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Alex Puente Noemi Ledesma Michael Farag Tiana Lee Tareq Naser

DPS presentation

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Alex PuenteNoemi LedesmaMichael FaragTiana LeeTareq Naser

INTRODUCTIONThe Company now known as DPS has evolved from a combination of discovery, invention and collaboration. This rich history includes the very birth of the soft drink in 1783, when Jean Jacob Schweppe perfected the process for carbonating water and created the worlds first carbonated mineral water.A young pharmacist from Waco, Texas named Charles Alderton created the DR. Pepper drink in 1885.Dr. Pepper was served from a local drug store where Alderton worked. Customers would ask for a Waco.Eventually the name was changed into Dr. Pepper after a friend of the store named Dr. Charles Pepper.hdnSource: WWW.DRPEPPERSNAPPLEGROUP.COM/COMPANY/HISTORY/

DPS markets more than 50 brands

SOURCE: DRPEPPERSNAPPLEGROUP.COM

MANAGEMENT STYLEIn 2008 Dr. Pepper Snapple group went public.President & CEO Larry D. Young started the Call to ACTION campaign and adopted the idea of Corporate Social Responsibility.Paternalistic style of management.

source: WWW.DRPEPPERSNAPPLEGROUP.COM/VALUES/CALL-TO-ACTION/

Corporate Social Responsibility

SOURCE: WWW.DRPEPPERSNAPPLEGROUP.COM/COMPANY/SUSTAINANILITY/

DPSG SWOT ANALYSIS

SOURCE:http://news.drpeppersnapplegroup.com/

STRENGTHS

Strong portfolio of brands - Their portfolio includes more than 50 diverse brands consisting of carbonated soft drinks (CSDs), juices, teas, mixers, waters, and other premium beverages.

Differentiation Strategy:Unique tastePriority in package brand innovationIntegrated business model

SOURCE: http://www.drpeppersnapplegroup.com/brands/

WEAKNESSESLack of International ExposureDPSG only has a presence in the United States, Canada, Mexico, and the Caribeans

Minor compared to CompetitorsCoca-Cola and PepsiCo are both in over 100 countries worldwide.

Reliance on 3rd Party Bottlers for Packaging and DistributionISO (Independent Sales Organizations)CASO (Coke Affiliated Selling Organization)PASO (Pepsi Affiliated Selling Organization)

SOURCE: http://www.drpeppersnapplegroup.com/company/operations/

OPPORTUNITIESGrowth to International MarketsLow exposure presents a significant growth opportunity to DPSG.International segment has been a primary driver for competing companies as health consciousness has increased in North America.

Growth in Health & Wellness market * Water * Teas * Juices * Low Calorie Soft Drinks

New product launches

SOURCE: http://www.drpeppersnapplegroup.com/company/strategy/

LAUNCHED NEW LINES OF PRODUCTSDR PEPPER TEN7UP TENSUNKIST TENA&W TENRC TENCANADA DRY TEN

Made with ALL Natural IngredientsNo Artificial FlavorsAvailable in Three Levels of SweetnessSOURCE: http://www.drpeppersnapplegroup.com/values/balance/

THREATSLoss of partner bottlers

Socio-cultural trends towards a healthier lifestyleObesity EpidemicDiabetesSugar Tax

Operates in a Highly Competitive MarketPepsiCo, Inc.Coca-Cola CompanyNestl S.A. http://www.sfgate.com/politics/article/UC-study-With-new-tax-less-soda-being-consumed-9180297.php#photo-10818175

PORTERS 5 FORCESFive Forces of Competitive Position

Rival CompetitorsThreat of New EntrantsThreat of Substitute ProductsBargaining Power of BuyersBargaining Power of Suppliers

SOURCE: Management: A Practical Introduction, Kinicki, Angelo, & Williams, 2015

RIVALRY AGAINST EXISTING COMPETITORSThe Coca-Cola CompanyExtensive product line with over 700 product optionsIs the largest beverage company of non-alcoholic beverages http://www.coca-colacompany.com/press-center/image-library/coca-cola-logo PepsiCo IncOperate in the food and beverage businessOffers products to over 200 countries http://www.pepsico.com/Company/Global-Brands Nestl Wide variety of products to include chocolate, coffee, food items, pet food, drinks, etc...Leading nutrition, health, and wellness company http://www.nestleusa.com/search?q=logos

THREATS OF NEW ENTRANTSNew entrants are not a strong concern for the soft drink industry.

