QuestionQuestion

Write a brief descriptions of the main elements of the "Dr. Pepper Snapple Group Inc. Energy Beverages" case analysis:
1. Defined problem
2. Brief Description of the situation Analysis and Relevant Information
3. Alternatives and chosen alternative
4. Decision-making and calculations for chosen alternative

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Case Problem
This case is based on the company Dr Pepper Snapple Group, Inc. It is one of the major non-alcoholic beverage companies in the US and is also the only company that does not offer energy drinks in its portfolio. As such, they are trying to assess the profitability of the segment of energy drinks so that they can tap the potential of this market also. Red Bull is the main player in this market that has been spending significant funds on advertising and promoting the brand image. As the growth rates of the carbonated soft drink market is expected to decline by 1-2% annually through 2011, the energy drinks market is expected to grow at the rate of 10.5% from 2007-2011. Thus the market appears to possess strong growth potential and Dr Pepper needs to come up with innovative marketing mix strategies so that it can differentiate its product in the current market and encourage consumers to try its new product...
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