How can a soft-drink company get its message across Collegiate Players Tour, Dr Pepper can park its colorful when its advertising budget is much smaller than the van in a prominent place during the 16 golf tournaments budgets of its deep-pocketed competitors? For Dr played at U.S. colleges and country clubs during the Pepper, pitted against Mountain Dew and Sprite in the summer months-a peak period for soft-drink noncola soft-drink category, the way to put the fizz into consumption. In this way, the company reinforces sales is through sales promotion. Dr Pepper has scored brand awareness and encourages more purchases. solid market share increases for more than a decade Although soft-drink companies have traditionally with creative sales promotion efforts targeted at light targeted students, sales promotion activities geared and occasional users. The purpose is to encourage toward children have drawn fire in some areas. Critics these customers to purchase more rather than trying to worry that such promotional efforts encourage get non-Dr Pepper drinkers to switch. The company youngsters to drink too many soft drinks-an average also uses trade sales promotion methods to support of three cans daily, according to some studies. Not long both its bottlers and the retailers that carry its products. ago, Dr Pepper was criticized for paying the GrapevineSports play an important role in Dr Pepper's sales Colleyville school district near Dallas to paint the Dr. promotion activities. The company sponsors the Pepper logo on two school rooftops that airline Washington Erving Motorsports' Ford Taurus racecar on passengers could see when passing overhead. The the NASCAR circuit. Owned by former NFL great Joe school district also received more than $3 million in Washington and former NBA star Julius "Dr. J" exchange for making only Dr Pepper drinks available Erving, the car sports a bold Dr Pepper logo on its in its schools for the next decade. A spokesperson for hood, visible to spectators and television viewers the school district explained that such agreements are throughout each race. For a small fee, local bottlers not new. "We've had exclusive bottling agreements for can park the racecar at key retail sites to generate about twenty-five years in the state," she said. "The excitement for the brand. thing that is new is that instead of having each In addition, Dr Pepper uses special sales promotion campus determine what bottler it wants to stock its efforts during the annual Southeastern Conference soda machine, districts are saying, "We'll make you a championship football game, putting its logo on deal for all of our campuses, and in return we get some everything from T-shirts and cups to coolers and banners. extra funding."' In one recent year, consumers were invited to win free Despite this controversy, Dr Pepper and its bottlers game tickets by checking under the caps of specially aim to be good corporate citizens, donating free products, marked Dr Pepper bottles. Ticket winners were then logo merchandise, and money for many community events entered into a drawing for the $1 Million Pepper Pass and fundraisers. For example, a Dr Pepper bottler recently Challenge, which invited a consumer to try throwing a teamed up with Wal-Mart to raise money for the Red 40-yard pass during halftime (the consolation prize was Cross by sponsoring a country music charity concert in a check for $10,000 ). During the championship Nashville. As another example, the company and its weekend, the company handed out 100,000 product bottlers raised more than $35,000 for the central samples. On the trade side, Dr Pepper supported this Mississippi March of Dimes by sponsoring a golf promotion by providing retailers with shelf labels, refrig- tournament fundraiser. erator case decorations, and display signs. Among the Because retailers account for a good chunk of Dr other sporting events around which Dr Pepper builds Pepper's sales, the company supports its consumer sales promotions are college golf tournaments and sales promotion activities with a constant stream of college football games. Retailers get involved by trade sales promotion efforts that boost its products' creating point-of-purchase displays touting the Dr point-of-purchase visibility. For example, a North Pepper promotion. The best displays earn store Carolina store displayed 400 cases of Dr Pepper employees free tickets to the events or free products as part of its Santa's Workshop exhibit. Thanks merchandise. in part to this promotion, holiday sales of Dr Pepper Dr Pepper is a long-time sponsor of the Hispanic Heritage rose 24 percent at that outlet. Awards, and it often creates special promotions linked Dr Pepper's website plays an integral role in the to these awards. In one recent tie-in promotion, called company's sales promotion efforts. In addition to Pinta Sus Suenos-Paint Your Dreams-the company inviting online entries to games and sweepstakes, the invited Hispanic teenagers to compete by submitting website allows visitors to downioad a variety of personal their artwork. First prize was a trip for four to the computer screensavers, each emblazoned with the Dr Hispanic Heritage Awards ceremony in Washington, Pepper name and logo. The website provides a means of DC. Other winners received U.S. savings bonds, and bringing sales promotion activities directly into the their schools received grants to buy art supplies. In customer's home or office. As Dr Pepper's sales addition, Dr Pepper displayed the winning works on increases