Following the separation from the Cadbury Sweppes, DPS was hard hit by the financial crisis which rocked the American economy, leading to slumping sales and subsequently limiting spending. Despite the slow sales and dwindling economy, DPS used Nielsen’s research analysis of the 1980’s economic crisis to pump in heavy advertising and marketing. One of the key areas where DPS made a big leap was its brand development. DPS engaged in strengthening non-cola drinks segment, with a firm believe that customers are falling out with cola drinks. Introduction of new brands including; Dr Pepper, Sunkist, and A&W, DPS saw record sales growth of 10 percent in 2010, indicating the new strategy to fuel advertising and brand marketing had begun to pay off. …show more content…
Under the leadership of Young, DPS was able to turnaround the struggling brands; notably Snapple brand, which had being facing struggles since under Cadbury. The new strategy of developing the brand involved rebranded the Snapple brand, with completely new look and taste. The marketing techniques were also changed, to offer the brand a new look and subsequently increase consumer interests. The new Snapple included new formulations for its teas to increase consumer interest, and began to focus on the health benefits of the product. DPS also began to distribute Snapple juices and lemonades in sleek 16-ounce glass bottles with labels indicating their health benefits. These and other changes paid off, as sales of Snapple actually increased in 2010, in spite of a poor economic