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Dr. Pepper Snapple Group wants to enter the energy beverage market but faces established competitors. They considered two alternatives: targeting male customers aged 12-34 with single-serve packaging and regular flavors, or targeting female customers aged 35-54 with multi-serve packaging and sugar-free flavors. After analyzing internal strengths and weaknesses as well as external opportunities and threats, they selected the first alternative focused on younger males due to its larger market share and growth potential.
Originalbeschreibung:
Marketing
Originaltitel
Case - Dr. Pepper Snapple Group, Inc (Edited) as at 16 Mac 2014
Dr. Pepper Snapple Group wants to enter the energy beverage market but faces established competitors. They considered two alternatives: targeting male customers aged 12-34 with single-serve packaging and regular flavors, or targeting female customers aged 35-54 with multi-serve packaging and sugar-free flavors. After analyzing internal strengths and weaknesses as well as external opportunities and threats, they selected the first alternative focused on younger males due to its larger market share and growth potential.
Dr. Pepper Snapple Group wants to enter the energy beverage market but faces established competitors. They considered two alternatives: targeting male customers aged 12-34 with single-serve packaging and regular flavors, or targeting female customers aged 35-54 with multi-serve packaging and sugar-free flavors. After analyzing internal strengths and weaknesses as well as external opportunities and threats, they selected the first alternative focused on younger males due to its larger market share and growth potential.
GROUP, INC ANIS EMALINA BINTI MARZUKI SITI MAISARAH BINTI BAHARIM MUHAMMAD AFIQ BIN ABDULLAH WAN MOHD FARID HAKIMI BIN WAN DAUD
INTRODUCTION OF CASE STUDY Dr. Pepper Snapple Group- Major domestic non-alcoholic beverage company in US Example of carbonated soft drinks: Dr. Pepper, 7UP, Sunkist, A&W and Canada Dry Example of non- carbonated soft drinks: Snapple, Motts, Hawaiian Punch and Clamato Want to explore energy beverage market 3 DECISION MAKING PROCESS D Define the problem E C I D Enumerate the decision factors Consider relevant information Identify the best alternative Develop a plan for implementing chosen alternative Evaluate the decision and the decision process E Define the problem Objective To enter the energy beverage market. Challenge The establish competitors that already sustained in the energy beverage market. Problem statement To 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 Development New New Offering Development Diversification Markets O f f e r i n g s
Product-Market Strategies ENUMERATE THE DECISION FACTOR CONTROLLABLE UNCONTROLLABLE PRODUCT
COMPETITORS PRICE
RESPOND FROM BUYER PLACE/DISTRIBUTION MARKET SIZE PROMOTION Consider relevant information
INTERNAL Strengths Strong portfolio
Customer loyalty
Strategic operating area
Experience management team
Health benefit
Weaknesses Lack 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 9 Description Alternative A Alternative B Gender Male Female Age 12 34 35 54 Packaging Single-serve Multi-serve Version Regular Sugar-free Brand Positioning Packaging Ingredients Stock-Keeping Unit (SKU : 2 types) 1 size, 2 flavors 1 flavor, 2 sizes Marketing Channel Off-premise retailers On-premise retailers Demand-Supply Relationship Price (Dollar) Quantity (unit) 2.00 1.40 2.79 Supply Demand EVALUATE THE DECISION & THE DECISION PROCESS 1. Distribution The companies impressive distribution chain would allow them to provide a product to consumers and be readily available to meet any rising demands.
2. Customer relationship/marketing channel Have strong relationship MANUFACTURER DISTRIBUTOR WHOLESALER RETAILER CUSTOMER 3. Marketable Launching a new product is a risk but not give a bad consequences if it not produce high profit for the company.
4. Advertising/ promotion When the company is at stable and one of the top competitor in the beverage industry, choice to promote the promotional items will be possible.