Dr pEPPER
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Transcript of Dr pEPPER
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