Case Recap Dr. Pepper/Seven Up, Inc. is the company which produces the brand Squirt. “Squirt is a caffeine-free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Squirt is the best selling carbonated grapefruit soft drink brand in the U.S.” (Kerin and Peterson, 2010) Kate Cox, the brand manager responsible for Squirt believes that market targeting and product positioning are key elements in Squirt’s advertising and promotional plan development. This case study will provide a summary and analysis of Dr. Pepper/Seven Up, Inc.’s options and the examination into the company’s strengths, weaknesses, threats, and opportunities.
Problem Identification One of
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By correctly representing Squirt in the top 10 cities throughout the U.S. with the highest Hispanic ethnic groups per capita, this could improve market share almost instantaneously. Externally Squirt follows the top two competitors with a much lower percentage of sales in the U.S. By having such a smaller percentage in sales with a new product a competitor could easily overtake the third position in the United States if Squirt is not careful in executing a successful marketing strategy. In contrast, Squirt has many external opportunities which are not currently being sought through the market strategy. One opportunity is to gain market share and percentage of sales in the U.S. by focusing on the correct target audience and their wants and needs as previously discussed. America’s consumption of soft drinks per person is on the rise. Also citrus flavored soft drinks have not been introduced to all of the areas of the country which leaves the opportunity to gain market share. Studies show that consumers want more fruit flavored beverages which are exactly what Squirt products are. This is an opportune time to lay the ground work for a national campaign which will target increased ethnic groups and capture a larger market share.
Identifying the Root Problem Components There are two root problem components currently for Squirt. First Squirt is not being offered in all areas of the U.S. A focus should be placed on the top largest
Meijer Superstore, Speedway, and Walgreens are the locations used at the center of research to compare and contrast several brands of single serving-size, refrigerated, water and tea. During this exploration, the marketing mix; product, price, placement, and promotion were observed among the several brands. Coca-Cola will benefit from the research where unique observations emerged. These observations include the placement of flavoring drops to add to water, the availability of Vitamin Water in both the water and sport drink sections, and the price and placement of PepsiCo products vs. Coca-Cola products, which included both water and tea, in the Meijer Superstore.
Hawaiian Punch is the top-selling fruit punch drink in the United States, contributing to the ninety-nine percent brand awareness among U.S. consumers. The product line in 2004 consisted of eleven flavors, with the original Fruit Juicy Red flavor being the most popular brand with a wide margin. A Hawaiian Punch light version of Fruit Juicy Red was recently introduced with sixty percent less sugar. At first, the traditional focus of Hawaiian Punch was centered towards children; however, the company now wants to refocus its positioning statement. Another brand consideration is the innovation of a new flavor into both finished goods and direct store delivery networks. The third concern is to address allowances relative to innovation in Hawaiian Punch finished goods and Direct Store Delivery (DSD) networks and to media advertising. Give the previous considerations; we have developed new marketing proposals for future marketing decisions.
Regalto: We started with a strong position in the Alpha and Beta segment, and with an overall market share of 17.2%. From then on our market share declined, reaching a low of 6.9% in period 4. We launched new products in period 5, namely Fly, targeting the Delta segment and Spark, refocusing on the Alpha segment. This helped us increase our overall market share to 9.7% in period 5. The key takeaway from this decline is that we were not quick enough to launch R&D of new products that would exactly target specific customer segments. This allowed our competition (particularly Purple) to steal market share in segments (Alpha, Beta) where we originally had maximum penetration.
One of the alternatives for Squirt is to reinforce the marketing strategies. They should consistently advertise their carbonated grapefruit soft drink in United States for long period of time, which will lead to high brand awareness and loyalty. The budget spend on advertising by Squirt is less than the competitors’ budget. Squirt should also use their budget towards making their advertising more appealing to the targeted age group, research and development process to achieve higher quality standard for their product. Also further research and development is recommended by Foote, Cone & Belding to compete with their competitors such as Coca-Cola and
According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17.