Brand loyalty dominates the industry

Already established distribution channels

It is very difficult to start competing against existing firms due to high costs.

http://www.drpeppersnapplegroup.com/company/strategy/http://news.drpeppersnapplegroup.com/2016-11-22-Dr-Pepper-Snapple-Group-To-Acquire-Bai-Brands-LLC

THREATS OF SUBSTITUTE PRODUCTSConsumers could choose healthier optionswaterteasfruit drinks

Alternative optionsCoffeeFreshly pressed juiceSmoothies

http://www.drpeppersnapplegroup.com/values/sustainability/health-and-wellness/

BARGAINING POWER OF BUYERS

Negative financial & credit impact due to recession or other economic conditions

Maintain low prices

Keep prices consistent with retailersFast-food restaurantsConvenience StoresMarketshttp://www.drpeppersnapplegroup.com/annualreport/2011/index.html#/25/

BARGAINING POWER OF SUPPLIERS

Cost for commodities may increase over timeWaterSugar

Weather and climate changes may affect availability of raw goodsGlobal warmingDroughtNatural Disasterhttp://www.drpeppersnapplegroup.com/annualreport/2011/index.html#/42/

InnovationBeverage and food trips have increased, with 58 percent of c-store visitors The largest category of sales for DPSG is carbonated soft drinks DPSG has more than 50 brands under its umbrella, including favorites such as Dr. Pepper, 7UP, Motts, Snapple, and Canada Dry. Goal to be: Be the Best Beverage Business in the Americashttp://www.drpeppersnapplegroup.com/company/operations/

Financial Performance5% increase in sales between 2014 and 2015Net Sales increased 2% for the quarter and 3% for the year. Company expects full year 2016 Core EPS in the $4.20 to $4.30 range$1 billion to shareholders in the form of stock repurchases and dividends.http://investor.drpeppersnapplegroup.com/annual-reports

Customer Service250,000 miles saved by shipping directly to customersAccountableCustomer-centricTransparent and honestyInspect what we expectOwn our own decisionNo blame fixinghttp://www.drpeppersnapplegroup.com/company/call-to-action/

BUSINESS STRATEGYBUILDING THEIR BRANDSDPSG has a well defined portfolio strategy to distribute their marketing and sales resources.Ongoing process of market and consumer analysis.They drive profitable and sustainable growth by:strengthening consumer awarenessinnovating against their brands in order to take advantage of changing consumer trendsimproving distribution & increasing promotional effectivenessNew distribution agreements for emerging, high growth third party brands in new categories that use their manufacturing and distribution networkwww.drpeppersnapplegroup.com/company/strategy/

BUSINESS STRATEGYACQUISITIONS, MERGERS, AND PARTNERSHIPSBA SPORTS NUTRITIONHIGH BREW COFFEE, INCBAI BRANDS, LLC

Dr Pepper Snapple Group Inc.:Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis. Basingstoke: Progressive Digital Media, 2016. ProQuest. Web. 15 Nov. 2016.

Dr Pepper Snapple Group Inc.:Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis. Basingstoke: Progressive Digital Media, 2016. ProQuest. Web. 15 Nov. 2016

BUSINESS STRATEGYEXECUTE WITH EXCELLENCEThey are focused on improving their product presence in high margin brands, products and channels through improved selling activity.Increase demand for high margin productsIntegrated business model:brand ownershipmanufacturingdistributionRoute-to-marketInvestments in information technologywww.drpeppersnapplegroup.com/company/strategy/

BUSINESS STRATEGYRAPID CONTINUOUS IMPROVEMENT (RCI)Adopted in 2011multi-product manufacturing facilitiesLean and Six Sigma methodsBusiness improvement methodology

http://www.drpeppersnapplegroup.com/company/strategy/

Issues that DSPG faceCertain raw materials used in the production of DSPG products such as aluminum cans and ends, PET bottles, juice, glass bottles, sweeteners and other ingredients, are supplied by industries that a with limited resources. DSPG depends on allies for distribution. Legal proceedings.Consumers preferences are changing constantly and DSPG may not be able to keep up with consumer needs. http://www.drpeppersnapplegroup.com/annualreport/2011/assets/assets/html/page21.html

Issues that DSPG faceClimate changesContamination.Countless federal, state and local laws and regulations in the U.S., Canada, Mexico and other countries in which they perform their operations.Risk of losing recipes, copyrights, and trademarks. Economic downturnshttp://www.drpeppersnapplegroup.com/annualreport/2011/assets/assets/html/page21.html

RecommendationsGlobalization.Depend less on third-party suppliers and distributors.Maintain product quality, high customer service, and increase financial performance quarterly. Focus on employee satisfaction. Remain consistent with consumer needs and wants in reference to beverages.

ConclusionDSPG executes its strategies effectively in order to achieve their goals.DSPG is on the route of becoming one of the greatest beverage suppliers in the world. DSPG exists in a market with loads of regulations and challenges, but have always been able to deliver