The case study examines Dr Pepper Snapple Group's decision to enter the energy drink market. Key considerations included developing a protein-enhanced drink to differentiate it from competitors' offerings. The marketing plan proposed a natural formulation priced at $2.00 and distributed through supermarkets and convenience stores with promotional support on social media and sponsorships. While brand loyalty poses a challenge, diversifying into the high-growth energy segment could generate profits if the new product is successfully differentiated.

1. CASE STUDY :
DR PEPPER SNAPPLE GROUP.
EXECUTIVE MASTERS IN BUSINESS ADMINISTRATION
MKT 750 MARKETING MANAGEMENT
1. NORAINI BINTI ZAINUDDIN (2013123841)
2. NORADAWIYAH BINTI MOKTAR (2013145357)
3. FAZLYN DIANNA BINTI MANSOR (2013172647)
4. NOOR ZAIDAH BINTI OMAR (2013173969)

2. INTRODUCTION
 The company now known as DPS has evolved from a combination of
discovery, invention and collaboration. This rich history includes the very
birth of the soft drink in 1783, when Jean Jacob Schweppe perfected the
process for carbonating water and created the world's first carbonated
mineral water.
 The company established its own bottling and distribution network in 2006,
when it acquired full ownership of Dr Pepper/Seven Up Bottling Group, the
largest independent bottler in the U.S. Subsequently, it acquired several
other major independent bottling and distributing businesses, including All-
American Bottling Co., 7UP Bottling Co. of San Francisco, and Southeast-
Atlantic Beverage Corp., among others.
 Dr Pepper Snapple Group is a leading producer of flavoured beverages in
North America and the Caribbean. Our success is fuelled by more than 50
brands that are synonymous with refreshment, fun and flavour. We have 6
of the top 10 non-cola soft drinks, and 13 of our 14 leading brands are No. 1
or No. 2 in their flavour categories.

3. PRODUCTS OF DPS

4. DEFINE THE PROBLEM
No. Problem Status
1. To decide venturing into new product – protein infused energy
drink
Major
2. Choice of target market Minor
3. Product line and positioning choice Minor
4. Marketing channel choice Minor
5. Advertising and promotion Minor
6. Pricing and profitability Minor
Dr Pepper Snapple having problems deciding whether the company
should enter into the energy drink market. The energy drink market is a
high growth and high-margin business. Dr. Pepper is one of the only
major domestic carbonated soft drink companies that have not
introduced a line of energy drinks. The challenge Dr Pepper Snapple
faces is what would be the best way for it to market a new energy drink
product.

5. ENUMERATE DECISION FACTOR
1. Horizontal Integration
Pro:
 Use the advantages of other countries manufacturing facilities to produce
products to help avoid increase in transportation and delivery cost. (S2,
S5,S7,T4,T7).
Con:
 It relates more on the executive and management team. Producing new product
means that the project leaders have high levels of responsibility for achieving
results but little real authority over their team members. A resulting lack of
control can lead to finger-pointing when things go awry, which can hinder
productivity.

6. ENUMERATE DECISION FACTOR
2. Market Penetration
Pro:
 Advertise with celebrities to help sell product like Snapple, and show that there
products are healthy and good for you.
 Advertise their other brands more like Snapple, Hawaiian Punch, and Mott’s.
 Concentrate marketing efforts on Snapple rather than soft drinks since Snapple
brand is growing and soft drinks are decreasing.
Con:
 Price-conscious consumers may only make purchases based on how much the
product costs. These consumers generally are not loyal to a product or brand
unless it continuously offers the lowest price. When the promotional period ends
and the product returns to its regular price, the consumer will likely shop around
for lower pricing that may be offered by the competition.
 An ineffective market penetration policy could result in reduced profitability. If the
resulting sales volume during the promotional period does not meet projections,
the reduced price may mean the resulting profits are too low.

7. ENUMERATE DECISION FACTOR
3. Product Development
Pro:
 Develop more non-cola, low calorie drinks.
 Respond to customer needs as they change.
Con:
 It can get costly because resources are required by the Research and
Development department of the business; a lot of experiments and tests are also
performed.
 Involves a risk of whether the consumers will like the new features that have
been developed/added to the new/existing product.

8. ENUMERATE DECISION FACTOR
4. Market Development
Pro:
 Enter new market such as India, China or other Asian countries that has large
population. (S5, O8).
 It expands your consumer exposure and makes your company and product
names recognizable in the marketplace.
Con:
 If products are expensive to create, attempting to have the lowest prices may not
lead to a significant profit.
 Attention to packaging and image, as part of a strong marketing campaign, can
thus increase company expenses to introduce the company in new market.

