Premium Essay

Dr Pepper/7 Up, Inc Squirt Brand Case

In:

Submitted By clara772
Words 1637
Pages 7
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 to bottlers, which add a sweetener and package the beverage in bottles and cans, which are then sold to retailers. Squirt is bottled and sold by 250 bottlers in the U.S. One-third of the bottlers were independent franchised bottlers or part of the Dr Pepper/ 7Up Inc. Bottling Group. Two-thirds of Squirt bottlers were affiliated with Coca-Cola Enterprises, Inc. and the Pepsi Bottling Group.

Similar Documents

Premium Essay

Dr. Pepper/ Seven Up Inc.: Squirt Brand

...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...

Words: 2505 - Pages: 11

Premium Essay

Marketing

...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,...

Words: 710 - Pages: 3

Premium Essay

Dr. Pepper/Seven Up, Inc: Squirt Brand

...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...

Words: 1419 - Pages: 6

Premium Essay

Cadbury Beverages

...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...

Words: 1805 - Pages: 8

Premium Essay

Dr Pepper

...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...

Words: 8571 - Pages: 35

Premium Essay

Cola Wars

...perceived as a continuing battle without blood. Without Coke, Pepsi would have a tough time being an original and lively competitor. The more successful they are, the sharper we have to be. If the Coca-Cola company didn’t exist, we’d pray for someone to invent them. And on the other side of the fence, I’m sure the folks at Coke would say that nothing contributes as much to the present-day success of the Coca-Cola company than . . . Pepsi.1 This cozy relationship was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. In response, both firms began to modify their bottling, pricing, and brand strategies. They also looked to emerging international markets to fuel growth and broadened their brand portfolios to include non-carbonated beverages like tea, juice, sports drinks, and bottled water. As the cola wars continued into the twenty-first century, the cola giants faced new challenges: Could they boost flagging domestic cola sales? Where could they find new revenue streams? Was their era of sustained growth and profitability coming to a close, or...

Words: 13837 - Pages: 56

Premium Essay

Cola Wars

...perceived as a continuing battle without blood. Without Coke, Pepsi would have a tough time being an original and lively competitor. The more successful they are, the sharper we have to be. If the Coca-Cola company didn’t exist, we’d pray for someone to invent them. And on the other side of the fence, I’m sure the folks at Coke would say that nothing contributes as much to the present-day success of the Coca-Cola company than . . . Pepsi.1 This cozy relationship was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. In response, both firms began to modify their bottling, pricing, and brand strategies. They also looked to emerging international markets to fuel growth and broadened their brand portfolios to include non-carbonated beverages like tea, juice, sports drinks, and bottled water. As the cola wars continued into the twenty-first century, the cola giants faced new challenges: Could they boost flagging domestic cola sales? Where could they find new revenue streams? Was their era of sustained...

Words: 14055 - Pages: 57

Premium Essay

Britvic Case Study

...Breaking Down the Chain: A Guide to the soft drink industry aCknowleDgments this report was developed to provide a detailed understanding of how the soft drink industry works, outlining the steps involved in producing, distributing, and marketing soft drinks and exploring how the industry has responded to recent efforts to impose taxes on sugar-sweetened beverages in particular. the report was prepared by sierra services, inc., in collaboration with the supply Chain Management Center (sCMC) at rutgers university – newark and new Brunswick. the authors wish to thank kristen Condrat for her outstanding support in all phases of preparing this report, including literature review and identifying source documents, writing, data analysis, editing, and final review. special thanks also goes to susanne Viscarra, who provided copyediting services. Christine fry, Carrie spector, kim Arroyo Williamson, and Ayela Mujeeb of ChangeLab solutions prepared the report for publication. ChangeLab solutions would like to thank roberta friedman of the yale rudd Center for food Policy and obesity for expert review. for questions or comments regarding this report, please contact the supervising professors: Jerome D. Williams, PhD Prudential Chair in Business and research director – the Center for urban entrepreneurship & economic development (Cueed), rutgers Business school – newark and new Brunswick, Management and Global Business department 1 Washington Park – room 1040 newark, nJ 07102 Phone: 973-353-3682...

