Squirt Page Outline Do Not Copy Word Per Word, We Didnt Do So Hot on This One

8/4/2019 Squirt Page Outline Do Not Copy Word Per Word, We Didnt Do So Hot on This One

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Overview:Time: 2001 - 2003Trend: fast, exciting, action, new,Majority target market: young Hispanics (LA, TX, -- NYC) majority male.Promotion focus and strategies: Retailers*, Small taco shops, mom & popshops, hole in the wall restaurants, special events, street team: modified

2000 - 2003 Honda Civic SI (female promoters) - cars are colored to all theflavors of the lines - including all the aftermarket products / brands, streetteam apparel, website, myspace, sponsor celeb,Pull to retailers, Push to consumers

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Target Market stays the same

Competitive Analysis● The soft drink industry is extremely competitive.● Three companies (Coca-Cola, Pepsi, Dr. Pepper/7Up) control over 90% of the

market share.● Coca-Cola owns five of the top ten soft drink brands, Pepsi owns three, and Dr.

Pepper/7Up owns the other two.

Rivalry Among Firmso The level of rivalry among firms in the soft drink industry is extremely high.o Three firms control over 90% of market share and are always in an intense battleto wrestle market share from the other two firms.Threat of New Entrantso The threat of new entrants in the soft drink industry is low.o The current oligopoly in the soft drink industry provides a very significant entrybarrier.Threat of Substituteso The threat of substitute products is high.o Water, juice, tea, coffee, milk, sports drinks, and an array of other non soft drinksare available as a beverage substitute for soft drinks.o New beverages, both soft drinks and non soft drinks, are constantly beingdeveloped, meaning that new substitutes are constantly becoming available.Bargaining Power of Buyerso The bargaining power of buyers in the soft drink industry is high.o Retail outlets are responsible for most soft drink sales, and this can allow stores tohave bidding wars for shelf and display space and fast food outlets can negotiate todrive down the price of syrups.

Bargaining Power of Supplierso The bargaining power of suppliers is low.o The resources used are not scarce, substitutes are available, and switching costsare not high, resulting in low supplier bargaining power.

Market DefinitionSoft Drink Industry

Demographics/Behavior



Average American consumes over 18 ounces of soft drinks per day.Most soft drinks are consumed by those aged 20-49.Diet drinks are mostly consumed by those over 25.Brand and taste preferences are formed between the ages of 12 and

24. Teens and young adults (12-24) are also more frequent consumers of

soft drinks.Hispanics and African Americans consume the most soft drinks per

capita.25% of the US population is under 18 and 25% of the US population is

either Hispanic or African American, and both of these groupsprefer flavored soft drinks.

Hispanic under 18 population will rise 22% by 2010 while the whiteunder 18 population will decrease 5% in the same period.Squirt

Demographics/BehaviorSquirt originally targeted those aged 18-44, then narrowed to 18-34.

Ruby Red Squirt was targeted at the 12-24 age group.73% of Squirt is consumed by Caucasians, 15% by African Americans,

and 12% by Hispanics. Targets those looking primarily for a thirst quencher.Ruby Red targeting those looking for an “exciting” and “bold”beverage.Newer target is the 18-24 year old Hispanic market.Also markets to the general soft drink market.

SegmentationCriteria

DemographicsAge

Squirt’s current targeted age group is 18-24.

Ruby Red Squirt is targeted at those 12-24.

Diet Squirt is targeted at those 25 and older.

Ethnic/Racial Group

Hispanics

African-AmericansCaucasians

Others

Generation

Squirt is marketing towards Generation Y.



Income Level

There is no segmentation based on income level.

Behavior

Those who work hard and play harder are targeted.

Those who look to maximize life experiences and are spontaneous aretargeted.

Those who are looking for a thirst quencher are targeted.

Product Feature/Brand Perception

Squirt is targeting those who look for thirst quenching as the mostimportant product feature.

Squirt is targeting those who find the following perceptions of thebrand important:

Young

Hip

Outgoing

Exciting

Edgy

Geographically

This is used in combination with demographics, especially within theHispanic Market.

More than 50% of Hispanics in the US live in California and Texas andwill be specifically targeted.

Los Angeles and New York City are the largest concentrated Hispanicmarkets and will be targeted.

New York City, Chicago, Houston, and Los Angeles all rank within thetop 10 largest populations of both Hispanics and AfricanAmericans and will be specifically targeted.

Frequency

African Americans and Hispanics consume the most soft drinks percapita.

12-24 year olds are the heaviest soft drink consumers and receiveextra attention.

Strategy



Single-Segment Concentration

Ruby Red Squirt is using a single-segment concentration strategy bytargeting those 12-24 who are looking for a bold and excitingthirst quencher.

Selective Specialization

The overall Squirt brand uses this strategy by positioning Squirt, RubyRed Squirt, and the diet versions in different ways and marketingthem to different segments.

Product Specialization

The Squirt brand uses product specialization to a degree. The brandattempts to market itself across several segments, even though itfocuses strongly one only one or a few.

Market Specialization

Neither the Squirt brand nor the Dr. Pepper/7Up company utilize themarket specialization strategy, which involves meetingthe many needs of a selected segment.

Full Market Coverage

This is the strategy that Dr. Pepper/7Up Inc. are using, with the Squirtbrand being one product line marketed to cover some segments,such as the Hispanic, African-American, and young adult markets.

VALS

Experiencers

Experiencers are the number one VALS type that Squirt targets. Theyare youthful, enthusiastic, and impulsive which are all attributes thatfit perfectly into Squirt’s positioning statement which is discussedbelow. Experiencers are also heavy consumers,increasing the likelihood that they will be more frequent users than other

VALS types.

Makers

Makers are the next targeted VALS type, and they are similar toExperiencers. They are focused on experiences as well, althoughmore through working. They are very practical and simplepeople, and this fits perfectly into Squirt’s thirst quenching

emphasis.

Strivers



Strivers are another VALS type targeted by Squirt. Opinions of others,status, and stylish products are what are important to the Striver.

This fits in well with the Squirt positioning strategy of being adrink for young, cool, and hip individuals. Strivers are also heavyconsumers due to the fact that status is important to them and shopping is

a way to exemplify it.

Market Potential

Hispanic Market

The US Hispanic population grew 57.9% from 1990 to 2000 and is stillthe fasting growing minority group in the country.

Hispanics are 12.5% of US population.

Lots of potential in California and Texas as over 50% of the US Hispanicpopulation lives in those two states.

New York City’s population is 27% Hispanic, which is a major city with alot of potential.

35% of US Hispanics are under 18, and the median age of US Hispanicsis 25, which indicates a great opportunity as this market fits Squirt’spositioning statement perfectly.

