...Case Analysis and recommendations for Dr. Pepper/Seven Up Inc.: Squirt Brand Dr. Pepper/Seven Up incorporated Dr. Pepper/Seven Up Inc. is the largest division owned by Cadbury Schweppes PLC, who is the third largest soft drink maker in the world by a landslide. Although only bested by Coca-Cola and Pepsi-Cola, Cadbury Schweppes took Dr. Pepper/Seven Up a little bit of a different route concerning the flavors of their beverages, becoming the number 1 seller of non-cola carbonated soft drinks with the individual brands Dr. Pepper and Seven Up consistently in the top ten soft drink beverages consumed in the United States, the other 8 being owned by Coke or Pepsi. In addition to Dr. Pepper and Seven Up, DP/SU Inc. owns other top national brands that are often best sellers like Canada Dry, which is the best selling ginger ale in the US; Schweppes, the best selling tonic water; Squirt, the leading grapefruit drink; and A&W Root Beer, which was the highest selling root beer drink in terms of can and bottles. While Dr. Pepper/Seven Up incorporated may be lower on the charts than Coke or Pepsi, it is obvious that the company was no novice when it came to creating and marketing a product that consumers enjoyed on a national level. The carbonated soft drink industry in the United States In the US the carbonated soft drink industry has been on the rise since the 1800’s and had become everyday beverages to almost every citizen. By the year 1990, it was found that, on average, every...
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...Dr. Pepper/Seven Up, Inc: Squirt Brand How would you characterize the carbonated soft drink industry in the United States? The U. S consumer drinks more carbonated drinks than tap water which makes the soft drink industry in the U.S is excessively lucrative, but an aggressive competitive market. For example, Americans in the year 2000 consumed an average of 53 gallons of soft drinks per person and it represented a $60.3 billion in carbonated soft drink retail sales for that year. Nevertheless, in the recent years the growth rate of consumption for soft drinks has declined. There are three big players in the production and distribution that hold the majority of sales in the carbonated soft drink industry in the United States. First, the three major concentrate producers like The Coca-Cola Co., The Pepsi-Cola Co. and Dr. Pepper/Seven Up Inc. Second, the bottlers who convert flavor concentrate into soft drinks, concentrate producers have two options 1) Own their bottlers or have equity interest in them, 2) The second option is to franchise their brands to independent bottlers and grant them the right to package/distribute their branded line of soft drinks in a specific territory, but not allowed to market a directly competitive major brand. Lastly, the principal retail channel outlets for carbonated drinks like supermarkets, convenience stores, vending machines, fountain services, mass merchandisers and other thousands of small retail outlets. The...
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...CASE: Dr Pepper/Seven Up, Inc Introduction Dr Pepper/Seven Up, Inc is the largest division of Cadbury Schweppes PLC that is the third largest soft drink companies and fourth largest confectionary company that sells its products in over 200 countries. Also, this company is the largest non cola soft drink company in the North America, and the third largest soft drink company in the United States. They are rated among first 10 companies based on their product share. However, some of their products represent a market leader in specific categories. Market situation In the United States there are more than 900 registered brand names for carbonated soft drink. Most of these brands are recognized and accepted in the local regions and they mostly represent the taste of the local consumers. Taste of the locals are changing over time and where there were just colas taste was accepted in the past; in the last decade there is significant growth (30%) in popularity of flavored soft drinks. Flavors such as orange, cherry, grape, lemon lime are much more represented in the market. For the purpose of soft drink production there are three groups of participants in the chain production. These are: concentrate producers, bottlers, and retail outlets. Three major concentrate producers in the United States are Coca Cola Company, Pepsi Cola Company, and Dr Pepper/Seven Up, Inc. However, there are more than 500 bottlers that also convert flavor concentrate into carbonated soft drinks...
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...10 October 2011 Dr Pepper/7 Up Inc. Squirt Brand Opportunity and challenges faced by the company. Dr Pepper/Seven up Inc is the largest non-cola soft drink company in North America and the third largest soft drink company in the United States. One of the brands marketed by Dr Pepper/Seven up is Squirt. Squirt is the best selling grapefruit flavored soda in the United States but over the past several years have seen little to no growth. U.S. consumers drink more than 53 gallons of soft drinks per year, up 6 gallons from 10 years ago, and account for $60.3 billion in carbonated soft drink sales. Despite this growth in soft drink sales, Squirt has not seen the same growth partly due to competition from both Coca-Cola and Pepsi Co. Kate Cox, the brand manager for Dr. Pepper/Seven Up, Inc., wants to write a new Marketing and Advertising plan for the brand in order to stimulate growth and target the growing Hispanic market. This paper will analysize the Squirt Marketing strategy and provides some insight to future market alternatives. Problem Statement Despite being the best selling grapefruit flavored soft drink; Squirt sales have remained stagnant for the past several years due to competition and failure to reach the appropriate target audience. Central Issues Squirt was purchased by London base company, Cadbury Schweppes PLC in 1993, which then purchased Dr. Pepper/Seven Up Inc. Since 1995, Dr. Pepper/Seven Up Inc has been responsible for manufacturing,...
