Published by MBA Skool Team, Last Updated: February 21, 2021
PESTLE Analysis of Dr Pepper analyses the brand on its business tactics. Dr Pepper PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Dr Pepper, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
The political factors in the Dr Pepper PESTLE Analysis can be explained as follows:
Dr Pepper is a multi-national beverages company which operates mainly in US and Canada. The laws and regulations on the food products and beverages changes from nation to nation which have a direct impact on the firm. Due to pandemic, there is a supply chain disruption but due to fair trade rules between Canada and United States, the firm gained profits. The strong patent right protection laws also important for the firm. The firm also look at the incentives provide by the government and the ease of doing business in the country also impact on the firm. The firm should make decisions according to the political situations of the nations to gain competitive advantage.
Below are the economic factors in the PESTLE Analysis of Dr Pepper:
Dr Pepper, being a global brand, is affected by several economic factors.
The world economy is recovering now due to vaccination. Due trade policies between nations, the firm didn’t face many problems in operations during pandemic. The foreign exchange risks also favourable to the company as it operates in countries where the parent company has good trade connections. The economic activity in the countries where Dr Pepper operates are recovering from the recession and the disposable income also slightly increased. Due to better education of the workforce and better use of technology, infrastructure make profits for the company.
Following are the social factors impacting Dr Pepper PESTLE Analysis:
Beverage companies like Dr Pepper have their business influenced by how the society behaves. Due to pandemic, the life of the people has changed. But the people are still consumed more K-cups which is office ritual for many employees in US. Even the situation is work from home, the employees are habituated to the pattern of drinking coffee. So, the firm gain profits in this pandemic situation. The consumers also shifting their preferences to the diet and low calorie and no sugar drinks. The firm introduces the no sugar drinks recently. The consumers changing life patterns to relax and having coffee cups during work has a greater impact on the firm
The technological factors in the PESTLE Analysis of Dr Pepper are mentioned below:
Dr Pepper also improves its infrastructure to reduce the carbon foot print and improve its logistics. Due to pandemic, the change in life patterns, the firm embrace the technology and introduced no contact k-cup coffee brewing machines. Due to changing patterns of world and the importance of supply chain, the embracing of technology is crucial factor for the firm.
As the firm is in beverages industry, it has to innovate new products according to the taste of consumers so it has to invest more on R&D department.
Following are the legal factors in the Dr Pepper PESTLE Analysis:
As Dr Pepper is in beverages industry, it is important to maintain all food and beverage safety regulations. It also should protect about its patent rights on its formula of the different beverages. For this it should be legally strong. It also has to follow the rules for doing business which are changed due to pandemic. The company is doing good with the employees. They should also focus on labelling and environmental factors which have greater impact on the company.
In the Dr Pepper PESTLE Analysis, the environmental elements affecting its business are as below:
The company reduce its carbon foot print by introducing recyclable K-cups and convert 100% of packaging to be recyclable by 2025. It also improving its water use efficiency. Dr Pepper partners to replenish 100% of water used for the beverages.
To reduce carbon foot print, it makes a goal to obtain 100% of electricity from renewable source by 2025. It also makes its suppliers to reduce the emissions. The environmental factors and the new regulations made by the nations has impact on the company.
To conclude, the above Dr Pepper PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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