By 2005, the Hispanic youth market will be the largest minority youthmarket in the US, and 17% of youth market overall.

Mexico is the #2 carbonated soft drink market in the world, and Squirtis the #8 overall soft drink brand in Mexico. Grapefruit is thesecond largest soft drink category in Mexico and Squirt is the #2grapefruit brand. This indicates that Squirt might be able to

capitalize on it’s Mexican popularity in the US, based on the growing Hispanicpopulation.

Hispanics tend to be more brand loyal, so if they can be reached, theycould be life customers.

Hispanics, along with African-Americans, consume the most soft drinksin the US per capita.

Young Adult Market

25.7% of US population is under 18, and additional 9.6% of thepopulation falls between the ages of 18-24.

Young adult market tends to prefer flavored drinks.

Young adults tend to be higher frequency consumers of soft drinks.

Market Share



Soft Drink Industry

Coca Cola has 44.1% of the market share, Pepsi has 31.4%, and Dr.Pepper/7Up owns 14.7% of the market.

Other fringe competitors combine to own the other 9.8% of the market.

Coca Cola owns 5 of the top ten individual brands, Pepsi owns 3, andDr. Pepper/7UP owns 2 and these 10 brands make up 72.9% of the soft drink market.

Grapefruit and Citrus Soft Drink Industry

Squirt is #3 citrus brand behind both regular and diet Mountain Dew.

Mountain Dew owns 72.9% of the market share and Diet MountainDew owns 9.6%, collectively giving Mountain Dew 82.5% of thecitrus soft drink market.

Squirt owns only 5.6% of the citrus soft drink market, but stilloutperforms every Coca-Cola citrus soft drink. Fresca is the Coca-Cola product with the largest citrus soft drink market share at 4.6%.

Product ClassificationDurable Product

o It is measurable because it is consumed in one or fewer uses.o It is purchased frequentlyo The typical marketing strategy is to make the product available in many locations andcharge a small mark-up, advertise heavily to induce trial and build preference.

Consumer Goods· Squirt is classified as a convenience good because it is purchased frequently and it takesminimum effort to make the decision to purchase.· Marketers should distribute in many locations to increase visibility. Differentiation· Differentiation Strategy: A product can be differentiated in many ways including form,features, and performance:o Squirt will differentiate itself on its thirst quenching capabilities.o Squirt will also use its new image of being hip and young to differentiate itself from itscompetitors.· Its Points of difference include: fun young, exciting, enthusiastic, impulsive, cool, andrisk takers. The brand should be associated with “the new cool.” The new cool is trendy and it’s anew form of being cool. It is a characteristic that trendsetters will follow.· Points of parity: Squirt is similar in its thirst quenching capabilities to other soft drinks;however, no other products provide the gratifying taste that Squirt does. Because of thisdifference consumers will purchase the product because they perceive a difference.



· Squirts new style will incorporate being cool, exciting, and risk taking. Product Line· Squirt will modernize its product line to encourage customer migration to higher-valued,and a slightly higher-priced premium item.· Squirt will introduce four new flavors: Pineapple, Tamarind, Mandarin, Lime, andMango.o Based on observations of the Jarritos brand (a soda marketed at Hispanics) we have concludedthat the above flavors would be ideal to introduce to the Squirt line to attract new customers.Packaging· Packaging as a marketing tool:· Self-service: this type of packaging attracts attention, describes the product features, createsconsumer confidence, and makes a favorable impression of the product.§ The packaging should be appealing to the consumer as well as be informative and to the point.· Packaging objectives· The packaging should immediately identify the product as Squirt. If a consumer saw the

package he or she should be able to identify the product without confusion.

· The packaging should also ease in the transportation.· Descriptive information such as “Caffeine free” or “Diet” should easily be identified so thatthe consumer knows the product characteristics.· Since Squirt is an already established brand it is important that Squirt stay with its current

packaging colors and logo.· We will introduce a glass bottle line with 12 and 24 packs. The Hispanic community likesglass bottles rather than aluminum. Labelingo Squirts label should reflect its new characteristics of new and exciting.o The labels on the can and glass bottle should be designed accordingly.o Functions of the label:o It will identify the product as Squirto It will identify the flavor: mandarin, pineapple, mandarin, grapefruit, mango etc.o It will depict if its caffeinated, caffeine free, diet or non-diet, or made with sugar cane.o The graphics should be eye-catching and entertaining to the consumer.o The label should incorporate the Points of Difference such as: thirst-quenching, exciting, risk taking, cool, and hip. Positioning· Designing the company’s offering and image to occupy a distinctive place in the minds of the target market.o Defining a competitive frame§ -Determine category membership: close competitors and substitutes§ -Points-of-Differences (PODs): Squirts thirst quenching capability.· It’s new image which depicts it as new and cool.§ -Points-of-parity (POPs): Squirt is similar in its thirst quenching capabilities to other softdrinks; however, no other products provide the gratifying taste that Squirt does. Because of thisdifference consumers will purchase the product because they perceive a difference.o Product Life-Cycle (PLC)



§ Currently in the maturity stage: at this stage the company can modify its product (quality,feature, or style) or marketing program modification (prices, distribution, advertising, sales

promotion, personal selling, services)o Squirt will introduce new flavors which are mango, pineapple, mandarin, lime, and tamarind.o

Product Strategyo Squirt’s product strategy will be based on product differentiation. Squirt cannot use a price-

based strategy since the product’s pricing must remain competitive.· Squirt will strive to answer the following questions:o Who the product is aimed at?§ The product is aimed at the multicultural population between the ages of 18-24o What benefit the product brings?o Some of the benefits of consuming the product are its thirst-quenching capabilitieso Other benefits revolve around the individual and how the product makes the consumer feel.§ The product can make them feel young and exciting.§ Other benefits will include how others perceive the individual. For example, if the consumer isseen consuming the beverage others will perceive the consumer as being cool.o What your position is in the marketplace?§ Squirts position is fun and exciting.§ By positioning itself as fun and exciting, Squirt is able to differentiate itself from competitors.o Other benefits will include modernization of the Squirt brand through its new associations of

being cool and fun.o What advantage the strategy will have over those of your competitors?§ Squirt will be perceived as cool and new. Other beverages have not been revamped to relate toa younger and more risk taking consumer.§ Squirt new image will appeal to the younger consumer because they will be able to identifywith the new qualities of the product. Product Differentiation

· Squirt will aim at differentiating its product from its competitor by presenting itself aso Funo Hipo Excitingo Adventurous· All the above differentiation points are qualities that the consumer can identify with.· By differentiating itself, the Squirt customer will perceive a difference between thecompetitors’ product and its own product.· The goal in the differentiation strategy should be to distance Squirt from its competitors

by appealing to its potential customers through its associations of being fun, hip, and exciting.· There are two forms of product differentiation vertical differentiation and horizontaldifferentiation.o Squirt will use horizontal differentiation, which focuses on the customers preferences.§ This method should be used since beverages do not have many points of differentiation. If wefocus on what the customer likes and prefers, we will be able to adjust the product accordingly tocreate a pulling effect in distribution.· Squirt will also use a line strategy to differentiate its product.o The original Squirt flavor can extend to caffeinated soft-drinks as well as the new flavors thatwill be introduced.o We will create new flavors such as, mango, pineapple, lime, and mandarin.



