COMPANY PROFILE -Dr Pepper Snapple Group
Business Sector :Beverage
Operating Geography :North America and Caribbean
About Dr Pepper Snapple Group :Dr Pepper Snapple Group is a producer of flavored beverage in the North Americas and Caribbean. Established as a stand alone publicly traded company in 2008, it is a spin off by Cadbury Plc, which held the Cadbury Schweppes Americas Beverages. Dr Pepper Snapple has more than 50 brands across different categories of fun flavored beverages and is headquartered in Plano, Texas, USA. It has approximately 20,000 employees across North America as of 2017.
Dr Pepper Snapple Group Revenue :$6.51 billion – FY ending Dec 2016
Competitive Analysis of Dr Pepper Snapple Group
|1. Strong organic growth, 3rd in CSD market share|
2. Diverse non-carbonated portfolio
3. Efficient distribution network
4. Heavy focus on CSR and environment sustainability promotes healthy brand equity
|1. 57% distribution handled by bottlers affiliated with Coca Cola and Pepsi
2. Low penetration in international markets, over reliance on North American markets
|1. 30% American adults don’t consume alcohol|
2. Huge future potential in health beverages market and scope for international expansion
|1. Competition from Coca Cola and Pepsi, who have significant financial muscle
2. Beverage industry under attack due to sugar demonization
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Detailed SWOT Analysis of Dr Pepper Snapple Group
1. 30% American adults don’t consume alcohol: 30% of American adults don’t consume alcohol and another 30% consume on an average less than one drink per week. This is a huge segment for targeting and conversion to the soft drinks segment. Adults who don’t consume alcohol are the target group for DPS and those who consume less than one drink per week are the consumption group. DPS can look into offering its product as an add-on to the drinks to the consumption group and new product offering to the target group.
2. Huge future potential in health beverages market and scope for international expansion: Health beverages are the future trend in the market as there is huge scope for new product introduction in both domestic and international market. As countries services are currently limited to the Americas, there is huge scope for expansion as carbonated drinks are experiencing significant slowdown in 30 years in US history. For example, Pepsi has categorized its food and beverage into fun foods aka soft drinks and regular snacks and healthy foods such as oat meals. DPS has to look into similar product expansion and add in the future probably venture into the healthy snacks and beverage segment.
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Dr Pepper Snapple Group SWOT and PESTLE analysis has been conducted by Sounak Acharya and reviewed by senior analysts from Barakaat Consulting.
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