Unit Iii Case Study

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Unit III Case Study
MBA 5841
June 2, 2014
Professor Debra Glass

Unit III Case Study
1. What is the offering concept? What does this mean for Dr. Pepper/7Up Inc.?

The offering concept is basically a framework used to review competing businesses offerings, seek out the unmet needs and wants of the target market, and develop new products or services. Dr. Pepper/7Up has used the offering concept, which is why it is the largest non-cola soft drink enterprise in North America. The company has the right mix of products, target markets identified, and the type of soft drink that will appeal to the consumers.

2. How would you characterize the competitive situation for Dr. Pepper/7Up, Inc. and Squirt in the U.S. carbonated soft drink industry?

The market is commanded by three companies that account for over 90% of soft drink sales in the USA. Coca- Cola is number one with 44.1 percent, Pepsi-Cola number two with 31.4 percent, and Dr Pepper/7Up number three with 14.7 percent. The companies offer competitive products that allow for competition amongst all organizations.

3. What are the possible new offering decisions for Squirt Brand?

Some of the possible new offering decisions could be trying to market to a different demographics, attach the product to a star athlete in a major sporting team, or the product message being presented to the masses.

4. Given your assessment of the competitive situation, what are the pros and cons of: (a) continuing Squirt’s present market targeting and positioning approach and (b) adopting the recommendations made by
Foote, Cone & Belding?

The current market targeting and positioning approach has allowed for Squirt to exceeded preacquisition levels and the targeting market strategy has paid off for the brand. The problems with the current approach are that the target market focus is changing with new competition,…...

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