Brand Strategies· The brand is a young, 18-24 year old who likes to have fun, explore and take risks.o The brand represents a new generation that gets bored easily and likes to experience thingsspontaneously.o The goal should be to have consumers re-purchase the brand every time they have the need toquench their thirst. · What are the brands objectives?o To become the number one citrus soft drink among Hispanic consumers between the ages of 18-24 through advertising and promotions.· What are you brand barriers?o Unforeseen environmental changes such as, the economy, raw material shortages.o Competitors in the soft-drink product category, specifically those who already cater to theHispanic market such as the Jarriots brand. · Brand packaging and identityo The brand packaging will reflect our target market. It will be fun and modern.o Can we extend the Squirt brand to other products?§ We can extend to other products such as pop-sickles, lip smackers, yogurt and juice.· What is our vision, mission?Vision:o To become the number soft drink through ethical means and practices.Mission:o To provide a thirst-quenching beverage to consumers between the ages of 18-24.o How will we accomplish this?· We will accomplish our vision and mission by becoming part of the community throughevent sponsorships and cause marketing.· Through cause marketing we will support causes that are important to our targetconsumers to gain exposure and further reinforce our new image.

· To cater to the Hispanic market Squirt will come out with new flavors that include pineapple, mandarin, grapefruit, and mango.· By studying competitors we have uncovered that the Hispanic market likes to consume

beverages in glass bottles.· Squirt will offer glass bottles to fulfill the need of authenticity. Glass bottles in theHispanic community represents authenticity and if Squirt can associate itself with it then we cancapture a large share of the Hispanic market.· Squirt will transition from being a retro brand to being a newer and cooler brand to beable to reach out to a younger demographic.· Other non-tangible benefits will include over the phone customer care. The customer cancall the customer hotline to give feedback about the product that they consumed.o The customer hotline must be bilingual to ensure that the Hispanic consumers can give

feedback. Logo, Trademarks and SlogansThe current Squirt colors will remain the same. The only thing that will change is Squirts design.It will be modernized to attract younger consumers.o Younger consumers are attracted to art that is modern rather than retro.o Our tagline will remain the same because Squirt has already built their brand image reputation.By changing the tagline we would risk losing the retro consumers who have been loyal to the

product.



· Slogan:o General Market: A burst of flavor o Hispanic Market: A squirt of style.· Tagline: Squirt it.It is humorous and catchy.

Price StrategyPrice Objectives

Profit, sales, status quoRange: high (

Distribution

Definition of ChannelThe key task of the channels chosen is to distribute Squirt products to retailers,

where they are able to reach the customer and other potential consumers. This willentail two types of indirect marketing channel levels:

1. One-level channel involves the retailer as the sole intermediary betweenthe manufacturer or concentrate producer and the consumers. This occursas a result of orders made from fountain service retailers such as “mom-and-pop” restaurants and other fast-casual restaurants.

2. Three-level channel involves the bottler, distributor, and retailer asintermediaries between the manufacturer or concentrate producer to the finalconsumers. This occurs as a result of orders made from various retailerssuch as supermarkets/grocery stores, combination stores, general

merchandise, and convenience stores.



Criteria for Channel Choice The Indirect marketing channels utilized for distribution are influenced by these fourfactors

1. ManufacturerReliable and efficient, cost effective

Perishable ingredients

Location, distance to distributors and retailers



2. ProductProduct quality consistency

Packaging issues concerning glass bottles, plastic bottles, and overallpackage displays

Intermediary packaging issues between manufacturer, bottler, anddistributors

3. MarketLow market share compared to Coca Cola and Pepsi Co;

Growing Hispanic market; Hispanic and African Americans consumethe most soft drink per capita

4. Competitive The bargaining power of buyers in the soft drink industry is high. Retail

outlets are responsible for most soft drink sales, and this can allow

stores to have bidding wars for shelf and display space and fastfood outlets can negotiate to drive down the price of syrups.

The bargaining power of suppliers is low. The resources used are notscarce, substitutes are available, and switching costs are not high, resultingin low supplier bargaining power.

Channel Members The bottling network consists of four major participants:

I. Manufacturer/ Concentrate producersConcentrate producers manufacture the flavors: Original

Squirt, Pineapple, Tamarind (non-citrus), Mandarin, Lime,Mango (non-citrus).

Manufacturer will be able to sell and ship to distributors forretailers who will provide Squirt through fountain services.

II. Bottler Bottlers add sweetener, carbonated water, and other additional

ingredients to syrup made by the concentrateproducers.

After mixing the ingredients together, it is then packaged inbottles and cans, as well as the packaging aspects of theproduct.

The beverages are then shipped to vendor distributors.

III. Distributor The distributor will sell the packaged product to various

retailers. In addition, they may also provide additionalvalue to the product and distribution process:

-provide contacts to prospective customers-help with promotion and sales strategies



-prompt delivery of products to retailers by company vendors orother methods

IV. RetailersRetailers meet the needs of the target consumer by selling the

product (bottled, canned, and/or fountain service drinks) to

consumer and potential customers.Other key retailer aspects include:-convenience through store location and store hours-merchandise return policies-information of products- promotion of products

Degree of DistributionSquirt will employ an Intensive distribution system in which Squirt products will beplaced in as many outlets as possible in its target segments.

Locations can include supermarkets/grocery stores, generalmerchandise stores, convenience stores (provide convenienceby location and time), gas stations, restaurants (“mom-and-pop”,fountain service retailers), and limited line merchants.

An intensive distribution strategy will increase coverage, sales, &product and service availability to customers and potential customers.With the right direction, it is possible to convert these potentialcustomers to profitable customers.

Supply Chain Management

1. Customer Relationship Management

Provide and retain enough customer touch points and accessibility of Squirt products to the customer. Touch points will allowindividual customers to encounter the brand or product tohelp facilitate brand awareness, induce trial, and maximize loyalty.

Allow customer feedback of products to better understand andaddress customer needs and preferences.

Keep current customers providing by maintaining consistent productquality for all Squirt products. Concentrating on quality and consistency of the product will help contribute to positive brand equity.

2. Ordering System

The ordering system will employ a set of information systems to helpfacilitate orders and reduce the time between an order’s receipt anddelivery.

