Squirt Case Study

6386 Words Apr 12th, 2011 26 Pages
Target Market
Market and Competitive Analysis
Market
In the market, the soft drink industry is currently growing, with hundreds of registered brand names for carbonated soft drinks within the United States.
Squirt competes with Coca Cola’s two grapefruit carbonated soft drink brand- Citrus and Fresca.
Squirt also competes on a more broad level of the citrus flavored soft drink category with Pepsi-Cola’s Mountain and Mellow Yellow Surge.

SWOT Analysis
Strengths: Market
Dr. Pepper/Snapple group distribute mores than 50 brands of carbonated soft drinks, and other premium beverages across the United States, Canada, Mexico and the Caribbean.
Dr. Pepper/ Snapple Group, Inc. found a niche market in creating non-cola beverages.
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Pepper/ Snapple, making the companies interdependent
Increased competition for market share due to increase in soft drink sales revenues because of health conscious societies.
Domestic demand for soft drinks is decreasing, whereas internationally the demand is increasing
High industry growth rate
Increase in the cost of raw materials and inflation

Threat of New Entrants
Entry barriers are high; threat of new entrants is low Because the market is 90% controlled by Coca-Cola, Pepsi Co. and Dr. Pepper/ Snapple Group, Inc. and these companies control the top 10 brands in the United States.

Threat of Substitute Products
Squirt has 2 direct competitors in the grapefruit segment—Fresca and Citra
Squirt has many other competitors in the citrus category—two Coca-Cola brands Mellow Yellow and Surge, and Pepsi-Cola’s Mountain.
Squirt faces competition with other beverages including water, sport drinks, tea, coffee, juice, beer, and many more.
There is not much to lose for consumers trying out new brands or beverages
Some substitutes of Squirt are sold at much cheaper prices.
Buyers tend to consume according to climate. During summer season the demand for soft drinks increases.
Low to almost no switching costs involved for retailers or institutional buyers.
Individual buyers
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