Dr. Pepper and PepsiCo are similar enterprises in terms of the business model and flagship products. However, Dr. Pepper Inc. primarily produces ancillary products and operates as a beverage company in the United States and internationally. Nevertheless, Dr. Pepper is not under PepsiCo.
Even though Pepsi does not engage in the production and exposition of Dr. Pepper drinks, it acts as a primary distributor to most of their products. Pepsi holds International distribution and bottling service rights on Dr. Pepper drinks. It is the primary reason why it is common to spot Dr. Pepper drinks alongside other Pepsi brands.
Dr. Pepper is one of the pioneer soft drinks developed and branded by the Dr. Pepper Snapple Group. The brand is named after Charles Pepper, the owner of a drug store that invented the drink in 1700. The drink was later perfected by the discovery of carbonated water leading to the creation of the world’s most famous refreshments.
Dr. Pepper then became an s target for the Coca-Cola brand acquisition after filing for bankruptcy in 2008. However, the Federal Trade Commission of the United States prevented the merge between the two companies. Later, Dr. Pepper merged with Seven Up, a move that enabled Coca-Cola and PepsiCo to receive a vast distribution right to their products internationally.
Pepper Snapple’s Key Brands
Despite low sales experienced by the company presently, Dr. Pepper remains the third- largest soft drink producer in the United States. The company had to develop diverse brands in response to a sales drop experienced during the Corona Virus 2019 pandemic. Currently, Dr. Pepper focuses on rebranding their products to boost sales income.
NCB Brand – This section comprises integrated non-alcoholic beverages distributed in Canada, the United States, and Mexico. These non-carbonated drinks include juice drinks, mineral water, and other mixers.
CSD Brand – This beverage segment includes carbonated drinks such as Schweppes, sunskit, and Dr. Pepper. The drinks are sold all in the United States of America, Canada, and parts of Mexico. Being the third-largest company in the USA, they collectively hold up 70% of the CSD market.
Dr. Pepper Flavor Range Profile
Dr. Pepper leverages cultural innovation methods to expand its flavor variables. The soft drink has 23 different natural flavors with a secret recipe only accessible at their Texas headquarters. Dr. Pepper’s diverse blend and flavors are the secrets behind the drink’s proprietary combination.
With a combination of different fruits and spices, the brand still formulates natural drinks from canes instead of high fructose corn syrup. The drink can also be served hot. Yes, you read that, right!
Dr. Pepper is the only soft drink that can be served hot and cold. Initially, Dr. Pepper was formulated as a winter season beverage. With the right criteria, you can mix Dr. Pepper’s soft drink with natural fruits and spices, then serve it hot and keep the cold at bay this winter.
Some of the Dr. Pepper’s ingredients include lemon, orange, nutmeg, cherry, blackberry, etc. Worth noting, however, is that the brand emphasizes on perfection of their twenty-three unique artificial and natural flavors.
Dr. Pepper Marketing Strategy
The brand has been existent for years and has a unique marketing strategy that differentiates it from other brands. Throughout their marketing history, Dr. Pepper has tapped into a broader region.
Dr. Pepper Target Market
Snapple Group has been in the soft drinks industry for a long time; initially, they captured the older generation’s attention with their unique flavors. However, their marketing strategy has evolved, and they are now targeting the younger generation by embracing social network sites to boost sales.
To achieve this objective, Dr. Pepper is assessing the average consumer and tapping into their needs to increase the number of light buyers accessing the drinks.
Gamers – In a denomination where loyalty can be elusive, gaining a foothold in the beverage market is an overwhelming experience. This is why Dr. Pepper is trying to tap into a significant audience of about 16-25-year-old young boys for brand exposure.
Research proves that gamers spend a lot of time online, playing, and sharing information. They can act as a marketing medium on a social level to their advantage.
Pricing – Dr. Pepper’s price conforms to the soft drinks industry and category level as they have adapted competitive and unique strategies to boost sales. The company’s products are relatively cheaper than other brands, and they price their items on a low budget to outdo competitors and gain increased market share.
The strategy mentioned above builds a reliable connection between the consumer and the company. Dr. Pepper’s products demonstrate beneficial attributes meaning they have been in the industry for some time and are experienced.
Even though price undercutting can devalue a companies’ proficiency, Dr. Pepper’s pricing strategy also builds loyalty and boosts unit sales. Aside from that, the company is dedicated to building a solution to social insights and engaging buyers in promotional schemes to access the broader market.
Dr. Pepper Place & Distribution Strategy
Today, most beverage companies are competing for the attention of consumers, with organizations increasingly partnering with other facilities to set themselves apart from competitors. With about 20 manufacturing centers globally, the Dr. Pepper brand is also targeting the global market.
