Table of Contents
Executive Summary 3
Company Overview 4
Company Profile 4
History (2003-today) 4
Vision Statement 4
Soft Drinks Industry by Classification Standard 5
DPSG Product Segment and Major Market Brands 5
External Environment Analysis 6
Technology 6
General Economic Conditions 6
LEGISLATION and REGULATIONS 7
Population Demographics 7
Growth in US Population and Hispanic or Latino origin 8
SOCIETAL VALUES and LIFESTYLES 9
INDUSTRY ANALYSIS 10
Global Soft Drink Market ($ Billion) 10
North America Soft Drink Market (Per Capita Consumption) 10
Market Leaders in the Flavouring Syrup and Concentrate Manufacturing Industry 11
Market Leaders in Soft Drinks Manufacturing Industry 11
INDUSTRY TRENDS 11
FIVE FORCES ANALYSIS 12
Bargaining Power
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A SWOT analysis for DPSG has been carried out based on DPSG’s operations which measure and formulate business strategies to tap the existing opportunities and consolidate and grow its market presence and be well equipped for the changing external environment.
Company Overview
Company Profile
Dr Pepper Snapple Group, Inc. (DPS or 'the company') is a manufacturer and distributor of carbonated soft drinks (CSDs), juices, teas, mixers, waters and other beverages. The company primarily operates in North America, Canada, Mexico and Caribbean. It is headquartered in Plano, Texas and employed about 19,000 people as of December 31, 2014.
The company recorded revenues of $6,121 million in the financial year ended December 2014
(FY2014), registering a 2% growth compared to FY2013. The operating profit of the company was
$1,504 million in FY2014, an increase of 10.0 % compared to FY2013.
History (2003-today)
In 2003, the four North American beverage companies under Cadbury Schweppes -
Dr Pepper/Seven Up, Inc., Snapple Beverage Corp., Mott's, and Bebidas Mexico - were unified under a common vision, business strategy and management structure to become Cadbury Schweppes Americas
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Nutrition Labelling must be maintained with all nutrients provided in the serving.
School Beverage Guidelines: Full-calorie soft drinks have been removed from schools on directives from American Beverage Association. The School Beverage Guidelines provide for a range of lower-calorie, smaller-portion beverage options. As a result, the beverage mix in schools continues to shift to waters, portion-controlled sports drinks, diet drinks and 100 percent juices.
Energy Drink Guidelines: Energy drink manufacturers are not allowed to market their energy drink products to children under 12 years of age nor can the same be sold in K-12 schools.
Population Demographics
Looking at Exhibit 1, high percentage population of Male and Female in the teen (2-19 years) age group consume soft drink on a given day followed by the population in 20 years and above group. Hence, US children and teenagers are seeing heavy advertising from the manufacturers. Overall 50 percent US population consume soft drinks at least once in a day.
Exhibit 1
Exhibit 2
PIR= Poverty Income