Dr. Pepper Seven Up, Inc. 1 Essay
This particular study will be dealing with the history and the strategies that thevcompany tried to maintain their position in the current market. We will discuss some of the steps that they carry out as the company progresses. But also we will focus more on one of the Companies product. Squirt.
Dr Pepper Seven Up, Inc. (DPSU) is on of the top three company that makes soft drink, next to the two big companies in the industry: Coca-Cola Company and PepsiCo, Inc. two of its products hold place on the Top Ten positions among all soft drinks. Dr Pepper at number six and 7 Up at number nine. www.referenceforbusiness.com (2008).
The merging resulted into the separation of International Rights for Branding and because of that, today Pepsi Company owns a big share of the non-U.S. rights to the Seven Up part, on the other hand Coca-Cola Corporation have most of the non-U.S. rights to its other half the Dr Pepper. This is the actual reason why Dr Pepper Seven Up products are not consistent in the international market and are sometimes there are instances it is completely different than their U.S. product counterparts.
One of their outstanding product is Squirt which is the “best- selling carbonated grapefruit soft drink brand in the United States. It is also a caffeine- free, low- sodium Dr. carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste (From the source provided).
Squirt was created in 1938, at that time was America was facing a Great Depression. The people were thinking of having new ideas and trying to focus on hard work. One man pioneered one new idea. It was Herb Bishop, he experimented with Citrus Club, which is a popular non-carbonated soft drink bottled in the region, Phoenix, Arizona. It is said that “Bishop had created a new but fresh idea of a carbonated drink which required less fruit flavor and less sugar. Bishop’s thought that it was the freshest and the most exciting taste in the marketplace. That is the very reason why he named it Squirt”(drpeppersnaplegroup.com, 2008).
When Kate Cox became the brand manager at Dr Pepper Seven Up, Inc. responsible for Squirt, she began to draft the brands annual advertising and promotion plan. She believed that early planning is necessary for the promotional plan development. She also considered the recent dip of their “Squirt” on case sales volume, and the growing Hispanic community where squirt was popular.
Dr Pepper Seven Up, Inc. (DPSU) as of now is the largest non- cola soft drink enterprise here in North America. The company produced such national brands as Dr Pepper, Seven Up, RC Cola, A& W Root Beer, Canada Dry, Squirt, Hawaiian Punch, and Schweppes, they also owns regional brands including Sundrop and Vernors, among others” (From the source provided).
Squirt sales in 1995 up to present have exceeded pre-acquisition levels because of the broadened bottling and distribution network supported by increased marketing attention and investment. Squirt is bottled and sold by some 250 bottlers in the United States. One- third of these bottlers were independent franchised bottlers or part of the Dr Pepper/ Seven Up, Inc. Bottling Group. Two- thirds of Squirt bottlers were affiliated with Coca- Cola Enterprises, Inc. and the Pepsi Bottling Group, Inc.
The geographical dispersion of these bottlers meant that Squirt was available in about 83 percent of U. S. bottler markets that represented about 85 percent of total soft drink volume in the United States. New York City area was the largest market without a Squirt bottler. Five bottler markets accounted for 50 percent of Squirt case sales volume. These were Los Angeles (30 percent), Chicago (7 percent), Detroit (6 percent), San Diego (4 percent), and Portland, Oregon (3 percent). Another ten bottler markets represented 20 percent of Squirt case volume. Another ten additional bottler markets are responsible for 10 percent of Squirt case volume. The remaining 20 percent of Squirt case volume was divided among other Squirt bottlers. Some 100 bottlers in the western United States accounted for about one- half of Squirt case volume. California alone represented 38 percent of Squirts case volume in 2000. Squirt bottlers in Southern California were affiliated with Coca- Cola Enterprises, Inc. and in Northern California with the Pepsi Bottling Group, Inc. (From the source provided).
Their product line consists of regular and diet Squirt and regular and diet Ruby Red Squirt a berry flavor extension introduced in 1993.
Advertising has played a big role in promoting DPSU’s products. They have shown several TV commercials that really provoked consumers in different part of the country to try and enjoy the refreshing taste of their products. Most of it involves several kind of sport like skating and biking. They also tried using scenarios that you usually see in everyday living such as in schools and at home. The company does not only allocate money for their commercials and endorsement, but also they spend real money on this category of the business. On the several commercials they both targeted the youth and the adult member of the population. Consumers in United States drink more carbonated soft drinks than tap water. It was mentioned that “ In 2000, Americans consumed 53 gallons of soft drinks per person, compared with about 47 gallons in 1990. Population growth compounded by rising per capita consumption produced an estimated $ 60.3 billion in carbonated soft drink retail sales in 2000” (From the source provided).
Though several changes occurred on the company’s internal business unit the image that they carry is still the same image that they had during the time that they were just starting. The brand still lives and the authentic flavor is still on every can and bottle of their products.
There maybe further development on the company but the current situation is doing great. The demand for soft-drinks and sodas are becoming higher and the population is also growing each day. The future of DPSU is still unknown, opportunities and trial may come, competitors may arise and innovation will be inevitable.