: Dr. Pepper Snapple Group, Inc.: Energy Beverages

1784 words 8 pages
Assignment 3.4 – Case Study: Dr. Pepper Snapple Group, Inc.: Energy Beverages
1. How would you characterize the energy beverage category and competitors in late 2007? A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still
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4. What product should be introduced and how should it be positioned (differentiated) from other products? The product that should be introduced is a sports energy drink. This would combine energy drinks and the sports drinks markets which both are billion dollar industries. Allowing a mixture of a sports drink with an energy drink you are targeting the athletic market. Both markets are growing and have a limited amount of competition so to be able to break through the market. The sports drink market itself has grown 13 percent from the previous year of 2006 (Kerin & Peterson, 2010) so this shows that the market is in a great opportunity if advertised to correctly.
A market such as the athletic market will allow you to hit a massive age group that could span from young children beginning sports to older men and women playing in recreational leagues or just at the gym. This would differentiate you from the competitors’ products such as Gatorade and Red Bull. Allowing you to target both of their industries market will let you grab the energy drink lovers and sports drink advocates as well. A great way to market this product is to go to the high profile athletes themselves and see if they enjoy the product. This day and age is a mimic society, so if LeBron James or Kobe Bryant enjoys your product before and after games then your product will be highly


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