Transcript
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PRODUCT- Wide range of carbonated/non-carbonated products like
Canada Dry, A&W etc as per Indian demands.
Indian market - they need to customize the taste as per
the preferences of the local customer.
For example the use of lime, gingerale, local herbs
condiments.
COMPETITORmS PRODUCT
1) PEPSI- NIMBUZZ, COLA,
2) PARLE-AGRO- LMN
3) COKE- COLA, MINUTE MAID LIMBU
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PRICE-
Follows a premium pricing strategy(through nSNAPPLESo)
Targets itself for a select niche crowd.
India Market - they need to revise their prices in order tocompete with the big players.
COMPETITORmS POSITION
1) COKE- 45% Competitive pricing policy
2) PEPSICO- 35%
3) OTHERS- 20%
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PLACE-
Currently only some formats (SNAPPLES) are sold
through Caf Coffee Day
Distribution through retail chain of stores like Big Bazaar,
Reliance Fresh, Naturems Basket, Barista, Costa etc and
also through restaurants.
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PROMOTION- The company must use a combination of
Pull/Push strategies in order to acquire a large and loyal
customer base
COMPETITORmS TECHNIQUECoke- Used chota coke, celebrations (jaashan)
Pepsico- Uses Youngistaan, blue pepsi for world cup,
Thumbs Up- win a nNinja Bikeo
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Strengths
Strong position in each product niche: Overall DPS is the #1 company in the flavoured CSD
market. Dr. Pepper is the #2 flavoured CSD and Snapple is the leading ready-to-drink tea. The
current trend of flavoured CSDs gaining market share on colas will benefit the company top line.
Integrated business model: The Companys combination of brand ownership, bottling and
distribution gives it inherently more control over the value chain and thus a competitive advantage.
Customer relationships: DPS has established long standing relationships with many of the
Companys top customers including bottlers and distributors to national retailers, large foodserviceand convenience store customers.
Experienced management: Many board members and executive management have experience
in the food and beverage industry. Their collective experience totals over 200 years.
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Weaknesses
Smaller compared to larger peers: The firm relies on some third-party bottlers including Coke
and Pepsi affiliated bottlers for packaging and distribution. This could cause costs to rise in the
future.
Lack of exposure to some fast growing segments: DPS has very little or no foothold in some
fast growing segments including energy drinks, sports drinks, and enhanced waters.
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Opportunities
Expansion into international markets: Currently, DPS effectively draws no significant portion
of revenue from outside North America. Comparing the Company to Coca-Cola which operates inover 200 countries and derives approximately 76% of revenues outside of North America, DPS could
see a large increase in revenues if it decided to expand internationally.
New product launches and line extensions: DPS sees the best opportunity for growth through
line extensions, especially with opportunities in high growth and high margin categories, including
ready to drink teas, energy drinks, and other functional beverages.
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Threats
Loss of Coca-Cola or PepsiCo affiliated bottlers: If these companies acquire their affiliated
bottlers and make them wholly owned subsidiaries, DPS could see increased costs. Currently 73% of
Dr. Pepper volumes are distributed through the Coca-Cola and PepsiCo affiliated bottler systems.
Furthermore, Coca-Cola and Pepsi affiliated systems each constituted approximately 15% of net
sales of the Beverage Concentrates segment. Besides increased costs, this could lead to less
favourable placement within retailers which may be the bigger problem.
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Total market strategy
Premium market segment products
Broader product line all drinks under one brand will makeseasier brand recall
Economies of scale
Strong revenue growth in other countries will help venture intoIndia
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Excellent stakeholder relations
Integrated business model
Variety for consumers as it has wide range of
different flavors.
Increasing Per capita income and population growth.
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Increase visibility
Improve Distribution system
More tie ups with restaurants, hotels and coffee shops.
Fix price policy
Introduce sports drinks or energy drinks to attract youthand tap the market.
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Laggard entry needs differentiation
Competitive pricing by improving distribution, supply
system
Collecting bottle caps contest.
Movie Product placement to attract mass
Other aggressive marketing techni ues like college
events.
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