9. OPPORTUNITIES
1. Evolving consumer trends (natural flavours, no preservative)
2. Venturing into new beverages categories (RTD, protein enhanced drink)
3. Consumers are looking for nutrient enriched beverages
4. Increased selling activity, promotion, distribution, advertisement
5. Acquire regional bottling company to broaden geographic coverage
6. Owning bottling distribution networks reduces cost and dependence on other
companies
7. Strategic alliances with convenience store, restaurants and fast food chains
8. Rapid growth in beverage market

10. THREATS
1. Highly competitive market.
2. High dependency on maintaining good relations with bottlers and
contributors
3. Declining price of energy beverages
4. Product distribution (placement of merchandize)
5. Health issue for market segmentation
6. Increasing cost due to additional feature in beverage (protein-enhanced)
7. Packaging and positioning

11. EXTERNAL FACTOR EVALUATION
Key External Factors Weight Rating Weighted score
Opportunity
1 Evolving consumer trends (natural flavours, no preservative) 0.08 3 0.24
2 Venturing into new beverages categories (RTD, protein enhanced drink) 0.09 4 0.36
3 Consumers are looking for nutrient enriched beverages 0.09 4 0.36
4 Increased selling activitiy, promotion, distribution, advertisement 0.07 4 0.28
5 Acquire regional bottling company to broaden geographic coverage 0.07 4 0.28
6
Owning bottling distribution networks reduces cost and dependence on other
companies
0.07 3 0.21
7 Strategic alliances with convenience store, restaurants and fast food chains 0.09 4 0.36
8 Rapid growth in beverage market 0.07 3 0.21
Threat
9 Highly competitive market. 0.06 2 0.12
10 High dependancy on maintaining good relations with bottlers and contributors 0.07 2 0.14
11 Declining price of energy beverages 0.05 2 0.1
12 Product distribution (placement of merchandize) 0.05 2 0.1
13 Health issue for market segmentation 0.04 2 0.08
14 Increasing cost due to additional feature in beverage (protein-enhanced) 0.05 2 0.1
15 Packaging and positioning 0.05 2 0.1
Total 1 43 3.04

12. STRENGTHS
1. Ranked top for CSD in US
2. The Company’s combination (integrated) of brand ownership,
bottling and distribution gives it inherently more control over the
value chain and thus a competitive advantage.
3. Strong relationship with bottlers and contributors
4. Attractive positioning within large, growing and profitable market
5. Has 21 manufacturing / bottle facilities located in the United States
6. Strong operating margin, significant & strong cash flow
7. Experienced executive management team
8. Participation in various categories of refreshment and beverage

13. WEAKNESSES
1. Does not have mission or vision statement
2. Does not have low calorie or sports drinks
3. Does not have a strong water brand
4. Not a global company like Pepsi and Coca Cola, only operating in
US
5. Poor marketing product (advertising)
6. Not strong advertising campaign
7. Product price is high compared to market

14. INTERNAL FACTOR EVALUATION
Key Internal Factors Weight Rating
Weighted
score
Strength
1 Ranked top for CSD in US 0.08 3 0.24
2
The Company’s combination (intergrated) of brand ownership, bottling and distribution
gives it inherently more control over the value chain and thus a competitive advantage.
0.09 4 0.36
3 Strong relationship with bottlers and contributors 0.08 4 0.32
4 Attractive positioning within large, growing and profitable market 0.08 3 0.24
5 Has 21 manufacturing / bottle facilities located in the United States 0.09 4 0.36
6 Strong operating margin, significant & strong cashflow 0.08 4 0.32
7 Experienced executive management team 0.07 3 0.21
8 Participation in various categories of refreshment and baverage 0.07 4 0.28
Weaknesses
9 Does not have mission or vision statement 0.03 1 0.03
10 Does not have low calorie or sports drinks 0.05 2 0.1
11 Does not have a strong water brand 0.05 2 0.1
12 Not a global company like Pepsi and Coca Cola, only operating in US 0.05 2 0.1
13 Poor marketing product (advertising) 0.06 2 0.12
14 Not strong advertising campaign 0.07 2 0.14
15 Product price is high compared to market 0.05 2 0.1
Total 1 42 3.02

15. THE INTERNAL - EXTERNAL (IE) MATRIX
The Internal - External (IE) Matrix
Strong Average Weak
(3.00-4.00) (2.00-2.99) (1.00-1.99)
High (3.00-4.00) I II III
Medium (2.00-2.99) IV V VI
Low (1.00-1.99) VII VIII IX
• Back ward, Forward, Horizontal Integration
• Market Penetration
• Market Development
• Product Development
THEEFETOTAL
WEIGHEDSCORES
(3.04)
THE IFE TOTAL WEIGHED SCORES (3.02)
4.0
3.
2.
1.
3. 2. 1.