Putting the right product in the right place, at the right price, at the right time is "the "marketing mix" of Product, Place, Price, and Promotion” that marketing managements use to control the internal and external constraints of the marketing environment. These four variables aid in making strategic decisions to create perceived value and generate a positive response. When Gatorade was created in 1965, it was a unique product that satisfied the needs of their athletic consumers. As quoted by Tas Hobart, “understanding and tailoring to purchasing preferences has the potential to move a product to the forefront and actually pull it through the supply chain,” (2015) Gatorade has accomplished that for over fifty years.
Cox believes that attention must be drawn to Squirt 's advertising and promotion plan. Both topics were addressed in a June 2001 presentation by the brand 's advertising agency, Foote, Cone & Belding. Following a review of U.S. Census 2000 statistics, Squirt consumption data, and its own and Dr Pepper/Seven Up research, Foote, Cone & Belding proposed a refinement in Squirt 's target market and positioning which had previously been aimed at 18- 34 year olds. Through research that featured Squirt 's consumption by racial/ethnic group and age relative to carbonated soft drink users, Foote, Cone & Belding recommended that Squirt target a multicultural, 18-24 year old segment in order to tap into this heavy carbonated soft drink user segment. The total sales broken down by racial/ethnic groups can be seen below.
Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.
Both competition and market size are of major importance when one explores the positioning of a product. In the case of Crescent Pure, this is vital as Ryan must determine the level of competition that will be faced if the product is marketed as either an energy or sport drink. In the case of an energy product, it should be noticed that there is heavy market dominance by Together, Freight, Razor, Torque and Steller, as they account for roughly 85% of the market. Despite this, it should be seen that the average price point for a 5oz can is $2.99 which is notably higher than Crescent’s $2.75 pricing. Additionally, the market size for sport drinks is of particular interest as it is estimated to grow to $8.5 billion by the year 2013. This, coupled with the fact that the market had grown 40% between the period 2010 – 2012, makes this sector of particular interest to PDB.
This document is part of the requirements of the Foundations of marketing course, the University of Newcastle. It is the first part of the marketing plan for Red Bull, the leader of energy drinks market.
Squirt has been exposed to many numbers of Hispanics, those of Mexican descent primarily because of the beverage in Mexico which could be a very beneficial for Squirt in the market in the U.S. by considering there is a very large Mexican population in the United States. In the other side, in California alone there are around 77% of the Hispanic population is of Mexican ancestry. 77% of the 11,000,000, the Hispanic population = 8.47
This marketing plan is designed for Sprite, which is a carbonated lemon flavored, caffeine free drink and one of the brands produced by Coca-Cola Company. This plan is produced in response to the declining market share of Sprite in number of countries including North America, China, Europe and some Gulf states to set up and present clear picture of future plan and strategies for marketing. The plan is centered around markets and customers analysis, marketing mix, integrated marketing communication strategies, target market summaries, product positioning and repositioning, essential marketing approaches and techniques and other related discussion and recommendations.
The soft-drink industry capitalizing on creating the best product. Each product has a different taste, formula, and color to entice the consumer. It is important for the product to remain innovative in order to keep the consumers interested. The suppliers can easily differ, because they do not hold much value or put
Vitaminwater has experienced an overall decline in sales over the past 5 years. The All Measured Channels in Dollars illustrates that the growth and declines of other industry comparatives such as SoBe Life water. Propel which is Pepsi owned, demonstrated a similar decline to that of vitaminwater. Much of the initial decline of vitaminwater could have been justified by the growth of SoBe Life water, a Pepsi owned competitor. But then eventually SoBe Life Water began to take a very deep cut on sales as well. Understanding the comparisons in sales between these 3 competitors of enhanced water is crucial is establishing a new promotion plan, this results elude to the fact that it may not be vitaminwater specifically that is declining in popularity, but