Dr. Pepper 7 Up Inc.
In the United States about one-quarter of the population is Hispanic and African American. These population groups tend to consume flavored carbonated soft drinks. According to U.S. Census 2000 figures, there should have been an increase in the Hispanic youth by 2005 and this group would become the largest ethnic youth population. They account for 17 percent of all youth under age 18 and 45 percent of all minority minors. By 2010, one minor in five will be Hispanic, amounting to a 22 percent increase in nine years. These statistics show that the Dr. Pepper/Seven Up, Inc., should invest in their advertisement of their Squirt brand to target this market. When it comes to advertising it is important to understand that concentrate producers and bottlers often split advertising costs 50-50. The cost of local retail-oriented merchandise promotions and consumer promotions is also often 50-50. It is split 50-50 because of the target markets that each can reach. The bottlers are able to meet the target more locally whereas the concentrate producers tend to focus more on the brand as a whole or nationwide. These advertising and promotion programs can however, be negotiated (R. Kerin & R. Peterson, 2010).
Kerin Roger A., Peterson Robert A., (2010) Strategic Marketing Problems, Twelfth Edition. Upper Saddle River, NJ: Pearson Education, Inc.Bottom of Form
3. What are the possible new offering decisions for Squirt Brand? The