The Carbonated Soft Drink Industry

Good Essays
Dr. Pepper/Seven Up, Inc. Squirt Brand.


1. How would you characterize the carbonated soft drink industry in the United States?
The soft drink industry is one of the most highly profitable industries in the USA. Also, the competitive market is a very large market. Americans consumed about 53 gallons of soft drinks per person a year in 2000 by $ 60.3 billion!! Comparing with the market in 1990, since it was 47 gallons. In recent years, the market growth has slowed.
The three major participants in US market: concentrate producers, bottlers, and retail outlets. In the U.S. market, there are about 500 bottlers, and Concentrate producers are either owned or
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Pepper/Seven Up, Inc. and Squirt Competitive situation in the U.S. carbonate soft drink industry (considering different region/ethnic/age segments and positioning)? Do a SWOT analysis.
The third-largest company in the U.S. is Dr. Pepper/ Seven Up, Inc. (DPSU) which consists of 14.7% market share. It is the most famous brands are Dr. Pepper and Seven Up among the Soft Drink Brands. It has been Squirting the market by this company since 1995. The Unit Sales Volume Squirt is $39 million to $54.6 million from the year 1990 to the year 2000. there are Five bottlers accounts by 50% for Squirt case, sequentially they are: California alone represents by 38%, Los Angeles by 30%, Chicago by 7%, Detroit by 6%, San Diego by 4%, and Portland, Oregon by 3%. ……………………………………

3. Given your assessment of the competitive situation, what are the pros and cons of (a) continuing the present market targeting and positioning strategy and (b) adopting the recommendation made by Foote, Cone & Belding? (make a comparison table of pros and cons for each approach).

Squirt has been exposed to many numbers of Hispanics, those of Mexican descent primarily because of the beverage in Mexico which could be a very beneficial for Squirt in the market in the U.S. by considering there is a very large Mexican population in the United States. In the other side, in California alone there are around 77% of the Hispanic population is of Mexican ancestry. 77% of the 11,000,000, the Hispanic population = 8.47
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