Dr. Pepper/Seven Up Case Analysis

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.

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.

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

The third-largest company in the U.S. is Dr. Pepper/ Seven Up, Inc. (DPSU) which consists of 14.7% market share. It is the most famous brands are Dr. Pepper and Seven Up among the Soft Drink Brands. It has been Squirting the market by this company since 1995. The Unit Sales Volume Squirt is $39 million to $54.6 million from the year 1990 to the year 2000.

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

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.

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.

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.

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.

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.

Crush needs to change their distribution strategy. Exhibit 7 shows that Sunkist, Slice, and Minute Maid all had much broader distribution coverage than Crush (exhibit 7). As a result the 3 brands enjoyed a much higher market share capture percentage than Crush (exhibit 5). This is due to the fact that Crush switched from bottling companies to warehouses as their primary means for distributing their product.

It is the vision of Dr. Pepper Snapple Co. ‘to be the best beverage business in the Americas. Our brands have been synonymous with refreshment, fun and flavor for generations, and our sales are poised to keep growing in the future’(DR Pepper Snapple Group). The company has many objectives to focus on that will ensure their position as the leading flavored beverage company in the US. These objectives include enhancing leading brands, such as but not limited to, 7UP, A&W Root Beer to even the Dr. Pepper brand. In all of these brands listed there are spinoffs to each such as the brand featuring vanilla, cherry, limeade and much more. They are pursuing profitable channels like different packaging, and leveraging current business models to improve upon. The company is working to strengthening the route to market and also improving operational efficiency. Ultimately, this will contributed to their many resources that facilitate sustainability, in turn creating corporate social responsibility (DR Pepper Snapple Group).

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.

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

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.