Words: 40786 - Pages: 164

Premium Essay

Coco Cola

...International Trade & Academic Research Conference (ITARC ), 7 – 8th November, 2012, London.UK. COCA-COLA: International Business Strategy for Globalization Michael Ba Banutu-Gomez William G. Rohrer College of Business, Rowan University, USA Key Words International Differentiation Strategy, Global Strategy, International Marketing Strategy, Culture in International Marketing Strategy, Coca-Cola Strategy, International Distribution Strategy, Choosing Distributors and Channels, The Challenge of Distribution, Hidden Costs And Gains In Distribution, International Collaborative Strategy, International Labor Relations and Management Strategy, and International Diversification Strategy. Abstract The purpose of this research was to analysis the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from...

Words: 10141 - Pages: 41

Premium Essay

International Business Strategy for Globalization

...Coca-Cola: International Business Strategy For Globalization Dr. Michael Ba Banutu-Gomez, Professor, Management and Entrepreneurship, William G. Rohrer College of Business Rowan University, Glassboro, NJ ABSTRACT The purpose of this research was to analyze the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from the various countries to determine how effective Coca-Cola was in these countries. The paper revealed that Coca-Cola was very successful in implementing strategies regardless of the country. However, the author learned that CocaCola did not effectively utilize all of the strategies in each country. Key Words: Coca-Cola, International Business, Strategy, Globalization, International Marketing, Labor Relations, Distribution, Diversification, Management, Channels, Costs, Gains and Collaboration. INTRODUCTION...

Words: 9970 - Pages: 40

Premium Essay

Cabury

...Article Licenses License 34 Cadbury 1 Cadbury Cadbury Type Industry Founded Headquarters Products Revenue Subsidiary of Mondelēz International Confectionery Birmingham, United Kingdom (1824) Uxbridge, London, United Kingdom See list of Cadbury products £5,384 million (2008) Operating income £388 million (2008) Net income Employees Parent Website £364 million (2008) 71,657 (2008) [1] Kraft Foods (2010-2012) Mondelēz International (2012-present) Cadbury.co.uk [2] Cadbury is a British confectionery company owned by Mondelēz International Inc. and is the industry's second-largest globally after Mars, Incorporated.[3] With its headquarters in Uxbridge, London, England, the company operates in more than 50 countries worldwide. The company was known as Cadbury Schweppes plc from 1969–2008 until its demerger, in which its global confectionery business was separated from its US beverage unit (now called "Dr Pepper Snapple Group").[4] It was also a constant constituent of the FTSE 100 from the index's 1984 inception until its 2010 Kraft Foods takeover.[5][6] History 1824–1900: Early history In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. He later moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of the high cost of production. John Cadbury became a partner with his brother Benjamin...

Words: 11438 - Pages: 46

Free Essay

Buyology

...1 of 83 file:///D:/000004/Buy__ology.html 08/08/2009 10:45 2 of 83 file:///D:/000004/Buy__ology.html CONTENTS TITLE PAGE FOREWORD BY PACO UNDERHILL INTRODUCTION 1: A RUSH OF BLOOD TO THE HEAD The Largest Neuromarketing Study Ever Conducted 2: THIS MUST BE THE PLACE Product Placement, American Idol , and Ford’s Multimillion-Dollar Mistake 3: I’LL HAVE WHAT SHE’S HAVING Mirror Neurons at Work 4: I CAN’T SEE CLEARLY NOW Subliminal Messaging, Alive and Well 5: DO YOU BELIEVE IN MAGIC? Ritual, Superstition, and Why We Buy 6: I SAY A LITTLE PRAYER Faith, Religion, and Brands 7: WHY DID I CHOOSE YOU? The Power of Somatic Markers 8: A SENSE OF WONDER Selling to Our Senses 9: AND THE ANSWER IS… Neuromarketing and Predicting the Future 10: LET’S SPEND THE NIGHT TOGETHER Sex in Advertising 11: CONCLUSION Brand New Day APPENDIX ACKNOWLEDGMENTS NOTES BIBLIOGRAPHY ABOUT THE AUTHOR COPYRIGHT FOREWORD PACO UNDERHILL It was a brisk September night. I was unprepared for the weather that day, wearing only a tan cashmere sweater underneath my sports jacket. I was still cold from the walk from my hotel to the pier as I boarded the crowded cruise ship on which I was going to meet Martin Lindstrom for the first time. He had spoken that day at a food service conference held by the Gottlieb Duttweiler Institute, the venerable Swiss think tank, and David Bosshart, the conference organizer, was eager for us to meet. I had never heard of Martin ...

