Energy Drink Launch

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Dr. Pepper Snapple Group – Energy Beverages MBA 630 Marketing Strategy Case 1 It is believed that bottlers and distributors will only produce and stock 2 SKU's of a new energy drink. Given there are 24 possible combinations of packaging (2: single-serve, multi-pack), package sizes (3: 8, 16,24), versions (2: regular, sugar free), flavors (2: one, two). Discuss which 2 combinations should be selected and through which channels should they be distributed? SKU 1: Single-serve, 16 oz, Regular, One Flavor SKU 2 Single-serve, 16 oz, Sugar-free, Same Flavor Packaging: Single-Serve. This will allow us to sell in convenience stores, the largest channel by sales percentage. By selling in convenience stores, our goal to have a product with a high profit margin will be obtainable. Single-serve products and convenience stores yield the highest-profit. Package size: 16 oz. This is the fastest growing packing size of energy drinks, and accounts for 50% of convenience store sales. More research should be conducted to find if the 16.9 oz. aluminum with resealable screw cap is an option the market finds attractive, as this feature can differentiate our product. Versions: Regular and Sugar-free. Choosing this will allow us to target both the 80% of the market that prefer regular and the 20% that prefer sugar-free. Flavors: One flavor because there are several energy drink beverages already on the market. We believe it is better to have one strong initial offering which can lead to the expansion of flavors after the initial version obtains ground in the market. Channel: We want to launch our brand in convenience stores, as this has the highest share of market sales with 52.5%* of total market coverage. We will be able to reach the largest amount of consumers through them, while remaining consistent with the company objective to be in high profit areas. Our offering of two SKUs

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