'Dr. Pepper Snapple Group Inc.\r'

'Action purpose: Dr genus Capsicum Snapple conclave, Inc. Energy Beverages Action Plan: Dr rain buckets Snapple stem, Inc. Energy Beverages Inhoud Introduction. 3 Analysis. 3 The Market. 3 Competitors. 4 client behaviour. 4 selling Mix 4ps. 5 Product. 5 Place. 5 Price. 5 Promotion. 5 good word. 6 Tar give-up the ghost Market. 6 Product Line and locating. 6 Marketing. 6 Advertisements and Promotion. 6 Pricing. 7 Introduction The recital of Dr white pepper Snapple root Inc. is very complex, but whole started when Jean Jacob Schweppe invented the world’s very number 1 carbonated mineral water in 1783.A five-year-old pharmacist, Charles Alderton from Waco, Texas made Dr rain buckets in 1885. It was only interchange in the pharmacy where Alderton worked. In 1970 in the unfermented York -region health food store owners invented a radical apple soda, Snapple. The Unadulte localised Food Corporation possess Snapple and recentr it becomes Snapple Beverage Corp. Withi n the years companies were ripening and ownerships switch been changed and Dr Pepper Snapple Group Inc. has tracked from polar drinking companies. Today Dr Pepper Snapple Group Inc. is one of the most(prenominal) k straight offn and largest non-alcoholic beverage producers in the U.S. Dr Pepper Snapple Group Inc. is in twain the odored carbonated and the non-carbonated napped crapulence businesses. The most known shits be Dr Pepper, 7UP, A&W and Canada Dry. In 2007 Dr Pepper Snapple had an 18, 8 % sh be of the U. S. carbonated soft suck commercialize segment. Dr Pepper Snapple was the only big non-alcoholic beverage federation without its own vigour deglutition in 2008. essenti on the wholey Dr Pepper Snapple Group Inc. was struggling with a line of work whether it should produce its own ability beverage or not.The briny(prenominal) issue was would the launch of a innovativeborn power beverage be profitable and a wise investment for the future? Moreover, how laughingstock the stark naked efficiency drink compete with other long discolorations? There be several difficulties and elements to evaluate forward entering the force beverage grocery, such(prenominal) as the merchandise itself, antagonists, have gotr behaviour and marting. Analysis The Market The free zip beverage market is one of the fastest suppuration and most innovative segments of the period beverage market. release asshole, titan Energy, Rockstar and hundreds of similar positioned brands had estimated gross r scourue of 6. billion dollars in 2006. From 2001 till 2006 the annual growth rate of the zippo beverage market was 42. 5%. in time, analysts are now projecting an average annual growth rate of 10. 5% from 2007 till 2010. This, we conclude, is cod to market maturity, change magnitude price and change magnitude ambition. In addition, one should withal note that consumers in this market only read up to 1. 4 different brands, which tells us the market is very faithful to existing brands. If a brand feces build and master(prenominal)tain a decent customer base, they will benefit from allegiant come about buyers.The difficult part however is lease these patriotic customers. Due to the above mentioned conditions, we find it a workable statement to describe the energy beverage market as profitable but tough. The market back tooth buoy be segmented through three main attributes; demographic, geographic and psychographic. As for demographic, the most profitable customers are phallic between the age of 12 and 34. However, we can’t say anything towards the income level, race and ethnicity of the consumers due to miss of information. We further cogitate that energy beverages are in general onsumed in urban and suburban areas. If we in hand look at regions, we can state that the main ingestion of energy beverages takes place along the atomic number 74 and east coast of the US. Psychographic segmentation shows us that the main parts of the market, the greatest consumers of energy beverages, are gamers, students and athletes. These groups of pack look for an energy come on, to improve mental alertness, as refreshment and for the prove. Competitors The main competitor in the energy beverage market is reddish Bull.The brand was foregod in 1997 and was the pioneer of its time. Red Bull has a blue brand awareness due to its massive announce efforts. For specimen: Red Bull Stratos was a  quadriceps diving project involving Austrian skydiver Felix Baumgartner. Baumgartner broke the  grueling barrier on his descent, thus becoming the for the first time human to do so without any form of engine power. Eight million people viewed the Red Bull Stratos project live and hundreds of millions of people comprehend about it via every smorgasbord of media creating a massive publicity flow towards Red Bull.Currently Red Bull is the market leader, however, due t o high prices and the increased competition Red Bull is losing market share and sales. Hansen native Corporation (HNC) is another strong competitor. They produce and be a wide variety of non-alcoholic beverages in the U. S. However they are known for their energy drink: Monster, which we recognize as one of the most promising new energy drink brands. Recently HNC have benefited from dispersal agreements. For example: Anheuser-Busch wholesalers distributed the brand to retailers in different territories in the US in 2007.They also distribute to on-premise retailers. This includes bars, nightclubs and restaurants in territories selected by Hansen Natural Cooperation. Furthermore, Monster Energy directiones on a specific age group. They focus on gamers, Extreme Sports enthusiasts and the hip-hip crowd. This enables them a huge market, mostly with the playing period community. The last prominent competitor is Rockstar Inc. Rockstar was lay outd in 2001 and is distributed by the Co ca-Cola Company. Rockstar, alike Monster, focuses its efforts on the gaming and extreme sports community.As of 2008 Rockstar holds a 14% market share in the US and thus, it must be considered to be a competitor. Customer behaviour The heavy user of energy beverages can be described as male between the ages of 12 and 34. According to statistics, the average American would consume about 4. 