Hgghcompany's Expansion into the Energy Drink Market Essay

Hgghcompany's Expansion into the Energy Drink Market Essay

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Hgghcompany is looking to expand their portfolio into the energy drink market. Energy drinks were still a new concept at the time and were just what Dr. Pepper Snapple Group, Inc. needed to grow business. The expansion idea originated as part of a corporate business strategy to focus on opportunities in high-growth and high-margin businesses (Kerin 91). Expanding into other areas of thirst quenching will effectively increase growth and the presence of the company. Entering a new product under the company name can have some adverse effects on the company. To develop a new product concentration and resources from other thriving brands will be diminished to produce another drink that may or may not do well. Red Bull was the first energy drink to be developed in the beverage market. After seeing the success of Red Bull other companies attempted to reinvent the wheel but are still not as successful as the pioneer for energy drinks Red Bull.
To market the new energy drink Dr Pepper Snapple Group Inc. has to pinpoint who the target audience the product will attract and how to reach the consumers. This time and effort would not come as a lack luster attempt to increase the value of the company. To develop an advertising campaign the company would need to scrap resources for proper media exposure. There are an estimated 43 million energy drink users in the United States (Kerin 100) to put the competitors products out the minds of the consumer, which no other company that copied Red Bull’s innovative business move has. To reach the hearts of the consumer the product must be reasonable priced but attempting to be the low cost leader could project the notions of a cheap product.
Alternatively Dr. Pepper Snapple Group Inc. could redirec...

... middle of paper ...

.... The ingredients in the energy drinks raise health concerns for the public. Energy drinks have been known to leave users with impaired cognition and a sense of dependency (livescience). Students often drink the energy beverages to help study for exams and once they see how the flavored energy booster helped them stay awake to meet a deadline they tend to return to energy drinks the next time they are faced with a tough work schedule. Should Dr. Pepper Snapple Group Inc. successfully introduce a healthy energy drink that provides the body with chemicals that help restore wellness? The answer is yes this would be the new innovation the company was looking for to better their brands and send the company to the next level above the competitors. These days everyone is consumed with being healthy because they lack energy if the body is not receiving physical activity.

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