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Dpsg Case Question

Autor:   •  March 14, 2015  •  Study Guide  •  398 Words (2 Pages)  •  1,462 Views

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Dr Pepper Snapple Group

Case Questions

  1. 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
  1. 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?
  1. 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?
  1. 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?
  1. Through which channels should a new energy beverage brand be distributed?
  • Where should the new product be sold?
  1. 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.)
  1. 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).
  1. 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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