DR PEPPER/SEVEN UP INC.

SQUIRT BRAND

Presented By :
Balagopal - 09FN -
073
Prabal - 09FN - 076
Sampada - 09FN - 098
Siddharth - 09FN -
103
Sminesh - 09FN - 104
Sunil - 09FN - 111
Swapnil - 09FN - 112
 BACKGROUND

• Brand Manager in 2001 - Kate Cox

• Drafting the brand’s annual advertising and promotion
plan.
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 BACKGROUND
• Squirt was the best selling carbonated soft
drink brand in the US.
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• Both issues were highlighted in June 2001
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 MARKETING CONTRACT

§ Contract was given Foot Cone &

Belding Brand Agency.
§ Coca-Cola and Pepsi-Cola was the
major competitors and the company
(Foot Cone) took this into
consideration.
§ Dr Pepper/Seven up was consistently
ranked among the top-ten soft drink
brand in the US.
§
 SOFT DRINK INDUSTRY IN
THE US

• U.S. consumers drink more carbonated

soft drinks than tap water.
• In 2000 Americans consumed 53
gallons of soft drinks per person
compared with 47 gallons in 1990.
• Carbonated soft drinks market of
$60.3 billion in 2000.
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 INDUSTRY STRUCTURE

• Three major participants in the production of

CSDs:
1)
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• The Coca-Cola Company, the Pepsi-Cola Company & Dr
Pepper/Seven up, INC were the three major
concentrate producers in the U.S.
• Bottlers convert flavor concentrate into carbonated
soft drinks.
• There were 500 Bottlers in the US.
 INDUSTRY STRUCTURE

Classification of Bottlers:
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1) Own or have an equity

2) Franchise their brand
3) Independent bottlers.
4)
 INDUSTRY STRUCTURE

Types of Retail Outlets:

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1) Supermarkets
2) Conveniences stores
3) Vending machines
4) Fountain services
5) Mass merchandisers
6) Small retail stores
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INDUSTRY STRUCTURE
• Soft drinks were typically sold in
bottles and cans except McDonalds
which mixes syrup with carbonated
water for immediate consumption by
customers
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 COMPETITION IN THE SOFT
DRINK INDUSTRY
• Major three companies command 90% CSD sales in the
US.
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 COMPETITION IN THE SOFT
DRINK INDUSTRY
• Top-Ten CSD. Companies and Brands in 2000
COMPETITION IN THE SOFT
DRINK INDUSTRY
• Top-Ten Soft Drink Brands in 2000
 SOFT DRINK MARKETING

• Soft drink marketing is characterized by:

• Heavy investment in consumer advertising and
promotion,
• Selling and trade promotion to and through bottlers
to retail outlets
• Consumer price discounting
• Concentrate producers usually assume responsibility
for:
• - developing national consumer advertising
and promotion programs
• - Product development and planning
• - Marketing research
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 SOFT DRINK MARKETING
• Comparative Income Statement for the typical
flavored concentrate producer & soft drink
bottler in the us (per standard twenty-four 8-
ounce bottle case
• Packaging represent the major element of bottler’s
cost of goods sold
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 BRAND AND FLAVOR
COMPETITION

• More than 900 registered brand name for CSD

in the US.
• Changing composition of the U.S. population
has been an important factor in the
growing popularity of flavored CSD.
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DEMOGRAPHIC OF SOFT DRINK
CONSUMPTION

• 30% increase in sales from 1990 to 2000.

• 849 eight-ounce servings of carbonated soft
drinks annually.
• Consumed by American who are b/w 20 to 49
years.
• 20-49 years, It is the largest segment of
the US population.
• Diet soft drinks is more pronounced among
over 25 years.
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DEMOGRAPHIC OF SOFT DRINK
CONSUMPTION

• Primary audience for soft drink marketing

were Teens
• Taste and brand preferences are formed
between the age 12-24.
• Higher consumption of soft drinks is among
Hispanic and African American.
• More consumption among teens than adults.
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• SQUIRT BRAND
HERITAGE &
MARKETING
 HERITAGE & MARKETING

• Brand’s origins are found in the Great

Depression of the 1930s.
• Marketed by Dr prepper/Seven inc. since
1995.
• It seemed to squirt onto the tongue just
like squeezing a grape fruit
• Squirt sales since 1995
• Required less fruit and less sugar to
produce
• Sales grew during Second World War
• Exceeded reacquisition levels due to a
broadened bottling and distribution
network
• Increased marketing attention and
 SQUIRT MARKETING
• Squirt Unit Sales Volume (millions of Cases)
 SQUIRT MARKETING

• Bottled & sold by 250 bottlers in US

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• Five Bottler Markets Accounted for 50% of squirt case sales
volume – Los Angeles(30%),
 SQUIRT MARKETING

