Dr. Pepper Snapple Group, Inc.

MARKETING PROBLEM: Energy Beverages

Dr. Pepper Snapple Group, Inc.

Note by authors

For analyzing of this case and solving this Marketing Problem, we used steps of Decision Making Process for a Marketing Problem known as „DECIDE“. In other words, we covered the case through following sections:

1. Defining the problem
2. Enumerating the decision factors
3. Considering relevant information
4. Identifying the best alternative
5. Developing a plan for implementing the chosen alternative
6. Evaluating the decision and the decision process

1. Defining the problem

Andrew Barker, Marketing Executive of Dr. Pepper Snapple Group, Inc. only major nonalcoholic beverage company in USA launched Accelerade RTD brand. Launching such a product is not only creating a new brand, it is entering new segment of market, going from CSD (carbonated soft drinks) and producing ready to drink tea to new segment, segment of Functional Beverages. The market segment of Energy Beverages (Functional Beverages) is field of huge battle field of many competitors, and idea to enter it is under question mark. There are few questions to answer in order to solve this Marketing Problem:

1. Shall Dr. Pepper Snapple Group, Inc. launch a new brand?

1. If answer on question „a“ is yes, answer on the following questions:

1. What should be the target market?
2. How should brand be positioned?
3. What kind of Marketing Channel should be used?
4. What should be selling price and channel margins?
5. What ways of advertising and promotion to do?

1. If answer on question „a“ is no, what should company do in order to enter Functional Beverages Marketing Segment and:

1. What should be the target market?
2. How should brand be positioned?
3. What kind of Marketing Channel should be used?
4. What should be selling price and channel margins?
5. What ways of advertising and promotion to do?

1. Enumerating the decision factors

After very careful reading the case, we got the following information about controllable and uncontrollable decision factors that are presented in SWOT analysis we have prepared.

3. Considering relevant information[pic 3]

In this step, we conclude that company has much very valuable strength which can be strong tools to realize various decisions.

1. Alternative 1

We can confidentially say that opportunity for a brand RTD Accelerade exists, since it would differentiate easily from other energy beverages as healthy product, and product that is designed to satisfy needs of those who wants to regularly do sports which is quite big market consisted of 35 000 000 Americans who exercise regularly. The basic benefits of product are visible in its effects such are: Extends Endurance, Speeds Muscle Recovery, Reduces Muscle Damage, enhances Recovery. According to mentioned facts about the market, product and company, introducing RTD Accelerade seems as an attractive alternative for Dr Pepper Snapple Group, Inc.