Market Analyses of Soft Drink

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Squirt - Nature of industry, market, and buyer behavior
In the United States, people consume more carbonated drinks than tap water. Research has shown that the average American drinks about 53 gallons of soft drinks

per year. However, soft drink consumption has declined over the past few years (Kerin & Peterson, 2004). The soft drink industry has three major participants in the production and distribution; concentrate producers, bottlers, and retail outlets. Concentrate producers are responsible for consumer advertising and promotion programs, product development and planning and market research. The bottler’s responsibility is to set up local and retail trade promotions. Among this is selling and servicing retail outlets, placements and maintenance of advertisements, and the restocking of retailer’s shelves and vending machines.

Competition in the soft drink industry is mostly relevant among the top three companies; Coca-cola, Pepsi-Cola, and Dr. Pepper/Seven Up. Each of these companies offers a product similar to Squirt, but each has their own variation. Coca-Cola’s Fresca is also a grapefruit flavored carbonated rink, but it has sugar and is caffeine free. Coco-cola also offers Mello Yellow and Surge. Pepsi-Cola has the largest carbonated citrus drink called Mountain Dew (Kerin & Peterson, 2004).

The Organization
Squirt Brand carbonated drink is a caffeine-free, low sodium soft drink that is a blend of grapefruit juices mixed with carbonation. It is the best selling carbonated grapefruit drink in the United States. Squirt is marketed under Dr. Pepper/Seven Up Inc, which is owned by the London based company Cadbury Schweppes, the world’s third largest soft-drink company. Dr. Pepper/Seven up Inc is the largest non-cola soft drink enterprise in North America and the third largest soft drink company in the United States. They produce such products as Hawaiian Punch, Canada Dry, A&W Root Beer, and RC Cola. Dr. Pepper and Seven Up are both ranked in the...
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