Post on 23-Nov-2015
description
Research Methodology MGT656
CASE ANALYSIS: DR. PEPPER SNAPPLE GROUP, INCANIS EMALINA BINTI MARZUKISITI MAISARAH BINTI BAHARIMMUHAMMAD AFIQ BIN ABDULLAHWAN MOHD FARID HAKIMI BIN WAN DAUD
INTRODUCTION OF CASE STUDYDr. Pepper Snapple Group- Major domestic non-alcoholic beverage company in USExample of carbonated soft drinks: Dr. Pepper, 7UP, Sunkist, A&W and Canada DryExample of non- carbonated soft drinks: Snapple, Motts, Hawaiian Punch and ClamatoWant to explore energy beverage market
3DECISION MAKING PROCESSDDefine the problemECIDEnumerate the decision factorsConsider relevant informationIdentify the best alternative Develop a plan for implementing chosen alternativeEvaluate the decision and the decision processE
Define the problemObjective To enter the energy beverage market. ChallengeThe establish competitors that already sustained in the energy beverage market.Problem statementTo enter the energy beverage market whether or not a profitable market exist for the new beverage brand (energy drinks) to be produced, marketed and distributed by the company even though has greater competitors.
Existing New Existing Market Penetration Market DevelopmentNew New Offering DevelopmentDiversification Markets Offerings Product-Market Strategies
ENUMERATE THE DECISION FACTORCONTROLLABLEUNCONTROLLABLEPRODUCT
COMPETITORSPRICE
RESPOND FROM BUYERPLACE/DISTRIBUTIONMARKET SIZEPROMOTION
Consider relevant information
INTERNALStrengthsStrong portfolio
Customer loyalty
Strategic operating area
Experience management team
Health benefit
WeaknessesLack of traditional media element
Price are twice higher
Lack of uniqueness
Lack of funds to advertise
EXTERNAL Opportunity 51% male users
80% share market on regular energy beverage
Enhance on media advertisement
Public involvement
60%-66% gross margin wholesalers Threats 5 major dominant competitors
Obtain a new potential consumer
Price that can make them lost potential customer
Identify the best alternative 9DescriptionAlternative A Alternative BGender Male Female Age 12 34 35 54 Packaging Single-serve Multi-serve Version Regular Sugar-freeBrand PositioningPackaging IngredientsStock-Keeping Unit (SKU : 2 types) 1 size, 2 flavors1 flavor, 2 sizes Marketing ChannelOff-premise retailers On-premise retailers
Demand-Supply Relationship Price (Dollar)Quantity (unit)2.001.402.79SupplyDemand
EVALUATE THE DECISION & THE DECISION PROCESSDistributionThe companies impressive distribution chain would allow them to provide a product to consumers and be readily available to meet any rising demands.
Customer relationship/marketing channel Have strong relationship MANUFACTURERDISTRIBUTORWHOLESALERRETAILERCUSTOMER
MarketableLaunching a new product is a risk but not give a bad consequences if it not produce high profit for the company.
Advertising/ promotionWhen the company is at stable and one of the top competitor in the beverage industry, choice to promote the promotional items will be possible.