Dr Pepper PESTLE Analysis

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.

Let us start the Dr Pepper PESTLE Analysis:

Political Factors:
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.
Image: pixabay

Economic Factors:
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.

Social Factors:
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

Technological Factors:
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.

Legal Factors:
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.
Environmental Factors:
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.