attest, properly targeted and well-designed local billboards and on its website. sales promotions can help any company compete College students are a particular target for Dr against much larger rivals. Pepper. As the purveyor of the official soft drink of the Instructions: Thoroughly read through the Dr. Pepper Case and begin to critically analyze the contents of the information from a marketing perspective. You will have to identify issues (if applicable), the market orientation/concept (customer, service, profit oriented) the kind of firm (not type of business - i.e. Corporation, Partnership, Proprietorship), the best marketing objectives the company will express to its intended market (clientele), these should be well articulated, precise and concrete to the goal/focus; and identify the market segmentation (demo, geo, psycho, benefit, volume, etc) are the products convenient, shopping, specialty, unsought or industrial goods?, identify the social class of the market, as well as the life cycle (stage) of the product. Use your marketing and management business vernacular this is the time to show out. Chapters: are resources. Best Wishes! KIND OF FIRM (HINT: Dr. Pepper operates in two kinds of operations) 5 for correct selection(s) with justification (explanation); 2.5 for partial correct selection/correct selection without justification MARKETING ORIENTATION/CONCEPT 10 for correct selection with justification (explanation); 5 for next best selection with justification; 2 points with correct or best selection without justification MARKETING OBJECTIVES (Use numbers to identify each objective) 10 for listing four or more concrete, precise, short objectives; 5 for listing three complete, precise, short objectives Dr. Pepper Situation Analysis - Exam Score 150 TARGET MARKETS (May use columns to differentiate between markets or summation in paragraph) 10 for best segmentation and social class(es); 5 for partial correct response (listing segment but not social class or social class but not segment) PRODUCT CLASSIFICATION (DIFFERENTIATION) 5 for correct product classification type with justification; 2.5 for correct product classification with no or wrong justification LIFE CYCLE STAGE HINT: Dr. Pepper has two cycles with one being the primary of the two (this company is an existing company); clearly identify which is the primary stage 10 for listing both correct (primary and secondary) stage with justifications; 5 for listing partial correct stage(s) with justification; 2.5 for listing correct or partial correct stage(s) without justification Total score averages of 5033 and below A = 50-45 Scholarly; B = 44-39 Satisfactory; C=3833 Understanding of Content; D=32 and below Unsatisfactory Business 231-Marketing - Professor Williams Page 2 of 2 How can a soft-drink company get its message across Collegiate Players Tour, Dr Pepper can park its colorful when its advertising budget is much smaller than the van in a prominent place during the 16 golf tournaments budgets of its deep-pocketed competitors? For Dr played at U.S. colleges and country clubs during the Pepper, pitted against Mountain Dew and Sprite in the summer months-a peak period for soft-drink noncola soft-drink category, the way to put the fizz into consumption. In this way, the company reinforces sales is through sales promotion. Dr Pepper has scored brand awareness and encourages more purchases. solid market share increases for more than a decade Although soft-drink companies have traditionally with creative sales promotion efforts targeted at light targeted students, sales promotion activities geared and occasional users. The purpose is to encourage toward children have drawn fire in some areas. Critics these customers to purchase more rather than trying to worry that such promotional efforts encourage get non-Dr Pepper drinkers to switch. The company youngsters to drink too many soft drinks-an average also uses trade sales promotion methods to support of three cans daily, according to some studies. Not long both its bottlers and the retailers that carry its products. ago, Dr Pepper was criticized for paying the GrapevineSports play an important role in Dr Pepper's sales Colleyville school district near Dallas to paint the Dr. promotion activities. The company sponsors the Pepper logo on two school rooftops that airline Washington Erving Motorsports' Ford Taurus racecar on passengers could see when passing overhead. The the NASCAR circuit. Owned by former NFL great Joe school district also received more than $3 million in Washington and former NBA star Julius "Dr. J" exchange for making only Dr Pepper drinks available Erving, the car sports a bold Dr Pepper logo on its in its schools for the next decade. A spokesperson for hood, visible to spectators and television viewers the school district explained that such agreements are throughout each race. For a small fee, local bottlers not new. "We've had exclusive bottling agreements for can park the racecar at key retail sites to generate about twenty-five years in the state," she said. "The excitement for the brand. thing that is new is that instead of having each In addition, Dr Pepper uses special sales promotion campus determine what bottler it wants to stock its efforts during the annual Southeastern Conference soda machine, districts are saying, "We'll make you a championship football game, putting its logo on deal for all of our campuses, and in return we get some everything from T-shirts and cups to coolers and banners. extra funding."' In one recent