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Link to the article
http://www.forbes.com/sites/greatspeculations/2015/11/10/why-dr-pepper-is-doing-better-than-coca-cola-and-pepsico/#3b9086ba52a5
Synopsis
The technological development continues to have a great impact on various firms, which compete in the global market place for popularity and profits. Corporations are forced to undertake new and innovative methods of gaining different strategies, which are for competitive advantages for worldwide promotion. Among them is the Snapple Group, founded in 2008, with Chief Executive Officer Lary Young. This report will contain the analysis of the peculiarities of Dr Pepper Snapple Group and the whole production, originally formed in 1885 and still popular among masses.
While similar beverage companies like Coca Cola and Pepsi try to overtake the demands using innovative technologies and bringing advertising for their products, Dr Pepper turns attention to the rich history, which leaves no one indifferent towards this beverage.
The beverages of Dr. Pepper Snapple Group are popular and unique in the industry due to the excellent approach to both the clients` preferences and advertisements. Having serious rivals, the stock performance of Dr. Pepper blows Coca Cola and Pepsi beverages away by raising $114 million for only one quarter (Navellier, 2010). The issue of market expansion and profitability will be explored comparing this beverage to others, focusing on the ability for achieving goals, being globally competitive and profitable.
This report will address business relationships in the whole industry and in the field of a definite business doing. The concept of corporate culture along with the performance of specific approach to clients will be discussed. Various ways to manage corporate culture will be analyzed for better dealing with issues of the Group`s profitability and productiveness. Benefits of changing the advertising strategy will be mentioned in the report. Dr Pepper`s corporate peculiarities and their impact will be analyzed as well as the specific approach to clients and its return.
Environmental and Competitive Analysis
Viewing Dr Pepper Snapple Group for rich history, one cannot avoid its unique origins. Morrison`s Old Corner Drug Store in Waco turned the pharmacy experiment to a beverage of mixed tastes. This soft drink is diversified into 23 flavours from fruits to vegetables. Being popular at the huge market of goods, Dr Pepper is good in design and promotion.
The advertisements of Dr Pepper are full of modern ideas – managers point out the tendencies and demonstrate them properly in their clips. The environmental sphere of promotion remains the same – managers and producers do not invent new worlds of miracles (Beltrone, 2016). Instead, they mention real world and life situations, during which one is able to feel some magic when relaxing from routines.
The environmental circle of technologic and economic conditions, societal values, lifestyles, demographics along with legislation and regulation provides the product with high demands and profits. The abidance by modern trends supplies Dr Pepper with popularity. Mentioning societal values and lifestyles, Dr Pepper Snapple Group takes care about the customers` health – low calorie drinks aware people with obesity and diabetes (Geller, 2011). The beverage market is growing as well as the prices, so high sales are provided (Berk, 2012). Operating in highly competitive markets gives the ability to change the direction of advertisements and promotion to customers` preferences, health concerns and factors, which influence people`s lives.
World economic conditions greatly impacts the financial results of the whole industry, when the representatives of Dr Pepper Snapple Group have the intention of supporting small businesses for further collaboration. Geographic market share obliges managers to find different strategies, which will satisfy the clients` needs and preferences in order to achieve some corporate benefits or gain great outcomes. Primary Competitors are the Coca Cola Company, PepsiCo Incorporation and Nestle S.A. (Dr Pepper Snapple Group Inc DPS, 2016), which have a wide variety of products – food along with beverages provide these companies with worldwide demands.
Market expansion and profitability
The global beverage industry is highly competitive due to the diversity of tastes and trends. This way, each company is obliged to have some peculiarities. Dr Pepper is unique in the customer relationships – the brand provides specific studies for clients of learning their preferences for improving the soft drinks. Unlike other beverage companies, Dr Pepper production suits to different weather conditions – it has special recipes for being tasted both cold and hot.
People like enjoying some unique products, and Dr Pepper is not an exception – considering its policy to highly value the clients` feedbacks, the company brings changes to the drink (Trefis Team, 2015). Being based on desires, the Snapple Group creates tastes, which are the result of clients` requirements. This way, Dr Pepper expanses its market greatly: people are able to bring modifications and use this ability according to their wishes.
Growth strategy of building shareholder value over time assures the company heads in optimization of the production principles.
Diet drink promotion will significantly improve the profitability due to the mass orienteering to a health conscious world, which assures fit lifestyle. Non-soda diet drinks as a part of the whole Group will attract clients. Nevertheless, one of the greatest key issues is the lack of international presence. Dr Pepper Snapple Group operates only in the US, Mexico, Canada and Latin America (Ward, n.d.), whereas Coca Cola and Pepsi are worldwide famous and tasted by millions of people.
According to data taken from Forbes (2016), Dr Pepper Snapple Group has the profits of 16, 2 Billion and takes the sales of 6, 26 Billion, operating as non-alcoholic beverages. The division of three segments on market allows the company to occur in Beverage Concentrates, Packaged Beverages and Latin America Beverages, that assures the heads in high demands towards the products of carbonated soft drinks as well as teas, juices and mixed beverages.
Business Relationships and Corporate Culture
Dr Pepper Snapple Group has business relationships all over the world for deliveries and transactions. Peculiarities of corporate culture allow the heads of the company to provide sales and special proposals. This way, consumers are able to enjoy the diversity of Dr Pepper`s tastes and various kinds of beverages (tea, juice or soda). Consumers of the drink are frugal for their choice (Ziobro, 2010), and so are the product promoters – they mention the environment and abide by widely accepted policies in order to come up to development and increase the company`s profits. The promotion of creative spirit and great opportunities for the further personal growths coerce employees enjoy being the part of Dr Pepper Snapple Group (Sustainability, 2016). The corporate culture of Dr Pepper Snapple Group is under no changes, it still gives the old-fashioned attention to traditions.
The Dr Pepper`s advertisements are full of historical maintenance in order for the clients not to forget their juvenile aspirations and desires (Financial News, 2016). The customers are pleased with such an approach, so the demand for the Group beverages is extremely high. Investors, who honor traditions, try their luck by joining Dr Pepper team, improve their business and get self-benefits of affable coworkers. Principles of teambuilding are well-developed in the company, so every employee is ready to share his knowledge with others. This approach is effective during bringing innovations into wide use. Employees are acquainted with the company`s challenges, respect and follow them in order to gain benefits for the company. A strong focus on integration of multicultural staff is taken in order to diversify the working processes. The policy of sharing ideas and aspirations operates well – leaders are aware of every corporate matter in order to apply their talent and skills to any issue required.
Conclusion
This report demonstrates the need for different companies to compete on the international field for undertaking innovative business models in order to improve their production. Using Forbes article Why Dr Pepper Is Doing Better than Coca-Cola and PepsiCo as a reference, the report analyses Dr Pepper Snapple Group cross cultural management concepts. These principles are awareness, development, executive selection and integration along with acknowledging the challenges and multicultural team building. The proper combination of these concepts allows any organization to gain great outcomes and expanse the business and profits to worldwide scopes.
The report analyses both the environmental and competitive sides of the organization in order to identify its strong and weak aspects. Market expansion and profitability are discussed in this report considering a cross-cultural context. Taking into account the article, it is obvious that various methods of promotion may provide the company with worldwide success. Dr Pepper`s corporate culture is the key aspect in maintaining business relationships, which are managed by the company`s head Larry Young. This way, the great success is guaranteed to any business if implementing cross cultural management properly with mentioning all aspects.
References
Websites
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Ward, A. n.d. 11 Things You Might Not Know About Dr Pepper. Mental Floss.
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