16. SWOT TOWS MATRIX
SO Strategies WO Strategies
1.
Develop more non-cola, low calorie drinks.
(S1, O1)
1. Produce more healthy drink. (W2, O2, O3)
2.
Enter new market such as India, China or
other Asian countries that has large
population and marketing potential. (S6, O5,
O7)
2. Develop sports drink. (W2, O2, O3, O7)
3.
Partner with restaurants and fast food chain.
(S8,O8)
3. Develop water drink. (W3, O2, O3, O7)
ST Strategies WT Strategies
1.
Renew the packaging and product positioning
in stores and marketing medium (S6,S7,T7)
1.
Invest more in healthier products like a sports
drink, or flavoured water.(W2,W3,T2,T7)
2.
Us the advantages of other countries
manufacturing facilities to produce products
to help avoid increase in transportation and
delivery cost. (S2, S5,S7,T4,T7)
2.
The company should be more independent and
not rely so much on the contributor to sell there
products (W4,T2)
3.
Us brand threw advertisement with celebrities
to help sell product like Snapple, and show
that there products are healthy and good for
you. (S1,S7,T5,T7)
3.
Advertise there other brands more like Snapple,
Hawaiian Punch, and Mott’s (W6,T4, T7)

17. IDENTIFY THE BEST ALTERNATIVE
Horizontal Integration
 Use the advantages of other countries manufacturing facilities to produce
products to help avoid increase in transportation and delivery cost. (S2,
S5,S7,T4,T7)
Market Penetration
 Advertise with celebrities to help sell product like Snapple, and show that
there products are healthy and good for you. (S1,S6,T7,T9)
 Advertise their other brands more like Snapple, Hawaiian Punch, and
Mott’s (W6,W7,T8)
 Concentrate marketing efforts on Snapple rather than soft drinks since
Snapple brand is growing and soft drinks are decreasing. (S3,T2,T7)

18. IDENTIFY THE BEST ALTERNATIVE
Product Development
 Develop more non-cola, low calorie drinks. (S1, S6, O2)
Market Development
 Enter new market such as India, China or other Asian countries that has
large population. (S5, O8)

19. DEVELOP AND IMPLEMENTATION OF
MARKETING PLAN
1. Product Strategy
• Use natural approach (herbal) for a natural energy boost rather than synthetic
additives that lead to unnatural energy crashes and taste good.
• The package should be convenient, i.e. bottle with a screw cap since no other
brand has such packaging.
• 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.
2. Price Strategy
• Due to this target market, it is recommended that the product be sold at $2.00
per package. Even though we want to emphasize the new feature (protein-
enhanced) of the drinks, customer may not wish to try this new product due to
their brand loyalty and their mind set that refuse to try something new. Especially
if this energy drink cost them more than their usual energy drink.
• This price is offered by most of its competitors and is a price consumers are
willing to pay for an energy beverage.

20. DEVELOP AND IMPLEMENTATION OF
MARKETING PLAN
3. Distribution and Sales (Placing)
• This product will be sold at both supermarkets and convenience stores in order
to reach a large number of customers.
• To use their current distribution chain to get the new product to the consumers
as demand increases
4. Advertising and promotion
• The usage of social media like Facebook and Instagram will assist the marketing
and advertisement
• May sponsor events to gain higher brand recognition
• Use spokesperson that our customers can connect to, the easy going, yet
energetic mentality that we are trying to get across

21. EVALUATION OF DECISION MADE
 Although faced with many choices and alternatives, company needs to take
into consideration industry and market conditions, opportunities it has,
consumer behaviour trends, and its own strengths, and choose the most
convenient alternatives. It is important to find ways for differentiation, by
offering something new and different, and built competitive advantage upon
that differentiation.
 The company can enter the energy beverage market by providing a similar
product to what is currently on the market. However, their strategy is what
will make the difference in whether or not they succeed or fail within the
market. Even if the fail, their portfolio is so diversified that it will not strongly
affect the 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 amp up the competition (per say) then they may be able
to make a good profit within the energy beverage market.