitability and its customer base.
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