Dr Peppers Snapple Group, Inc.

I. Factual Summary:
 Squirt is the best-selling carbonated grapefruit soft drink brand in the U.S.
 Dr Pepper/Seven Up, Inc. is the largest division of Cadbury Schweppes PLC.
 Dr Pepper/Seven Up, Inc is the largest non-cola soft drink enterprise in North America. It
is taking advantage of its brand image.
 It markets well-known brands such as Dr Pepper, 7Up, RC Cola, Canada dry etc.
 All of Dr Pepper’s products are leading brands in their product categories.
 The industry is divided into three major participants; concentrate producers, bottlers,
and retail outlets. 
 Being a minor competitor, Squirt enjoys marketing advantages from franchised bottlers
of major brands such as Coca-Cola.
 3 major competitors in carbonated soft drinks industry: Coca-cola, Pepsi-Cola and Dr
Pepper/Seven Up.
 Growing share prices (+0.1) and sales volume (+1.1).
 Soft Drink industry is dependent on consumer advertising and promotion.
II. Case Problem/Opportunity:
There two problems are associated with Squirt’s market share (total sales) and distribution
 In recent year, Squirt’s sales volume is going down. Inefficient advertising is one of the
reasons for that. Current advertising program is not able to reach its customers.
 Second problem is Squirt is not able to concentrate on its target customers,
demographics. Squirt’s advertising should concentrate on growing Hispanic population
and should reach Hispanic population through fruit flavored drinks.
III. Alternative solutions:
1. Doing nothing:
 It is evident that Squirt is losing its market share, so in such a situation if Squirt do not do
anything, the same trend would be continue. Obviously Squirt should give away its
customers to its competitors.
2. Increase budget for advertising:
 Currently Squirt is maintaining lower budget for advertising and promotion for double
sales volume of its competitors. in order to retain its sales volume and market share,
Squirt should increase its advertising budget and hence implement innovative adverting
programs.
3. Concentrating more on demographics, ethnicity:
 Squirt does not have proper target market. It should more concentrate on younger
generation and teenagers. It needs to market its brand a lot southern part of U.S.
4. Focusing on Hispanic population:
 Major consumers of Squirt belong to Hispanic population. Squirt needs to reach Hispanic
 population by providing more fruit flavor. It should use Spanish television channels and
also Spanish.
IV. Recommended Solution:
Squirt should implement all the above 3 solution to retain its market share and attract more
consumers from Hispanic population.
V. Conclusion:
Support from Top Management
Creative heads for innovative advertising programs
Increased budgets for new advertising programs
Feedback from customers