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...Introduction Since 1885, Dr. Pepper Snapple Group (DPS) has established a firm reputation for quality. It has strove to become a key competitor in the soft drink industry, and is now one of the largest in the world. This document will serve as a strategic analysis of DPS, and will provide a critical analysis of the company’s strategies, resources, and financial data. In this paper, we will display, DPS’s mission, vision, history, and major competitors. We will explain, in detail, everything that helps contribute to the soft drink giant that we all know today. Background Vision Statement At Dr. Pepper Snapple Group, it is our vision to be the best beverage business in the Americas. Our brands have been synonymous with refreshment, fun and flavor for generations, and our sales are poised to keep growing in the future. Mission Statement Our strategy reflects and builds upon our position as the leading flavored beverage business in the U.S. Accordingly, we focus on: 1. Building and enhancing our leading brands 2. Pursuing profitable channels, packages and categories 3. Leveraging our integrated business models 4. Strengthening our route to market 5. Improving operating efficiency Components 1 2 3 4 5 6 7 8 9 Company NO YES YES YES YES NO YES NO NO Given the mission of Dr. Pepper only has 5/9 of the components; the mission may need some revision. History/Timeline 1885: Charles Alderton, of Waco, Texas invents Dr Pepper. Late 1880s: Morrison, the owner of the...
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...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. 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...
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...Dr. Pepper-Snapple Company Kim Hayes Deonta Samilton Jordan Narcisse Tori Wallar Professor Cary Accounting November 11, 2013 Section 2: Introduction Dr. Pepper-Snapple Group, Inc. 5301 Legacy Dr. Plano, TX 75024 Industry: Beverages (Non-Alcoholic) Sic Code: 2080- Beverages Major Products: Canada Dry (Ginger ale,) 7-up (lemon-lime,) A&W (Root beer,) Sunkist (Orange,) and Sun Drop (Citrus.) Competitors: Coca-Cola and PepsiCo. Stock exchange: 47.33 Ticker symbol: DPS Name of outside auditors: Deloitte & Touche, LLP SIC (Standard Industry Classification): 2080 Beverages * History: Today, Dr Pepper Snapple Group is one of the leading producers of flavored beverages in North America and Caribbean. The have 6 of the top 10 non-cola drinks, and 13 of their 14 leading brands are ranked in the top two of its flavor categories. The DPS market more than 50 brands of carbonated soft drinks, juices, teas, mixers, water, and other premium beverages. Dr Pepper Snapple group include: 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr. & Mrs. T mixers, Penafiel, Rose's, Schweppes, Squirt and Sunkist soda. We are able to thank DPS for inventing the first carbonated drink. In 1783, Jean Jacob Schweppes created the world’s first carbonated mineral water. Schweppes’s was the original inventor of this new product, shared his invention with a young pharmacist in Waco, Texas, named Charles Alderton. They both invented Dr Pepper in...
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...Management Project/Presentation The Dr. Pepper Snapple Group History Overview From the invention of the first soft drink more than 200 years ago to some of the industry's most beloved beverage brands, Dr Pepper Snapple Group (DPS) has a proud legacy of innovation, bold and distinct flavors, and entrepreneurial spirit. On May 7, 2008, DPS became a stand-alone, publicly-traded company on the New York Stock Exchange as the result of a spin-off by Cadbury, plc which held the Cadbury Schweppes Americas Beverages business group of entities. One of North America's leading refreshment beverage companies, DPS markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a strong, sustainable and profitable business. The company's integrated business model enables the company to manage the entire value chain from innovation to the store shelf. History The company now known as DPS has evolved from a combination of discovery, invention and collaboration. This rich history includes the very birth of the soft drink in 1783, when Jean Jacob Schweppe perfected the process for carbonating water and created the world's first carbonated mineral water. Dr Pepper and Snapple, the flagship brands of DPS, have origins that share Schweppe's entrepreneurial spirit. Charles Alderton, a young pharmacist in Waco, Texas, invented Dr Pepper in 1885. It was served at the drug store...
