The document is a project report on strategic management for Dr Pepper Snapple Group. It includes the company's vision and strategy, which focuses on building brands, executing with excellence, and continuous improvement. An external analysis identifies opportunities like expanding into new markets and threats such as strong competition from Pepsi and Coca-Cola. Matrices are used to evaluate the company's external factors and competitive position. Recommendations and an action plan are proposed.

1. PROJECT REPORT OF STRATEGIC MANAGEMENT
ON
BY:
FIZA IQBAL MALIK
KOMAL HASAN
MAMUNA TAHIRI
UROOJ FATMA
SUBMITTED TO: SIR SHAMEEL ZUBERI
DATED: 6th
DECEMBER 2016

2. Table of Contents
Vision................................................................................................................................................3
Strategy .............................................................................................................................................3
New Vision and Mission Statement .....................................................................................................5
External Audit:...................................................................................................................................5
Competitive profile Matrix (CPM).......................................................................................................7
External Factor Evaluation (EFE) ........................................................................................................8
STRENGTH & WEAKNESSES:.......................................................................................................10
Internal Factor Evaluation (IFE) ........................................................................................................11
SPACE Matrix .................................................................................................................................15
Grand Matrix....................................................................................................................................16
Quantitative Strategic Plan Matrix (QSPM)........................................................................................17
RECOMMENDATIONS:.................................................................................................................20
AN ACTION PLAN (IMPLEMENTATION).....................................................................................21
Potential Outcomes...........................................................................................................................22
RECOMMENDED OBJECTIVES & POLICIES:...............................................................................22
PROCEDURE FOR STRATEGY REVIEW & EVALUATION:.........................................................24

3. Vision
At Dr Pepper Snapple Group, it is their vision ‘to be the best beverage business in the Americas’.
Their brands have been synonymous with refreshment, fun and flavor for generations, and their
sales are poised to keep growing in the future.
Strategy
Their strategy reflects and builds upon our position as the leading flavored beverage business in
the U.S. Accordingly, we focus on:
1. Building our brands
2. Executing with excellence
3. Rapid Continuous Improvement
The key elements of their business strategy are to:
Build our brands. We have a well-defined portfolio strategy to allocate our marketing and sales
resources. We use an ongoing process of market and consumer analysis to identify key brands that
we believe have the greatest potential for profitable sales growth. We continue to invest most
heavily in our key brands to drive profitable and sustainable growth by strengthening consumer
awareness, innovating against our brands to take advantage of evolving consumer trends,
improving distribution and increasing promotional effectiveness. We also focus on new
distribution agreements for emerging, high-growth third party brands in new categories that can
use our manufacturing and distribution network. We provide these new brands with distribution
capability and resources to grow, and they provide us with exposure to growing segments of the
market with relatively low risk and capital investment.

4. Execute with excellence. We are focused on improving our product presence in high margin
brands, products and channels, such as convenience stores, vending machines and small
independent retail outlets, through increased selling activity. We also intend to increase demand
for high margin products like single-serve packages for many of our key brands through increased
in-store activity. We believe our integrated brand ownership, manufacturing and distribution
business model provides us opportunities for net sales and profit growth through the alignment of
the economic interests of our brand ownership and our manufacturing and distribution businesses.
We intend to continue leveraging our integrated business model to reduce costs by optimizing
geographic manufacturing and distribution coverage and to be more flexible and responsive to the
changing needs of our large retail customers by coordinating sales, service, distribution,
promotions and product launches. Strengthening our route-to-market will ensure the ongoing
health of our brands. We continue to invest in information technology ("IT") to improve route
productivity and data integrity and standards. With third party bottlers, we continue to deliver
programs that maintain priority for our brands in their systems.
Rapid Continuous Improvement. We have been able to create multi-product manufacturing
facilities which provide a region with a wide variety of our products at reduced transportation and
co-packing costs. In 2011, we adopted our Rapid Continuous Improvement ("RCI"), which uses
Lean and Six Sigma methods to deliver customer value and improve productivity. We believe RCI
is a means to achieve revenue and net income growth and increase the amount of cash returned to
our stockholders.

5. New Vision and Mission Statement
Vision
To be the best beverage business in the world.
Mission
Their mission would be to strive and thrive in the existing and contemporary market of beverage
industry. For them sky is not the limit. The simply make the drinks that consumers only want to
drink.
External Audit:
Opportunities
1. DPS has great opportunities for growth owing to the exposure to international markets.
2. Sale of DPS products enable people to have more discretionary income.
3. With more acquisitions or alliances in other parts of the world the company can enhance
its revenues.
4. Increase in production of bottled water to meet the need of the market.
5. Dr pepper Snapple Group can explore new emerging markets like fast growing BRIC
nations (Brazil, Russia, India and China) with steadily growing appetite for carbonated
drinks, water and low caloric drinks.
6. Introduction of more innovative products other than beverages according to the taste and
demand of native people.
7. With healthy products from Dr Pepper Snapple group, they can enhance the reputation of
the company among healthy conscious groups such as juices and non-carbonated drinks.

