Dr. Pepper/Seven Up, Inc. The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case. ٱ Squirt Brand Squirt is a caffeine-free, low-sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Squirt is the best selling carbonated grapefruit soft drink brand in the United States. The origin of Squirt can be traced back to 1938 when a man named Herb Bishop began experimenting with Citrus Club. Bishop created a new carbonated soft drink that required less fruit and sugar to produce compared to other sodas that were being made at the time. The new drink "seemed to squirt onto the tongue," so Bishop named the drink Squirt. Squirts sales grew during WWII because its low sugar content helped bottlers restricted by sugar rationing rules. By the mid 70's, Squirt was introduced internationally in Central and South America. In 1977 a company named Brooks Products purchased Squirt from Bishop. In 1983, Diet Squirt became the first soft drink in the United States to be sweetened with Nutra Sweet. Squirt joined A&W Brands in 1986, which was later purchased by Cadbury Schweppes PLC in 1993. Responsibility for manufacturing, marketing, and distribution of Squirt was assigned to Dr Pepper/Seven Up, Inc, which had been acquired by Cadbury Schweppes PLC in 1995. It still remains under the Dr Pepper/Seven Up, Inc.
From the review of U.S Census on the size of the market segment to which the marketing campaign of Dr. Thunder would target, it has been found that the marketing campaign would target around 3 million Americans. Over the past 10 years, it has been noticed that the target market segment has grown for about 7.7% (United States Census Bureau, 2013). Moreover, the target segment would expand by another 8.9% in the coming ten years. Upon understanding the dynamics of soft drink industry in USA, it is found that the following three factors have an impact on the consumer behavior of this industry:
The ingredients in Sprite are carbonated water, high fructose corn syrup, citric acid, natural flavors, sodium citrate, and sodium benzoate (n.d. 2012). Sprite originated in Germany where it was know as “Clear Lemon Fanta”. It wasn’t until 1961 that Sprite was introduced to the U.S. in order to compete with 7-Up. Today, Sprite is sold in over 188 countries (History of Sprite Coke n.d.). In their advertisements, Sprite frequently uses the word “lymon”, which combines the two words “lemon” and “lime”, to describe the flavor of the drink. In Australia and New Zealand, Sprite is called “lemonade”, and in Ireland and Canada, there is no difference between 7-Up and Sprite. There is also no distinction between Sprite and Schweppes lemonade in South Africa (The Soda Factory-Sprite
P&G was founded in 1837 by William Procter and James Gamble as a maker of soaps and candles. P&G was known in Corporate America as a company to be admired and imitated. In addition, it was envied for its profitability as well as strong brand name. P&G has a long standing reputation as having life long employees. This dedication and loyalty by P&G's employees created the notion that outside sources were unwelcome and all products and ideas must come from within, however, this is not the way of the future.
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
It is clear from this research that the average rates of soda consumption from Americans are decreasing as time goes on, especially with the new generation of citizens rising up. Based off a national poll taken in 2014 by Gallup Inc., communications professional Justin McCarthy asserts, “Americans have become increasingly wary of drinking soda since Gallup began asking them about their dietary choices in 2002. At that time, only 41% said they actively tried to avoid soda, a percentage that has now jumped to 63%” (Gallup Inc.). It is evident that with the releasement of new knowledge regarding soda, each new generation will be more aware of the issues and as time goes on, the trend of decreasing rates in soda consumption will continue throughout the course of the nation’s
It was seen that, group of respondents (age group of 31-40 yrs mostly) said that they are becoming health conscious day by day and they prefer Minute Maid more now, whereas earlier they liked ThumsUp, which means that this group of customers prefer Non-Aerated health drinks. Since, Coca-Cola does not have many varieties in this category, so they should now target the health conscious audience and venture into “Healthy non-aerated beverages category”.
Coke vs Pepsi Fighting for Foreign Markets Introduction The soft-drink battleground has now turned toward new overseas markets. While once the United States, Australia, Japan, and Western Europe were the dominant soft-drink markets, the growth has slowed down dramatically, but they are still important markets for Coca-Cola and Pepsi. However, Eastern Europe, Mexico, China, Saudi Arabia, and India have become the new "hot spots. " Both Coca-Cola and Pepsi are forming joint bottling ventures in these nations and in other areas where they see growth potential.
That was a clear motivation behind the capitalism of flavored waters, and other things such as carbonated water, sparkling water, and the soda stream (Nestle, 112). All are water-based drinks, that are amplified to share that same sizzle and taste as a traditional soda. Trying to gain their respect back in the population of drinkers but also, this was a technique used to increase sales of water products. For the first time in the history of the United States of America, water ranked number one, on the list of beverages sold in
It’s taste, cost effectiveness and environmental friendly packaging is already a competitive advantage and comparable to the main players in the LRB’s segment. Due to its unique and one of a kind characteristics, Salvation beverage is expected to bring a new perspective in the LRB’s market and will be positioned to capture a meaningful share of the $35 billion market opportunity in play for emerging brands. c. Over the past few years, customers are increasingly looking for beverages to play new roles in their diets and health routines. Drinkable breakfasts and nutrient hunger satisfying beverages are fueled by customer interest in nutrition and performance drinks that act as meal replacements and guilt free snacks. Sherwood Enterprise marketing efforts will largely be based on who they are targeting so they must be able to identify the right demographic for their multifunctional power drink.
On May 8, 1886, pharmacist John Stith Pemberton stirred up fragrant caramel-coloured syrup in a three legged brass kettle. He carried a jug of his new formulation to the Jacobs's Pharmacy, Atlanta. On the following day, the new product debuted as a soda fountain drink for five cents a glass. By accident or by design, carbonated water was mixed with the syrup which has created the world's most popular drink.
Introduction There are many companies that try to introduce a new product to the population and making the product successful. The companies often account for the economy among other factors and how the country of origin responds to the product. The potential soft drink market
Soft drinks are popular worldwide taking up 25% of the beverage market. Nearly two hundred countries enjoy these drinks. These drinks consist of carbonated water, flavoring, and lots of sugar.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Dr Pepper Company is the oldest major manufacturer of soft drink concentrates and syrups in the United States. Dr Pepper is the company's principal brand. Cadbury Schweppes PLC acquired Dr Pepper/Seven-Up Cos. Inc. in March 1995. The new business will be called the Dr Pepper Company, which will focus on the Dr Pepper brand by handling all beverage system sales, which account for 75 percent of its business, in addition to related independent bottlers. The second operating group will be Cadbury Beverages/Seven Up Co., which will service independent bottlers not carrying Dr Pepper. Dr Pepper/Seven Up soft drink brands now hold about 16 percent of the U.S. market. Dr Pepper and Seven-Up are among the top 10 carbonated soft drinks, with Dr Pepper being the top non-cola soft drink. Other soft drink include: A&W Root Beer, Canada Dry, Schweppes, Welch's, Sunkist, Squirt, Crush and Hires (Levy 1999). According to the soft drink industry report, there is large sales growth recently in non-colas. Dr Pepper was number three in the industry. The reason is because non-colas have above-average caffeine level, and will be aimed at the 12-to 21-year-old market. Obviously, management sees this product as an opportunity to more fully participate in the growing popularity of non-colas.
Experimentation with the new market for carbonated beverages on the decline coke has done experiments in new flavors and healthier alternatives to try to stay competitive. As well as investing in “Keurig Green Mountain is a K-Cup maker but has a new Keurig Cold that can deliver Coca-Cola through the new system.” (Cooper, 2014)