Business -- Change Management Project
DopplerShift, Inc. is a full-service professional business consulting firm. Our mission is to provide the necessary assistance for successful business organizations to identify their optimal future strategic vision with clarity of purpose and the functional approach to implement the changes through which major shifts can be accomplished. Our goal is always to enable organizations to make significant changes without disrupting the current success of those organizations.
The client, Dr. Pepper Snapple Group is a licensed subsidiary of the Coca Cola Group that has built a two-century-long reputation for success in conjunction with a historic brand recognized worldwide. According to the organization's most recent Annual Report, Dr. Pepper Snapple Group recorded $202 million in revenue in the first fiscal quarter of 2011, representing a $15 million increase in earnings compared with the same quarter in 2010 (DPSGroup, 2011).
Nevertheless, DopplerShift analyses of the market and wider societal and political factors likely to shape the organization's future business environment suggest that a major organizational change is necessary if the company is to maintain its current level of success far into the 21st century. Our analysis suggests that Dr. Pepper Snapple Group will not be able to sustain long-term public interest in its current main product line in its current incarnation. In our view, in order to remain successful, the organization will have to shift from its reliance on sugar and corn syrup-sweetened products to new formulations that emphasize non-sugar and non-caloric sweeteners and flavors. Ultimately, we recommend a specific strategy intended to completely reverse the relative prominence of dietetic and non-dietetic Dr. Pepper Snapple Group products.
Rationale for Major Change Implementation
The suggestion major change for this organization pertains to its traditional focus on fun and excitement (DPSGroup, 2011). In principle, there is nothing about a branding approach that emphasizes recreation, excitement, and fun. In fact, the suggested major change will continue incorporating the concepts of fun and excitement within the brand identity of all Dr. Pepper Snapple Group products in the future. However, instead of relying exclusively on these one-dimensional product attributes, we believe that the future of the Dr. Pepper Snapple Group will depend on its ability to merge its traditional brand values together with a health-oriented conceptual framework.
Currently, Dr. Pepper Snapple Group does maintain a dietetic product line. However, it is conceived as a means of satisfying a comparatively narrow slice of the organization's target market. The vast majority of it customers patronize its regular (i.e. non-dietetic) product line. That product line features sugar and corn syrup prominently in its ingredient list. However, based on our market analyses and based on extrapolated projections for the influence of health consciousness on the recreational food product market, we anticipate that beverage companies that retain their dependence on sugar and corn syrup-based products will lose their market advantage significantly, and possibly irretrievably, within this decade (Reid, 2009).
That is primarily a function of the documented increase in high-profile print news articles and broadcast media coverage of healthful nutrition issues in general and on the detrimental effects on human health of high-sugar (and high-sugar substitute) diets. Already, several states (most notably, New York State) have proposed so-called "soft drink taxes" based on published reports suggesting that high sugar consumption and sugared soft drinks in particular are directly responsible for the fact that two-thirds of American adults and almost two-fifths of children under the age of 17 are already either clinically overweight or clinically obese. Empirical, peer-reviewed scientific literature has detailed the causal connection between soft drink consumption and continually increasing rates of diabetes and other weight and diet-related health issues.
There is an undeniable trend in the United States toward increased diet consciousness and toward the incorporation of diet and nutritional issues within the framework of modern healthcare (Kennedy, 2006; Reid, 2009). Moreover, it is to be fully expected that among the most certain future trends in American healthcare, especially while fiscal responsibility and cost savings are such...
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