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...Dr Pepper/Seven Up, Inc. Case Analysis Akua Porter Davenport University MKTG 610 Online Instructor: JoDee Phillips January 29, 2012 Case Synopsis Almost all Americans have consumed at least one soft drink beverage over a year time span (Kerin, 2010). Dr. Pepper/Seven Up, Inc is the largest division of Cadbury Schweppes PLC (Kerin, 2010). “Cadbury Schweppes PLC is the world’s third largest soft drink company, and the fourth largest confectionary company with product sales in over 200 countries” (Kerin, 2010). Dr. Pepper/Seven Up, Inc. is among one of the three major concentrated producers in the U.S. Dr. Pepper/Seven Up, Inc. owns 2% of market share in the soft drink beverage industry (Kerin, 2010). Cadbury Schweppes is known as the world’s “first soft drink maker”, and the “world’s largest non-cola soft drink producer and marketer” (Kerin, 2010). The company has several national brands and regional brands that are top leaders in the soft drink industry. Squirt was marketed by Dr. Pepper/Seven Up Inc. in the 1990’s by Cadbury Schweppes PLC (Kerin, 2010). In 1938 Herbert Bishop created a carbonated drink that required less fruit and sugar to produce (Kerin, 2010). The new drink “seemed to squirt onto the tongue just like squeezing a grapefruit” (Kerin, 2010). Squirt became a popular soft drink product in the 1950’s. Throughout the 70’s Squirt transitioned into a “brand that was a mainstream soft drink” (Kerin, 2010). Squirt is a caffeine free...
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...distributed to grocery stores and Hawaiian Punch became a national brand. Soon after “Punchy,” the mascot, was introduced, and the companies brand image and advertising identified it a successful product (Kerin, 2007). Over the next 30 years, Hawaiian Punch was bought out by RJ Reynolds (RJR) Company, Del Monte, who expanded distribution channels and introduced new flavors, Proctor and Gamble, who established the gallon bottle as a leading juice drink package and distributed at supermarkets and retail outlets via its bottle network in the carbonated drink aisle and independent food broker and warehouse networks in the juice aisle, and lastly Cadbury Schweppes, PLC (Kerin, 2007). In 2004, three Cadbury Schweppes, PLC business units—Dr Pepper/Seven Up; Snapple Beverage Group; and Mott’s—integrated to form Cadbury Schweppes Americas Beverages (Kerin, 2007). At the time, the Hawaiian Punch line consisted of 11 flavors and packaging included a 1-gallon bottle, a half-gallon bottle, a 2-liter bottle, a 20-ounce bottle, a 6.75-ounce single-serve standup pouch, and a 12-ounce can. Hawaiian Punch Lite had also recently been introduced and contained 60 percent less sugar (Kerin, 2007). Fruit juice market Labeled a juice drink, Hawaiian Punch is manufactured with fresh juice or concentrate, not exceeding 24 percent, to...
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...market. * Coca-Cola Enterprises spun out by The Coca-Cola Company in 1986 [1]and now covering [2] Belgium, continental France, the United Kingdom, Luxembourg, Monaco, and the Netherlands; * Coca-Cola Hellenic Bottling Company ("CCHBC") formed from the de-merger of Coca-Cola Amatil's eastern European interests into Coca-Cola Beverages and that company's subsequent meger with the Hellenic Bottling Company, now covering [3] 28 countries in eastern Europe, Russia and Nigeria * Coca-Cola Amatil covering [4] Australia, New Zealand, Fiji, Indonesia and Papua New Guinea; * The Pepsi Beverages subsidiary of PepsiCo is the company's anchor bottler for the North American market. * The bottling subsidiary of Dr Pepper Snapple, formerly the Dr Pepper/Seven Up Bottling Group, is the anchor bottler for most of the company's soda brands in the US. ------------------------------------------------- [edit]References 1. ^ Financial Times "Coca-Cola has tended to keep its bottlers at arm’s length" 2. ^ Coca-Cola Enterprises homepage "The World's Largest Bottler" 3. ^ Coca-Cola Hellenic - geographic footprint Interactive Map 4. ^ About CCA - Country overview ------------------------------------------------- [edit]External links Anchor bottler is a term used by cola beverage manufacturers for their major bottlers around the world. They help make drinks. The Coca-Cola Company employed the strategy of "anchor bottlers" to penetrate markets like...
