Dr Pepper/7Up, Inc. – Case Analysis
Squirt soft drink is a caffeine-free, low sodium carbonated drink designed and created by Dr Pepper/7Up, Inc... This powerhouse drink is a wonderful creation of distinctive grapefruit juices, which gives it its fresh citrus taste. Due to its unique flavoring as a soft drink, Squirt is one of the best-selling carbonated drinks in the United States (Kerin & Peterson 2009) The key elements in Squirt’s advertising and promotional plan development begins with market targeting as well as product positioning, said Kate Cox who is the brand manager responsible for Squirt. This case study will provide a summary and analysis of Dr Pepper/7Up, Inc. options and an examination into the company’s strengths, weaknesses, threats and opportunities.
A major problem that Dr Pepper/7Up, Inc. is experiencing is the fact that is has a decreased market share. Unfortunately, issues with its advertising as well as distribution create this. As a result, it is not reaching its full potential of reaching the largest target audience possible. Because soft drink consumption is on the rise throughout the United States, effective advertising has to be generated in order to reach the mass target audience, which in turn would increase its market share.
In addition, the second major downfall to Squirt’s problem is through its distribution channel. Studies in the United States have shown that Hispanics prefer fruit flavored soft drinks; however, Squirt is not taking advantage of this by representing its product in the top 10 cities with a large Hispanic population. As a result, Dr Pepper/7Up, Inc. has asked Kate Cox to develop an advertising and promotion plan to implement this correction.
Dr Pepper/7Up, Inc. makes up one of the largest divisions of Cadbury Schweppes PLC, who in turn is known as the third largest soft drink company in the world. While head quartered in England, Cadbury Schweppes PLC was one of the first soft drink manufacturers in the world, who had also became the largest non-cola producer and marketer. Fortunately, Dr Pepper/7Up, Inc. has become the largest non-cola producer in North America with its sales and current market share of 14.7 percent. This ranks Dr Pepper/7Up, Inc. in third place.
Squirt utilizes the media in multiple facets such as spot television, radio, freestanding inserts within newspapers, as well as cable television and satellite. In order to increase its advertising efforts, it also uses retail, consumer and trade promotions. Because of the massive competition, Squirt will focus on its retail, consumer and trade promotions versus the media outlets. Unfortunately, this is creating a hindrance in reaching major target audiences. Consequently, Squirts marketing efforts are not being used to its full potential in gaining on market share as its competitors have demonstrated.
Even though there are primary target audiences are not reached, Squirt is represented by approximately 83 percent of consumer brand awareness. The misfortune is the fact that as time, trends, and technology changes, Squirt’s advertising does not change with it; therefore, still remaining juvenile and ineffective. This is caused by not implementing a strong marketing and development team who can promote its marketing strategies to adapt with time, trends and technology, which will meet customer preferences, reach major target audiences and increase market share.
Unfortunately, Squirt has a limited product line, which can create challenges for the marketing and advertising team. As a result, this continuously has a negative impact on the effectiveness of the company’s efforts. In addition, Squirt is not representing itself in the top 10 cities in the United States effectively. It also is not targeting adults between the ages of 20 – 49 with the mindset that...