Korry Wright
Midterm MKT 601
Dr. Pepper/Seven Up, Inc. Squirt Brand
2/8/14
Case Summary
In 2001, Kate Cox, brand manager at Dr. Pepper/Seven Up Inc. (DPSU), assumed responsibility of Squirt, the best selling carbonated grapefruit soft drink brand in the U.S. While it is still the best selling brand of grapefruit flavored soda in the U.S. market, it had recently lost ground to offerings from both Coca-Cola and Pepsi Co. Cox, believed that market targeting and product positioning are key elements in Squirt’s advertising and promotional plan development. Foote, Cone & Belding, the advertising agency DPSU contracted, 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. Dr. Pepper/Seven Up, Inc., has asked Kate Cox to draft the annual advertising and promotion plan for Squirt in the U.S. and then present this to senior management for review and approval prior to implementation. Kate has the option of continuing the present market targeting and positioning strategy, adopting the market targeting and positioning strategy recommended by FCB, or developing a new strategy which may or my not include elements of the current and recommended strategy.
Problem Identification
One of the key problems that need to be addressed is the decreased market share by Dr. Pepper/Seven Up, Inc. Some reasons for this are several issues related to the advertising and distribution of Squirt. Dr. Pepper/Seven Up, Inc.’s current program is not reaching the largest target audience available. Squirt is not focusing on valuable characteristics such as ethnicity, demographics, and target audiences. America’s consumption of soft...