Running head: DR PEPPER/7UP, INC.
Dr Pepper/7Up, Inc. – Case Analysis
MKTG610
Case Recap Squirt soft drink is a caffeine-free, low sodium carbonated drink designed and created by Dr Pepper/7Up, Inc... This powerhouse drink is a wonderful creation of distinctive grapefruit juices, which gives it its fresh citrus taste. Due to its unique flavoring as a soft drink, Squirt is one of the best-selling carbonated drinks in the United States (Kerin & Peterson 2009) The key elements in Squirt’s advertising and promotional plan development begins with market targeting as well as product positioning, said Kate Cox who is the brand manager responsible for Squirt. This case study will provide a summary and analysis of Dr
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As a result, there are large demographic areas missing the sales and distribution of this citrus flavored product. In addition, demographic regions with large consumptions of Squirt have to have a consistent flow of distribution. Unfortunately, Squirt’s advertising cannot accommodate all races. There has to be a standard theme and/or slogan that are appropriate geographic region of their target audience. This development should be based on the primary ages of the consumers, ethnic regions, and geographic location. An advertisement, sales, or promotion will vary. For example, an advertisement for Squirt may be different from California from an advertisement in North Dakota. Additionally, Squirt should adjust according to the current trends of the market, ages of its audience, and major ethnic consumers.
Evaluation of Alternatives The market targeting and positioning of Squirt has a few alternatives. Squirt can continue doing what it’s doing and continually see a decline in its market share or it can utilize Foote, Cone, and Belding Consultants (FCBC) to implement a new market targeting and positioning strategy. With its current state, Squirt is losing market share, neglecting its focus on highly populated Hispanic regions, and not changing with the times. In addition, their current advertising strategy remains juvenile and has not adapted to the public of today’s
Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.
The soft-drink industry capitalizing on creating the best product. Each product has a different taste, formula, and color to entice the consumer. It is important for the product to remain innovative in order to keep the consumers interested. The suppliers can easily differ, because they do not hold much value or put
One of the most memorable slogans in Dr Pepper history is recalled by Cynthia Gonzales of Hanford, California: “I remember a long time ago that the bottles of Dr Pepper used to say 10, 2, and 4. Meaning, it's good to drink at those times of the day for a
My current product is a variation of ice cream flavours, it is sold in store and can be also taken home if the consumers want it to be. There are many different flavours that can come in a tub, cone, or a bowl.
One of the alternatives for Squirt is to reinforce the marketing strategies. They should consistently advertise their carbonated grapefruit soft drink in United States for long period of time, which will lead to high brand awareness and loyalty. The budget spend on advertising by Squirt is less than the competitors’ budget. Squirt should also use their budget towards making their advertising more appealing to the targeted age group, research and development process to achieve higher quality standard for their product. Also further research and development is recommended by Foote, Cone & Belding to compete with their competitors such as Coca-Cola and
This document is part of the requirements of the Foundations of marketing course, the University of Newcastle. It is the first part of the marketing plan for Red Bull, the leader of energy drinks market.
Cox believes that attention must be drawn to Squirt 's advertising and promotion plan. Both topics were addressed in a June 2001 presentation by the brand 's advertising agency, Foote, Cone & Belding. Following a review of U.S. Census 2000 statistics, Squirt consumption data, and its own and Dr Pepper/Seven Up research, Foote, Cone & Belding proposed a refinement in Squirt 's target market and positioning which had previously been aimed at 18- 34 year olds. Through research that featured Squirt 's consumption by racial/ethnic group and age relative to carbonated soft drink users, Foote, Cone & Belding recommended that Squirt target a multicultural, 18-24 year old segment in order to tap into this heavy carbonated soft drink user segment. The total sales broken down by racial/ethnic groups can be seen below.
Crush is in the process of re-establishing and expanding its relationship with bottling companies and it appears that the bottling network will be repaired to the point that Crush would be represented in 75% of the total orange category in time for the re-launch of the Crush brand. They need to engage in strategic meetings with marketing and sales representatives of both Crush and the bottling companies to develop an overview of the new positioning campaign. These relationships are key to Crush’s ability to regain market share and vastly improve their marketing coverage. Bringing the bottlers in to help
A significant market share in the energy drink sector can be captured. A major aspect of Sniper’s promotional marketing strategy is to vastly expand coverage; take advantage of Sniper distribution channels to allow it to permeate the market.
Our client, Premier Drinks of Sofia, Bulgaria specializes in the production and distribution of soft drinks and has been the primary soft drink company in Bulgaria for over 20 years. The company produces a variety of products that include carbonated and non-carbonated soft drinks, table water and energy drinks. For the past year Enhanced Analytics has delivered an expensive and competitive marketing campaign for Premier Drinks, but despite the continuous effort, careful management and professional dedication Premier Drinks have reported a drop in sales.
2005 study found that the total market value of soft drinks was calculated to be $307.2 billion in 2004 was predicted to rise. The forecast showed that the market value will reach $367.1 billion in 2009 (Agriculture and Agri-Food Canada, 2017). The soft drink volume was 325,367.2 million liters in
Hawaiian Punch has much less control over the sale and distribution of the brand in the direct to store network and sold much less in volume, but does receive very high gross margin contribution after marketing. This network accounts for only eighteen percent of total brand sales but contributes forty-one percent of the gross contribution of the brand. The target market is also different from the finished goods network. In the direct to store model the target market is households with children six to seventeen years old, focusing on teenagers. This needs to continue since this category, carbonated soft drinks, is over twenty-eight percent of the total beverage market and has been growing in both volume and market share. By being in this distribution network, it allows for not only additional sales but the ability to target a different market segment, the teenage; who most likely drank Hawaiian Punch from the juice aisle and now will choose it from the carbonated drinks aisle.
Gatorade has emerged as the global leader in sports nutrition beverages by continually managing their brand to signify high energy, athletic excellence combine with one of the most efficient new product development and introduced processes in the beverage industry. As a result of being able to consistently synchronize these many components of their business so well, Gatorade today holds a 75% market share in the sports nutrition market globally today. Gatorade is owned by PepsiCo, which has made it possible for the company to sell in 80 countries today. Gatorade relies heavily on the PepsiCo distribution and retail network globally. Gatorades' revolutionary approach to managing branding for beverages has served to increase the total market size for this product category globally (Huang, Sarigöllü, 2012). Despite the continued widespread adoption of Gatorade as a healthy energy drink, the company has encountered resistance to its brand and the ingredients used for creating the many variations of Gatorade energy drinks (Tallon, 2009). Despite these setbacks the Gatorade brand continues to experience exceptional growth and stability over time.
Dr. Pepper/Seven Up, Inc. is the company which produces the brand Squirt. “Squirt is a caffeine-free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Squirt is the best selling carbonated grapefruit soft drink brand in the U.S.” (Kerin and Peterson, 2010) Kate Cox, the brand manager responsible for Squirt believes that market targeting and product positioning are key elements in Squirt’s advertising and promotional plan development. This case study will provide a summary and analysis of Dr. Pepper/Seven Up, Inc.’s options and the examination into the company’s strengths, weaknesses, threats, and opportunities.