Establish contracts with large-scale retailers such as supermarkets,general merchandise, and combination stores. Company vendors thatvisit the stores, if necessary, can directly place an order on the spot.



Smaller retailers can contact distributors once a reorder point isreached.

Fountain-service retailers will be able to order directly from themanufacturer.

3. Inventory ControlInventory control of products will focus on maintaining direct

accountability and consistency of product flow to retailers.

For large scale retailers that demand higher inventory levels ,vendors will have a great amount of control by visitingretailers to check, update, and maintain inventory everydayof the week.

Vendors will keep track of inventory levels on a week-by-weekbasis for smaller retailers.

4. Logistics

Sales forecasting to reflect demand of Squirt products in targetmarkets will help determine production quantities.

A strong focus on time-delivery, meeting emergency needs, carefulhandling of merchandise, and a willingness to take backdefective goods and resupply quickly.

Establish agreement among channel members regarding price policies,territorial rights, and special services to be performed by each.

On-time delivery standards are set on a weekly basis for all retailers.

Implementation of Radio Frequency Identification (RFID) technology tokeep track of inventory from production of goods to the transportationof goods.

5. Transportation Methods

a. Large trucks utilized for safe and efficient physical movement of products between intermediaries

b. Distributor placed in Los Angeles, California; San Antonio, Houston,and Irving, Texas; and Carlstadt, New Jersey to reach appropriatetarget markets.

c. Direct store delivery by company vendors

i. Smaller vehicles such as company vans used for everydayshipment of products at low volumes of product. Thesedeliveries are evident in general merchandise stores such as

Target. These types of delivery can also be made tosmaller retailers such as independent convenience stores and gasstations.



ii. Larger trucks used for shipments with higher volumes of product by large scale retailers such as supermarkets. Theproducts are packed into palettes for safe organizeddelivery of the products.

iii. Delivery made to retailer’s warehouse, where the retailer

then sends the product to its storesChannel Integration

In the U.S., Dr. Pepper Snapple Group (DPS) markets, bottles and distributes a broadrange of soft drinks, non-carbonated beverages and mixers, from national to regionalbrands. Approximately half of DPS’ annual volume is distributed through company-owned bottling and distribution network. The remainder is driven through third-party/licensed bottlers and distributors, including those in both the Coca-Cola andPepsi bottling systems, as well as independent bottlers, brokers and distributors.

These activities create more value for all members involved, resulting in a greatervalue for the consumer. Therefore, DPS employs both a corporate and contractualvertical integration system.

Moreover, in managing its intermediaries, DPS will employ both push and pullstrategies through its channels.Push strategies will be supported by the execution of pull strategies to facilitate consumer demand of Squirt.

1. Push : keep relationship intact with intermediaries (retailers-restaurants, convenience stores, gas stations, grocery stores) tocarry, promote, and sell the products to targetmarket/consumers. As a result, the push strategy will attract consumers withlow brand loyalty, who make choices in the store, and are impulsebuyers

2. Pull : will draw people to consume Squirt as a result of promotions(i.e. advertising, etc); will attract high involvement consumerswhom are brand loyal, consumers who can perceive differencesbetween soda brands, and have already made the decision to

purchase Squirt before going to the store.

Promotion StrategiesPromotional Mix (percent layout, Pie Chart)

Advertising : is paid form of a nonpersonal communication about andorganization, product, service, or idea by an identified sponsor.

Personal Selling:Sale Promotion:Public Relation:Support Promotion:Direct Marketing:

Checking with Distribution -(Push - Personal Selling lead, supporting by sale promotions)



(Pull - Advertising lead, supported by sale promotions)

Promotional objectives (two objectives for each. What we want to do)AdvertisingPersonal SellingSale Promotion

Public RelationSupport PromotionDirect Marketing

Channel PromotionBottlersDistributorRetailers*

Creative Appealrationalemotionfearsexhumor

Media ScheduleSchedule Strategies(Timeline (months)- rectangle chart, left side with promotions)Pulsing, Continuous, Flighting ( Advertising and Promotions Page

315 - 317)

AdvertisingMedia

Sales PromotionsMethods

Personal Selling Types

Public Relations Types

Public Relations Types

Direct MarketingMethods

Support PromotionsMethods

Budget



Overview:Time: 2001 - 2003Trend: fast, exciting, action, new,Majority target market: young Hispanics (LA, TX, -- NYC)majority male.Promotion focus and strategies: Retailers*, Small tacoshops, mom & pop shops, hole in the wall restaurants,special events, street team: modified 2000 - 2003 HondaCivic SI (female promoters) - cars are colored to all theflavors of the lines - including all the aftermarketproducts / brands, street team apparel, website, myspace,sponsor celeb,Pull to retailers, Push to consumers

Target MarketCompetitive Analysis● The soft drink industry is extremely competitive.● Three companies (Coca-Cola, Pepsi, Dr. Pepper/7Up)

control over 90% of the market share.● Coca-Cola owns five of the top ten soft drink brands,

Pepsi owns three, and Dr. Pepper/7Up owns the other two. Rivalry Among Firms

o The level of rivalry among firms in the soft drink industry isextremely high.

o Three firms control over 90% of market share and arealways in an intense battle to wrestle market share from the other twofirms.

Threat of New Entrants



o The threat of new entrants in the soft drink industry is low.o The current oligopoly in the soft drink industry provides a

very significant entry barrier.Threat of Substitutes

o The threat of substitute products is high.o Water, juice, tea, coffee, milk, sports drinks, and an array of other non soft drinks are available as a beverage substitute for softdrinks.

o New beverages, both soft drinks and non soft drinks, areconstantly being developed, meaning that new substitutes areconstantly becoming available.

Bargaining Power of Buyerso The bargaining power of buyers in the soft drink industry is

high.o Retail outlets are responsible for most soft drink sales, and

this can allow stores to have bidding wars for shelf and display spaceand fast food outlets can negotiate to drive down the price of syrups.

Bargaining Power of Supplierso The bargaining power of suppliers is low.o The resources used are not scarce, substitutes are available,

and switching costs are not high, resulting in low supplier bargaining power.

Market DefinitionSoft Drink Industry

Demographics/Behavior Average American consumes over 18 ounces of

soft drinks per day.Most soft drinks are consumed by those aged 20-49.

Diet drinks are mostly consumed by those over 25.

Brand and taste preferences are formed between the ages of 12 and 24.

Teens and young adults (12-24) are also morefrequent consumers of soft drinks.

Hispanics and African Americans consume themost soft drinks per capita.



25% of the US population is under 18 and 25%of the US population is either Hispanic or AfricanAmerican, and both of these groups prefer flavored soft drinks.

