Dpsg Case Question
Autor: Jianhao Xin • March 14, 2015 • Study Guide • 398 Words (2 Pages) • 1,481 Views
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Dr Pepper Snapple Group
Case Questions
- How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007?
- Describe the category
- Describe the competitors
- Describe the consumers
- Describe the channels
- Describe DPSG’s current strategy and future involvement
- Does your characterization bode well for a new energy beverage brand introduction in general and for Dr Pepper Snapple Group in particular?
- What are the success factors?
- Could DPSG have what it takes?
- What target consumer market should be chosen for a new energy beverage brand?
- What are the bases for segmentation?
- In your opinion, which group is the most attractive?
- Should DPSG target this group?
- What product should be introduced and how should it be positioned/differentiated?
- Describe the product that you think DPSG should introduce given the features that are most popular
- What are the pros and cons of the positioning options for this new product?
- Through which channels should a new energy beverage brand be distributed?
- Where should the new product be sold?
- What dollar amount for media advertising and promotion should be budgeted for a new energy beverage brand?
- How much is currently being spent on media advertising?
- How much more is typically spent on promotions in this category?
- How much do you think might be needed to launch a new product in this category? Look at what other product launches in the past have cost.)
- What suggested retail price should be recommended for a new energy beverage brand?
- Calculate a price per ounce for competitor brands
- A case is 18 16-ounce containers or 12 24-ounce containers; regardless of sizes and numbers of containers, a case is always a total of 288 ounces.
- Determine the price for the new product given its features at the economy, midrange and premium price points (to compete with Monster, Tab Energy or Red Bull).
- What is a reasonable first-year sales forecast for anew energy beverage brand based upon your recommended target market and marketing mix?
- Use the chain ratio method to determine projected sales given your target market, channel decision, product decision, and DPSG coverage of the energy beverage category.
- Determine total revenue based upon projected units sold.
- Determine DPSG’s selling price to c0neneince stores (DPSG owns their own distributors so they don’t have to pay a wholesaler margin).
- Adjust this number for the effects of competition – otherwise the forecast is unrealistic.
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