Research Methodology MGT656

CASE ANALYSIS: DR. PEPPER SNAPPLE GROUP, INCANIS EMALINA BINTI MARZUKISITI MAISARAH BINTI BAHARIMMUHAMMAD AFIQ BIN ABDULLAHWAN MOHD FARID HAKIMI BIN WAN DAUD

INTRODUCTION OF CASE STUDYDr. Pepper Snapple Group- Major domestic non-alcoholic beverage company in USExample of carbonated soft drinks: Dr. Pepper, 7UP, Sunkist, A&W and Canada DryExample of non- carbonated soft drinks: Snapple, Motts, Hawaiian Punch and ClamatoWant to explore energy beverage market

3DECISION MAKING PROCESSDDefine the problemECIDEnumerate the decision factorsConsider relevant informationIdentify the best alternative Develop a plan for implementing chosen alternativeEvaluate the decision and the decision processE

Define the problemObjective To enter the energy beverage market. ChallengeThe establish competitors that already sustained in the energy beverage market.Problem statementTo enter the energy beverage market whether or not a profitable market exist for the new beverage brand (energy drinks) to be produced, marketed and distributed by the company even though has greater competitors.

Existing New Existing Market Penetration Market DevelopmentNew New Offering DevelopmentDiversification Markets Offerings Product-Market Strategies

ENUMERATE THE DECISION FACTORCONTROLLABLEUNCONTROLLABLEPRODUCT

COMPETITORSPRICE

RESPOND FROM BUYERPLACE/DISTRIBUTIONMARKET SIZEPROMOTION

Consider relevant information

INTERNALStrengthsStrong portfolio

Customer loyalty

Strategic operating area

Experience management team

Health benefit

WeaknessesLack of traditional media element

Price are twice higher

Lack of uniqueness

Lack of funds to advertise

EXTERNAL Opportunity 51% male users

80% share market on regular energy beverage

Enhance on media advertisement

Public involvement

60%-66% gross margin wholesalers Threats 5 major dominant competitors

Obtain a new potential consumer

Price that can make them lost potential customer

Identify the best alternative 9DescriptionAlternative A Alternative BGender Male Female Age 12 34 35 54 Packaging Single-serve Multi-serve Version Regular Sugar-freeBrand PositioningPackaging IngredientsStock-Keeping Unit (SKU : 2 types) 1 size, 2 flavors1 flavor, 2 sizes Marketing ChannelOff-premise retailers On-premise retailers

Demand-Supply Relationship Price (Dollar)Quantity (unit)2.001.402.79SupplyDemand

EVALUATE THE DECISION & THE DECISION PROCESSDistributionThe companies impressive distribution chain would allow them to provide a product to consumers and be readily available to meet any rising demands.

Customer relationship/marketing channel Have strong relationship MANUFACTURERDISTRIBUTORWHOLESALERRETAILERCUSTOMER

MarketableLaunching a new product is a risk but not give a bad consequences if it not produce high profit for the company.

Advertising/ promotionWhen the company is at stable and one of the top competitor in the beverage industry, choice to promote the promotional items will be possible.