Dr. Pepper / 7Up Inc.SQUIRT BRAND

CONTRIBUTORSName ID

Debashish Banarjee

41324057

Md. Hasan Shahriar

41324077

Tanzila Bint Minhaj 41323003

Sayem Mohd. Hanif

41323006

Sumaiya Kamal 41324049

Md. Abu Syeed 41324046

Overview• Dr. Pepper/ Seven Up (DPSU) is the largest division of Cadbury Schweppes PLC.•Cadbury Schweppes PLC is the world’s 3rd largest soft drink company and 4th largest confectionary company.• Sales product more than 200 countries.•DPSU is the largest non-cola and 3rd largest soft drink enterprise in north America.

Industry Structure

The Coca-Cola Company, and The Pepsi-Cola Company and Dr. Pepper/ Seven Up Inc. are major concentrate producers in the United States.

Approximately 500 bottlers in the United States convert flavor concentrate into carbonated soft drinks.

Coca-Cola Enterprise Inc. with multiple bottler operations, is the largest U.S. bottler of Coca-Cola brand beverage products.

Principal retail channels for carbonated soft drinks are supermarkets, convenience stores, vending machines, fountain service, mass merchandisers and small retail outlets.

28%

19%12%

9%

9%

8%7%3%3%1%

Top 10 Soft Drink Brands

Coke ClassicPepsiDiet CokeMountain DewSpriteDr. PepperDiet Pepsi7 UpCF Diet CokeBarq Root Beer

Competition in the Soft Drinks IndustryThree companies command over 90% of carbonated soft drink sales in the United States. The Coca-Cola Company leads the industry with a 44.1% market share, followed by the Pepsi-Cola Company 33.4% and Dr. Pepper/ Seven Up, Inc. 14.7%.

SQUIRT STORYEvolution of Squirt

Owned by

Herb Bishop of Phoenix

Brooks Product A&W BRANDS

Cadburry Schweppes

Dr. Pepper (under

Cadbury Schweppes

)Time

Frame 1938-1977 1977-19861986-1993 1993-1995 1995-2001

Stories

Citrus club- squirt(1938), little squirt, World War

two boom in sales, Mixer-

1950's

Reformulated, logo changed,

Repositioned as mainstream soft

drink brand, launching of diet

squirt

 

Line Extension Diet Ruby, Red Squirt

Broad distribution

network/ More sales

SQUIRT DISTRIBUTION 250 Bottlers Two-third were affiliated with Coke and Pepsi 5 bottlers hold 50% of volume California cased 38%

• Regular• Diet• Regular Ruby Red• Diet Ruby Red• Berry Flavor

Product Lines

Competition Freska Citra Mello Yello Surge Mountain dew (code red, cherry flavored) Sundrop

Demographics and Consumption Pattern

Squirt Volume Breakdown by Racial\Ethnic Group: Total U.S Market

Consumption Volume and age relationship among carbonated soft drinks users and Squirt Users: Total U.S Market

15%

12%

73%

Sales

African-AmericanHispanicCaucasian

<6 6~12 13-19 20-29 30-39 40-49 50-59 60+

5

20

10

6

1214

11

21

4

7

14.5

7

23

15

9

5.5

Squirt Usuers Carbonated Soft drink users

Age

Volu

me

Inde

x

Demographics and Consumption Pattern

•Largest segment of U.S population is 20 years to 49 years

•Over 25 years old, diet soft drink is mostly preferred

•Teens and young adults consumes regular soft drinks

•Changing trend is favoring flavored carbonated soft drinks

•25% of Americans are under 18 years old

Demographics and Consumption Pattern

•One-quarter of total population is Hispanics and Africans-

Americans

•Hispanics are Coca-Colas’ second priority after teens.

•Coca-Cola introduced two flavored soft drinks to their southern

California market

•Fruit flavored carbonated beverages among African-Americans and

Hispanic along with teens and young adults increased.

Squirt Advertisement•Squirt enjoys the highest consumer brand awareness among carbonated grapefruit soft drinks in the U.S

•Squirt retail and trade advertising exceed media advertising expenditure

•In 1994, Squirt’s positioning was on “ Unique thirst- quenching drink” to build the brand

Squirt Advertisement•Age range of Target group of Squirt’s is “ 18-44 years”

•Advertising of Squirt’s focused on “ hip, cool, experimental nature”

•Message the advertising wanted to deliver was “ Beyond the ordinary refreshment- incredibly thirst quenching”

Squirt Advertisement•Backing up Tag Line “ Squirt Your Thirst”

•Squirt’s strong competitor Citra by Coca-Cola stand in the market with slogan “ No Thirst Is Safe”

•Consumer Research by Squirt’s reveals “ Few Squirt users feels Citra advertising more appealing and higher thirst-quenching”

•Research revealed that portions of younger and older feels Squirt’s commercials as “ Juvenile” and with this viewpoint formal review began from 2001

Squirt Advertisement•In mid-1995 Squirt’s changed its creative strategy “ everyday, on the go experiences”

•In this creative strategy Squirt’s thirst quenching benefit remains but pictured in “ spunky, lively, sociable, colorful and music driven”

•Age range of Target group of Squirt’s narrowed “ 18-34 years”

•Advertising of Squirt’s focused on “ Fun relief when you are dry”

Squirt Positioning Review: June 2001

The Squirt positioning review was conducted by Foote, Cone & Belding (FCB)

It consisted of two parts:

1. Positioning analysis

2. Recommendation

Positioning Analysis

Purpose of Analyzing the perceptual map of Grapefruit and Citrus Brands relative to the positioning of the seven major Grapefruits and Citrus Brands was to develop a strategic platform that will-

1. help to grow sales volume and

2. maintain leadership in grapefruit carbonated soft drink.

Target Market Analysis

Based on new research results featured Squirt’s consumption by racial/ethnic group and age in 2000, FCB recommended:

Squirt be targeted at multicultural,

18-24 years old.

The Hispanic Market Opportunities

Hispanic12% African Amer-

ican15%

Caucasian73%

Demographic Distribution

Recommendations of FCB Continuous emphasize on ‘thirst-quenching’ benefit Relate brand with uniqueness of target market-

1. Life stage of young adults2. Their responsibilities3. More carefree times

The Hispanic Market•Considerable growth in the population (57.9% compared 13.2% ).

•Youthful population (35% below 18 and median 25)

•Spanish dialects differ

•More than 50% are immigrants.

Localization of Hispanic Community

•Behavioral Keys• Heritage and Brands

• Relevant message• Significance of Mom & Pop grocery outlets

• Language preference

Targeting and Positioning

• Multicultural Targeting and Positioning

•Age group should be 18-34.

•Focusing on Mom-and-Pop grocery outlets

•Using Spanish billboards and newspaper in the southern and western

SummaryOverview of Industry and CompetitionAbout Squirt the sodaDemographyAdvertisement ExpenditurePositioning and RepositioningHispanic Community and Positioning