Dr. Pepper/Seven Up Case Analysis

Topics: Soft drink, Marketing, Target market Pages: 5 (1658 words) Published: April 3, 2011
Case Recap
Dr. Pepper/Seven Up, Inc. is the company which produces the brand Squirt. “Squirt is a caffeine-free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Squirt is the best selling carbonated grapefruit soft drink brand in the U.S.” (Kerin and Peterson, 2010) Kate Cox, the brand manager responsible for Squirt believes that market targeting and product positioning are key elements in Squirt’s advertising and promotional plan development. This case study will provide a summary and analysis of Dr. Pepper/Seven Up, Inc.’s options and the examination into the company’s strengths, weaknesses, threats, and opportunities. Problem Identification

One of the key problems which need to be addressed is the decreased market share by Dr. Pepper/Seven Up, Inc. Some reasons for this are several issues related to the advertising and distribution of Squirt. Dr. Pepper/Seven Up, Inc’s current program is not reaching the largest target audience available. Squirt is not focusing on valuable characteristics such as ethnicity, demographics, and target audiences. America’s consumption of soft drinks is on the rise per person and therefore with effective advertising to the correct target audience, increased market share is achievable.

Another problem is that Squirt’s distribution is currently not represented in all the top 10 cities throughout the United States with Hispanics and studies have shown that Hispanics prefer the fruit flavored carbonated soft drinks.

Dr. Pepper/Seven Up, Inc., has asked Kate Cox to draft the annual advertising and promotion plan for Squirt in the U.S. and then present this to senior management for review and approval prior to implementation. Case Analysis

Dr. Pepper/Seven Up, Inc. is the largest division of Cadbury Schweppes PLC who is the world’s third largest soft drink company. This company’s head quarter office is located in England with the distinction of being the world’s first soft drink manufacturer and the largest non-cola soft drink producer and marketer. Dr. Pepper/Seven Up is the largest non-cola soft drink enterprise in North America and is ranked third in sales with 14.7% market share.

Squirt’s current advertising uses a variety of media including spot television and radio, freestanding inserts in newspapers, and cable television. Squirt also used retail, consumer, and trade promotions. Squirt focuses more on retail, trade and consumer promotions and cooperative advertising than media advertising expenditures similar to the competitors. However, by missing the target audiences, Squirt’s marketing efforts are not as beneficial in gaining market share as some of the other companies.

Some of Squirt’s strengths are the fact that Squirt is represented in about 83% of the U.S. and has the highest consumer brand awareness in the U.S. Unfortunately, the advertising that is currently being done is viewed as juvenile instead of young and hip changing with the times. A strong marketing and development team which adapts the positioning and packaging to meet local consumer preferences and target the correct market can help to maintain and improve upon these strengths. In the past this has not always been accomplished which is a big weakness for Squirt.

Another weakness for Squirt is the limited product line that is being offered. By having a small product line, inadequate marketing and advertising can have a negative effect on the company. Squirt currently is not represented in all of the top 10 cities throughout the U.S. where the target audience is represented. The target audience should be young adults ages 20 to 49, also keeping in mind that ethnicity has been shown recently to have a large desire for this type of a product. Hispanic and African Americans have also been known to follow brand names more closely than other ethnic groups. This is very important research that should be...
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