How Would You Characterize the Energy Beverage Category, Competitors, Consumers, Channels, and Dpsg's Category Participation in Late 2007?

The energy beverages provide the consumers with a boost of energy. These beverages fall under the category of soft beverage. Energy beverages include enhanced water drink, tea, fruit drink, and sport drinks. These soft beverages are non-alcoholic drinks which can include ingredients such as vitamins, minerals, caffeine and other nutritional items that energize the customers.

Competitors in this category were vast but the major competition came from Red Bull, Rockstar, Pepsi, and Coca-Cola. These competitors accounted for ninety-four percent (94%) of sales and volume. The fierce competition in this market has resulted in price erosion. This occurred from offering new size containers, new packaging, and market segmentation.

The target market for the energy drinks were consumers between the ages of twelve (12) to thirty-four (34). Males in that age group were the heaviest drinkers consuming approximately seventy percent (70%) of the energy drinks. All energy drink manufacturers targeted the male group while Tab Energy focused on the females exclusively.

There were three (3) types of channels that the energy drinks used. They were off-premise, supermarkets and mass merchandisers, and convenience stores. Each channel carried a different margin with the convenience stores being the best as they sold individual items.

Dr Pepper Snapple Group used wide geographic manufacturing and distribution coverage. This helped them distribute their product to as many customers as they could. They focused on adults thirty-five (35) to fifty-four (54) as this category was just slightly lower than the under twenty-four (24) years old.

Is there an opportunity for Dr Pepper Snapple Group, Inc. to introduce a new energy beverage? If so, what target consumer market should be chosen for a new energy beverage brand?

There is an opportunity for Dr Pepper Snapple Group, Inc. to introduce a new energy beverage as they already have the distribution channels. It would be very beneficial for them to ask the stores for more product space for the new products release. By launching a new line within a growing and profitable market, Dr Pepper Snapple Group, Inc. would elevate