The company’s marketing strategy and product serving innovations have helped it achieve various business goals. With a diverse portfolio and an authentic blend of 23 artificial and natural flavors, Dr. Pepper reaches small S&M enterprises. The distribution strategy mentioned above ensures efficient supply to retailers and traders at large.
Dr. Pepper vs. PepsiCo Stock Price Movement
The enterprise revenue of Dr. Pepper has gained high revenue growth over the past two years. With a decrease in sales in the beverage industry due to the pandemic, KDP stocks have recently shot up to $28, displaying substantial upside potential. KDP stocks have increased by a 50% rise in total revenue over the past two years.
The upsurge above was primarily boosted since the procurement of Dr. Pepper by Keurig Green Mountain. Despite the COVID-19 pandemic affecting a wide range of corporates worldwide, KDP appears to be immune to the effects of the ongoing crisis. Quarantine and home confinements seem to have boosted their sales.
Despite the high extent of uncertainty, Dr. Pepper is benefiting directly from their bottled beverages, mostly sold in convenience stores, and is easily accessible to the average consumer. There was a shortage of these drinks in convenience stores early this year that prompted Dr. Pepper to increase soft drinks production.
On the other hand, the pandemic has boosted PepsiCo snack brand sales beating analyst expectations. Their overall sales heightened up to 5% despite the ongoing volatility. In addition to that, Pepsi remains one of the leading companies’ in the beverage enterprise.
Keurig Dr. Pepper’s Top Competitors
Dr. Pepper has been existent for more than a decade and is still ranked as one of the largest beverage makers. The company’s annual revenue was ranked 1st amongst its competitors. Dr. Pepper’s quality and net promoter score rank them the lowest, yet they still manage to tap into the market and generate revenue.
Here are the top 3 competitors who are catching up and raising standards on soft drinks.
1. Admiral Beverage
Admiral beverages are part of Keurig Dr. Pepper’s top competitors. The cooperation is under Pepsi; they distribute and produce Pepsi products. Like Dr. Pepper, the company offers a wide range of drinks from fruit juice, lemonade, and soft drinks.
Admiral beverages started in the mid-90s; the company later purchased the seven up bottled up company expanding their territory. The company currently has three production centers where they formulate and distribute soft drinks and other beverages. The only difference they have from KDP is the production of alcoholic beverages.
2. Coca-Cola Bottling Company
For over a decade, Coca-Cola still retains its position as a leading brand in the beverage industry. It is one of the most recognized brands globally; however, Dr. Pepper has captured a significant part of Coca-Cola’s market share.
PepsiCo is categorized as one of the best soft drinks. The multinational food and beverages cooperation has been serving the world’s best soft drinks for over a decade.
Things You Didn’t Know About Dr. Pepper
No one but the officials at Dr. Pepper knows the secret formula. The recipe for the Soft Drink has been a secret since its invention. There are two separate pieces of the procedures kept in two different Dallas Banks for safekeeping.
Dr. Pepper and Coca-Cola Animosity
Dr. Pepper and Coca-Cola have been on loggerheads for a while. In 1951 Dr. Pepper sued Coca-Cola for 750 Thousand dollars. Dr. Pepper argued that Coca-Cola sold their products below cost. Dr. Pepper later sued Coca-Cola for infringement of the registered trademark in 1972. Dr. Pepper had named its drink Dr. Peb and was later changed to Mr. Peb. At this point, Dr. Pepper went destitute.
Began at a Small Town Waco
In 1885, a pharmacist Charles Alderton, created a formula, which consisted of twenty-three ingredients. Charles presented the formula to his boss Mr. Morrison, who approved it. The event occurred in a small town in Waco, Texas. Different stories have emerged on the drink’s invention, and no one is certain of who the mastermind was.
The Big Break
Dr. Pepper’s breakthrough happened in Louisiana. With over 20 million persons in attendance during an exposition in 1904, the drink was introduced to the public. After the launch of the soft drink, Dr. Pepper sold increased cans of its products; their popularity increased across the States. With demand increase, the companies’ initial owners were forced to introduce a standard layout.
Makes up of 65% Snapple Group Sales
Dr. Pepper Snapple Group is the parent company of Dr. Pepper. The original soft drink contributes about 65% of the sales.
Name Origin Remains a Mystery
No one is precisely aware of the idea behind the name Dr. Pepper. However, there are assumptions such as the fact that the owner wanted to have a good relationship with the neighbor whose name was pepper .or was from the English word pep.it means to energize hence the name Pepper
No Dispute between Charles and Morrison
There exists an eternal debate over who was the inventor of Dr. Pepper drink between Charles Taylor Pepper and his assistant (who some dispute the claims).
