Dr. Pepper Snapple Energy Drink Essay

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Dr. Pepper Snapple Group Inc. Case Report The Dr. Pepper Snapple Group Inc. executives want brand manager Andrew Barker to look into the possibility of their company entering the energy beverage market. Dr. Pepper Snapple previously has distributed Monster Energy for Hansen Natural Corporation. This will end in November of 2008. Decision Problem Mr. Barker understands there would be many decisions that needed to be made in order for his company to enter a new market. He must first asses if there is a profitable opportunity to launch a new brand in the current energy beverage market. If an opportunity exists he must then create a marketing strategy built around a new brand that can be successful in the market. Then he must forecast the first year’s sales and profits of the new brand. Strategic Options Mr. Barker has two options to recommend to the executives of the Dr. Pepper Snapple Group. He can recommend that the company does not launch a new brand as there is not a profitable opportunity. Or he can recommend that they launch a new brand into the market with a specific marketing strategy. Analysis Target Market: In the United States there are approximately 43 million energy drink users. The main users of energy drinks are males from the age of 12 to 34. They comprise 70 percent of the market. Every energy brand, with the exception of Tab energy, focuses on this demographic. Energy brand drinkers choose 1.4 brands meaning that they are very loyal to a specific brand within this market. Product Strategy: Currently brands are offering two varieties of energy drinks. They are either regular or sugar-free. Regular varieties comprise 80% share of the market compared to a 20% share of the market for sugar-free varieties. The product can be in various sizes and types of packaging. Single serve packages and multipacks are available for consumers to purchase.

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