1. Dr. Pepper lost market share mainly because of the competitive market and the changing demands of the customers?
2. The sustainable competitive advantage of Dr. Pepper is its sustainability through Corporate Social Responsibility?
3. Dr. Pepper still lags in comparison to its largest competitors and hence should adopt bottle recycling as new competitive strategy to sustain in the competitive scenario?
1. Dr. Pepper lost market share mainly because of the competitive market and the changing demands of the customers. There are many factors that lead to the decline in the market share of the company (Harvard Business Review, 1979). There are many contenders in the market and thus it is not easy for the organization to build up its mark in a new land. There are other soft drink companies, like Pepsi, Coca-Cola, etc. These companies are present in the market for quite some time and thus have their stand in the market. They are popular with the customers and have their presence in many countries, whereas, the presence of Dr. Pepper is limited. The idea about brand identification is the driving factor in any organization. It is one of the major barriers in the soft drink industry. Most of the soft drink companies want to create brand loyalty. In this competitive market, an organization has to invest heavily to maintain its name. This factor can be a little overwhelming for the organizations. The market is constantly changing and with it the taste of the customer. Many new products are coming up in the market. This can be the sign of trouble for the organization. The new companies are coming up in the market with various offers and exciting deals for the customers. Dr. Pepper needs to make some changes in its marketing strategy so as to beat this kind of competition (ROBINSON-JACOBS, 2013).
2. The sustainable competitive advantage of Dr. Pepper is its sustainability through Corporate Social Responsibility. As all the companies were investing in the large selling drink segment the focus of Dr. Pepper believes in “doing good with flavour”. They believe in providing a range of new flavours of beverages and at the same time invest in environmental sustainability, philanthropy and health and wellness goals (DrPepperSnappleGroup.com, 2015). The company values its customers and hence considers that delivering quality to the customers and the world in general would put the company in good light and hence adopting of a corporate social responsibility program is effective in establishing the company. The company has reduced operational cost through developing green approaches to energy efficient building features, LEED Certification. The competitive advantage of today goes to the ones who have adopted sustainability of environment as a primary function. Along with these standards, Dr. Pepper includes drought tolerant landscaping for conserving water; they are minimizing construction pollution and reduction of blacktops (Food Logistics, 2015). Sky lighting, energy efficient lighting controls and low emitting paints are the features adopted by Cr. Pepper factories and bottling points. Also, as a crucial factor of sustainability, the Company has tried to reduce employee accidents and provide a safe and healthy workplace to all (Carnevale, 2013).
The corporate social responsibility of the Company focuses on factors that provide the Company a competitive advantage. Environmental sustainability, health and well being, workplace environment, community investment and ethical sourcing are the focal point that has upgraded the company image and people find the company more reliable and trustworthy as they choose it over the other companies due to is sustainable image. Hence, in today’s scenario people are hugely concerned about environmental health and sustainability while choosing their brand. Thus adopting a CSR program is the most effective way of adding a competitive edge to one’s marketing techniques (Foundation, 2015).
3. Dr. Pepper still lags in comparison to its largest competitors and hence should adopt bottle recycling as new competitive strategy to sustain in the competitive scenario (Foundation, 2015). The company is the third largest sod a company but is still way back in comparison to Coca-Cola and PepsiCo, which are its largest competitors. These companies lack in clear and defined corporate social responsibility programs but have already adopted a recycling of bottles and cans as a competitive strategy. Dr. Pepper has failed to convince the public about their commitment level and contribution to sustainability. Hence, it is required that the company should indulge in packing recycling to convince the consumers of its sustainable standings. Their environmental and workplace sustainability programs have already gained momentum. But people cannot associate these activities with the selling of Soda, which is its primary business. Soda is considered harmful by a large segment and hence to create a comfortable and beneficial image, recycling of bottles and cans will make a major breakthrough. It will not only bring the Company at par with its competitors but will also gain public support.
As the company has already adopted sustainability and corporate social responsibility as its competitive advantage, the recycling factor would act as an added edge to its competitive strategy. Also, these actions have to be widely promoted through public relation activities and advertisement which will demonstrate the process of recycling and how it is benefiting the society. Thus the case study of Dr. Pepper is a wonderful example of Strategic marketing through sustainability (Team, 2015).
1. Carnevale, C. (2013). In The Beverage Industry, Don't overlook Dr. Pepper Snapple Group. Forbes. Retrieved 5 August 2015, from https://www.forbes.com/sites/chuckcarnevale/2013/10/25/dr-pepper-snapple-dont-overlook-this-beverage-contender/
2. DrPepperSnappleGroup.com,. (2015).Dr Pepper Snapple Group - Sustainability - Sustainability Overview. Retrieved 7 August 2015, from https://www.drpeppersnapplegroup.com/values/sustainability/
3. Ethicalconsumer.org, (2015). Soft drinks industry report from Ethical Consumer. [online] Available at: https://www.ethicalconsumer.org/ethicalreports/softdrinkssectorreport.aspx [Accessed 5 Aug. 2015].
4. Food Logistics,. (2015). Dr. Pepper Snapple Group builds A sustainable distribution center. Retrieved 5 August 2015, from https://www.foodlogistics.com/article/10255602/drinking-up-the-competition
5. Food Logistics,. (2015).Dr. Pepper Snapple Group Builds A Sustainable Distribution Center. Retrieved 7 August 2015, from https://www.foodlogistics.com/article/10255602/drinking-up-the-competition
6. Foundation, A. (2015). Dr Pepper Snapple Group | As You Sow. Asyousow.org. Retrieved 5 August 2015, from https://www.asyousow.org/companies/dr-pepper-snapple-group/
7. Harvard Business Review, (1979). How competitive forces shape strategy. [online] Available at: https://hbr.org/1979/03/how-competitive-forces-shape-strategy/ar/1 [Accessed 5 Aug. 2015].
8. ROBINSON-JACOBS, K. (2013).Soda sales lose more fizz; Dr Pepper sales fall less than others.Dallasnews.com. Retrieved 7 August 2015, from https://www.dallasnews.com/business/retail/20130325-soda-sales-lose-more-fizz-dr-pepper-sales-fall-less-than-others.ece
9. Team, T. (2015). Dr Pepper earnings review: Growth in both sparkling and still segments boost Q4 volume growth. Forbes. Retrieved 5 August 2015, from https://www.forbes.com/sites/greatspeculations/2015/02/17/dr-pepper-earnings-review-growth-in-both-sparkling-and-still-segments-boost-q4-volume-growth/
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