Dr. Charles worked at Morrison’s drug store; the two worked together in consensus. There has been an understanding between the two. Charles shared the formula of how he came up with the ingredients with Morrison. This was considered top secret. No one knows exactly the story behind the drinks, but that does not matter anyway.
The Missing Period
The period in the name was omitted to improve eligibility. The name Dr was often misread as “DL” Omitting punctuation ultimately leading to product misrepresentation.
Besides the original soft drinks content, there were other drinks that mimicked Dr. Pepper drinks. In 1962, a diet Dr. Pepper was introduced in bottles and a year later in cans. In 1982 a pepper free drink was introduced. It was said to be caffeine-free. In 2011 Dr. Pepper ten was introduced and marketed explicitly for men.
Available as Hot and Cold Drinks
Dr. Pepper was initially made for the winter season. In 1960, the company developed a formula that could enable people to consume the drink hot. Today, Dr. Pepper is the only beverage under the soft drinks category that can be served hot and cold.
Frequently Asked Questions about Dr. Pepper
Here are the answers to your most pressing question on the product.
1. Where is Dr. Pepper Snapple Group Located?
Keurig Dr. Pepper, formally known as Dr. Pepper, is a multinational soft drink company located in Texas, USA. Their headquarters are at 5301 Legacy Dr, Plano. Different brands of the company are located in other regions.
2. How is Dr. Pepper Distributed?
Dr. Pepper is a global business operating on a local scale with a broad distributing network. According to official statistics, half of their products are distributed by their bottle distribution services. Third parties (Coca-Cola and Pepsi) only distribute the remaining fraction.
While it is commonly perceived that Coca-Cola and PepsiCo are the primary distributors of these products, the brand is nearly as independent in this sector. With over 115 distributing centers, they spread the final branded beverages to vending partners.
3. What is the Shelf Life of this Product?
The shelf-life of Dr. Pepper’s products depends entirely on the type of drink. There are fewer adverse effects with drinking an expired soft drink; the taste is flat and uninteresting. However, you are advised against drinking stockpiled diet soda. Diet sodas are blended with artificial sweeteners that gradually devoid the drink; as the chemical breaks down, the glass becomes unhealthy to consume.
There is a couple of health risks associated with drinking a bottle of stockpiled Dr. Pepper. Always check the date of your favorite carbonated beverage.
4. Does Dr. Pepper Contain Prune Juice?
While this brand’s flavor that produces an inimitable taste is hard to point out, multiple drink-related misinformation has emerged surrounding the presence of prune in this product. The brand has secured the formula and kept it out of the public for years hence sparking the rumors. The company has countlessly refuted the rumors claiming their products are prune-free and safe for consumption.
The conventional notion that Dr Pepper dates back to 1930 during its early days. However, the company refuses to give the formula.
5. Does Dr. Pepper Contain Gluten?
With more people switching to a gluten-free diet, it is common that gluten-free soft drinks are a much healthier choice. Most brands that manufacture sodas avoid gluten in their beverages because gluten might cause cross-contamination, which is not suitable for human consumption.
To be safe, always check food labels and ingredients. Ensure you pick gluten-free drinks to avoid the health risks associated with the former’s consumption. Worth noting is the fact that most products that contain high fructose usually have traces of gluten due to the presence of corn syrup.
6. Does a Larger Company Own Dr. Pepper?
Dr. Pepper partners with different brands to offer diversity to its customers. Brands partnering with Dr. Pepper include Canada Dry Mott’s Inc. (CDM) and Dr. Pepper Snapple Group (DPSG).
7. Where Can I Find Dr. Pepper Drink?
Dr. Pepper’s soft drink is found in convenience stores. However, with the ongoing Coronavirus pandemic, individuals have been stocking food and beverages in their homes. The scarcity was addressed by the brand, through the explanation that increased demand for Dr. Pepper’s drinks was responsible for the shortage of its products.
The media, however, claims that the lack of aluminum could also be a leading factor for the increased scarcity of Dr. Pepper drinks. Dr. Pepper is also available on Amazon and other online stores.
With the COVID-19 pandemic obliging market saturation in most enterprises, Dr. Pepper maintains a robust economic system. The company has been among leading brands for over a decade. Dr. Pepper’s portfolio exceeds carbonated drinks; the company has also ventured into food processing.
Dr. Pepper is under Dr. Pepper Snapple Group but is in partnership with other trademarks. However, the bottling packaging on Dr. Pepper is owned by PepsiCo and Coca-Cola.