Dr. Pepper Snapple Group, Inc. Essay Example

this group.

4. What product should be introduced and how should it be positioned/differentiated? DPSG’s new energy beverage or a different variety of their beverage could be geared towards females in an attempt to capture drinkers of Coca Cola’s Tab.

In addition, males’ ages 35 to 54 consume energy beverages at a rate slightly lower than males under age 24. An energy beverage with similar stimulant effects as most energy drinks but has other health benefits (i. e. Vitamin Water, Odwalla, Naked) could also attract the abovementioned consumers.

5. Through what channel(s) should a new energy beverage brand be distributed? DPSG’s new energy beverage should be distributed through off-premise retail channels. As the case points out, convenience stores and supermarkets made up approximately 90% of retail sales dollars should be our primary focus.

However, with the expected erosion of convenience store sales, it may also be wise to distribute through some of the larger retailers like Wal-Mart and Target or even reach an agreement with Anheuser-Busch like Monster Energy did to distribute to bars, clubs and restaurants.

6. What dollar amount for media advertising and promotion should be budged for a new energy beverage brand? As the case mentioned, the top five competitors spent approximately $70 million measured advertising media. In DPSG’s case, it would probably be a good idea to invest $20 million for advertising and promotions.

DPSG does not have the breadth and reach of Red Bull in regards to energy beverages and advertising but to break into the market and remain competitive with Red Bull, they may even need to invest more into their marketing strategies (ex. Social network sites, YouTube, sponsoring sporting events, taste testing at grocery

stores, malls, and other events).

7. What suggested retail price should be recommended for a new beverage brand? DPSG should sell their energy beverage at a retail price of $1. 89 per single serve package. This would place their product below the $1. 99 to $2. 49 range for most popular energy drinks. In addition, the lower price may provide incentive for loyal customers to try something new.