Hispanic under 18 population will rise 22% by

2010 while the white under 18 populationwill decrease 5% in the same period.

SquirtDemographics/Behavior Squirt originally targeted those aged 18-44, then narrowed to

18-34.Ruby Red Squirt was targeted at the 12-24 age group.

73% of Squirt is consumed by Caucasians, 15% by AfricanAmericans, and 12% by Hispanics.

Targets those looking primarily for a thirst quencher.Ruby Red targeting those looking for an “exciting” and “bold”

beverage. Newer target is the 18-24 year old Hispanic market.Also markets to the general soft drink market. SegmentationCriteria

DemographicsAge

Squirt’s current targeted age group is 18-24.

Ruby Red Squirt is targeted at those 12-24.

Diet Squirt is targeted at those 25 andolder.

Ethnic/Racial GroupHispanicsAfrican-AmericansCaucasiansOthers

Generation



Squirt is marketing towardsGeneration Y.

Income LevelThere is no segmentation based on

income level. Behavior Those who work hard and play harder are targeted.Those who look to maximize life experiences and are

spontaneous are targeted.Those who are looking for a thirst quencher are

targeted.Product Feature/Brand Perception

Squirt is targeting those who look for thirst

quenching as the most important product feature.Squirt is targeting those who find the following

perceptions of the brand important:YoungHipOutgoing

ExcitingEdgy

GeographicallyThis is used in combination with demographics, especially

within the Hispanic Market.More than 50% of Hispanics in the US live in California and

Texas and will be specifically targeted.Los Angeles and New York City are the largest concentrated

Hispanic markets and will be targeted. New York City, Chicago, Houston, and Los Angeles all rank

within the top 10 largest populations of both Hispanics andAfrican Americans and will be specifically targeted.

FrequencyAfrican Americans and Hispanics consume the most soft drinks

per capita.12-24 year olds are the heaviest soft drink consumers and

receive extra attention.



StrategySingle-Segment Concentration

Ruby Red Squirt is using a single-segmentconcentration strategy by targeting those 12-24 who

are looking for a bold and exciting thirst quencher.Selective SpecializationThe overall Squirt brand uses this strategy by

positioning Squirt, Ruby Red Squirt, and the dietversions in different ways and marketing them to different segments.

Product SpecializationThe Squirt brand uses product specialization to

a degree. The brand attempts to market itself acrossseveral segments, even though it focuses strongly one only one or a

few.Market Specialization

Neither the Squirt brand nor the Dr.Pepper/7Up company utilize the market

specialization strategy, which involves meeting the many needsof a selected segment.

Full Market CoverageThis is the strategy that Dr. Pepper/7Up Inc. are using, with the

Squirt brand being one product line marketed to cover some segments, such as the Hispanic, African-American, andyoung adult markets.

VALSExperiencers

Experiencers are the number one VALS typethat Squirt targets. They are youthful, enthusiastic, andimpulsive which are all attributes that fit perfectly into Squirt’s

positioning statement which is discussed below.Experiencers are also heavy consumers,

increasing the likelihood that they will be more frequent users thanother VALS types.

MakersMakers are the next targeted VALS type, and

they are similar to Experiencers. They are focused onexperiences as well, although more through working. They are very



practical and simple people, and this fits perfectly into Squirt’s thirst quenching

emphasis.Strivers

Strivers are another VALS type targeted bySquirt. Opinions of others, status, and stylish productsare what are important to the Striver. This fits in well with the Squirt

positioning strategy of being a drink for young, cool,and hip individuals. Strivers are also heavyconsumers due to the fact that status is important to them and shoppingis a way to exemplify it.

Market Potential Hispanic Market

The US Hispanic population grew 57.9% from1990 to 2000 and is still the fasting growing minoritygroup in the country.

Hispanics are 12.5% of US population.Lots of potential in California and Texas as

over 50% of the US Hispanic population lives inthose two states.

New York City’s population is 27% Hispanic,which is a major city with a lot of potential.

35% of US Hispanics are under 18, and themedian age of US Hispanics is 25, which indicates agreat opportunity as this market fits Squirt’s positioning statement

perfectly.By 2005, the Hispanic youth market will be the

largest minority youth market in the US, and 17% of youth market overall.

Mexico is the #2 carbonated soft drink marketin the world, and Squirt is the #8 overall soft drink

brand in Mexico. Grapefruit is the second largest soft drink category inMexico and Squirt is the #2 grapefruit brand. This

indicates that Squirt might be able to capitalize on it’sMexican popularity in the US, based on the growing Hispanic

population.Hispanics tend to be more brand loyal, so if



they can be reached, they could be life customers.Hispanics, along with African-Americans,

consume the most soft drinks in the US per capita.

Young Adult Market25.7% of US population is under 18, and

additional 9.6% of the population falls between the ages of 18-24.

Young adult market tends to prefer flavoreddrinks.

Young adults tend to be higher frequencyconsumers of soft drinks.

Market Share Soft Drink Industry

Coca Cola has 44.1% of the market share,Pepsi has 31.4%, and Dr. Pepper/7Up owns 14.7% of the market.

Other fringe competitors combine to own theother 9.8% of the market.

Coca Cola owns 5 of the top ten individual brands, Pepsi owns 3, and Dr. Pepper/7UP owns 2 andthese 10 brands make up 72.9% of the soft drink market.

Grapefruit and Citrus Soft Drink IndustrySquirt is #3 citrus brand behind both regular

and diet Mountain Dew.Mountain Dew owns 72.9% of the market

share and Diet Mountain Dew owns 9.6%, collectivelygiving Mountain Dew 82.5% of the citrus soft drink market.

Squirt owns only 5.6% of the citrus soft drink market, but still outperforms every Coca-Cola citrussoft drink. Fresca is the Coca-Cola product with the largest citrus soft

drink market share at 4.6%.Product Strategies



Product ClassificationDurable Producto It is measurable because it is consumed in one or fewer uses.

o It is purchased frequentlyo The typical marketing strategy is to make the productavailable in many locations and charge a small mark-up,advertise heavily to induce trial and build preference.

Consumer Goods· Squirt is classified as a convenience good because it is

purchased frequently and it takes minimum effort to make the decisionto purchase.

· Marketers should distribute in many locations to increasevisibility.

Differentiation· Differentiation Strategy: A product can be differentiated

in many ways including form, features, and performance:o Squirt will differentiate itself on its thirst quenching

capabilities.o Squirt will also use its new image of being hip and young to

differentiate itself from its competitors.· Its Points of difference include: fun young, exciting,

enthusiastic, impulsive, cool, and risk takers. The brand should beassociated with “the new cool.” The new cool is trendy and it’s a newform of being cool. It is a characteristic that trendsetters will follow.