6. 8. The growing use of electronic technological innovations, global communication is rapidly
increasing. This allows firms to collaborate within the country market and expand
internationally into world markets.
9. Growing Energy drinks and shot markets.
Threats
1. Government policies and regulations affect business development and growth. Products
have to be consistent with the USDA’s dietary guidelines and adhere to FDA’s standards
for health claims.
2. Due to the current post-recession economy, growth is expected to be slow since existing
demand patterns are expected to change as consumers become more health conscious.
3. The biggest rival of Dr Pepper Snapple Group in the field of carbonated drink is Pepsi and
Coca Cola.
4. Coca Cola drew in a revenue of $35.119 billion by the end of 2010, Pepsi Co increased
their revenue over 30% in 010 while Dr pepper Snapple group only increased by a meagre
1.89% in 2010.
5. Reduced use of carbonated drinks may decrease the company’s revenues.
6. Limited market opportunities in North America can also affect the sales of the company.
7. Loss of partner bottlers and distributors, with 40% of their distribution network in the hands
of competitors.

7. 8. The effect of Socio-cultural trend towards healthier lifestyles
9. Increase in price of fuel along with increase in price of other commodities can also affect
the price of products of the company.
Competitive profile Matrix (CPM)
DPS Pepsi co Coca Cola
Critical Success Factors Wight Rating Score Rating Score Rating Score
Distribution 0.08 1 0.08 4 0.32 4 0.32
Global presence 0.10 1 0.10 4 0.40 4 0.40
Brand Loyalty 0.07 3 0.21 3 0.21 4 0.28
Market Share 0.10 1 0.10 4 0.40 4 0.40
Price Competitiveness 0.08 1 0.08 4 0.32 4 0.32
Product Innovation 0.04 3 0.12 3 0.12 4 0.16
Shareholder’s Equity 0.12 1 0.12 4 0.48 4 0.48
Size of organization 0.08 2 0.16 4 0.32 4 0.32
Advertising 0.08 2 0.16 4 0.32 3 0.24
Healthy Drinks 0.05 3 0.15 1 0.05 1 0.05
Financial Profit 0.12 1 0.12 4 0.48 4 0.48
High Capital Investment 0.08 2 0.16 3 0.24 4 0.32
Total 1.56 3.77 3.66

8. External Factor Evaluation (EFE)
Opportunities Weight Rating Weightage Score
Sales of DPS products enables
people to have ore discretionary
income
0.05 2 0.10
Growth opportunity in
international markets
0.10 1 0.10
Revenue enhancement due to
Acquisitions and alliances
0.06 2 0.12
Customization 0.05 3 0.15
Increasing healthy products on
product line giving a good brand
image
0.08 4 0.32
Increase in production of bottled
waters to meet needs of market
0.07 4 0.28
Rapid increase of Electronic
communication and rapid global
communication
0.05 1 0.05
Growing energy drinks and short
markets
0.06 1 0.06
Government policies and
regulations affects business
development and growth
0.05 3 0.15

9. Threats
Biggest rival Coca Cola and Pepsi
Co
0.10 1 0.10
Limited market opportunity in
North America can affect the sales
of company
0.05 1 0.05
Socio Cultural trends toward
healthier drinks
0.05 4 0.20
Increasing price of fuel and other
commodities
0.06 1 0.06
Lesser amount of revenue increase
that its biggest competitors
0.10 1 0.10
Slow growth due to recession 0.03 2 0.06
Loss of partners(distributors),
40% of distribution network in the
hands of competitors
0.10 2 0.20
Total 1.00 2.10
The results 2.10 shows that the company is responding to external challenges but not too much.

