Dr Pepper - 7up, Inc. - Squirt Case
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 do to turn this around? The problem facing Squirt is how they can effectively position their brand to increase sales as well as capture the Hispanic consumer market without spreading their advertising dollars too thin. Carbonated Soft Drink Industry The Carbonated Soft Drink (CSD) industry is enormous. In 2000, more Americans drank soft drinks than water. The production and distribution of soft drinks involve concentrate producers (basic flavors), bottlers (add sweetener and carbonated water), and retailers. Of all the retailers available for distribution to customers, grocery stores and supermarkets account for about 31% of sales. There are three major competitors in the soft drink market (Coca-Cola, 44.1%; Pepsi-Cola, 31.4%; Dr Pepper/Seven Up, 14.7%). Each competitor spends a lot of money on advertising their brand through promotions, and consumer price discounting. Concentrate producers and bottlers usually share advertising costs because bottlers can target markets locally while producers focus on the bigger picture. While colas are still the most popular in the CSD Industry, they are starting to lose ground. Flavored soft drinks are beginning to become more popular due to the changes in the U.S. population
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 do to turn this around? The problem facing Squirt is how they can effectively position their brand to increase sales as well as capture the Hispanic consumer market without spreading their advertising dollars too thin. Carbonated Soft Drink Industry The Carbonated Soft Drink (CSD) industry is enormous. In 2000, more Americans drank soft drinks than water. The production and distribution of soft drinks involve concentrate producers (basic flavors), bottlers (add sweetener and carbonated water), and retailers. Of all the retailers available for distribution to customers, grocery stores and supermarkets account for about 31% of sales. There are three major competitors in the soft drink market (Coca-Cola, 44.1%; Pepsi-Cola, 31.4%; Dr Pepper/Seven Up, 14.7%). Each competitor spends a lot of money on advertising their brand through promotions, and consumer price discounting. Concentrate producers and bottlers usually share advertising costs because bottlers can target markets locally while producers focus on the bigger picture. While colas are still the most popular in the CSD Industry, they are starting to lose ground. Flavored soft drinks are beginning to become more popular due to the changes in the U.S. population