MARKETING PROBLEM:
ENERGY BEVERAGES
DR. PEPPER SNAPPLE GROUP, INC.
Professor: Assoc. Prof. Dr. Teoman Duman
Students: Ensar Mekić
Lejla Šećerović
Starting question?
 What do you see in this video?
DECIDE PROCESS...
 Defining the problem
 Enumerating the decision factors
 Considering relevant information
 Identifying the best alternative
 Developing a plan for implementing the
chosen alternative
 Evaluating the decision and the decision
process
Defining the problem

Andrew Barker is asking what to do?
 Shall Dr. Pepper Snapple Group, Inc. launch a new brand?
 If answer on question „a“ is yes, answer on the following questions:
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What should be the target market?
How should brand be positioned?
What kind of Marketing Channel should be used?
What should be selling price and channel margins?
What ways of advertising and promotion to do?
 If answer on question „a“ is no, what should company do in order to enter
Functional Beverages Marketing Segment and:
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What should be the target market?
How should brand be positioned?
What kind of Marketing Channel should be used?
What should be selling price and channel margins?
What ways of advertising and promotion to do?
Enumerating the decision
factors
STRENGTHS
WEAKNESSES
- wide scope of company operations,
- no experience in segment of Functional
drinks market,
- Strong portfolio of leading, consumer-preferred brands,
- Integrated business model,
- Strong customer relationships,
- Attractive positioning within large growing and profitable
market,
- Broad geographic and distribution coverage,
- Strong operating margins and stable cash flows,
- Experienced executive management team
- low budgets prevent to promote and
advertise products on high level like Red
Bull and other competitors do.
SWOT
OPPORTUNITIES
- generally energy beverages sales
are growing in USA,
- opportunity for innovation,
- opportunities for making additional
acquisitions.
THREATS
- strong competitors,
- traditional position of energy beverages,
-dependancy on small number of large retailers,
- dependancy on third party bottling companies,
- distribution agreements could be terminated,
- people allergic on milk can not use the product since
proteins are milk based.
Considering relevant
information
 Alternative 1 (RTD Accelerade)
 Opportunity exists because of:
 Differentiation
 Health
 Sportsmen

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Extends endurance,
Speeds Muscle Recovery,
Reduces Muscle Damage,
Enhances recovery.
Considering relevant
information (cont.)
 Alternative 2 (Standard Energy
Drink)
 Opportunity exists because of:
 Tradition
 Caffeine and identity
 Sportsmen, students, workers,
managers, IT experts...
 Psycho effect – heart beating
Identifying the Best Alternative
- Market Target and
Company's strategy
-Positioning of the
product in heads of
customer
-Financial return
Developing a Plan for Implementing the
Chosen Alternative
 What should be the target market?
 wide and in accordance with corporate business
strategy
 U.S. Population Profile and Energy Beverage Users in
2006
 Adult Males, 35-44 years old and belong to Caucasian
Race
Developing a Plan for Implementing the
Chosen Alternative
 How should brand be positioned?
 energy boost, mental alertness, refreshment, and
taste
 Affordable
 packaging it in a completely new way unseen before
 Different versions
Developing a Plan for Implementing the
Chosen Alternative
 What kind of Marketing Channel should be
used?
 Company needs to focus on both off and on-
premises, it needs to use many channels
such are supermarkets, mass merchandisers
etc. and it should definitely take care of
decreasing dependency upon small number
of retailers.
Developing a Plan for Implementing the
Chosen Alternative
 What should be selling price and channel
margins?
 Use the benefits of elasticity of price, lower
the price in order to overtake the market. In
other words use Market Penetration strategy
to enter the market and overtake valuable
market share.
Developing a Plan for Implementing the
Chosen Alternative
 What ways of advertising and promotion to
do?
 Media adverstising and promotion, web
communities, sponsorships.
Evaluating the decision
THANK YOU FOR YOUR ATTENTION