Dr. Pepper/7up, Inc

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Times New Roman 12 pt font, 1 inch regular margins, single spaced.
1 page with very brief descriptions of the main elements of the case analysis:
1. Defined problem
2. Brief Description of the situation Analysis and Relevant Information
3. Alternatives and chosen alternative
4. Decision-making and calculations for the chosen alternative.
“Calculation include Break-even analysis and Customer lifetime value!” All calculation should be based on assumed numbers if the case dosn’t support enough numbers!

Dr Pepper/7Up, Inc.

Squnrt® Brand

In mid-summer 2001, Kate Cox, the brand manager at Dr Pepper/ Seven Up, Inc.
responsible for Squirt, began to draft the brand’s annual advertising and promotion
plan. Squirt is a caffeine-free, low-sodium carbonated soft drink brand with a distinc-
tive 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.

Cox believed that market targeting and product positioning might require atten-

tion early in Squirt’s advertising and promotion plan development. Both topics were
highlighted in a June 2001 presentation by the brand’s advertising agency, Foote,
Cone & Belding, shortly after she assumed responsibility for Squirt. Actions by com-
petitors, notably Coca-Cola and Pepsi-Cola; a recent dip in Squirt case sales volume;
and implications of the growing Hispanic community in markets where Squirt was
popular were foremost in her mind.
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Dr Pepper/Seven Up, Inc. is the largest division of Cadbury Schweppes PLC. Cadbury
Schweppes PLC is the world’s third largest soft drink company and the fourth largest
confectionary company, with product sales in almost 200 countries. Headquartered
in London, England, Cadbury Schweppes PLC has the distinction of being the
world’s first soft drink maker and the world’s largest non-cola soft drink producer
and marketer.

Dr Pepper/Seven Up, Inc. (DPSU) is the largest non-cola soft drink enterprise in
North America. The company markets such national brands as Dr Pepper, 7Up,
RC Cola, A&W Root Beer, Canada Dry, Squirt, Hawaiian Punch, and Schweppes, among
others. DPSU also owns regional brands including Sundrop and Vernors, among others.

DPSU is the third largest soft drink company in the United States. Its flagship
brands-Dr Pepper and 7Up-are consistently ranked among the top-ten soft
drink brands in the United States as measured by market share. Its other brands were
often the market leader in their specific categories. For example, Canada Dry is the
top-selling ginger ale in the United States, Schweppes is the leading tonic water, and
Canada Dry seltzers lead the club soda/seltzer category. Squirt is the best-selling
grapefruit soft drink, and A&W Root Beer is the leading root beer sold in bottles and
cans.

The cooperation of Dr Pepper/Seven Up, Inc. in the preparation of this case is gratefully acknowledged.
This case was prepared by Professor Roger A. Kerin, of the Edwin L. Cox School of Business, Southern
Methodist University, as a basis for class discussion and is not designed to illustrate effective or
ineffective handling of an administrative situation. Certain company information has been disguised

and is not useful for research purposes. Squirt® is a registered trademark used under license (© 2002
Dr Pepper/Seven Up, Inc.) and used in this case with permission from Dr Pepper/Seven Up, Inc.
Copyright © 2002 by Roger A. Kerin. This case may not be reproduced without the written permission
of the copyright holder.