...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, low...
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...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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...INTRODUCTION 2.0 CASE SUMMARY 3.0 PROBLEM IDENTIFICATION 3.1 Primary 3.2 Secondary 4.0 CASE ANALYSIS 4.1Target Market and Positioning 4.2 SWOT – strengths, weaknesses, opportunities, threats 5.0 ALTERNATIVE METHOD 5.1 Reinforcement of marketing strategy by Squirt 5.2 Strategy planning recommended by Food, Cone & Belding (FCB) 5.3 Running bilingual media advertising and bottler promotion campaign for U.S Hispanic nationalities 5.4 Food, Cone & Belding estimation of Hispanic Squirt consumption on a Spanish-only program for selected markets 6.0 RECOMMENDATION 7.0 PLAN OF ACTION 7.1 Promotion 7.2 Product 7.3 Price 7.4 Place 8.0 CONTINGENCY 1.0 INTRODUCTION Nowadays, marketplace is fundamentally different as a result of major societal forces that have resulted in many new consumer and organization capabilities. These forces have created new opportunities and challenges and marketing management has changed significantly in recent years as organization seeks new ways to achieve marketing excellence. Furthermore, to maintain the product’s reputation in the market, organization focuses on branding the product internally and externally through market targeting and product positioning in order to increase organization sales volume and gaining trust from their respective consumers on their products 2.0 CASE SUMMARY The case is about three companies...
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...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, marketing and distribution...
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...Unit III Case Study MBA 5841 June 2, 2014 Professor Debra Glass Unit III Case Study 1. What is the offering concept? What does this mean for Dr. Pepper/7Up Inc.? The offering concept is basically a framework used to review competing businesses offerings, seek out the unmet needs and wants of the target market, and develop new products or services. Dr. Pepper/7Up has used the offering concept, which is why it is the largest non-cola soft drink enterprise in North America. The company has the right mix of products, target markets identified, and the type of soft drink that will appeal to the consumers. 2. How would you characterize the competitive situation for Dr. Pepper/7Up, Inc. and Squirt in the U.S. carbonated soft drink industry? The market is commanded by three companies that account for over 90% of soft drink sales in the USA. Coca- Cola is number one with 44.1 percent, Pepsi-Cola number two with 31.4 percent, and Dr Pepper/7Up number three with 14.7 percent. The companies offer competitive products that allow for competition amongst all organizations. 3. What are the possible new offering decisions for Squirt Brand? Some of the possible new offering decisions could be trying to market to a different demographics, attach the product to a star athlete in a major sporting team, or the product message being presented to the masses. 4. Given your assessment of the competitive situation, what are the pros and cons of: (a) continuing Squirt’s present...
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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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...1.0 Introduction : Nowadays, marketplace is fundamentally different as a result of major societal forces that have resulted in many new consumer and organization capabilities. These forces have created new opportunities and challenges and marketing management has changed significantly in recent years as organization seeks new ways to achieve marketing excellence. Furthermore, to maintain the product’s reputation in the market, organization focuses on branding the product internally and externally through market targeting and product positioning in order to increase organization sales volume and gaining trust from their respective consumers on their products. 2.0CASE SUMMARY The case is about three companies with 90% of the market share control the carbonated soft drink industry in the United States. These companies include in order of market share size, CocaCola, Pepsi Co, and Dr. Pepper/7Up. These three companies also represent the top ten selling brands in the United States market. 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...
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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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...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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...Case Brief The Issue Whether the state of Nevada should judicially adopt the doctrine of strict liability? If so, was there a defect in the manufacture of the Squirt bottle that caused the plaintiff’s injuries? The Rule Of The Law Public policy demands that manufacturer, distributor, retailer, in other words, all in the chain of distribution must be held strictly liable for marketing a bottle of beverage in a condition dangerous for user for injuries resulting from such use, although the seller has exercised all precaution. Section 402A of the Restatement (Second) of Torts, which states that who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property, if the seller is engaged in the business of selling such a product, and it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold. This rule applies although the seller has exercised all possible care in the preparation and sale of his product, and the user or consumer has not bought the product from or entered into any contractual relation with the seller. (Page 96, Legal Environment, Online Commerce, Business Ethics, and International Issues...
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...Goods Stealth Positioning for Technologies 1. Difficult to use, unreliable, or threatening Reverse for Services Breakaway for Packaged Goods. Stealth for Technologies. Reverse Positioning 2. IKIA IKEA has long been celebrated in the business press for its innovative marketing and phenomenal growth Cheap and stylish inventory Top stores compete by carrying enormous and varied inventories Key factor in the stores high performance is its brilliant reverse positioning 3. Commerce Bank 4. JetBlue Breakaway Positioning 1. Swatch Swatch became the best –selling wristwatch of all time 2. The Simpsons The fox network has done a breakaway positioning when it launched its animated series The Simpsons in 1989. 3. EZ Squirt Ketchup Stealth Positioning 1. EyeToy: Play. 2. AIBO. 3. Mac Mini. Conclusion Short Summary In order to break out of the pack, you must shift mature products back and push new products forward to the growth phase of the product life cycle. Most firms build their marketing strategies around the concept of the product life cycle-the idea that after introduction. It doesn't always necessarily have to be that way. The case describes three positioning strategies that marketers use to shift consumers' thinking. Reverse positioning strips away product attributes while adding new ones. Breakaway positioning associates the product with a radically different. And stealth positioning acclimates leery consumers...
