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Dr. Pepper/Snapple and Competition - Case Study Example

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Dr. Pepper/Snapple and Competition [Institutional Affiliation] I. Competition (Hypothesis) Dr. Pepper Snapple Group is among the leading soft carbonated and uncarbonated drinks company in North America with an estimated yearly revenue of $5.9 billion and a broad range of beverages that includes 7up, Dr…
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Dr. Pepper/Snapple and Competition
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Download file to see previous pages The company has also been facing competition from other firms such as Coca-cola and Pepsi (PEP), which have managed to moderate the effects of a declining U.S. marker by expanding their sales to other regions outside the United States. For instance, China whereby demand is still increasing, and the customers are not conscious about their fitness. The company’s competitive strategy on existing products in existing markets focuses on market penetration whereas the strategy for new products in existing markets is product development. When it comes to the competitive strategy for the new markets, the company seeks to develop markets for existing products in new markets and diversify new products in the new markets. Dr. Pepper/Snapple’s strategy as it relates to the Competition will be effective because it will enable the company to exploit both the new and existing markets. II. Evidence Dr Pepper Snapple Group’s mission is to be the best beverage business in the United States. This mission is in line with the company’s competitive strategy because through market penetration and market development, it will manage to beat both Coca-Cola and Pepsi. The company’s competitive strategy reflects and builds upon its position as one of the leading beverage companies in the United States. ...
These overall strategies are in line with the competitive strategy because their main purpose is to develop both new and existing markets. Dr. Pepper Snapple Group operates primarily in the U.S., Canada, and Mexico, and it distributes some of its products in the Caribbean. It faces a distinct competitive disadvantage as it lacks operations outside the U.S. and dwindled use of soft drinks in the region. The company thus faces a distinct disadvantage because its two main competitors are solidifying their market share in the markets abroad (Power, 2011). The company also has a strong market position in numerous products categories and this will come in handy in market penetration and market development. The company has a wide range of product offerings in non-carbonated beverages and carbonated beverages, and this makes it to be one of the leading corporations in the United States non-alcoholic beverages market. In 2010, brands that hold either the first or the second position in their respective category generated approximately 77% of the company’s sales (Power, 2011). Most of the company’s products benefit from elevated levels of consumer preference, responsiveness as well as loyalty. In addition, its wide range of product portfolio offers its customers (distributors, bottlers, and retailers) with a wide range of beverages. Strong brand names come in handy in its competitive strategy because it will allow the company to launch innovative brand additions like Cherry, Cherry Antioxidant, Dr Pepper, 7UP, and Snapple value teas and Mott’s for Tots (Fuhman, 2010). The company supports the brands effectively with numerous sales and marketing initiatives. In FY2010, the company’s advertising and marketing expenses reached $445 million. Therefore, ...Download file to see next pagesRead More
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