SWOT analysis of Dr. Pepper Snapple – Dr. Pepper Snapple SWOT analysis: Dr. Pepper Snapple Group is an American soft drink manufacturer based in Plano, Texas, and at the time of writing, July 2018 it was a business unit of the newly created the publicly-traded conglomerate Keurig Dr. Pepper. On the 29th of January day of January, 2018, it was reported by Keurig Green Mountain that Keurig Green Mountain was acquiring
Dr. Pepper Snapple Group in $18.7 billion. Today, the company is now called Keurig Dr. Pepper (KDP) and is North America’s most renowned company for beverages and coffee. It is the market leader for soft drinks as well as juice, water, and mixers, and is the top single-serve coffee brewing system within the U.S.
It offers a wider selection of cold and hot drinks that cater to almost all the needs of customers. The company employs more than 250,000 employees and has over 120 warehouses, offices, distribution, and manufacturing facilities throughout North America.
Dr. Pepper Snapple fun facts: Charles Alderton worked at a drugstore in Waco, Texas, owned by Wade Morrison. Legend has it that Morrison named it “Dr. Pepper” after the father of a young girl he was once in love with.
About Dr. Pepper Snapple – SWOT analysis of Dr. Pepper Snapple
Company: Dr Pepper Snapple Group, Inc.
CEO: Bob Gamgort
Founder: Charles Alderton
Year founded: 7 May 2008
Headquarters: Plano, Texas, United States
Annual Revenue: US$1.08 Billion
Profit | Net income: US$432 Million
Number of employees: 21,000
Products & Services: Sunkist soda | 7UP | A&W | Canada Dry | Crush | Mott’s | Squirt | Hawaiian Punch | Peñafiel | Clamato | Schweppes | Venom | Energy | Rose’s | Mr & Mrs T. | Aguafiel
Dr. Pepper Snapple Competitors
Competitors: Coca-Cola Enterprises | PepsiCo | Mondelez International | Kinley | Red Bull | Ito En
SWOT analysis of Dr. Pepper Snapple – Dr. Pepper Snapple SWOT analysis
SWOT Analysis Of Dr. Pepper Snapple is brand-based. SWOT Analysis of Dr. Pepper Snapple evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Dr. Pepper Snapple’s SWOT Analysis. Below is the detailed SWOT Analysis of Dr. Pepper Snapple.
Let’s talk about Dr. Pepper Snapple’s SWOT assessment.
Strengths of Dr. Pepper Snapple – Dr. Pepper Snapple SWOT analysis
Wide Product Portfolio
This brand offers a variety of products under its wings. Snapple is a name for tea and juice and a third product is called Dr. Pepper is quite well-known and has a unique flavor that makes it a hit with people who purchase it.
It also offers Canada Dry which has the sweet taste of home-brewed liquor. DPS also bought Bai brands LLC, which are antioxidant-infused water carbonated flavors of teas, premium waters, and coconut water under the umbrella of its collection. After the acquisition of 7UP back in the year 2010, the brand was updated with a cleaner, fresher flavor, and more bubbly appearance. It encourages consumers to discover the world of flavor and fun.
A strong brand name:
The company is among the most well-known beverage producers around the globe and has vast distribution and sales distribution networks. The company is committed to providing healthy lifestyles for its employees. Dr. Pepper Snapple Group operates with a focus on the customer and collaborates closely with customers to meet their demands and expectations. The company offers a wide range of low and zero calories products. The brand has a great reputation for its customer-friendly service and is committed to providing clean and healthy drinks for its customers.
It has solid experience in integrating companies via M&A (Mergers as well as acquisitions). It has successfully integrated numerous companies to establish an efficient distribution chain that has helped streamline the efficiency of its processes. It was established in 1969 when Cadbury Schweppes became created through the combination between Cadbury Schweppes and Cadbury. Schweppes.
The company has acquired other independent distribution and bottling companies, such as All-American Bottling Co., Southeast-Atlantic Beverage Corp., Dr. Pepper/7 UP Bottling Co, Davis bottling Co., etc. The important M &A has helped the company to become one of the biggest in North America. Beverage Company.
Weaknesses of Dr. Pepper Snapple – SWOT Analysis Of Dr. Pepper Snapple
The products are a success on the sales front however the distinct selling point, as well as the position of the product, aren’t well-defined, which has allowed greater leverage to its rivals.
