Dr Pepper Snapple Group Case Summary
Case Analysis
Dr. Pepper Snapple Group, Inc.: Energy Beverages
1. How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007?
The energy beverage category was the fourth largest nonalcoholic beverage category in America during 2006. While it wasn’t among the top three, it was the fastest growing beverage category. The energy beverage market is primarily led by three big name brands including Red Bull, Monster Energy, and Rockstar. This market also encompasses over a few hundred smaller name brands that position themselves very similarly to the top name brands. All of these brands together proudly boasted estimated retail dollar sales of over $6 billion …show more content…
Pepper Snapple Group launched the Accelerade RTD brand, a ready-to-drink sports drink. Andrew Barker, a brand manager for Snapple beverages, believed that this move could set a precedent for the potential introduction of a newly branded Snapple product into the energy beverage market. Therefore, Barker studied the Accelerade RTD launch in the hopes of gaining better insight as to his recommendation for Snapple to launch an energy beverage product.
2. Does your characterization bode well for a new energy beverage brand introduction generally and for Dr. Pepper Snapple Group, in particular?
After careful analysis, the energy beverage market seems to be very crowded and doesn’t appear to have room for another key player to make an entrance- especially since there are so many other unknown brands already in the market. While the Dr. Pepper Snapple Group does have clout and performs well in other product categories, the energy beverage market boasts three-five big names that have been relevant since the emergence of the market. Entering into the market this late in the game might not bode well for …show more content…
What product should be introduced and how should it be positioned/differentiated?
An energy drink aimed at teenagers in high school and college should be introduced. However, there should be two product offerings: one energy drink should be focused on giving a focused energy for school work and the other energy drink should aim to give users hype for having a good time. Therefore, the product is reaching the segmented age but also remaining attractive for both lifestyles that teenagers live.
5. Through which channel(s) should a new energy beverage brand be distributed? According to the channel characterization I conducted earlier, the best way to distribute this new product would be as off-premise sales, through convenience stores, supermarkets and mass merchandisers. These channels account for over 70% of sales in the energy beverage market and are the most convenient to a teenager’s lifestyle. Utilizing DPSG’s current distribution network and channels would also be the most efficient and effective was to distribute.
6. What dollar amount for media advertising and promotion should be budgeted for a new energy beverage
Dr. Pepper Snapple Group, Inc.: Energy Beverages
1. How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007?
The energy beverage category was the fourth largest nonalcoholic beverage category in America during 2006. While it wasn’t among the top three, it was the fastest growing beverage category. The energy beverage market is primarily led by three big name brands including Red Bull, Monster Energy, and Rockstar. This market also encompasses over a few hundred smaller name brands that position themselves very similarly to the top name brands. All of these brands together proudly boasted estimated retail dollar sales of over $6 billion …show more content…
Pepper Snapple Group launched the Accelerade RTD brand, a ready-to-drink sports drink. Andrew Barker, a brand manager for Snapple beverages, believed that this move could set a precedent for the potential introduction of a newly branded Snapple product into the energy beverage market. Therefore, Barker studied the Accelerade RTD launch in the hopes of gaining better insight as to his recommendation for Snapple to launch an energy beverage product.
2. Does your characterization bode well for a new energy beverage brand introduction generally and for Dr. Pepper Snapple Group, in particular?
After careful analysis, the energy beverage market seems to be very crowded and doesn’t appear to have room for another key player to make an entrance- especially since there are so many other unknown brands already in the market. While the Dr. Pepper Snapple Group does have clout and performs well in other product categories, the energy beverage market boasts three-five big names that have been relevant since the emergence of the market. Entering into the market this late in the game might not bode well for …show more content…
What product should be introduced and how should it be positioned/differentiated?
An energy drink aimed at teenagers in high school and college should be introduced. However, there should be two product offerings: one energy drink should be focused on giving a focused energy for school work and the other energy drink should aim to give users hype for having a good time. Therefore, the product is reaching the segmented age but also remaining attractive for both lifestyles that teenagers live.
5. Through which channel(s) should a new energy beverage brand be distributed? According to the channel characterization I conducted earlier, the best way to distribute this new product would be as off-premise sales, through convenience stores, supermarkets and mass merchandisers. These channels account for over 70% of sales in the energy beverage market and are the most convenient to a teenager’s lifestyle. Utilizing DPSG’s current distribution network and channels would also be the most efficient and effective was to distribute.
6. What dollar amount for media advertising and promotion should be budgeted for a new energy beverage