· Points of parity: Squirt is similar in its thirst quenchingcapabilities to other soft drinks; however, no other products provide thegratifying taste that Squirt does. Because of this difference consumerswill purchase the product because they perceive a difference.

· Squirts new style will incorporate being cool, exciting,and risk taking.

Product Line· Squirt will modernize its product line to encourage

customer migration to higher-valued, and a slightly higher-priced



premium item.· Squirt will introduce four new flavors: Pineapple,

Tamarind, Mandarin, Lime, and Mango.o Based on observations of the Jarritos brand (a soda

marketed at Hispanics) we have concluded that the above flavors would be ideal to introduce to the Squirt line to attract new customers.Packaging· Packaging as a marketing tool:· Self-service: this type of packaging attracts attention,

describes the product features, creates consumer confidence, and makesa favorable impression of the product.

§ The packaging should be appealing to the consumer as wellas be informative and to the point.

· Packaging objectives· The packaging should immediately identify the product

as Squirt. If a consumer saw the package he or she should be able toidentify the product without confusion.

· The packaging should also ease in the transportation.· Descriptive information such as “Caffeine free” or

“Diet” should easily be identified so that the consumer knows the product characteristics.

· Since Squirt is an already established brand it isimportant that Squirt stay with its current packaging colors and logo.

· We will introduce a glass bottle line with 12 and 24 packs. The Hispanic community likes glass bottles rather thanaluminum.

Labelingo Squirts label should reflect its new characteristics of new

and exciting.o The labels on the can and glass bottle should be designed

accordingly.o Functions of the label:o It will identify the product as Squirto It will identify the flavor: mandarin, pineapple, mandarin,



grapefruit, mango etc.o It will depict if its caffeinated, caffeine free, diet or non-diet,

or made with sugar cane.o The graphics should be eye-catching and entertaining to the

consumer.o The label should incorporate the Points of Difference suchas: thirst-quenching, exciting, risk taking, cool, and hip.

Positioning· Designing the company’s offering and image to occupy a

distinctive place in the minds of the target market.o Defining a competitive frame§ -Determine category membership: close competitors and

substitutes§ -Points-of-Differences (PODs): Squirts thirst quenching

capability.· It’s new image which depicts it as new and cool.§ -Points-of-parity (POPs): Squirt is similar in its thirst

quenching capabilities to other soft drinks; however, no other products provide the gratifying taste that Squirt does. Because of this differenceconsumers will purchase the product because they perceive adifference.

o Product Life-Cycle (PLC)§ Currently in the maturity stage: at this stage the company can

modify its product (quality, feature, or style) or marketing programmodification (prices, distribution, advertising, sales promotion,

personal selling, services)o Squirt will introduce new flavors which are mango,

pineapple, mandarin, lime, and tamarind.oProduct Strategyo Squirt’s product strategy will be based on product

differentiation. Squirt cannot use a price-based strategy since the product’s pricing must remain competitive.

· Squirt will strive to answer the following questions:o Who the product is aimed at?§ The product is aimed at the multicultural population between



the ages of 18-24o What benefit the product brings?o Some of the benefits of consuming the product are its thirst-

quenching capabilities

o Other benefits revolve around the individual and how the product makes the consumer feel.§ The product can make them feel young and exciting.§ Other benefits will include how others perceive the

individual. For example, if the consumer is seen consuming the beverage others will perceive the consumer as being cool.

o What your position is in the marketplace?§ Squirts position is fun and exciting.§ By positioning itself as fun and exciting, Squirt is able to

differentiate itself from competitors.o Other benefits will include modernization of the Squirt

brand through its new associations of being cool and fun.o What advantage the strategy will have over those of your

competitors?§ Squirt will be perceived as cool and new. Other beverages

have not been revamped to relate to a younger and more risk takingconsumer.

§ Squirt new image will appeal to the younger consumer because they will be able to identify with the new qualities of the product.

Product Differentiation· Squirt will aim at differentiating its product from its

competitor by presenting itself aso Funo Hipo Excitingo Adventurous· All the above differentiation points are qualities that the

consumer can identify with.· By differentiating itself, the Squirt customer will

perceive a difference between the competitors’ product and its own product.



· The goal in the differentiation strategy should be todistance Squirt from its competitors by appealing to its potentialcustomers through its associations of being fun, hip, and exciting.

· There are two forms of product differentiation vertical

differentiation and horizontal differentiation.o Squirt will use horizontal differentiation, which focuses onthe customers preferences.

§ This method should be used since beverages do not havemany points of differentiation. If we focus on what the customer likesand prefers, we will be able to adjust the product accordingly to createa pulling effect in distribution.

· Squirt will also use a line strategy to differentiate its product.

o The original Squirt flavor can extend to caffeinated soft-drinks as well as the new flavors that will be introduced.

o We will create new flavors such as, mango, pineapple, lime,and mandarin.

Brand Strategies· The brand is a young, 18-24 year old who likes to have

fun, explore and take risks.o The brand represents a new generation that gets bored easily

and likes to experience things spontaneously.o The goal should be to have consumers re-purchase the brand

every time they have the need to quench their thirst. · What are the brands objectives?o To become the number one citrus soft drink among Hispanic

consumers between the ages of 18-24 through advertising and promotions.

· What are you brand barriers?o Unforeseen environmental changes such as, the economy,

raw material shortages.o Competitors in the soft-drink product category, specifically

those who already cater to the Hispanic market such as the Jarriots brand.



· Brand packaging and identityo The brand packaging will reflect our target market. It will be

fun and modern.o Can we extend the Squirt brand to other products?

§ We can extend to other products such as pop-sickles, lipsmackers, yogurt and juice.· What is our vision, mission?Vision:o To become the number soft drink through ethical means and

practices.Mission:o To provide a thirst-quenching beverage to consumers

between the ages of 18-24.

o How will we accomplish this?· We will accomplish our vision and mission by becoming

part of the community through event sponsorships and causemarketing.

· Through cause marketing we will support causes that areimportant to our target consumers to gain exposure and further reinforce our new image.

· To cater to the Hispanic market Squirt will come outwith new flavors that include pineapple, mandarin, grapefruit, andmango.

· By studying competitors we have uncovered that theHispanic market likes to consume beverages in glass bottles.

· Squirt will offer glass bottles to fulfill the need of authenticity. Glass bottles in the Hispanic community representsauthenticity and if Squirt can associate itself with it then we can capturea large share of the Hispanic market.

· Squirt will transition from being a retro brand to being anewer and cooler brand to be able to reach out to a younger demographic.

· Other non-tangible benefits will include over the phonecustomer care. The customer can call the customer hotline to givefeedback about the product that they consumed.

o The customer hotline must be bilingual to ensure that theHispanic consumers can give feedback.



