Squirt Case Analysis

Dr. Pepper/ Seven Up, Inc. Squirt Brand Case Analysis

Amanda Crowe, Katherine Ellis, Wyatt Hunter, Priscilla Vu

The University of Southern Mississippi

Nature of the Industry Market, and Buyer Behavior

How would you characterize the carbonated soft drink industry in the United States?

In the United States, the carbonated soft drink industry is steadily growing, but at a slower rate. The three major companies that predominantly govern it include Coca-Cola, Pepsi- Cola, and Dr. Pepper/ Seven Up, Inc. These three companies excel in all three forms of distribution in the soda market.

What is the nature of industry structure, conduct, and performance?

The nature of the industry is carbonated soft drinks in the United States. The structure in which Squirt conducts it’s business is: concentrate producers, bottlers, and retail outlets. Coca- Cola Company, Pepsi- Cola Company, and Dr Pepper/ Seven Up, Inc. are the three major concentration products in the United States. While holding 90% of the soft drink industry, entering this market will be a difficult challenge.

Who are the competitors, and what are their strengths and weaknesses?

Competitors Internal Strengths and Weaknesses

Competitor | Strengths | Weaknesses |

Coca-Cola | 44.1% Market Share | Non-Cola Market |

| Owns 5 of the top 10 brands | |

Pepsi-Cola | 31.4% Market Share | Non-Cola Market |

| Owns 3 of the top 10 brands | |

How do buyers buy in this industry or market?

Bottlers were the largest means of distribution in the cola industry. Supermarkets, convenient stores, vending machines, mass merchandisers, and thousand of small retail outlets contributed to the bottle market. 85% of the total soft drink market in the United States came from bottlers. Of those 85%, Squirt held 1/3rd of the market, and Coca- Cola and Pepsi-Cola held the other 2/3rds. The remaining 15% of the cola market consisted of fountain services. These services included fast food restaurant chains like...