Essay on Dr Pepper - 7up, Inc. - Squirt Case

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Dr Pepper/7Up, Inc
Squirt® Brand

The brand manager of Squirt, Kate Cox has been tasked with coming up with the brand’s annual advertising campaign. Kate met with the brand’s advertising agency to discuss some ideas for new market targeting, and product positioning because Squirt’s recent case sales volume has fallen, as well as increased competition, and a change in many of the markets that Squirt currently serves. Currently Squirt’s total market by ethnicity shows that 73% of its market is Caucasian, 15% African-American, and the remaining 12% are Hispanic. One of the major problems with declining sales is the increase of Hispanic communities in markets that were previously popular markets for Squirt. So what does Squirt need to
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Specifically their advertising would focus on the 21-24 age group because those are adults who are all about the ‘work hard, play hard’ philosophy.
Opportunity to Expand into the Hispanic Market
While Kate agreed with the advertising company’s new position and target market, she would also like to reach out to the Hispanic & African-American customers. The 2000 U.S. Census showed that the Hispanic population had increased by 57.9% since the 1990 census. This is compared to only an increase of 13.2% increase in the total U.S. population. 75% of Hispanics live in the western and southern portions of the United States (with over half living in just California and Texas). 30% of Squirt is bottled in Los Angeles (46.5% Hispanic population), and California represented 38% of overall case volume in 2000. Over 35% of the Hispanic population in 2000 was under the age of 18, and the median age is 25.
About 55.4% of the Hispanic population would prefer to hear their ads in Spanish, and they are very brand conscious. Hispanics prefer marketing approaches that are real, and authentic and often shop at local grocery outlets and mom-and –pop shops. To further focus on the Hispanic population, Squirt may need to modify their advertising efforts.

Squirt has many internal strengths. The first being part of Dr. Pepper/Seven Up. Dr.
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