Logo, Trademarks and SlogansThe current Squirt colors will remain the same. The only thing

that will change is Squirts design. It will be modernized to attract

younger consumers.o Younger consumers are attracted to art that is modern rather

than retro.o Our tagline will remain the same because Squirt has already

built their brand image reputation. By changing the tagline we wouldrisk losing the retro consumers who have been loyal to the product.

· Slogan:o General Market: A burst of flavor o Hispanic Market: A squirt of style.· Tagline: Squirt it.o It is humorous and catchy.

Pricing Price Objective – - Squirt’s price objective is to maximize market share, without

lowering customers’ perceptions of its value.- Squirt will remain priced just below the status quo to induce

sales.Price Range/Price Point

Price Range-Squirt will be sold in the lower middle range of soft drinks.Price PointsSuggested Retail Value

Can - $0.79Plastic Bottle - $0.99Glass Bottle - $1.5912 pack - $7.9924 pack - $12.99Factors Affecting priceMaterials – The addition of glass bottles will add to our costs,

and thus affect our costs. Our increased market share will help to cover these increased costs.



Competition – The competitive nature of the soft drink industryis very influential on our pricing strategy. The status quo sets somewhatof a price ceiling for us, if we want to be successful in terms of increased market share.

Elasticity of demand/breakdownConsumers in the soft drink industry tend to be price sensitive,given the sheer amount of competition, and the countless substitutes.

Price Strategy-The pricing strategy that will be pursued by Squirt will be a

slightly discounted version of going rate pricing . Due to thecompetitive nature of the soft-drink industry and the price sensitivity of our target market, any vast difference in pricing from the industry normwill have profound effects on demand for our products.

Channel DiscountsCash Discount

-In order to maintain healthy accounts receivable, Dr Pepper/Seven-Up will offer terms of 2/10 net 30 to its bottlers andsuppliers.

Quantity Discount- Dr Pepper/Seven-Up will offer quantity discounts on Squirt to

its major retailers.Functional Discount

- In return for performing certain functions such selling,storing, and record keeping, Dr. Pepper/Seven-Up will offer discountsto its bottlers,

Seasonal Discount- Dr. Pepper/Seven-Up will offer discounts during our lower

seasons, including Winter and the colder months of the year.Allowance

- Bottlers will receive up to 20 cents per case in order to rewardthem for participation in our merchandising promotions, and our cooperative advertising efforts.

Distribution Definition of ChannelThe key task of the channels chosen is to distribute Squirt products to

retailers, where they are able to reach the customer and other potential consumers.



This will entail two types of indirect marketing channel levels: 1. One-level channel involves the retailer as the sole intermediary

between the manufacturer or concentrate producer and the consumers. This occursas a result of orders made from fountain service retailers such as “mom-and-pop”restaurants and other fast-casual restaurants.

2. Three-level channel involves the bottler, distributor, and retailer as

intermediaries between the manufacturer or concentrate producer to the finalconsumers. This occurs as a result of orders made from various retailers such assupermarkets/grocery stores, combination stores, general merchandise, andconvenience stores.

Criteria for Channel ChoiceThe Indirect marketing channels utilized for distribution are influenced

by these four factors

1. Manufacturer Reliable and efficient, cost effective

Perishable ingredients

Location, distance to distributors and retailers

2. Product

Product quality consistency Packaging issues concerning glass bottles, plastic bottles, and overall

package displays Intermediary packaging issues between manufacturer, bottler, and

distributors 3. MarketLow market share compared to Coca Cola and Pepsi Co; Growing Hispanic market; Hispanic and African Americans consume the

most soft drink per capita 4. CompetitiveThe bargaining power of buyers in the soft drink industry is high. Retail

outlets are responsible for most soft drink sales, and this can allow stores tohave bidding wars for shelf and display space and fast food outlets can



negotiate to drive down the price of syrups. The bargaining power of suppliers is low. The resources used are not

scarce, substitutes are available, and switching costs are not high, resultingin low supplier bargaining power.

Channel MembersThe bottling network consists of four major participants:

I. Manufacturer/ Concentrate producersConcentrate producers manufacture the flavors: Original Squirt,

Pineapple, Tamarind (non-citrus), Mandarin, Lime, Mango (non-citrus).

Manufacturer will be able to sell and ship to distributors for retailers who

will provide Squirt through fountain services.

II. Bottler Bottlers add sweetener, carbonated water, and other additional

ingredients to syrup made by the concentrate producers. After mixing the ingredients together, it is then packaged in bottles and

cans, as well as the packaging aspects of the product.

The beverages are then shipped to vendor distributors.

III. Distributor The distributor will sell the packaged product to various retailers. In

addition, they may also provide additional value to the product anddistribution process:

-provide contacts to prospective customers-help with promotion and sales strategies-prompt delivery of products to retailers by company vendors or other

methods

IV. Retailers Retailers meet the needs of the target consumer by selling the product

(bottled, canned, and/or fountain service drinks) to consumer and potentialcustomers.

Other key retailer aspects include:-convenience through store location and store hours



-merchandise return policies-information of products- promotion of products Degree of DistributionSquirt will employ an Intensive distribution system in which Squirt

products will be placed in as many outlets as possible in its target segments. Locations can include supermarkets/grocery stores, general merchandise

stores, convenience stores (provide convenience by location and time), gasstations, restaurants (“mom-and-pop”, fountain service retailers), and limited linemerchants.

An intensive distribution strategy will increase coverage, sales, &

product and service availability to customers and potential customers. With the

right direction, it is possible to convert these potential customers to profitablecustomers.

Supply Chain Management 1. Customer Relationship Management Provide and retain enough customer touch points and accessibility of

Squirt products to the customer. Touch points will allow individualcustomers to encounter the brand or product to help facilitate brand

awareness, induce trial, and maximize loyalty. Allow customer feedback of products to better understand and address

customer needs and preferences. Keep current customers providing by maintaining consistent product

quality for all Squirt products. Concentrating on quality and consistency of the product will help contribute to positive brand equity.

2. Ordering System The ordering system will employ a set of information systems to help

facilitate orders and reduce the time between an order’s receipt anddelivery.

Establish contracts with large-scale retailers such as supermarkets,

general merchandise, and combination stores. Company vendors



that visit the stores, if necessary, can directly place an order on the spot. Smaller retailers can contact distributors once a reorder point is reached.

Fountain-service retailers will be able to order directly from themanufacturer.

3. Inventory Control Inventory control of products will focus on maintaining direct

accountability and consistency of product flow to retailers. For large scale retailers that demand higher inventory levels, vendors will

have a great amount of control by visiting retailers to check, update, and

maintain inventory everyday of the week.

Vendors will keep track of inventory levels on a week-by-week basis for smaller retailers.

