Squirt Case Study

Topics: Soft drink, Coca-Cola, Marketing Pages: 25 (6374 words) Published: March 31, 2011
Target Market
Market and Competitive Analysis
In the market, the soft drink industry is currently growing, with hundreds of registered brand names for carbonated soft drinks within the United States. Squirt competes with Coca Cola’s two grapefruit carbonated soft drink brand- Citrus and Fresca. Squirt also competes on a more broad level of the citrus flavored soft drink category with Pepsi-Cola’s Mountain and Mellow Yellow Surge.

SWOT Analysis
Strengths: Market
Dr. Pepper/Snapple group distribute mores than 50 brands of carbonated soft drinks, and other premium beverages across the United States, Canada, Mexico and the Caribbean. Dr. Pepper/ Snapple Group, Inc. found a niche market in creating non-cola beverages. According to Beverage Digest, Dr. Pepper/Snapple Group, Inc. is the best selling flavored carbonated soft drink company in the United States Dr Pepper/ Snapple Bottling Group is the third largest bottling company in the US. Strengths: Product Category

Squirts popularity in Mexico gives Squirt a competitive advantage in capturing a large segment of growing the Hispanic market. Squirt is the #1 selling grapefruit carbonated soft drink in the United States and a leading grapefruit carbonated soft drink in Mexico. Squirt has the highest brand recognition in the grapefruit soft drink market. Squirt’s logo and labeling is bright and recognizable.

Squirt’s bottles are made from recycled materials
Squirt is a non-alcoholic beverage.
No age restrictions on purchase of squirt.
Squirt has a distinctive tangy citrus flavor.
Squirt is a low-level sodium beverage.
Many means of distribution; easy access to consumers.
Sold in vending machines for easy access.
Low in sugar and calories compared to competitors.
Dr. Pepper/ Snapple Group, Inc. has a smaller market share and fewer resources compared to its competitors Coca-Cola and Pepsi Co. Squirt has smaller advertising budgets due to smaller market share. Less brand loyalty than competitors.

Squirts logo is outdated compared to competitors.
Squirt is not offered in many soda fountain machines.
Squirt has many marketing opportunities because it’s a light, refreshing, low-sodium low-calorie drink. Make Squirt more noticeable in high margin channels such as convenience stores, vending machines and small independent retail outlets. Opportunity to expand sales due to a growing Hispanic population that enjoys grapefruit soda. Squirt could be marketed to college students as a mixer for alcoholic beverages. In a response to changes in societal attitudes and the move to a healthier society, Squirt could position itself as a healthier soft drink than competitors. Squirt can be made into slushy’s at liquor stores since it’s associated with hot summer months. Squirt can compete with Coca Cola’s Fresca and Citra by taking their older consumption drinkers. Threats

Consumers have bargaining power in the market since soft drinks are an elastic product, which is not necessary for daily life. Competitors such as Mellow Yellow and Mountain Dew are spending more money on advertising to gain market share over Squirt. Soft drinks in lower demand due to increase is health conscious society. Lower demand due to increase in obesity and type 2 diabetes

Negative claims and press against health and obesity issues concerning consumption of soda. Product category substitutes such as milk, tea, coffee, and juice have lower distribution costs. Mountain Dew has expanded its regions into other markets and industries, such as sponsoring sporting events and apparel. Coca Cola’s Fresca has an advertising budget that is much larger than Squirt’s, putting squirt at a huge disadvantage in promotions and advertising. Coca Cola may create a new product to capitalize on the young soda drinkers in the citrus-flavored industry, since their Surge product didn’t do well. Competitive Analysis

Threat of Intense Segment Rivalry
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