• Squirt Product Line and Competitive Brand

• consists of:
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• Squirt competed directly with Coca Cola’s two
• carbonated grapefruit soft drinks – Fresca & Citra
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• In broader Citrus flavored soft drinks it competed with –

Mellow Yellow & Surge(Coca Cola), Mountain
Dew(Pepsi), SunDrop(DPSU)
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 SQUIRT ADVERTISING &
PROMOTION EXPENDITURES

Media include:
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1) Newspapers
2) Spot of television
3) Cable television
4) Spot radio
5) Retail
6) Consumer
7) Trade promotion
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 SQUIRT ADVERTISING &
PROMOTION EXPENDITURES
•Coca-Cola and Pepsi-cola spend more on media
•advertising and promotion than does Dr Pepper/Seven Up.

•Mountain Dew – Most heavily advertised Brand

 POSITIONING STRATEGIES

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 SQUIRT POSITIONING

• Squirt positioning was addressed after Cadbury PLC

acquired the brand.
• In 1994, Foote, Cone & Belding recommended that
• Squirt’s unique thirst quenching attribute
should be the dominant positioning dimension.
•Target market of :

•Squirt – 18 to 44 years old

•Ruby Red– Fruity bold way to refresh your thirst,
targeted at teens & young adults of
12 – 24 years
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 TARGET MARKET &
POSITIONING
RECOMMENDATION
§ 1995 Foote, Cone & Belding was asked to
• revise it is creative strategy.
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§ The reason was the execution “was a bit too
• intense to fit with brand”
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• Image of squirt was portrayed in –

•“spunky, lively, sociable, colorful & Music Driven”

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§ The target market was narrowed to adults, 18-34.
• Fun relief when you are dry
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§ Squirt Positioning and Creative execution was
• revisited again 1999 following the
introduction of
• Citra by Coca-Cola
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 PERCEPTUAL MAP OF BRANDS
Young, Cool & Hip
Mountain Dew

Citra
Surge
Refreshing
Squirt

Mellow Yellow Thirst Quenching

Sundrop

Fresca

Not so young, cool & Hip

 TARGET MARKET &
POSITIONING
RECOMMENDATION
•Based on new research results featured
Squirt’s
•consumption by racial/ethnic group and age in

2000,
•Foote, Cone and Belding recommended:

•Squirt should be targeted at multicultural,

• 18-24 years old.
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 THE HISPANIC MARKET
OPPORTUNITIES
• Demographic of Squirt Consumption
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 THE HISPANIC MARKET
OPPORTUNITIES
• Demographic of Squirt Consumption
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 THE HISPANIC MARKET
OPPORTUNITIES

• Kate Cox met the brand management.

• The meeting concluded with an assignment
given to Jaxi Stollenwerck, the
associate brand manager for Squirt.
• The assignment to prepare a profile of
Hispanic and African American consumers
in the United States from recently
released U.S. Census 2000 data and other
relevant sources
 JAXIE ’ S REPORT

• Hispanic population increased by 57.9%

from 1990 to 2000.
• 22.4 million in 1990 to 35 million in 2000.
• 58% Mexican origins
• 9.6% Puerto Rican
• 3.5% Cuban
• 8.6% central or south American
• 19% Hispanic Origins not classified
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 JAXIE ’ S REPORT

• Hispanic accounted for 12.5% of the American

population.
• African Americans accounted for 12.3% of the US
population
• More than 75% of the Hispanics live in the
southern & western USA
• More than half of all Hispanics live in California
& Texas
• 35% of Hispanics were under 18 years while 25.7%
of overall US population were under 18
• Median age for Hispanics was 25 years while for US
in general, it was 35.3 years
• 55.4% of Hispanic prefer to see & hear ads in
Spanish
• Strong brand link with heritage among Hispanic
• Hispanics don’t like hard sell approaches
• Prefer shopping close to home
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 SQUIRT ADVERTISING &
PROMOTION PLAN
DEVELOPMENT
• In mid-summer 2001 Kate Cox Assembled the
team.
• They begin drafting the annual advertising
and promotion plan.
• The plan would be formally presented to
senior management for review and
approval.
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 SWOT ANALYSIS

Strengths Weaknesses
•Bell weather in grape fruit soft •Smaller advertising budget due

Drink to smaller market share

•Premier brand recognition in the •Stinging competition either in

market same or different categories

•Squirt has good power over its

suppliers
•Opportunities
Owns 2 brands out of top 10 Threats
•Expanding Hispanic population •Competitors ‘ advertises a lot to

would increase sales of squirt maintain market share

•Intention to enrolling into a new •Customers have bargain power

market in other countries to in the market

expand market share
 RECOMMENDATIONS
• Target younger generation- 18-24 years
• Continuous R & D
• More advertising and promotion