10. STRENGTH & WEAKNESSES:
Strength
 Strong Research and development
 Strong operating margins and significant, stable cash flows
 Strong customer relationship
 Strong recognizable beverage brands in a number of markets
 Strong market position
 After separation form Cadbury continued ability to focus resources on their beverage
business
 Alignment with multiple levels of operations
 Experienced management team in LRB industry
Weaknesses
 Small size as compare to its competitors
 Focus only on carbonated drinks rather than alternate beverages
 85% of revenues acquired from North America
 Lack of international exposure
 Excessive dependence on few market players

11. Internal Factor Evaluation (IFE)
Weight Rating Weighted Score
Strength
Strong Research and
development
0.06 4 0.24
Strong operating
margins and
significant, stable cash
flows
0.08 4 0.32
Strong customer
relationship
0.03 4 0.12
Strong recognizable
beverage brands in a
number of markets
0.10 4 0.40
Strong market position 0.10 4 0.40
After separation form
Cadbury continued
ability to focus
resources on their
beverage business
0.07 4 0.28

12. Alignment with
multiple levels of
operations
0.07 3 0.21
Experienced
management team in
LRB industry
0.03 4 0.12
Weaknesses
Small size as compare
to its competitors
0.07 4 0.28
Focus only on
carbonated drinks
rather than alternate
beverages
0.10 2 0.20
85% of revenues
acquired from North
America
0.10 1 0.10
Lack of international
exposure
0.03 4 0.12
Excessive dependence
on few market players
0.08 1 0.08
Total 1.00 2.87
The score 2.87 shows that the company is much responsive to internal challenges.

13. SWOT Matrix
Strength
 Strong Research and
development
 Strong operating
margins and
significant, stable cash
flows
 Strong customer
relationship
 Strong recognizable
beverage brands in a
number of markets
 Strong market position
 After separation form
Cadbury continued
ability to focus
resources on their
beverage business
 Alignment with
multiple levels of
operations
 Experienced
management team in
LRB industry
Weakness
 Small size as compare to
its competitors
 Focus only on
carbonated drinks rather
than alternate beverages
 85% of revenues
acquired from North
America
 Lack of international
exposure
 Excessive dependence on
few market players
Opportunity
 Sales of DPS products
enables people to have
ore discretionary
income.
 Growth opportunity in
international markets.
 Revenue enhancement
due to Acquisitions and
alliances.
 Customization.
 Increasing healthy
products on product line
SO
 Acquire suppliers in
other parts of the world
(S7, O3).
 Increase advertising
costs to reach global
(S2, O2).
 Build and enhance
leading brands, by
investing in innovating
and developing these
brands to match
consumer preferences
(S3, S4, S5)
WO
 Enter into the bottled
water markets (W2, O6)
 Strengthen the
distribution network in
the BRIC nations by
signing exclusive
agreement with local
distributors.
 Focus on opportunities in
high growth and high
margin
category.(W2,O4,O5,O6)

14. giving a good brand
image.
 Increase in production
of bottled waters to
meet needs of market.
 Rapid increase of
Electronic
communication and
rapid global
communication
 Growing energy drinks
and short markets
Threat
 Government policies
and regulations affects
business development
and growth
 Biggest rival Coca Cola
and Pepsi Co
 Limited market
opportunity in North
America can affect the
sales of company
 Socio Cultural trends
toward healthier drinks
 Increasing price of fuel
and other commodities
 Lesser amount of
revenue increase that its
biggest competitors
 Slow growth due to
recession
 Loss of
partners(distributors),
40% of distribution
network in the hands of
competitors
ST
 Market to consumer
more readily the
healthier products of
DPS (S3, S5, T1, and
T5).
 Use management
expertise (S8, T5).
WT
 Aggressive
advertisement to compete
with competitors (W3,
T3, T6).
 Creative and market
variety of functional
products (W1, T7).

15. SPACE Matrix
Financial Position Score Competitive Position Score
Cash flow 4 Market share -4
Working capital 2 Product quality -1
Inventory turnover 7 Customer loyalty -3
EPS 3 Technology know-how -4
Leverage 3 Product lifecycle -2
Liquidity 2 Capacity utilization -4
3.50 -3.00
Stability Position Score Industry Position Score
Technological changes -3 Growth potential 3
Rateof inflation -3 Profit potential 3
Demand variability -4 Financial stability 4
Competitivepressure -3 Extent leverage 4
Barriersto entry -6 Resourceutilization 3
Priceelasticity of demand -5 Easeof entry into market 5
-4.00 3.67
FP
Conservative Aggressive
CP IP
Defensive Competitive
Dr. Pepper Snapple
SP

16. Grand Matrix
Quadrant II Quadrant I
Dr. Pepper Snapple
Quadrant III Quadrant IV
Possible strategies for “Quadrant I” are:
 Forward integration
 Backward Integration
 Horizontal integration
 Product Penetration
 Market Development
 Product Development
 Related Diversification

