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Strategic Marketing: Case of Dr Pepper Seven Up, Inc. - Squirt Brand

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documents in English
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case study
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8 pages
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  1. Introduction
  2. Problem statement
  3. External analysis
    1. Customer analysis
    2. Environmental analysis
    3. Market analysis
    4. Competitor analysis
  4. Internal analysis
    1. Performance analysis
    2. Strategic Options
    3. SWOT analysis
    4. 4Ps

SSquirt is a carbonated soft drink that belongs to Dr Pepper / Seven Up, Inc. It is one of the leading brands that dominate market shares in the soft drink segment in the USA. Squirt is one of the best selling brands among citrus flavored drinks and its sales volume tends to stagnate faced with the huge marketing budgets allocated by its two main competitors: the Coca Cola Company and The Pepsi Company. The market is witnessing tremendous growth due to the arrival of new consumers, new behaviors and also the introduction of new organizational capabilities.

Integrating the best marketing techniques, enhancing reputation and brand image of the product, providing a good positioning in order to remain competitive and raising the level of sales in this market where competition is fierce are few of the measures required for the development of the brand.

Commonly, we can say that the US inhabitants are heavy consumers of carbonated soft drinks. In 2000, there was more consumption of carbonated soft drinks than water. Their consumption amounted 849 eight-ounce servings per year, which represents about 2.3 eight-ounce servings per day.

Furthermore, we can notice that the consumption of carbonated soft drinks also depends on the age factor. The biggest consumers are in the age group of 20 to 49 years who constitute the largest part of the US total population. People over 25 years seem to consume diet carbonated drinks, It has also been observed that regular sugared drinks are heavily consumed by the African and Hispanic American teenagers.

[...] Dr Pepper/Seven Up, Coca-Cola Company and The Pepsi Cola Company are the main leaders of the soft drink market and compete to win market shares. These three companies hold over 90% of soft drink sales. Collectively, they account for the 10 brands in the top ten carbonated soft drinks. The soft drinks market is highly competitive; the three giants are waging a fierce competition. Squirt is located in a different category, because the brand doesn't provide cola. But Squirt competes with Mellow Yellow, Surge, Mountain Dew, which are brands of its major competitors. [...]


[...] Squirt to reach this growth objective would be to develop a different market targeting and positioning strategy, even mixing both current and FCB recommended strategies. External analysis Customer analysis Commonly, we can say that the US inhabitants are heavy consumers of carbonated soft drinks. In 2000, there was more consumption of carbonated soft drinks than water. Their consumption amounted 849 eight-ounce servings per year, which represents about 2.3 eight-ounce servings per day. Furthermore, we can notice that the consumption of carbonated soft drinks also depends on the age factor. [...]


[...] These companies are as follows: Coca-Cola, primary leader in the market, which single-handedly realizes more than 44% of the US total sales, then Pepsi and finally Dr Pepper/7 Up. Among the 900 CSD brands listed, many of them are local brands, responding to different local tastes. The top 10 brands are owned by the three market leading companies and represent 73% of the total CSD sales. Concerning submarkets, we can see that colas represent 60% of CSD total sales. However, this market is slowing down in favor of fruit flavored CSD. [...]

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