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DPS operates 24 production plants, with almost all beverage concentrates produced in a plant in St. The business model includes both the company- owned, direct-store delivery (DSD), and third party distribution.

Soft drink companies face an ever changing world market.

Competition is generally among these players and they most times produce substitute products that may be cannibals of their previously established products.

Dr pepper Snapple Group’s inputs include commodities such as sugar, corn, PET, fuel, aluminum, apple juice concentrates.

A a result, DPS has very little power as there can be price fluctuations in the commodity market; though it can be said that Dr pepper still has little control over the prices they ultimately end up paying, by entering into forward contracts for the delivery of resources, and so on.

They offer superior brands with pricing power that has developed loyal customers.

Since brand loyalty plays such an important role in this industry, major players compete on brand image rather than price, making marketing and advertising a very important aspect of these three companies’ sales.

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