Dr Pepper Snapple

618 Words3 Pages
In 2007, Andrew baker is charged with assessing whether or not a profitable market opportunity exist for a new beverage brand to be produced, distributed and marketed by the company in 2008. The decision to explore a new energy beverage is part of a corporate business strategy by which aims at focusing on opportunities in high-growth beverage businesses. Dr Pepper Snapple Group, Inc. has previously launched the Accelerade RTD brand, a ready-to-drink sport drink as a part of its strategy. Andrew Barker believes that the decision to introduce the Accelerade RTD brand into a new beverage market for the company is similar to the situation he faced with recommending whether or not Dr Pepper Snapple Group, Inc. should introduce a new branded product into the energy beverage market. In 2007, 89% of company net sales are generated in the US, 4% in Canada, and 7% in Mexico and the Caribbean. In the US and Canada, Dr Pepper Snapple Group, Inc. participates primarily in the flavoured carbonated soft drink market segment. In the non-CSD market segment in the US, the company participates primarily in the ready-to-drink teas, juice drinks, and mixer categories. There are seven key strengths used by the company which are strong portfolio of leading consumer-preferred brands, integrated business model, strong customer relationships, attractive positioning within a large, growing, and profitable market, broad geographic manufacturing and distribution coverage, strong operating margins and significant stable cash flows, experienced executive management team. There are six key elements of the Dr pepper Snapple group, inc. business strategy as described by the executive management. They are as follows: Build an enhance leading brands, focus on opportunities in high-growth and high-margin categories, increase presence in high-margin channels and packages, leverage the company’s

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