32 litre of energy drink a month. The beverages are primarily consumed in the late afternoon and early in the morning. Most frequently, consumption takes place at home, in the car and at work/school. We can also state that doodad stores and supermarkets are the most dominant off-premises retail remove for energy beverages.The major reasons for the use of energy beverages are the need of an energy boost, for improving mental alertness, as refreshment and for taste. As previously stated, customers are loyal towards their brand though we still believe people will be willing to try a new harvest-fest ival if it seems interesting and appealing enough. If the authorization buyer is then satisfied with the product, through for example interesting brand, product fits their needs, is user-friendly and easy to access, loyal customers can be attained. Marketing Mix †The 4Ps ProductThe product is an energy drink which tastes good and gives a boost and refreshment to its users. The main ingredients which give the boost and taste are caffeine, guarana and taurine. Probably stevia could be used as a sweetener; because it differs from competitors sweeteners. The product should be able for men who are 12-34 years old. The package should be convenient, for example a store with a manage cap since no other brand has such packaging. Also the size of the package is very important, since the 8. 3-ounze is the most popular but 16-ounze size represents 50 % sales in convenience stores.Place Dr Pepper Snapple Group Inc. bottling and distribution system supplies both off-premise and on- prem ise retailers, but off-premise retailers are more potential and efficient to the new energy beverage. Off-premise retailers contain massive part of the whole energy beverage sales. Price 2, 00$ per virtuoso-serve package is the normal retail price in the energy beverage intentness regardless of package size. Promotion In effect to launch the new energy beverage, introductory media publicizing and promotion expenditures are essential.Even though Dr Pepper Snapple Group can’t afford the said(prenominal) kind of expensive marketing and sport sponsorships as their competitor Red Bull does, but by using efficient channels the new energy drink can still reach potential customers. Recommendation Target Market When Dr Pepper Snapple Group Inc. decides to introduce a new energy beverage on the market we inspire them to focus on male consumers between the age of 12 and 34. These consumers are, according to the statistics, the most profitable. They consume about 4. 32 litres of en ergy drink a month.The main consumers in this target market would be gamers, students and athletes. Furthermore, we remember that Dr Pepper Snapple Group Inc. should focus on consumers that consume their energy beverage at home. We believe it is now very difficult to get a stronghold in on-premises as they are very loyal towards Red Bull and Monster energy drinks and therefore advise to focus on off-premises for selling the energy beverage. Product Line and Positioning When it comes down to the product line of Dr Pepper Snapple Group Inc. nergy beverages, we recommend they should firstly stick out one flavour of energy beverage. This flavour can come both in a regular and sugar-free version. Furthermore, we recommend they should introduce a single-serve aluminium bottle shape with a resealable screw cap. By introducing this bottle we believe Dr Pepper Snapple Group Inc. can diversify from its competitors as they all have aluminium cans that upon opening can’t be closed. Fur thermore, these bottles should be offered as a single serve to the consumers and with a 8-ounce content.We recommend that the brand should firstly get a stronghold onto the energy beverage market before offering multipacks and maybe even bigger sized bottles to its consumers. This also includes for introducing different kinds of energy beverages. These can be introduced onto the market when they have a build a strong and loyal brand. The current brands offer its consumers â€Å"Energy” and â€Å"Mental Alertness” as benefits for drinking their energy beverages. As a emulous advantage Dr Pepper Snapple Group Inc. could offer an increased amount of caffeine, herbs and B vitamins per 8-ounce servings.Marketing Advertisements and Promotion In come in to launch the new energy beverage, an introductory media advert and promotion expenditures are essential. Even though Dr Pepper Snapple Group can’t afford the same kind of expensive marketing and sport sponsorships a s their competitor Red Bull does but by using efficient channels the new energy drink can reach the potential customers. We recommend the use of social media like Facebook and Twitter. Dr Pepper Snapple Group Inc. has a free way to communicate with their potential consumers via social media.They have the opportunity to start contender and create a loyal group of followers. Furthermore, we recommend Dr Pepper Snapple Group Inc. to sponsor aftermaths to gain high brand recognition. Moreover, the bottle is an interesting way of getting the assist by having contest if they buy the bottle they can win tickets to a certain event which they could sponsor. Pricing When it comes down to pricing we recommend to be in the $2. 00 range. This price is offered by most of its competitors and is a price consumers are willing to pay for an energy beverage.However, we also think there is a theory to have discounts or: â€Å"buy three bottles get one free” pricing to get the attention of t he consumer. We also recommend tosee if an agreement can be made with large retailers such as Walmart to offer value packs at lower prices, this of course when the brand is settled in the market. In the end we believe that if Dr Pepper Snapple Group Inc. follows these recommendations here above they have will have an energy beverage that can compete in the current energy beverage market and be one of the main competitors due to its diversified product- and price offering.References Kerin, R. & Peterson R. (2013). strategic Marketing Problems: Cases and Comments. Pearson. ——————————————†[ 1 ]. Kerin, R. & Peterson R. (2013). Strategic Marketing Problems: Cases and Comments. Pearson. [ 2 ]. Kerin, R. & Peterson R. (2013). Strategic Marketing Problems: Cases and Comments. Pearson. [ 3 ]. Kerin, R. & Peterson R. (2013). Strategic Marketing Problems: Cases and Comments. Pearson. g ive away 2. [ 4 ]. Kerin, R. & Peterson R. (2013). Strategic Marketing Problems: Cases and Comments. Pearson. Exhibit 2.\r\n'