Dr Pepper Snapple Case

Pricing can play an important role in the success or disaster of any product. Too high a price and the product will fail; too low a price and not enough profits will be made to sustain business operations (Hisrich, Peters, & Shepherd, 2014). The key is to make the customer think that they are paying exactly the right price for the product. Anything else though in this regard means the product is not positioned well in the mind of the consumer. First of all, Gril-Kleen will have to decide on what sort of strategy it needs to pursue. This strategy is decided on three factors namely costs, margins and competition.

3. What target consumer market should be chosen for a new energy beverage brand? § Seeing as the heaviest users of energy beverages are males between the

The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten

JBI distributes principally bottled sports drinks provided by small specialty beverage companies. The company’s discounts policy depends on customers and is based on a number of commercial factors.

Energy drinks consumers are generally bellow 35 years of age. The industry targets teenagers, young adults and athletes. Workers are also included in the market segment for this product. As regards to customers description, recent studies has pointed out that 65% of energy markets are male (Energy Drinks Market, n.d).Consumers are usually single with an average income (Central Information Organization, 2009, p.8). Nowadays, energy drinks are very popular among teenager students. As confirmed by Bahrain Central Information Organization webpage (CIO), students’ rate is 174.98 per 1000 population. This is a large percent taking into account the very small population of Bahrain. Furthermore, people

There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion

Both competition and market size are of major importance when one explores the positioning of a product. In the case of Crescent Pure, this is vital as Ryan must determine the level of competition that will be faced if the product is marketed as either an energy or sport drink. In the case of an energy product, it should be noticed that there is heavy market dominance by Together, Freight, Razor, Torque and Steller, as they account for roughly 85% of the market. Despite this, it should be seen that the average price point for a 5oz can is $2.99 which is notably higher than Crescent’s $2.75 pricing. Additionally, the market size for sport drinks is of particular interest as it is estimated to grow to $8.5 billion by the year 2013. This, coupled with the fact that the market had grown 40% between the period 2010 – 2012, makes this sector of particular interest to PDB.

The energy drink industry must have a SWOT Analysis just like any other industry in order to assess the market before entering. The strengths in the energy drink industry are its “quick fix” for consumers; their products serve as a quick burst of energy for their target consumers of people on the go. Other strengths include the high brand awareness and relative attractiveness in the industry. Everyone knows what energy drinks are and the purpose they serve so companies in this industry do not have a problem integrating their product into the energy drink industry; this serves as a critical success factor in the industry. Energy drinks being relatively attractive in the industry is a definite strength in terms of advertising because often energy drinks are portrayed as that “must have” product that the consumer cannot go without.

A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still

The energy drink market was mostly comprised of younger individuals, 18-34 males and parents of young consumers would also often drink such energy drinks. With prices ranging $2-$5 and averaging $2.99 these were the higher priced drinks. The market surveys suggest that the main desire the consumer has is energy enhancement, however over recent years some of the market has started to erode due to health concerns.

_1. HOW WOULD YOU CHARACTERIZE THE ENERGY BEVERAGE CATEGORY, COMPETITORS, CHANNELS, AND DPSG'S CATEGORY PARTICIPATION IN LATE 2007?_

In Brazil, there is not as much of a market for energy drinks as there is in places like the United States. Still, introducing 5-hour energy shots to Brazil could cause the desire for energy drinks to grow in that country. That would open up an entirely new market for energy drinks that could make millions or even billions of dollars for companies that manufacture energy drinks throughout the world. In order to clearly understand how marketing will take place in Brazil and the issues that must be addressed, there are four specific areas that will be considered here. These will be the social-cultural environment of Brazil, the economic environment, the political environment, and the technological environment. Since all of those areas play a role in how an energy drink could be marketed and how much success it might have, they all must be discussed before any decisions are made.

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

What “grade” would you give Ms. Nooyi for her job performance as a strategic leader? What are her strengths and weaknesses? Where would you place Ms. Nooyi on the Level-5 pyramid of strategic leadership and why?

We hope to attract new business partners and together we will work out the best pricing strategy. The fact that we will be allowing them to sell our licensed product, an appropriate pricing arrangement will be decided upon unanimously with us ensuring clients have easy access to our product (Richards, 2016).