MARKETING PROBLEM: ENERGY BEVERAGESDR. PEPPER SNAPPLE GROUP, INC.

Professor: Assoc. Prof. Dr. Teoman DumanStudents: Ensar Mekić Lejla Šećerović

Starting question?

What do you see in this video?

DECIDE PROCESS...

Defining the problem Enumerating the decision factors Considering relevant information Identifying the best alternative Developing a plan for implementing

the chosen alternative Evaluating the decision and the

decision process

Defining the problem Andrew Barker is asking what to do? Shall Dr. Pepper Snapple Group, Inc. launch a new brand?

If answer on question „a“ is yes, answer on the following questions: 

What should be the target market? How should brand be positioned? What kind of Marketing Channel should be used? What should be selling price and channel margins? What ways of advertising and promotion to do?

If answer on question „a“ is no, what should company do in order to enter Functional Beverages Marketing Segment and: What should be the target market? How should brand be positioned? What kind of Marketing Channel should be used? What should be selling price and channel margins? What ways of advertising and promotion to do?

Enumerating the decision factors

STRENGTHS- wide scope of company operations,

- Strong portfolio of leading, consumer-preferred brands,

- Integrated business model,- Strong customer relationships,

- Attractive positioning within large growing and profitable market,

- Broad geographic and distribution coverage,- Strong operating margins and stable cash

flows,- Experienced executive management team

WEAKNESSES- no experience in segment of

Functional drinks market,- low budgets prevent to promote and advertise

products on high level like Red Bull and other competitors do.

OPPORTUNITIES

- generally energy beverages sales are

growing in USA,- opportunity for

innovation,- opportunities for making

additional acquisitions.

THREATS- strong competitors,

- traditional position of energy beverages, -dependancy on small number of large

retailers,- dependancy on third party bottling

companies,- distribution agreements could be

terminated,- people allergic on milk can not use the product since proteins are milk based.

SWOT

Considering relevant information Alternative 1 (RTD

Accelerade) Opportunity exists because of:

Differentiation Health Sportsmen

Extends endurance, Speeds Muscle Recovery, Reduces Muscle Damage, Enhances recovery.

Considering relevant information (cont.) Alternative 2 (Standard

Energy Drink)

Opportunity exists because of: Tradition Caffeine and identity Sportsmen, students, workers,

managers, IT experts... Psycho effect – heart beating

Identifying the Best Alternative

- Market Target and Company's strategy-Positioning of the product in heads of customer -Financial return

What should be the target market?

wide and in accordance with corporate business strategy

U.S. Population Profile and Energy Beverage Users in 2006

Adult Males, 35-44 years old and belong to Caucasian Race

Developing a Plan for Implementing the Chosen Alternative

How should brand be positioned?

energy boost, mental alertness, refreshment, and taste

Affordable packaging it in a completely new way

unseen before Different versions

Developing a Plan for Implementing the Chosen Alternative

What kind of Marketing Channel should be used?

Company needs to focus on both off and on-premises, it needs to use many channels such are supermarkets, mass merchandisers etc. and it should definitely take care of decreasing dependency upon small number of retailers.

Developing a Plan for Implementing the Chosen Alternative

What should be selling price and channel margins?

Use the benefits of elasticity of price, lower the price in order to overtake the market. In other words use Market Penetration strategy to enter the market and overtake valuable market share.

Developing a Plan for Implementing the Chosen Alternative

What ways of advertising and promotion to do?

Media adverstising and promotion, web communities, sponsorships.

Developing a Plan for Implementing the Chosen Alternative

Evaluating the decision

THANK YOU FOR YOUR ATTENTION