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...Dr pepper/Seven Up, Inc. Jeonghwan Bae D10372714 1. Nowadays, the soft drink is highly important part of people’s beverage. I think that I can characterize the carbonated soft drink like this, most innovate beverage until now. Also the carbonated soft drinks have incredibly addictive like drugs or cigarette. I also love coke and always drink when I eat the food. The three companies; Coca-Cola, Pepsi-Cola, Dr Pepper/Seven Up companies hold most of percentage which people drink carbonated soft beverage. Coca-Cola is most famous and favorite company with 44.1% market share and Pepsi-Cola have 31.4%, Dr Pepper/Seven Up Company have 14.7% in 2000. 2. The Squirt brand don’t have many market share percent in U.S. Because Coca-Cola and Pepsi-Cola or other big companies have more customer preferences. However, relate with fruits carbonated drinks, the Squirt company is number 1 brand in the U.S. Squirt have high market share with carbonated grapefruit soft drink brand. 3. The pros of continuing the present market targeting and positioning is that people might think like “this company have consistency”. The Squirt don’t have bad image from customers, so it would be fine. The cons of continuing the present strategy is that company can’t grow up in the future, because it doesn’t have any change or developing for customer and it will make the same market share. The pros of adopting the recommendation made by FCB is that company can get more preferences or positive response from...
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...Dr Pepper Snapple Group: Fighting to Prosper In a Highly Competitive Market June 2011 Written by Joseph S. Harrison under the direction of Jeffrey S. Harrison at the Robins School of Business, University of Richmond. Copyright © Jeffrey S. Harrison. This case was written for the purpose of classroom discussion. It is not to be duplicated or cited in any form without the copyright holder’s express permission. For permission to reproduce or cite this case, contact Jeffrey S. Harrison (RCNcases@richmond.edu). In your message, state your name, affiliation and the intended use of the case. Permission for classroom use will be granted free of charge. Other cases are available at: http://robins.richmond.edu/centers/center-‐for-‐active-‐business-‐education/research/case-‐network.html Larry Young, President and CEO of Dr Pepper Snapple Group, Inc. (DPS) seemed to be on a roll. Named 2010 Beverage Executive of the Year by Beverage Industry Magazine, he led the company through three very difficult...
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...Capstone in Strategic Management Spring Arbor University Jaspreet Kaur (Jas) Terry A. O’Connor, Ph.D. September 6, 2010 Abstract Cadbury Schweppes formed its joint venture in 1969. The company went through several mergers and acquisitions from 1969 to 2008, but the company was able to survive and became the global leader in confectionery and soft drink business. In the early stage, the company had to struggle but by the late 1900’s Cadbury Schweppes started to expand its business worldwide. The company had franchises in United States and Europe and acquired various businesses in other parts of the world. By the early 2000’s the company decided to demerger. In 2008, the beverage site of the business (Schweppes) became Dr Pepper Snapple Group and confectionery (Cadbury) was bought by Kraft Foods the very next year. Cadbury Schweppes: Capturing Confectionery Introduction The purpose of this document is to analyze the existence of Cadbury Schweppes. This paper will describe the history and background of the company. In addition, the document will identify and discuss the global initiatives of Cadbury Schweppes. And finally, the document will discuss the recommendations for the corporation. History and Background Cadbury Schweppes began its journey in 1969 with the merger of a beverage company started by Jacob Schweppe in 1783 in Geneva, Switzerland and a chocolate business started by John Cadbury in Birmingham, U.K. in 1824 (Hill and Jones...
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...Dr Pepper/7Up, Inc. Squirt Brand Case Analysis SOFT DRINK INDUSTRY The soft drink industry in the United States is a highly profitably, but competitive market. In 2000, carbonated soft drink retail sales were estimated $60.3 billion, however, soft drink consumption growth has slowed in recent years. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the U.S. They are the Coca Cola Company with 44.1% market share, The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/ Seven Up, Inc. with 14.7% market share. These three companies market the top ten brands account for 73% of soft drink sales in the U.S. Dr. Pepper/ Seven Up, Inc. owns two of the top ten brands: Dr. Pepper and 7UP. Colas are the dominant flavor accounting for 60% of total sales, but flavored soft drink sales are growing fast. Flavored soda is more popular with Hispanic and African American teens. Industry research indicates that most soft drink is consumed by individuals aged 20 to 49. Teens and young adults consume more regular soda and over 25 year olds consume more diet soda. Per capita consumption of soda is higher among Hispanics and African American than other ethnic groups and among teens than adults. There are three major participants in the production and distribution of carbonated soft drinks in the United State: concentrate producers, bottlers, and retailers. Concentrate producers manufacture the basic flavors for sale...
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