Dr. Pepper Case Study
9/24/15
1. Explain management’s vision for DPS and its associated strategies. What has the company done to implement those strategies? Management’s vision for DPS was to establish themselves as leader brand among other nonalcoholic beverage brands. In order to become a leader in the nonalcoholic beverage industry, DPS management came up with strategies that included improving their operating efficiency, strengthen their distribution channels, focusing on their improvement and growth within high margin categories, and increase as well as enhance their leading brands within high margin channels.
In order to carry out the strategies for their vision, DPS management mainly focused their energy in marketing. DPS decided to invest in their “core brands and focus their marketing budget on brand development, availability, and advertising” (Harrison, 2011 p. 4). DPS management invested in new product development including Hydrive Energy …show more content…
Explain the relative competitive positions of DPS, Coke, and Pepsi?
DPS competitive position is the various options DPS beverages provides to their consumers in respects to lower calorie beverages. DPS has a “market share of 40 percent in the non-cola carbonated soft drink category” (Harrison, 2011 p.3) including Mott’s, Snapple, Déjà Blue, Nantucket Nectars and Country Time. DPS also has a line of energy drinks including Hydrive Energy and Venom as well as Snapple Antioxidant water.
Coke’s competitive advantage is that it has stronger and better-known brand image. Coke concentrates on their international presence spending time and money on technological advances and marketing. “Coke collects about 74 percent of its sales outside of North America” and “Coke is the largest manufacturer, distributer, and marketer of nonalcoholic beverage concentrates and syrups in the world” (Harrison, 2011 p.10). The Coke brand owns 500 other brands, making their reach and notoriety much stronger than their