Dr. Pepper Case Analysis
Dr. Pepper Company
I. Case Summary
From being a practically unknown soft drink company to now being one of the highest performing of the 1000 largest manufacturing firms, Dr. Pepper has evolved to become an international beverage organization. Dr. Pepper began its roots back in 1880, in Waco, Texas, when a young soda jerk invented a soft drink which he named after his father-in-law (Dr. Pepper). Robert Lazenby began to market the drink on commercial basis in 1885, and it was not until 1922 that an extensive sales and distribution program was initiated. The current president of the organization is Mr. Woodrow Wilson Clements together with Joe K. Hughes who is the executive VP of the firm. The firm is facing a pressure of product differentiation and expansion despite of its extensive marketing strategy to expand its market and advertise its product.
II. Case Objective and Key Issues
A. Case Objectives
1. To understand the importance of product differentiation for a firm like Dr. Pepper who is constantly faced with fierce competition.
2. To observe marketing and other strategies of Dr. Pepper to gain market share and attract new consumers.
B. Key Issues
1. How Dr. Pepper can differentiate its products from that of the competition.
2. How to reach new markets and attract new consumers (decentralization)
3. How to diversity products and services.
4. How to ensure that the firm meets the legal requirement set forth by the law makers.
5. How to maintain long term relationship with the distributors.
III. Analysis
A. External Threats
1. A major legal threat for Dr. Pepper comes from the banning of cyclamate by the government, which is the ingredient used in Diet Dr. Pepper. The company has no control over politics and laws set forth by the government.
2. A possible threat can be seen by external investors who might revaluate the current value of Dr. Pepper’s stock due to the psychological impact of ban on saccharine. Saccharine is a major component of Sugar
I. Case Summary
From being a practically unknown soft drink company to now being one of the highest performing of the 1000 largest manufacturing firms, Dr. Pepper has evolved to become an international beverage organization. Dr. Pepper began its roots back in 1880, in Waco, Texas, when a young soda jerk invented a soft drink which he named after his father-in-law (Dr. Pepper). Robert Lazenby began to market the drink on commercial basis in 1885, and it was not until 1922 that an extensive sales and distribution program was initiated. The current president of the organization is Mr. Woodrow Wilson Clements together with Joe K. Hughes who is the executive VP of the firm. The firm is facing a pressure of product differentiation and expansion despite of its extensive marketing strategy to expand its market and advertise its product.
II. Case Objective and Key Issues
A. Case Objectives
1. To understand the importance of product differentiation for a firm like Dr. Pepper who is constantly faced with fierce competition.
2. To observe marketing and other strategies of Dr. Pepper to gain market share and attract new consumers.
B. Key Issues
1. How Dr. Pepper can differentiate its products from that of the competition.
2. How to reach new markets and attract new consumers (decentralization)
3. How to diversity products and services.
4. How to ensure that the firm meets the legal requirement set forth by the law makers.
5. How to maintain long term relationship with the distributors.
III. Analysis
A. External Threats
1. A major legal threat for Dr. Pepper comes from the banning of cyclamate by the government, which is the ingredient used in Diet Dr. Pepper. The company has no control over politics and laws set forth by the government.
2. A possible threat can be seen by external investors who might revaluate the current value of Dr. Pepper’s stock due to the psychological impact of ban on saccharine. Saccharine is a major component of Sugar