Dr. Pepper/7-Up (DPSU) is the largest division of Cadbury Schweppes PLC, the world’s third largest soft drink company. The Squirt brand manager in 2001, Kate Cox, is working on the brand’s annual advertising and promotion plan (Kerin & Peterson, 2010). The main issue in developing a marketing strategy stems from the market targeting and product positioning in Squirt’s advertising and promotion plan development. This case analysis will review the issues; examine the company’s strengths, weaknesses, threats, and opportunities; and work to recommend marketing strategies to enhance the Squirt brands image and promotional advertising tactics. Problem Identification
The problems identified with the Squirt brand include the similar brands of citrus flavored drinks being introduced and promoted by Coca-Cola brand soft drinks, Manzana Mia (Coke’s apple flavored drink in Southern California); orange, grape, strawberry, and pineapple Fanta; and Citra. Pepsi-Cola brand Mt. Dew is a top citrus brand soft drink in the United States which competes directly with Squirt. The competition in the sales of citrus flavored carbonated soft drink is a huge factor in the advertising and promotion investments of the top three soft drink companies, Coke, Pepsi, and DPSU.
The demographics of the soft drink consumers are a major factor in the soft drink sales competition. The age of the majority of citrus soft drinks play an important part in the advertising and imagery of the products. The racial and ethnic groups across the U.S. are characteristics that also require consideration in the citrus soft drink advertising and marketing strategies.
Since Squirt advertising expenditures equal about 20 to 25 percent of dollar sales, the advertising promotions play a very important role in the expense of the company (Kerin & Peterson). The demographics of age and race/ethnicity are critical factors in the marketing and promotional development of...