1. What is the offering concept? What does this mean for Dr. Pepper/7Up Inc.?
An offering consists of the benefits or satisfaction provided to target markets by an organization. It consists of a tangible product or service (a physical entity) plus related services (delivery and setup), brand name(s), warranties or guarantees, and packaging. Focusing on the term offering rather than just the product or service forces the marketer to go beyond the single tangible entity being marketed and to consider the entire offering, or extended product or service. When the focus is on the benefits and satisfaction offered it establishes a conceptual framework. Marketers can then potentially use this framework to analyze competing offerings, identify the unmet needs and wants of target markets, and develop or design new products or services. Offerings illustrate not only the buyer needs served, but they are also the types of customer groups sought and the means for satisfying their needs. Dr. Pepper/Seven Up are consistently ranked among the top-ten soft drink brands in the United States as measured by market share. Their biggest competitors are Coca-Cola and Pepsi-Cola. Within the citrus-flavored soft drink category Squirt competes with; Coca-Cola's Mello Yello and Surge, Pepsi-Cola's Mountain Dew, and Sundrop marketed by Dr. Pepper/Seven Up. The Squirt Brand, a product of Dr. Pepper/Seven Up, Inc., has had a recent dip in case sales volume. Some potential causes of this dip could come from a growing Hispanic community in markets where Squirt was popular. This issue means that Dr. Pepper/Seven Up, Inc., should review their current offering and determine what the unmet needs or wants are of the target market. In this case, the research has shown that a potential problem could lie in the recent growth of the Hispanic community and maybe the advertisement of the Squirt Brand is not reaching this market. Once the unmet needs or wants are identified the organization will need to develop a plan to get the awareness of the brand out there and show the target market how the Squirt Brand will benefit the consumer. This not only includes the packing and distribution but, the Squirt brand management team should find a way to create an emotional link through advertisement. This emotional link could be met by reminding the target market of Hispanics from Mexico about Squirt. Research had shown that Squirt was already available in Mexico, but not through Dr. Pepper/Seven Up. This link however, could possibly leverage the popularity of the Squirt Brand in the United States if the advertisement of the offering is out there and visible to the target market. All of these factors must be consider with the offering concepts for Dr. Pepper/Seven Up, Inc., especially concerning the Squirt brand. The changing demographics of the United States means the wants and needs that were previously being met will need to be updated to ensure the largest target market's wants and needs are met which will benefit the organization by increasing Squirt case sales volume. These unmet wants and needs could affect everything from advertising to distribution to the packaging of the product (R. Kerin & R. Peterson, 2010). Reference:
Kerin Roger A., Peterson Robert A., (2010) Strategic Marketing Problems, Twelfth Edition. Upper Saddle River, NJ: Pearson Education, Inc.Bottom of Form
2. How would you characterize the competitive situation for Dr. Pepper/7up, Inc. and Squirt in the U.S. carbonated soft drink industry?
In 2000, Americans consumed 53 gallons of soft drinks per person, compared with about 47 gallons in 1990. This increase came from population growth compounded by rising per capita consumption. The increase produced an estimated $60.3 billion in carbonated soft drink retail sales in 2000. Within the soft drink industry in the United states there are three major participants. They are concentrate producers, bottlers, and retail outlets. Concentrate...
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