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Dr Pepper/7 Up Case Study

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Dr Pepper/7 Up Case Study

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Dr. Pepper/7Up Case Study
BUSN 630
2-15-11

Problem:
Squirt has seen very flat growth recently. The problem in this case is determining the right market targeting and product positioning for advertising. Squirt has to uphold its current reputation for its products while expanding in hopes of earning higher profits. They have to do all of this within a certain budget.

Decision Factors:
Studies show that Squirt’s target market is the 18-24 yr range. Studies also show that Squirt is preferred by the Hispanic and African American communities. Thus, taking a multicultural approach to advertising and marketing may be the best bet. Statistics show that more than half of all Hispanics live in just two states: Texas and California.

Relevant Information.
Soft drink marketing is characterized by heavy investment in consumer advertising and promotion. Squirts main competition comes from Coca Cola’s Fresca and Citra brands. Coca Cola spends considerably more money on advertising and promotion than Dr. Pepper/7up. Squirt has also been looking into the growing Hispanic population in the U.S. Squirt is one of the larger selling brands of soda in Mexico, where they have major brand recognition. This could be beneficial seeing that the U.S has such large growth in the Hispanic population.

Best Alternative/Implementation
Squirt currently does not have a broad enough target market. They must target a younger teen demographic, as well as younger ethnic markets. I would recommend targeting in the Southwestern United States, where there is a large Hispanic population as well as and outdoor lifestyle, suited for a ‘thirst-quenching’ drink. Currently, Squirt holds a low advertising budget compared to its competitors. They need to spend more money on advertising and promotions, especially in the multicultural markets. The growing Hispanic market seems to be an area of major potential growth for Squirt brand recognition. They could advertise on major Spanish language...