year, consumers were invited to win free Despite this controversy, Dr Pepper and its bottlers game tickets by checking under the caps of specially aim to be good corporate citizens, donating free products, marked Dr Pepper bottles. Ticket winners were then logo merchandise, and money for many community events entered into a drawing for the $1 Million Pepper Pass and fundraisers. For example, a Dr Pepper bottler recently Challenge, which invited a consumer to try throwing a teamed up with Wal-Mart to raise money for the Red 40-yard pass during halftime (the consolation prize was Cross by sponsoring a country music charity concert in a check for $10,000 ). During the championship Nashville. As another example, the company and its weekend, the company handed out 100,000 product bottlers raised more than $35,000 for the central samples. On the trade side, Dr Pepper supported this Mississippi March of Dimes by sponsoring a golf promotion by providing retailers with shelf labels, refrig- tournament fundraiser. erator case decorations, and display signs. Among the Because retailers account for a good chunk of Dr other sporting events around which Dr Pepper builds Pepper's sales, the company supports its consumer sales promotions are college golf tournaments and sales promotion activities with a constant stream of college football games. Retailers get involved by trade sales promotion efforts that boost its products' creating point-of-purchase displays touting the Dr point-of-purchase visibility. For example, a North Pepper promotion. The best displays earn store Carolina store displayed 400 cases of Dr Pepper employees free tickets to the events or free products as part of its Santa's Workshop exhibit. Thanks merchandise. in part to this promotion, holiday sales of Dr Pepper Dr Pepper is a long-time sponsor of the Hispanic Heritage rose 24 percent at that outlet. Awards, and it often creates special promotions linked Dr Pepper's website plays an integral role in the to these awards. In one recent tie-in promotion, called company's sales promotion efforts. In addition to Pinta Sus Suenos-Paint Your Dreams-the company inviting online entries to games and sweepstakes, the invited Hispanic teenagers to compete by submitting website allows visitors to downioad a variety of personal their artwork. First prize was a trip for four to the computer screensavers, each emblazoned with the Dr Hispanic Heritage Awards ceremony in Washington, Pepper name and logo. The website provides a means of DC. Other winners received U.S. savings bonds, and bringing sales promotion activities directly into the their schools received grants to buy art supplies. In customer's home or office. As Dr Pepper's sales addition, Dr Pepper displayed the winning works on increases attest, properly targeted and well-designed local billboards and on its website. sales promotions can help any company compete College students are a particular target for Dr against much larger rivals. Pepper. As the purveyor of the official soft drink of the Instructions: Thoroughly read through the Dr. Pepper Case and begin to critically analyze the contents of the information from a marketing perspective. You will have to identify issues (if applicable), the market orientation/concept (customer, service, profit oriented) the kind of firm (not type of business - i.e. Corporation, Partnership, Proprietorship), the best marketing objectives the company will express to its intended market (clientele), these should be well articulated, precise and concrete to the goal/focus; and identify the market segmentation (demo, geo, psycho, benefit, volume, etc) are the products convenient, shopping, specialty, unsought or industrial goods?, identify the social class of the market, as well as the life cycle (stage) of the product. Use your marketing and management business vernacular this is the time to show out. Chapters: are resources. Best Wishes! KIND OF FIRM (HINT: Dr. Pepper operates in two kinds of operations) 5 for correct selection(s) with justification (explanation); 2.5 for partial correct selection/correct selection without justification MARKETING ORIENTATION/CONCEPT 10 for correct selection with justification (explanation); 5 for next best selection with justification; 2 points with correct or best selection without justification MARKETING OBJECTIVES (Use numbers to identify each objective) 10 for listing four or more concrete, precise, short objectives; 5 for listing three complete, precise, short objectives Dr. Pepper Situation Analysis - Exam Score 150 TARGET MARKETS (May use columns to differentiate between markets or summation in paragraph) 10 for best segmentation and social class(es); 5 for partial correct response (listing segment but not social class or social class but not segment) PRODUCT CLASSIFICATION (DIFFERENTIATION) 5 for correct product classification type with justification; 2.5 for correct product classification with no or wrong justification LIFE CYCLE STAGE HINT: Dr. Pepper has two cycles with one being the primary of the two (this company is an existing company); clearly identify which is the primary stage 10 for listing both correct (primary and secondary) stage with justifications; 5 for listing partial correct stage(s) with justification; 2.5 for listing correct or partial correct stage(s) without justification Total score averages of 5033 and below A = 50-45 Scholarly; B = 44-39 Satisfactory; C=3833 Understanding of Content; D=32 and below Unsatisfactory Business 231-Marketing - Professor Williams Page 2 of 2