Words: 66056 - Pages: 265

Premium Essay

Buyology

...1 of 83 file:///D:/000004/Buy__ology.html 08/08/2009 10:45 2 of 83 file:///D:/000004/Buy__ology.html CONTENTS TITLE PAGE FOREWORD BY PACO UNDERHILL INTRODUCTION 1: A RUSH OF BLOOD TO THE HEAD The Largest Neuromarketing Study Ever Conducted 2: THIS MUST BE THE PLACE Product Placement, American Idol , and Ford’s Multimillion-Dollar Mistake 3: I’LL HAVE WHAT SHE’S HAVING Mirror Neurons at Work 4: I CAN’T SEE CLEARLY NOW Subliminal Messaging, Alive and Well 5: DO YOU BELIEVE IN MAGIC? Ritual, Superstition, and Why We Buy 6: I SAY A LITTLE PRAYER Faith, Religion, and Brands 7: WHY DID I CHOOSE YOU? The Power of Somatic Markers 8: A SENSE OF WONDER Selling to Our Senses 9: AND THE ANSWER IS… Neuromarketing and Predicting the Future 10: LET’S SPEND THE NIGHT TOGETHER Sex in Advertising 11: CONCLUSION Brand New Day APPENDIX ACKNOWLEDGMENTS NOTES BIBLIOGRAPHY ABOUT THE AUTHOR COPYRIGHT FOREWORD PACO UNDERHILL It was a brisk September night. I was unprepared for the weather that day, wearing only a tan cashmere sweater underneath my sports jacket. I was still cold from the walk from my hotel to the pier as I boarded the crowded cruise ship on which I was going to meet Martin Lindstrom for the first time. He had spoken that day at a food service conference held by the Gottlieb Duttweiler Institute, the venerable Swiss think tank, and David Bosshart, the conference organizer, was eager for us to meet. I had never heard of Martin ...

Words: 66056 - Pages: 265

Premium Essay

Java for Dummies

...Programming Languages/Java ™ Jumpin’ Java! The bestselling Java beginner’s book is now fully updated for Java 7! Open the book and find: ava J • Definitions of the many terms you’ll encounter ® • The grammar of Java • How to save time by reusing code • All about if, for, switch, and while statements • An overview of object-oriented programming • Building blocks — learn to work with Java classes and methods and add comments • Hints about handling exceptions • How to write Java applets ® • The Java scoop — get an overview of Java, the enhancements in Java 7, and the software tools you need • Get loopy — understand the value of variables and learn to control program flow with loops or decision-making statements 5th Edition 5th Edition Java Java, the object-oriented programming language that works on almost any computer, is what powers many of those cool multimedia applications. Thousands have learned Java programming from previous editions of this book — now it’s your turn! Whether you’re new to programming or already know a little Visual Basic or C++, you’ll be doing Java in a jiffy. g Easier! Making Everythin • Ten ways to avoid mistakes • Class it up — explore classes and objects, constructors, and subclasses, and see how to reuse your code • A click ahead — experiment with variables and methods, use arrays and collections to juggle values, and create programs that respond to mouse clicks Learn...

Words: 34460 - Pages: 138

Free Essay

Child Labour

...10000 quiz questions and answers www.cartiaz.ro 10000 general knowledge questions and answers 10000 general knowledge questions and answers www.cartiaz.ro No Questions Quiz 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Carl and the Passions changed band name to what How many rings on the Olympic flag What colour is vermilion a shade of King Zog ruled which country What colour is Spock's blood Where in your body is your patella Where can you find London bridge today What spirit is mixed with ginger beer in a Moscow mule Who was the first man in space What would you do with a Yashmak Who betrayed Jesus to the Romans Which animal lays eggs On television what was Flipper Who's band was The Quarrymen Which was the most successful Grand National horse Who starred as the Six Million Dollar Man In the song Waltzing Matilda - What is a Jumbuck Who was Dan Dare's greatest enemy in the Eagle What is Dick Grayson better known as What was given on the fourth day of Christmas What was Skippy ( on TV ) What does a funambulist do What is the name of Dennis the Menace's dog What are bactrians and dromedaries Who played The Fugitive Who was the King of Swing Who was the first man to fly across the channel Who starred as Rocky Balboa In which war was the charge of the Light Brigade Who invented the television Who would use a mashie niblick In the song who killed Cock Robin What do deciduous...

Words: 123102 - Pages: 493