4. Logistics Sales forecasting to reflect demand of Squirt products in target markets

will help determine production quantities.

A strong focus on time-delivery, meeting emergency needs, carefulhandling of merchandise, and a willingness to take back defective goodsand resupply quickly.

Establish agreement among channel members regarding price policies,

territorial rights, and special services to be performed by each. On-time delivery standards are set on a weekly basis for all retailers. Implementation of Radio Frequency Identification (RFID) technology to

keep track of inventory from production of goods to the transportation of goods.

5. Transportation Methods a. Large trucks utilized for safe and efficient physical movement of

products between intermediaries



b. Distributor placed in Los Angeles, California; San Antonio, Houston,and Irving, Texas; and Carlstadt, New Jersey to reach appropriate targetmarkets.

c. Direct store delivery by company vendors i. Smaller vehicles such as company vans used for everyday shipment of products at low volumes of product. These deliveries are evident in

general merchandise stores such as Target. These types of deliverycan also be made to smaller retailers such as independent convenience storesand gas stations.

ii. Larger trucks used for shipments with higher volumes of product by

large scale retailers such as supermarkets. The products are packedinto palettes for safe organized delivery of the products.

iii. Delivery made to retailer’s warehouse, where the retailer then sends

the product to its stores Channel Integration In the U.S., Dr. Pepper Snapple Group (DPS) markets, bottles and

distributes a broad range of soft drinks, non-carbonated beverages and mixers,from national to regional brands. Approximately half of DPS’ annual volume isdistributed through company-owned bottling and distribution network. The

remainder is driven through third-party/licensed bottlers and distributors,including those in both the Coca-Cola and Pepsi bottling systems, as well asindependent bottlers, brokers and distributors. These activities create more valuefor all members involved, resulting in a greater value for the consumer. Therefore,DPS employs both a corporate and contractual vertical integration system.

Moreover, in managing its intermediaries, DPS will employ both push

and pull strategies through its channels.Push strategies will be supported by theexecution of pull strategies to facilitate consumer demand of Squirt.

1. Push : keep relationship intact with intermediaries (retailers-

restaurants, convenience stores, gas stations, grocery stores) to carry, promote, and sell the products to target market/consumers.

As a result, the push strategy will attract consumers with low brandloyalty, who make choices in the store, and are impulse buyers

2. Pull : will draw people to consume Squirt as a result of promotions

(i.e. advertising, etc); will attract high involvement consumers whom are brand



loyal, consumers who can perceive differences between soda brands, and havealready made the decision to purchase Squirt before going to the store.

Promotion Strategies

Promotional Mix To increase interest and awareness if the Squirt Soda brand we’ll be

focusing on the promotional strategies. To deliver our message and objectivesacross the market, we propose the use of the promotional mix. The six conceptswe’ll be using from the promotional mix will be advertising, personal selling, sale

promotion, public relations, support promotion, and direct marketing. To divideour focus, we’ll be spending 20% in Advertising, 15% in Direct Marketing, 30%in Sale Promotion, 20% in Support Promotion, 10% in Personal Selling, and 5%Public Relations.

Since advertising is the best-known form of promotion and is able todeliver our message in to a larger market we decided to use 20% our efforts intoadvertisements. Using advertisement to push out the new lines of squirt and brandimage is very important to the company. 15% of direct marketing will keep peopleinform and updated on the brand. 30% of sale promotion will gives incentives for consumers to purchase the lines. 20% of support promotion will help maintain our campaign. 10% of personal selling will help keep our relationships with our distribution chain. 5% of the public relations will help with the good image ratingfor the company.

With our distribution line we’ll be using a pull affect. With personalselling leading our distribution chain accounts we’ll be keeping a strongrelationship with our distributers. The distribution chain will be supported by sales

promotions to give incentives. For our consumers, we’ll be using a pull affect.· (Push - Personal Selling lead, supporting by sale promotions) 30%· (Pull - Advertising lead, supported by sale promotions) 70%

Promotional objectives· Our objectives for advertising are to diversify our market and

establish a lifestyle.· Our objectives for personal selling are to establish an excellentrelationship with our distribution/supply chain and put buyers in our prospectiveof our brand.

· Our objectives for sale promotion are to stimulate immediate salestoward consumers and drive relationship and trade deals with wholesalers,distribution, and retailers.



· Our objectives for public relation are to create a good standingimage with the community and charity.

· Our objectives for support promotion are to establish a brandimage within the market and incentivize trails.

· Our objectives for direct marketing are to increase an interactivemedia base and receive a larger feedback response.

Channel PromotionBottlers – Giving bottlers merchandising allowances, price deals, and

participation in partnership / co-sponsor tradeshows.Distributor - Giving distribution merchandising allowances, price deals,

and participation in partnership / co-sponsor tradeshows.Retailers* - Giving retailers merchandising allowances, price deals, and

participation in partnership / co-sponsor tradeshows.Creative Appeal Emotion – when creating a lifestyle, consumers will slowly build an

emotional attachment to the brand.Sex – By using female street team promoters and using sex appeal it will

attract our target market.Humor – “Squirt It” grabbing the young teen eye and males leading off to

“A Squirt Of Style” “Squirt… That’s What She Said.” “Never Too Late For ASquirt.”

Media Schedule2001 - 2003

Jan

Feb

Mar

Apr

May un

Street Team and Hondas

* * *

TVAds * *

Print *

Fiesta Broadway *

Outof Advertising * *

Radio

*

Exclusive Trade Show *



TheChildren HospitalLA

* *

College Tour

* *

AdvertisingOut of the home advertising: Billboards,

Bus Wraps, Bus Shelters, Posters, Promotional Street Team Cars(Modified Honda Civic Si), Street Team Girls. Outdoor will be ranthroughout the year.

TV Ads: Ran from March – April,Summertime: June – July, September – November.

Sales PromotionsGiving out coupons / bonus packages at

street team tours and college campus tours. Promoting us trade showsand co-promoting with distribution chain.

Personal SellingVisiting our buyers and giving the custom fridges and

full lines of our products. And putting them in a drawing to win customHonda Civic.

Visiting our distributers and suppliers to and promotethem at trade shows

Public RelationsChildren Hospital LA and Fiesta Broadway

Direct MarketingInteractive media and website

Support PromotionsPromotion focus and strategies: Retailers*,

Small taco shops, mom & pop shops, hole in the wall restaurants, specialevents, street team: modified 2000 - 2003 Honda Civic SI (femalepromoters) - cars are colored to all the flavors of the lines - including all theaftermarket products / brands, street team apparel, website, myspace,sponsor celeb,

Budget

Documents

Squirt Page Outline Do Not Copy Word Per Word, We Didnt Do So Hot on This One