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Dr. Pepper/Snapple

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by

Dilbert Quad

on 25 November 2013

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Transcript of Dr. Pepper/Snapple

An Analysis of the US Soft Drink Industry
with a Focus on Dr. Pepper/Snapple
Competitive Structure
3 Main Competitors
Coca Cola
Pepsi Cola
Dr. Pepper Snapple Group

High Level of Competition
Internal Competition
External Competition
Juice
Energy Drink
Ready to Drink Tea

Market Segmentation
Sales To Different Stores
Main Customers
Grocery Stores
Gas Stations & Convenience Stores
Warehouse clubs & Supercenters
Demand Determinants
Lifestyle
Economy Status
Level of Income
Success of Marketing




Product Development
and Distribution

Research and Development

Goal of adding value
Turning traditional beverages into packaged drink
Introducing brand to new regions
Important for growth
New product choices facilitate growth
Enter untapped markets using niche products
Products change to match trends
Healthier drinks
Exotic flavors
Marketing

Segmenting
CSDs
Sports Drinks
Fruit Juices
Targeting
Ages groups
Income groups
Ethnic groups
Positioning
Health conscious
Higher quality
Production and Distribution
Manufacture syrups
Outsource to bottlers to mix syrup with carbonated water and put in containers
Ship to distribution centers
Important source of economies of scale
Can provide competitive advantage

Company Growth
DPS five year return of 109.56%
Focus on diversified flavor portfolio is successful


Main driver of growth
Expertise in sweeteners and flavors
Commitment to research and development
Recent Release: TEN products

Marketing

Focus on developing programs to excite customers and attract new consumers
Utilize wide range of mediums: advertising, sponsorships, merchandising, public relations, promotions and social media
Current Initiatives: Dr Pepper Tuition Giveaway, MillerCoors/Mission Foods partnership, Latin Grammy sponsorship

Production & Distribution Process

18 manufacturing facilities, 115 principal distribution centers in U.S.
3 manufacturing facilities, 7 distribution centers in Mexico
Manufacturing facilities strategically located
Align operations with customers
Reduce transportation cost
Increase control over timing and coordination of new product launches
Warehouses located near bottling plants

Mission & Vision

Mission: Undefined
Vision: Be The Best Beverage Business in the Americas
To achieve their mission, DPS has created an aggressive strategy that capitalizes on their brands’ focus on refreshment, fun and flavor

Growth Outlook

Capitalize on high-growth opportunities in ready-to-drink teas, energy drinks and functional beverages
Conduct brand extensions and new product launches
Acquire select brands and distributive rights

Porter's 5 Forces
Risk of Entry by Potential Competitors
High barriers- Low risk

Requires technology, specialist knowledge and economies of scale

Substitution Power
High # of competitors- High risk

Many competitors in the market, products are not unique


Competitive Rivalry
Many competitors, high customer loyalty- Moderate risk

Low switching costs
Quality and cost differences between brands

Buyer Power
Many buyers- High risk

Substitution of goods, price sensitive, and low cost of changing brands

Supplier Power
Several suppliers- Moderate risk

Several suppliers, and each have unique product that serves unique segment of consumers
Team 3 - Sherwin Chiu, Amanda Hatheway, Haley Hoekstra, Kristin Pasket
Product Development
Full transcript