1. In late 2007, the energy beverage category was dominated by five brands Red Bull, Monster, Rockstar, Full Throttle, and Tab energy. Red Bull dominated the market with 43% of the market share. The energy drink market continued to grow while the off-premise retailers represented about 70% of the total retail sales. Furthermore, the main consumers were males from age 12-34. They wanted a drink that offered high amounts of caffeine for that extra energy needed. Lastly, the energy drinks were mostly differentiated by their respective brands, unlike Dr. Pepper Snapple drink that was introduced in May 2007.
2. It would make sense for Dr. Pepper Snapple Group to launch a new energy beverage brand because unlike their competitors Dr. Pepper can differentiate their beverage without relying heavily on their brand equity. Furthermore, Dr. Pepper has had other major success in the past when introducing brand extensions. Dr. Pepper also has strong relations with distributors, bottling companies, and major retailers. In essence, it looks like Dr. Pepper Group has a golden ticket on the hands.
3. The consumer target market should be young student-athletes. For example, high school and college basketball, football, baseball, soccer players, etc. The consumer market for energy beverages is males between ages 12 to 34. Thus, the product niche could be targeting male and female students who pursue a healthy lifestyle (athletes).
4. The product that should be introduced is a non-GMO drink with higher amounts of caffeine and added proteins sold in an aluminum bottle instead of a can like its competitors. Also, the bottle should have a resealable cap to position the beverage as an “energy drink to go.” Utilizing a cap will help the target market, students that are athletes, to avoid spills since they are always “on the go.”
5. The new energy beverage should be distributed through convenience stores and off-premise retail channels because those channels represent the highest retail sales. However, to be more effective with the chosen target market the new product should be distributed through school campuses. This way the product is more accessible to the young student-athletes.