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Challenges associated with Dr. Pepper Snapple Group, Inc.

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Read the case study on Dr. Pepper Snapple Group, Inc and answer the following:

1. What would be the challenges associated with Dr. Pepper Snapple Group, Inc. extending their product offering to include an energy beverage?
2. Analyze the energy beverage market extending your research beyond the textbook. Is this a growing market? Contrast the domestic and global markets.
3. Explain how the determined pricing strategy would have a significant impact on profitability. Include discussion on retail pricing, expected unit volume, and margins.
4. Take on the role of marketing manager at Dr. Pepper. Identify several alternatives to overcome these challenges. Looking at these possible alternatives, which would you select and why?

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Solution Summary

This response provides guidelines and reference notes to analyse the case study questions related to Dr Pepper Snapple Group. The company is introducing a new product in the market related to energy drink as the customers are becoming health conscious and prefer products that are beneficial for the health of the people. It is discussed in this report.

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Dear Student,

Please find guidelines related to case study questions related to Dr. Pepper Snapple Group, Inc. in the attached file.

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Reena (106553)

This response provides guidelines and reference notes to analyse the case study related to Dr Pepper Snapple Group. The company is introducing a new product in the market related to energy drink as the customers are becoming health conscious and prefer products that are beneficial for the health of the people. In addition to this, the company priced the product at $2.79 which is higher than the average price of the energy drinks in the market.

Q.1 What would be the challenges associated with Dr. Pepper Snapple Group, Inc. extending their product offering to include an energy beverage?
The different challenges faced by Dr. Pepper Snapple Group in the extension of the product offering to include energy beverage includes challenges related to pricing, extending a product line, positioning of the product and so on. The biggest challenge is that the company has planned to price a product at $2.79 for 20 ounce single serve package which is higher than the average price of an energy drink in the ...

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