MARKETING PROBLEM: Energy Beverages Dr. Pepper Snapple Group, Inc.

1. Professor: Assoc. Prof. Dr. Teoman Duman Students: EnsarMekić Lejla Šećerović MARKETING PROBLEM: Energy BeveragesDr. Pepper Snapple Group, Inc.

3. Starting question? • What do you see in this video?

4. DECIDE PROCESS... • Defining the problem • Enumerating the decision factors • Considering relevant information • Identifying the best alternative • Developing a plan for implementing the chosen alternative • Evaluating the decision and the decision process

5. Defining the problem • Andrew Barker is asking what to do? • Shall Dr. Pepper Snapple Group, Inc. launch a new brand? • If answer on question „a“ is yes, answer on the following questions: • What should be the target market? • How should brand be positioned? • What kind of Marketing Channel should be used? • What should be selling price and channel margins? • What ways of advertising and promotion to do? • If answer on question „a“ is no, what should company do in order to enter Functional Beverages Marketing Segment and: • What should be the target market? • How should brand be positioned? • What kind of Marketing Channel should be used? • What should be selling price and channel margins? • What ways of advertising and promotion to do?

6. Enumerating the decision factors

7. Considering relevant information • Alternative 1 (RTD Accelerade) • Opportunity exists because of: • Differentiation • Health • Sportsmen • Extends endurance, • Speeds Muscle Recovery, • Reduces Muscle Damage, • Enhances recovery.

8. Considering relevant information (cont.) • Alternative 2 (Standard Energy Drink) • Opportunity exists because of: • Tradition • Caffeine and identity • Sportsmen, students, workers, managers, IT experts... • Psycho effect – heart beating

9. Identifying the Best Alternative

10. Developing a Plan for Implementing the Chosen Alternative • What should be the target market? • wide and in accordance with corporate business strategy • U.S. Population Profile and Energy Beverage Users in 2006 • Adult Males, 35-44 years old and belong to Caucasian Race

11. Developing a Plan for Implementing the Chosen Alternative • How should brand be positioned? • energy boost, mental alertness, refreshment, and taste • Affordable • packaging it in a completely new way unseen before • Different versions

12. Developing a Plan for Implementing the Chosen Alternative • What kind of Marketing Channel should be used? • Company needs to focus on both off and on-premises, it needs to use many channels such are supermarkets, mass merchandisers etc. and it should definitely take care of decreasing dependency upon small number of retailers.

13. Developing a Plan for Implementing the Chosen Alternative • What should be selling price and channel margins? • Use the benefits of elasticity of price, lower the price in order to overtake the market. In other words use Market Penetration strategy to enter the market and overtake valuable market share.

14. Developing a Plan for Implementing the Chosen Alternative • What ways of advertising and promotion to do? • Media adverstising and promotion, web communities, sponsorships.

15. Evaluating the decision

16. THANK YOU FOR YOUR ATTENTION