Dr. Pepper Case Analysis
I. Define the Problem Central Problem
Dr Pepper Snapple faced problems deciding whether the company should enter into the energy drink market. The energy drink market is a high growth and high-margin business. Recent rise in such functional drinks has Dr Pepper wanting to tap into this fast growing market. Dr. Pepper is one of the only major domestic carbonated soft drink companies that have not introduced a line of energy drinks. The challenge Dr Pepper Snapple faces is what would be the best way for it to market a new energy drink product. The company simply does not have the income to compete in advertising against Red Bull. Sub Problem Dr Pepper is indecisive about what market it wants to target. The energy drink market range from males ages 12 to 34. Dr pepper is trying to decide whether or not it would be good to target the existing market are restructure the drink and make it more segmented to an older group of people. In deciding, it must focus on the flavors and ingredients that will differentiate the product from its competitors. II. Relevant Information
Characterize the Industry The energy drink is a consumer product that satisfies the need for consumers to enhance their energy. There are several competitors in the energy drink market. Red Bull being the leader, followed by Monster. The main purpose of this product is to provide the user with energy. Most consumers drink energy drinks in the morning to get them going or in the afternoon. Some users drink energy drinks to help them stay focused and alert throughout their workday. Others use it to boost energy before going to the gym to perform a high intense workout. Some people even add energy drinks to alcohol while out partying, to help them stay alert. Energy drink companies aren’t changing constantly, but there are lots of new companies entering the market, making it extremely competitive. The product line requires new companies like Dr Pepper Snapple to
Dr Pepper Snapple faced problems deciding whether the company should enter into the energy drink market. The energy drink market is a high growth and high-margin business. Recent rise in such functional drinks has Dr Pepper wanting to tap into this fast growing market. Dr. Pepper is one of the only major domestic carbonated soft drink companies that have not introduced a line of energy drinks. The challenge Dr Pepper Snapple faces is what would be the best way for it to market a new energy drink product. The company simply does not have the income to compete in advertising against Red Bull. Sub Problem Dr Pepper is indecisive about what market it wants to target. The energy drink market range from males ages 12 to 34. Dr pepper is trying to decide whether or not it would be good to target the existing market are restructure the drink and make it more segmented to an older group of people. In deciding, it must focus on the flavors and ingredients that will differentiate the product from its competitors. II. Relevant Information
Characterize the Industry The energy drink is a consumer product that satisfies the need for consumers to enhance their energy. There are several competitors in the energy drink market. Red Bull being the leader, followed by Monster. The main purpose of this product is to provide the user with energy. Most consumers drink energy drinks in the morning to get them going or in the afternoon. Some users drink energy drinks to help them stay focused and alert throughout their workday. Others use it to boost energy before going to the gym to perform a high intense workout. Some people even add energy drinks to alcohol while out partying, to help them stay alert. Energy drink companies aren’t changing constantly, but there are lots of new companies entering the market, making it extremely competitive. The product line requires new companies like Dr Pepper Snapple to
Cited: Kerin, Roger, and Robert A. Peterson. Strategic Marketing Problems. 12th ed. New Jersey: Pearson Prentice Hall, 2010. Kotler, Pilip, and Prentice Gary Armstrong.Principles of Marketing. 13th ed. New Jersey: Pearson Prentice Hall, 2010.