17. Quantitative Strategic Plan Matrix (QSPM)
Opportunities Weight AS TAS AS TAS
1 Sales of DPS products enables people to have
ore discretionary income.
0.05 4 0.20 2 0.10
2 Growth opportunity in international markets. 0.10 4 0.40 1 0.10
3 Revenue enhancement due to Acquisitions and
alliances.
0.06 4 0.24 1 0.06
4 Customization 0.05 1 0.05 4 0.20
5 Increasing healthy products on product line
giving a good brand image.
0.08 1 0.08 4 0.32
6 Increase in production of bottled waters to
meet needs of market.
0.07 1 0.07 4 0.24
7 Rapid increase of Electronic communication
and rapid global communication.
0.05 4 0.20 2 0.10
8 Growing energy drinks and short markets 0.06 1 0.06 4 0.24
Threats
Government policies and regulations affects
business development and growth
0.05 1 0.05 4 0.20
Biggest rival Coca Cola and Pepsi Co 0.10 3 0.30 1 0.10
Limited market opportunity in North America
can affect the sales of company
0.05
Socio Cultural trends toward healthier drinks 0.05 2 0.10 4 0.20

18. Increasing price of fuel and other commodities 0.06 0 0 0 0
Lesser amount of revenue increase that its
biggest competitors
0.10 4 0.40 1 0.10
Slow growth due to recession 0.03 1 0.03 4 0.12
Loss of partners(distributors), 40% of
distribution network in the hands of
competitors
0.10 0 0 0 0
Strength
Strong Research and development 0.06 2 0.12 4 0.16
Strong operating margins and significant,
stable cash flows
0.08 3 0.24 1 0.08
Strong customer relationship 0.03 4 0.12 3 0.09
Strong recognizable beverage 0.10 4 0.40 1 0.10
Strong market position 0.10 4 0.40 1 0.10
After separation form Cadbury continued
ability to focus resources on their beverage
business.
0.07 2 0.14 3 0.21
Alignment with multiple levels of operations. 0.07 3 0.21 2 0.14
Experienced management team in LRB
industry.
0.03 4 0.12 2 0.06
Weaknesses
Small size as compare to its competitors. 0.07 3 0.21 1 0.07

19. Focus only on carbonated drinks rather than
alternate beverages.
0.10 1 0.10 4 0.40
85% of revenues acquired from North
America.
0.10 4 0.40 2 0.20
Lack of international exposure. 0.03 4 0.12 2 0.06
Excessive dependence on few market players. 0.08 0 0 0 0
Total 4.76 3.75

20. RECOMMENDATIONS:
Product
Provide a product within the energy beverage market that not only addresses the current target
market of the energy beverage industry but also addresses target market opportunities. They can
provide a regular energy drink but also an option for the growing health conscious segment and
penetrate a target market (possibly women or adults) not currently being serviced within this
industry.
Price
The price of the product should be the cost of the product, plus the channels mark-up, plus the
percentage of profits the company wishes to see. They should not start too high since their product
will be new in a market with high brand loyalty to competitors. As time progresses and the brand
gains awareness and loyalty however, the price can be adjusted accordingly.
Promotion
Since the company currently has thriving products within the beverage industry, it would be
beneficial to make use of promotional pricing with their current products in order to persuade
consumers to purchase their new products within the energy beverage market. For example: if you
purchase a mature product, you can get the new product half off.
Place
This might be the company’s biggest advantage. They currently have long-term customers who
already have their products on their shelves in convenience stores and retail chains. Therefore,
asking these loyal customers for shelf space to advertise a new product would be beneficial to the
company. It is also very important that they use their current distribution chain to get the new
product to the consumers as demand increases. Since the energy beverage industry is thriving in

21. the US, it would be beneficial for Dr Pepper Snapple to launch their new product within the US
and then move to international markets if it is a success.
AN ACTION PLAN (IMPLEMENTATION)
It is clear that there are profitable markets within the nonalcoholic industry that Dr Pepper Snapple
is not currently taking advantage of. However, pursuing these markets would make sense for the
company because it aligns with their business strategies. By launching a new line within a growing
and profitable market, the company would achieve increasing their presence in high-margin
channels as well as leveraging the company by providing a new product.
It seems that launching a new product with the energy beverage market would be a good idea for
Dr Pepper Snapple because their strengths are strategically aligned with what makes a competitor
successful within this market. The biggest challenges within the energy beverage market seem to
be distribution, advertising, and the target market. Any of these challenges, if approached correctly
can be a competitor’s advantage within the industry. This could be true in the following ways for
Dr Pepper Snapple:
 Distribution and Bottling - The companies impressive operation/distribution chain would
allow them to provide a product to consumers and be readily available to meet any rising
demands.
 Customer Relationships – They currently have strong relationships with their long-standing
customers which would provide them with a likely advantage to gain shelf space within all
different types of channels including retailers, foodservices, and convenience stores. This
is an advantage to the company since the energy beverage market is dominant within the
convenience stores and supermarkets channels.

