Dr Pepper Snapple Group, Inc. Essay

The enigma associated with this case is whether or not the federation should introduce a youthful pushing beverage set into the market. If a profitable market fortune exists for the company to enter the zip fastener beverage market the next whole t cardinal would be to identify a target market and marketing ruffle along with a product line and brand positioning.The best chance for the company to gain market share is to target adult cleverness drinkers from ages 35 to 54 since none of the competitors are catering towards this segment. Bottlers, distributors, and retailers are unconvincing to produce and stock more than two SKUs of a new energy drink brand so it would be best to introduce a regular 16ounce single-serve package that consists of two different flavors. Since regular energy beverages require 80% share of the market selecting regular is best, and since the 16ounce energy drinks represent 50% of case sales in convenience stores and want a last turnover to main tain prevalence in convenience stores its best to go with a 16ounce size. Also having two different flavors to choose from will helper increase chance of trial rather than ease up only one flavor and have regular and sugar free or have one flavor and two different sizes.In positioning the brand the company should differentiate the energy drink from competitors by basis of advancement and select the 16.9ounce single-serve aluminum bottle with a resealable screw cap, and also by ingredients in having lower carbohydrates in the formulation. The energy brand should be distributed to any types of off-premise retailers where beverages are sold for maximum sales. The companys U.S. media expenditure should be $12.6 million, equal to that of Tag Energys U.S. media expenditure which lead to a 2.3% dollar market share, because Tag Energy was also new to the energy beverage market and targeted to a certain demographic the company should have it off a similar result.The manufacturers sugges ted retail selling determine should be $2.29. Higher than the average $2.00 per single-serve because of its unique point of oddment lower carbohydrates and aluminum bottle with resealable screw cap. Market sales capableness for the companys target market is equal to $1.608 (Exhibit 1) billion and market sales forecast is equal to $133.202 million (Exhibit 2). With a retail hand adjustment equal to 40% the companys selling outlay to retailers would be $.961 (Exhibit 3). Thus from the market sales forecast of $133.202 million the company would receive $79.921 million in revenue, and with the companys contribution margin of 30% total profit would be equal to $22.378 million (Exhibit 4).