Dr. Pepper Snapple Group
Dr. Pepper Snapple Group, Inc. (DPS) is an integrated beverage brand owner, manufacturer, and distributor of non-alcoholic beverages in the U.S., Canada, and Mexico and the Caribbean.
Their headquarters is in Plano, Texas, and Dr Pepper Snapple Group, Inc. is a leading provider of flavored carbonated soft drinks and non-carbonated beverages. They have built their success through strategically acquiring beverage brands and then building them into leaders in their category. Examples of their notable acquisitions included the Duffy-Mott Company (later known as Mott’s), Canada Dry, Sunkist, Crush and Sun Drop.
According to the text, through focused strategic development the company has sought to continually establish their firm as a leader …show more content…
the taste and marketing of Dr. Pepper. This is crucial to their success and is used to maintain a competitive edge over their competitors. In order to establish their competitive advantage amongst competitors the company uses the best-cost provider strategy. Their strategy is trying to give customers the best cost/value combination, by incorporating a key good-or-better product characteristics at a lower cost than competitors. In other words, there are numerous types of sodas on the market; but DPS strives at making their soda distinctive but with an affordable …show more content…
Within the industry, factors such as economic stability, consumer tastes and preferences, and commodites prices are issues that DPS are facing. Since carbonated soft drinks are a discretionary item, sales are considerably impacted by weakness in the economy; consequently, economic stability is a huge factor that DPS would have to face. Due to the economic downturn discretionary spending as a percentage of total consumer spending dropped below 16 percent, lower than it had been for over 50 years. As discretionary spending decreased, consumers turned from flavored soft drinks and colas to less expensive alternatives, including tap water.
Not only did the economy influence confidence, the recession significantly increased commodity prices. Specific to the beverage industry, the prices for aluminum, natural gas, resins, corn, pulp and all other commodities increased. These types of commodities are used in the production of beverages, exerting a considerable amount of pressure on industry
Their headquarters is in Plano, Texas, and Dr Pepper Snapple Group, Inc. is a leading provider of flavored carbonated soft drinks and non-carbonated beverages. They have built their success through strategically acquiring beverage brands and then building them into leaders in their category. Examples of their notable acquisitions included the Duffy-Mott Company (later known as Mott’s), Canada Dry, Sunkist, Crush and Sun Drop.
According to the text, through focused strategic development the company has sought to continually establish their firm as a leader …show more content…
the taste and marketing of Dr. Pepper. This is crucial to their success and is used to maintain a competitive edge over their competitors. In order to establish their competitive advantage amongst competitors the company uses the best-cost provider strategy. Their strategy is trying to give customers the best cost/value combination, by incorporating a key good-or-better product characteristics at a lower cost than competitors. In other words, there are numerous types of sodas on the market; but DPS strives at making their soda distinctive but with an affordable …show more content…
Within the industry, factors such as economic stability, consumer tastes and preferences, and commodites prices are issues that DPS are facing. Since carbonated soft drinks are a discretionary item, sales are considerably impacted by weakness in the economy; consequently, economic stability is a huge factor that DPS would have to face. Due to the economic downturn discretionary spending as a percentage of total consumer spending dropped below 16 percent, lower than it had been for over 50 years. As discretionary spending decreased, consumers turned from flavored soft drinks and colas to less expensive alternatives, including tap water.
Not only did the economy influence confidence, the recession significantly increased commodity prices. Specific to the beverage industry, the prices for aluminum, natural gas, resins, corn, pulp and all other commodities increased. These types of commodities are used in the production of beverages, exerting a considerable amount of pressure on industry