22.  Stable Cash Flow and Diverse Portfolio – The mere fact that the company operates at a
high level within multiple segments of the beverage market means that the funding for
introducing a new product is a possibility and will not be detrimental if it does not generate
high profits for the company. This makes sense as well because one of their greatest
acknowledged strengths as a company is their strong and diversified portfolio; this move
would only enhance that strength.
 Advertising - Since the company is stable and well know within the beverage industry, the
option to offer promotional items to market their product will be possible.
Potential Outcomes
The company can enter the energy beverage market by providing a similar product to what is
currently on the market. They can provide options such as regular, sugar-free, etc. However, their
strategy is what will make the difference in whether or not they succeed or fail within the market.
However, even if the fail, their portfolio is so diversified that it will not be detrimental to the
company as a whole. The fact that brand loyalty is a huge factor within this market may hinder
their entrance to the market. However, if they find a way to ramp up the competition (per say)
then they may be able to make a good profit within the energy beverage market.
RECOMMENDED OBJECTIVES & POLICIES:
Dr Pepper’s net income is still very low compared to the income of its main competitors Coca
Cola and Pepsi co. This has mainly been due to their low market share in the international playing
field, with most of their profit originating from North America. Dr Pepper should initiate a strategy
to tackle its distribution problems and make available its products in the international market by
developing systems for third party bottlers and distributors to help them maintain priority for their

23. brands in other companies’ systems. They should also focus on opportunities in high growth and
high margin categories. They should follow the most recent trend in liquid refreshment beverage
(LRB) industry the emergence of alternative beverages that tend to be healthier than traditional
soft drinks and provide a functional benefit such as caffeine or taurine.
According to the data collected, Dr Pepper Snapple, Inc. should enter in the new market of energy
beverages. The target group of population should be males, between the age of 12 and 34, and
adults from 34 to 55 because this target group is the heaviest users of energy drinks nowadays.
They are consuming energy drinks in the morning and afternoon. These target groups are divided
in two categories, those who drink to stay focused and alter throughout their working days. Other
are using energy drinks to boost energy before going to gym to perform a high intense workout.
When product line comes in question the company should serve, single serve package with volume
of 8 ounces and 16 ounces, version of regular and sugar free with two flavors. Brand positioning
should require attention. Energy drink positioning should be focused on providing an energy boots,
mental alertness, refreshment and taste. Opportunity to differentiate product depends on
packaging and ingredients. Packaging should be single serve aluminum bottle with a resalable
twist cap. No other brand has this type of packaging and it will be more visible to the customers
on the shelf among many energy drinks in cans. Other way to promote this product depends on
differentiation in quality of beverage. The new product should contain increase of vitamins,
caffeine and herbs. When the target group is in the question, there is also one way to differentiate
this product. To serve this new energy drinks only to the adults males from age of 34 to 55. Adults
were less frequent user than the teens. But this would require a different drink, with less
carbohydrate in the product formulation. The best way to differentiate this product form their
competitor is to produce two lines of regular and sugar free energy drinks with two different

24. flavors. .Also the company should include possibility to include head to head position against
competitors. In our opinion the best way to compete is through good quality of beverage and
attractive packaging. When the price is question? People who are looking for satisfaction of using
energy drink and getting all needed expectation of the product, then the price is not so important,
if its reasonably differentiate from competitors. For the distribution channel the best way to sell
the product is through off- premise retailers. Distribution channel should be focused on
convenience stores, supermarkets and mass merchandise. Brand slogan is also important fact to be
considered in this case. Brand name and slogan will give the place to the product in the market.
This can be done through the proper advertisement and promotion. They are several ways to
promote this product, through media, sports clubs as sponsorships, social responsibility and Web
communities. The advertisement process of the product in the first year it consider highly costly
but the benefit received back is more valuable. In conclusion profitable marketing opportunity
exists for introducing new product. The best way to gain customers attention is to develop product
which will satisfied needs of the consumers in the best possible way. Dr Pepper Snapple Inc. is
innovative company who sells the product to the wide range of consumers. They position in the
market is strong they have good relationship both with the customers and retailer. Differentiation
in the products gives them competitive advantage in the market over the competitors, good
business strategy gives them strength to maintain and develop their market position in the business
world.
PROCEDURE FOR STRATEGY REVIEW & EVALUATION:
All these strategies should be reviewed and evaluated annually by SWOT, CPM and other
techniques. Annual financial statements should be compared with last year financial statements in
order to see the difference and success gained by applying the recommended strategies.