UNIVERSITI TEKNOLOGI MARA
MARKETING MANAGEMENT (MKT 750)
“CASE STUDY: DR PEPPER/SEVEN UP INC-SQUIRT BRAND”
MOHD AZMAN BIN MOHD YUSOFF (2011512659)
MOHD KHAIRUL FAIZAL BIN IBRAHIM (2011199541)
MOHD HASRUL BIN CHE HASSAN (2011999795)
ASSOCIATE PROFESSOR DR YEOP HUSSIN BIDIN
Squirt is a brand of grapefruit flavored soda that has seen flat growth in recent years. While it is still the best selling brand of grapefruit flavored soda in the U.S. market, it has recently lost ground to offerings from both Coca-Cola and Pepsi Co. The brand manager wants to write a new Marketing and Advertising plan for the brand in order to stimulate growth.
Three companies with 90% of the market share control the carbonated soft drink industry in the United States. These companies include in order of market share size, Coca-Cola, Pepsi Co, and Dr. Pepper/7Up. These three companies also represent the top ten selling brands in the United States market. In a given year the average American drinks more carbonated soft drinks than tap water. The industry is divided into three major participants; concentrate producers, bottlers and retail outlets. The concentrate producers design the products and are responsible for national marketing efforts; while the bottlers are responsible for distribution and packaging of the products, and regional marketing efforts, and in store displays. The retail outlets are where the product is sold to the end consumer. Soft drink marketing efforts spend heavily on consumer advertising. Individuals who consume the most soft drinks in the United States are between age 20 and 49.
Five Squirt bottlers account for 50% of sales. These bottlers are located in Los Angeles, Chicago, Detroit, San Diego, and Portland. A total of 100 bottlers account for half of the Squirt case volume with these bottlers located predominantly in the Western U.S. California alone is responsible for 38% of the total Squirt Case volume.
Squirt is the primary brand with two brand extensions. These extensions include Diet Squirt and Ruby Red Squirt. These extensions have both been successful and account for 20% of Squirt Sales. Diet Squirt was the first carbonated drink to be sweetened with Nutri-Sweet. Squirt's direct competition comes from two Coca-Cola brands. These are Fresca and Citra. Fresca is a caffeine free diet soft drink targeted to adults over age 30.Citra is sugared caffeine free version of Fresca targeted to teens and young adults. Squirt outsells Citra and Fresca combined by case volume.
Squirt's advertising has used a variety of media including newspapers, television and radio. Overall Squirt spends less on advertising and promotion than its competitors. Squirt also enjoys the highest brand awareness in the carbonated grapefruit drink category. Squirt is currently positioned as a, "spunky, lively, everyday, on the go, sociable, colorful, and music driven" beverage. The target market is adult’s ages 18-34 years old. The current tag line is, "Squirt your thirst." The position has been revisited in 1999 and 2000, however no changes were made.
Foot, Cone & Belding made a full review of positioning strategy and made a few recommendations in mid 2001. They concluded that Squirt was more thirst quenching than refreshing, and that it was not seen as either hip and young or not so cool and hip. They recommended that Squirt also be targeted to a younger demographic, especially the 18-24 year old range. They reasoned that this age group is a large consumer of soft drinks, and that the "thirst-quenching" attribute of the product would appeal to them.
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, and Squirt has large brand recognition there. According to the Squirt census data the Hispanic...
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