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Dr. Pepper Energy Drinks Case

MBA Università di Pisa - Marketing Management Project

Pedro Sanchez

on 30 May 2013

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Transcript of Dr. Pepper Energy Drinks Case

Promotion Product Place Price The Product Market Environment GENDER: Women & Men from U.S.A.
AGE: Between 12 and 55
RACE: Caucasian 66%
WHEN: Morning and Afternoon consumption,
Night life and excersice
WHERE: Home, car, work/school
WHY: Energy boost, mental alertness, refreshment
and taste Dr. Pepper Energy Drink Case Resources Arianna Jacqueline Pedro Leonardo Yang Dr. Pepper Snapple Group, Inc is a major integrated brand owner, bottler and distributor of nonalcoholic beverages in U.S, Mexico, and Canada

Net sales $ 5.748 billion with 89% generated in U.S. and 18.8% share in CSD market

Primary manufacturer of beverage concentrates and fountain syrups Executive Summary Main Products The 4° largest nonalcoholic beverage category in the U.S.

Energy beverages total retail sales in 2006 was $ 6.2 Billion Major Distribution channels off premises 71% of total retail sales, on premises 29% of total retail sales

From 2001 to 2006 average annual growth rate of 42.5% Megatrends U.S. market dominated by 5 major competitors

Competitors account for 94% of dollar sales and unit volume in the U.S Competitors SWOT Strengths Threats Weaknessess Opportunities Strong portfolio of brands

Strong customer relationships

Broad distribution and manufacturing centers

Stable cash flows

Experienced management team

Brand awareness New market

Low media exposure budget

Low product diversification Growing Market

Potential market not attended by competitors

Growing eco-friendly trends New competitors

Competition proliferation

Diminish of category value Segmentation
& Targeting Demographic Geographic Sociocultural Psychographic Age: 24-Above Medium – High Income Major Urban
Cities Energy Recharge
for multitasking Would it be a profitable market opportunity to produce, market and distribute a new energy beverage brand? Dr. Pepper
Snapple Group
has an idea! Why? 38% 19% 14% 15% 14% Recycling Environmental
Awareness Life-Easy Healthy
Lifestyle North America
Mainly U.S.A. Why? Positioning Most natural energy drink
Contemporary adult drink
Fashion Design
Premium Product
Environmental Friendly
Great flavor Natural Energy Recharge Drink
8.4 oz. aluminum bottle
Single Presentation
Regular / Sugar Free Versions Product Line Higher Thermal conductivity than glass

Easier to recycle

Logistics Ergonomy

Attractive Design Aluminum Can: Attributes Benefits Provides energy through vitamins & seeds

First energy drink directed towards contemporary adults

Availability (Conv. Stores, Super markets) Brand Association through Dr. Pepper Snapple Group

Tasty, natural & unique Sugar Free Regular Brand Association

Ingredient Quality


Differentiation Value-Based
Approach Skimming Price
Strategy High priced compared to other competitors

Price strategy based on quality product

Flexibility on price adjustment according to:
-Competitors Off-Premise 1-Level 2-Level Channel Availability

Right Time & Place

Expected 2008 80%
US mkt Coverage Place Strategies -BTL - POP (segmented & tailored message)
Involves consumers “Touch & taste” = brand awareness and more sales

-Online advertising
Interaction through social networks

-Interactive marketing and experiences
In-shop & sampling Advertising The budget required for this kind of communication is low compared to massive means, reduces costs, time, risk and provides quick results with high impact (ROI) Why This
Promotion? +Brand Awareness -Brand Awareness -Price +Price Smart Energy Regular
- Regular drink
- Dr. Pepper Flavored

Smart Energy Zero
- Zero Sugar
- Dr. Pepper Flavored Market
Share 17% 16% 15% 11% 8% Financial Data Become the leader brand for contemporary adult segment in 5Y (Top of mind of Energy Drinks)

Increase +15% average consumption/per year in the targeted segment (from 4.2 to 4.8)

Reach 15% market share in 3Y

Retain long term positioning
Marketing Objectives
Full transcript