Dr. Pepper/ 7up Case Analysis

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Dr. Pepper/ 7up Case Analysis
MKTG 610 Online
December 4, 2011

Doctors recommend that to stay healthy one should consume about 8-9 cups of fluid a day but in todays world most of those fluid are consumed in form of soft drinks. According to 2000 census “ Americans consumed 53 gallons of soft drinks per person compared with about 47 gallon in 1990” generating about $60.3 billion in sales (Kerin & Peterson, 2011). Soft drink industry is controlled by three large companies, which include Coca-Cola Company, Pepsi Company, and Dr. Pepper/7Up Inc. controlling about 90% of the market share. Coca-Cola is the largest of three companies and produces 5 of 10 top brands with market share of about 44.1%, followed by Pepsi Co. that owns 31.4% of market shares and produces three of top ten selling brands. Lastly Dr Pepper/7Up (Cadbury Schweppes) own two of top ten selling brands and has 14.7% of market shares. Pepsi Co. and Coco Cola Company spend about 39 cents of every dollar they earn on Advertising and Promotion thus creating aggressive environment for smaller companies. Soft drink industry has three major players, which include concentrate producer, bottlers, and retail outlets. Concentrate producers are responsible for national advertising while expenses are usually shared 50/50 for the local advertising.

Problem Identification:
Being the third largest beverage company Dr Pepper/7Up Inc. has sufficient advertising budget but not as much as Coca-Cola or Pepsi, thus they have to employ strategies to reach their target audience with limited budget. Squirt has to maintain its current consumers while targeting wider market to compete with the larger companies

Case Analysis:
Squirt is a grapefruit flavored soft drink brand owned by Dr Pepper/7Up Company, recently company is exploring new ideas to better position their product to expand their product and increase sales. Since its introduction Squirt is promoted as thirst-quenching drink aimed...
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