Dr Pepper Snapple Group SWOT & PESTLE Analysis

Opportunities

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.

Political

1. Sugar tax to monitor public health: Due to rising obesity and diabetes levels in countries such as US, Mexico and also people migrating to a healthier lifestyle with more distrust against big corporations, politicians are put in strong positions to legislate policies such as taxes and manufacturing standards in the public interest. For example, Mexico is enforcing sugar tax and legislators in India are demanding ban on soft drinks when pesticides levels were found to be high in India