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.
SWOT ANALYSIS
STRENGTHS
Squirt has many internal strengths. The first being part of Dr. Pepper/Seven Up. Dr.
The main problem in this case “Bottling at Creemore Springs Brewery” is that will the cleaning of the bottles change to be in the house cleaning or maintain its current method of cleaning with a contractor. Having Thompson and Fuller responsible for the decision to be made, which have to be a strategic one or it will effect the long term profitability and success of the company. They have to make the company be more productive and efficient.
Hispanics have long been seen as a growing and profitable market by many. However, as the article mentions, only recently have many large brand names begun to view them as a valuable base of customers. The article states that dating to the 1980s, Hispanic consumers became a target for advertisers but only recently have they become a serious target for all serious marketers, especially the big name brands that are looking to boost sales in these tough times.
This case describes the various aspects of carbonated soft drink industry and the focuses on Squirt’s annual advertising and promotion plan in 2001. Squirt is a brand under the Dr Pepper/Seven Up, inc. The brand manager was concerned about the market targeting and product positioning and consulted advertising agency, Foote, Cone & Belding. The case also focuses on the entire industry structure and the marketing techniques used by the various leading companies so the Squirt’s annual advertising and promotion plan can be successful, and proper techniques to be used to target the growing Hispanic community in the markets where Squirt was popular. . The main aspect for the marketing planning for the brand, Squirt, is to focus on
1. How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007?
• Differentiation-Squirt has a unique image opportunity: Brand itself as the most refreshing and naturally made citrus soda on the market. It should have the lowest
The declaration of Hispanic dominance is a commonly mentioned turning point among those companies targeting, or realizing they need to target, this diverse market. However, reaching the US Hispanic market is more challenging than is often assumed. Not only are Hispanics the largest single ethnic group in the US, they're not even a single racial group. People of Hispanic background come from different nations, live in different regions, and enjoy different cultures; even the language, which is often thought to connect all Hispanics, has many different dialects that divide it. This is a common problem that
Boston Beer’s strategy is primarily focused on growth through differentiation. The sources of its competitive advantage can be classified as a company that provides high quality beer with unique flavors, a market driven approach, and a very efficient contract brewing strategy.
In contrast, Squirt has many external opportunities which are not currently being sought through the market strategy. One opportunity is to gain market share and percentage of sales in the U.S. by focusing on the correct target audience and their wants and needs as previously discussed. America’s consumption of soft drinks per person is on the rise. Also citrus flavored soft drinks have not been introduced to all of the areas of the country which leaves the opportunity to gain market share. Studies show that consumers want more fruit flavored beverages which are exactly what Squirt products are. This is an opportune time to lay the ground work for a national campaign which will target increased ethnic groups and capture a larger market share.
A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still
Based in St. Louis, Missouri, Anheuser-Busch is the leading American brewer. The company is one of the largest theme park operators in the United States, a major manufacturer of aluminum cans and one of the world’s largest recyclers of aluminum cans. Our diverse background also includes malt production, rice milling, real estate development, turf farming, label printing and transportation services.
According to the latest estimates from Experian Marketing Service, 63% of Hispanic adults own a smartphone versus 60% of non-Hispanics (Fetto, 2014). According to the PWC Consumer Intelligence series, not only are Hispanics the fastest growing minority in the US, they also have the greatest purchasing power of any US ethnic group. For mobile companies, Hispanics represent outstanding growth opportunities (Bothun & Lieberman, 2014). Mobile companies use commercials to advertise and connect with the everyday customer. Knowing that Hispanic customers watch both Spanish and English speaking channels they began to use “Spanglish” commercials as a way to communicate with the Hispanic consumer. As the Hispanic wireless market grows, mobile companies use our Hispanic cultural backgrounds and bicultural lives to sell and connect with customer. Creating a new Spanglish media culture can mean larger numbers for wireless companies and global recognition for this non-dominant group.
The TRACE campaign was a marketing initiative dedicated to targeting minority millennials in the United States. The brand discovered that this target audience relied heavily on brand experience, in addition to innovation within a brand. Also, another insight the brand found with this audience, is that they wanted to see themselves portrayed in advertising. Ultimately, TRACE’s main goal was to increase market share and brand awareness amongst this growing population. Through further research, TRACE discovered that each demographic had needs that could be fulfilled by the brand.
A common goal between most U.S. companies is simple: attract the Hispanic consumer. In 2012, a Nielson Report declared Hispanics to be the fastest growing ethnic segment, with expectations to grow 167 percent from 2010 to 2050. It’s been recorded that Hispanics are currently the largest minority in the country, with the Hispanic market growing 60% in the last decade. Though the Hispanic market is considered a large homogenous market by many, it is actually made up of diverse ethnic and racial groups with distinct socio-demographic characteristics.
The advertisements generally deal with breakfast foods, toys, clothing, and cars. The targeted age range covers a wide spread. Depending on the type of channel, the advertisements will vary and target a certain age group. “Transforming a brand into a socially responsible leader doesn't happen overnight by simply writing new marketing and advertising strategies. It takes effort to identify a vision that your customers will find credible and aligned with their values” (Mainwaring).
As we go into the maturity stage, we will be in every major city in the United States. In this three year period, we would have expanded outside of the east coast and the southeast. However, we will not remove our product from Yazoo City, MS. As a social responsibility, this will be the only place the Refreshing bottled water will be available and always at price as low as possible. It is at this point, zero calorie flavor will be added to the water, to extend the product line. This water will not contain artificial sweeteners, but will contain the essence of tropical fruit.