The company is working to reduce its programs and support to media for carbonated beverages like Drpepper, Canada Dry, 7UP, etc. to focus on more healthy drinks. So, now, the company needs to make use of better marketing capabilities and analytics to ensure that any future marketing efforts provide the greatest benefit and return
Dr. Pepper’s Snapple Group has been growing rapidly in various locations and expanding its product range and also. The company must invest more money in technologies to connect all processes across all of its operations. The company must work to become more agile in connecting outdated technologies to cloud-based services.
The company requires more efficient category management systems and analytics tools to find expansion possibilities and improve the revenue streams of retailers for the more traditional and recently purchased line of products
The company has any control over its product shipping or store delivery. About 59% of the volume of drinks are sold by bottlers that are part of PepsiCo along with Coca-Cola. The company should intensify the focus on the indirect distribution of its products in stores, allowing it to avoid the third-party retailers’ distribution facilities which will increase the margins and allow the company to take advantage of margins from downstream.
Opportunities of Dr. Pepper Snapple – Dr. Pepper Snapple SWOT analysis
Free trade agreements with the government and the use of modern technologies have helped Dr. Pepper Snapple Group to discover new opportunities to tap into emerging marketplaces. The company is smaller than its main competitors PepsiCo as well as TCCC who distribute its main brands across the world.
The company has increased its shares of the market in the domestic market. Dr. Pepper Snapple Group has a narrow geographic reach and is now focusing its attention on emerging markets such as India, China, Malaysia, and so on. where consumption per capita may be lower, but it is growing at regular intervals. The company is planning an international expansion and is researching international licensing agreements for the in-place distribution and sales of many of its top brands.
Diversifying into new categories
The expansion of the company into more diverse categories has helped diminish the advantage of competitors and gain a larger share of market share. Marketing91 has noticed that customers are spending more money on non-carbonated drinks and rapidly expanded its offerings in these categories, too.
These non-carbonated drinks have grown to the detriment of carbonated drinks, which Dr. Pepper and 7UP are famous for. The group has been spending huge amounts to acquire flavor-infused drinks and probiotics and spent $1.7 billion to purchase Bai Brands which makes waste that contains anti-oxidants with coconut water and tea.
Dr. Pepper and Snapple group have discovered new customers via the online platform. The company has invested a lot in the platform as well as been able to gain new customers through websites. This investment has allowed the company to leverage the platform and reach out to young customers, by better understanding customers’ behavior and addressing their needs with greater precision using big data analytics.
The company provides a range of beverages that include carbonated soft drinks as well as non-carbonated drinks, as well as ready-to-drink beverages, such as water, juices, and mix. The company is focused on product innovation and more than 55% of its investment is made to reduce the calorie content of these drinks. In 2025, the company is aiming to cut down on the calories consumed by 20 percent.
Threats of Dr. Pepper Snapple – SWOT analysis of Dr. Pepper Snapple
Dr. Pepper Snapple Group hasn’t been in a position to be as competitive as its rivals in terms of price. This could lead to a decrease in sales of the beverages of the company. The company’s strong pricing strategies have been instrumental in helping PepsiCo overcome the decrease of 2% in North American Sales. The price mix strategy of Coca-Cola has enabled the company to keep its profits even with the drop in volumes of sales. The company should concentrate on its pricing strategies in order to guarantee competitive advantages.
The company hasn’t been able to address the issues presented by more recent entrants to the market and has seen its market share shrink. share in small-scale categories. The beverage industry is stable profit and has led to an increase in the number of companies that compete in the industry. The company has to compete in the same direction as giants like PepsiCo or Coca-Cola and has to invest heavily in marketing. The company must boost the amount of advertising it spends. The company is currently third in its market, behind Coca-Cola and PepsiCo however this market is shrinking in the past 10 years.
You May Also Like:
- Accor Hotels SWOT analysis – SWOT analysis of Accor Hotels
- Johnson & Johnson SWOT analysis
- Hair & Care SWOT analysis – SWOT analysis of Hair & Care
- Fiama Di Wills SWOT analysis
- Sensodyne SWOT analysis – SWOT analysis of Sensodyne
Overview Template of Dr. Pepper Snapple SWOT analysis
Dr. Pepper and its diverse product portfolio have great potential. The futuristic vision of healthy beverages is one that can help the company make the right splash on the international scene. It is also an apt differentiator which can help DPS to stand apart and build its own against beverage giants Coco-Cola and Pepsi.
Today, marketing and selling have been simplified with online mechanisms. The quicker DPS is able to adopt technology with all its benefits, the easier it will be for the company to tackle competition and boost its market share.
This is the SWOT analysis of Dr. Pepper Snapple. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.