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...Coca cola water water everywhere… INTRODDUCTION: When we hear the name Coca-Cola we might not instantly think of water. However Coca-Cola Amatil's brand Mount Franklin is the number-one brand of bottled water in Australia. In a market crowded with hundreds of competitors, Mount Franklin and the Pump range of products account for more than one-quarter of all bottled water sales in Australia. Coca-Cola Amatil (CCA) is the local Coca-Cola licensee, manufacturer and bottler operating in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea. Coca-Cola is continually striving for growth in this Pacific region. A core objective of the company is to become the supplier of choice for carbonated and non-carbonated beverages. The company has also set a goal to expand in the health and wellbeing segment, or market category. The non-alcoholic drink market consists of different product categories, the main ones being carbonated beverages (both sugared and sugar-free), water, sports drinks, energy drinks, juices and fruit drinks. Over the past two decades the growth in the market share in Australia of diet drinks, bottled waters, sports drinks, energy and lifestyle drinks and other sugar-free, non alcoholic drinks has been steadily increasing. In particular sales of bottled water have increased markedly over the last ten years while the proportional share of carbonated sugared drinks has been falling. In Australia in 2006, CCA enjoyed a 58 percent market share of carbonated...
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...Coca-Cola Company A. Case Abstract Coca Cola (www.cocacola.com) is a comprehensive business policy and strategic management case that includes the company’s fiscal year-end December 2006 financial statements, competitor information and more. The case time setting is the year 2007. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Atlanta, Georgia, Coca Cola’s common stock is publicly-traded on the New York Stock Exchange under the ticker symbol KO. Coca Cola operates in over 200 nations around the world and sells carbonated and non carbonated beverages. Coca Cola’s line of non carbonated drinks includes: water, juice, and teas. The company has over 70,000 employees and is led by CEO Neville Isdell. The Coca-Cola Company’s (Coke’s) operating segments include 1) Africa, 2) East, South East Asia & Pacific Rim, 3) European Union, 4) Latin America, 5) North America, 6) North Asia, Eurasia, and the Middle East, and 7) bottling investments. Not all soft drink products/flavors of the company are available in all the operating groups. The Coca-Cola Company has two major rivals: PepsiCo and Cadbury Schweppes PLC. It’s interesting to note that PepsiCo has more that double the employees as Coca-Cola as listed in Exhibit 6. Groupe Danone competes to a lesser degree with C ...
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...Coca-Cola Case Study Factors Affecting Management Christopher H. Thompson Texas A&M University Central Texas Instructor: Dr. David Geigle G BK 444.115 – International Business Texas A&M University-Central Texas Summer 2014 Absract There have been and/or are plenty of factors, both internal and external impact the planning function for management within an organization. Regardless of size, age, revenue, product, or service, planning is the most fundamental and important component for management. By no means is the Coca-Cola Company an exception. Arguably, Coca-Cola is the most recognized, most popular, as well as the biggest-selling soft drink in history. Synonymous for Coke, the company produced nearly 550 million servings in 2007 selling other brands such as Sprite, Dasani, Bacardi, Fanta, Minute Maid, and Powerade generating a net operating revenue of $28.9 million. (Isdell, 2007). This paper will examine 4 major internal and external factors that impact managerial planning; globalization, technology, diversity, and ethics. In addition, will explain how managers can use delegation to manage the impact that these factors have on the four functions of management. Brief History It all started back on a regular afternoon, in the year 1886 in Atlanta, Georgia, when a pharmacist named John Pemberton, by curiosity decided to stir up a fragrant, caramel-colored liquid (syrup) and was combined with carbonated water. This drink, named Coca-Cola, was...
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...Case Study: Labatt Blue When preparing a case solution it is expected that students will conduct additional secondary research. The capture of good information will enhance the quality of the analysis and the recommendation. Marketing Communications Plan Model Use the following model for completing a marketing communications plan. These points should be addressed in your presentation (20 minutes). Marketing Background SWOT analysis: External Influences • Economic Trends • Social and Demographic Trends • Technology Trends • Regulatory Trends Market Analysis • Market Size and Growth • Market Segments (Product Classifications) • Seasonal Analysis Competitor Analysis • Market Share Trends • Marketing / Marketing Communications Strategy Assessment Product (Brand) Analysis • Sales Volume Trends • Market Share Trends • Image and Reputation (questionnaire/ quantitative research) Marketing Communications Plan Target Market Profile • Demographic • Psychographic • Geographic etc Target Market Analysis • Consumer Behaviour (Loyalty) • Consumption patterns Positioning Strategy • Positioning Strategy Statement • Positioning Grid Budget • Budget Available for Plan Advertising Objectives (whatever is relevant to plan) • Awareness • Preference • Trial • Image Creative Plan ...
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