Dr Pepper Case Study Essay

5107 Words Mar 17th, 2012 21 Pages
1.0 Company background
1.1 Overview
From the invention of the first soft drink more than 200 years ago to some of the industry's most beloved beverage brands, Dr Pepper Snapple Group (DPS) has a proud legacy of innovation, bold and distinct flavors, and entrepreneurial spirit.

On May 7, 2008, DPS became a stand-alone, publicly-traded company on the New York Stock Exchange as the result of a spin-off by Cadbury, plc which held the Cadbury Schweppes Americas Beverages business group of entities.

One of North America's leading refreshment beverage companies, DPS markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a
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In the attempt to create and market a new energy drink that aligns itself with the corporate mission. It is critical to focus on improving its product presence in high-margin channels such as convenient stores, vending machines, and other independent retail outlets. Although Dr. Pepper Snapple Group, Inc. is developing a product in a market that has been established since the 1980’s, the industry has seen most of its growth in the past 10 years. With hundreds of offerings, Dr. Pepper Snapple Group, Inc. must provide the right product offering to the right consumer at the right time.
1.5 Strategic Issue and problems
In late May 2007, the Company has launched the Accelerate RTD Brand, a ready to drink sport drink. Andrew Baker believed that the decision to introduce the Accelerate RTD Brand into a new beverage market for the Company (sport drink) was 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.
Dr. Pepper Snapple Group, Inc. has an opportunity in the energy drink market space to compete. The main advantage the company has today is its 200 year experience in the beverage industry. It has extensive manufacturing and bottling facilities in the U.S. with a national distribution network already set up. The company is the third largest beverage supplier in the United States and has

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