CADBURY BEVERAGES

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CADBURY BEVERAGES

• Miles Anderson
• Steven DiPalma
• Jesse Glendinning
• Patrick Nathanson
• Courtney Pope
• Chandra Simmons

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SUMMARY

• Cadbury Schweppes worlds first soft drink
  maker
• Fourth largest soft drink marketer in United
  States
• Coca-Cola (1), PepsiCo (2), Dr. Pepper/Seven Up
  (3)
• 3.4 carbonated drink market share
• 1989 acquisition Crush would account for 20
  of Cadbury Beverage sales
• Production and distribution concentrate
  producers, bottlers, and retail outlets
• Principal retail channels supermarkets,
  convenience stores, vending machines, fountain
  services, and small retail outlets
• Supermarkets account for 40 of sales key to a
  successful marketing effort

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SUMMARY

• Competitors in orange-flavored soft drinks
  Mandarin Orange Slice (PepsiCo), Sunkist
  (Cadbury), Minute Maid Orange (Coca-Cola)
• 26 million spent on advertising by four major
  brands
• 84 of spending from Minute Maid and Mandarin
  Orange
• Crush spent less on advertising with fewer
  vehicles
• Spot Television, newspapers, outdoor signage
• Very little pricing difference between four major
  brands (no more than one cent)
• Variety of merchandising promotions
• Dealer Loaders, sponsorships, coupons,
  sweepstakes, on-package promotions

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SUMMARY

• January 1990 strategic marketing decisions for
  Crush brand
• Focus intitial attention on orange flavor
• Reesetablish bottling network make Crush
  available in 75 of total sales markets

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Problem Definition
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Problem Definition

• Purchased Crush soft drink brand from Proctor
  Gamble for 220 million.
• Manage the relaunch of Crush.
• Three issues
• Reestablishment of a bottling network.
• New positioning stance that incorporates flavor
  line.
• Development of an advertising and promotion
  program.

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3 CS
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COMPANY

• Cadbury Beverages, Inc. is the beverage division
  of Cadbury Schweppes PLC.
• Sold in 110 countries.
• Cadbury Schweppes PLC headquarters in London,
  England.
• Cadbury Beverages, Inc. headquarters in Stamford,
  Connecticut.
• Worlds first soft drink maker in 1783.
• Owns Canada Dry, Schweppes, Sunkist, among
  others.
• 3.6 market share in soft drinks.

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CONSUMERS

• SUNKIST

• CRUSH

• Target Market
• Teens, 12-24
• Households with 3-4 children
• Positioning
• Teens on the Beach
• Drink in the Sun

• Target Market
• Teens, 13-29
• Households with 3-5 children
• Positioning
• Dont just quench it, CRUSH IT

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COMPETITORS
Top 10 Soft Drink Brands MKT SH
1. Coca-Cola Classic 19.8
2. Pepsi-Cola 17.9
3. Diet Coke 8.9
4. Diet Pepsi 5.7
5. Dr. Pepper 4.5
6. Sprite 3.7
7. Mountain Dew 3.6
8. 7Up 3.2
9. Caffeine-free Diet Coke 2.5
10. Caffeine-free Diet Pepsi 1.6
Top 10 Brands 71.4
Other Brands 28.6
Total Industry 100.0

• Coca-Cola (Minute Maid Orange)
• PepsiCo (Mandarin Orange Slice)
• Dr. Pepper/Seven Up

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SWOT
Strengths High name awareness in markets served by existing and new bottlers Highest orange brand awareness in key metropolitan areas- (Seattle, San Francisco, New York City, Los Angeles, Chicago, Boston Weaknesses Poor bottling network due to Procter and Gambles switching to warehouse system Changing brand positioning Poor Diet Sales Market coverage of only 62
Opportunities Increase Orange Crush market shares Increase market coverage once bottling network is re-established Market coverage would increase to 75 once the bottler network is established Threats Three big competitors (Sunkist, Mandarin Orange Slice, and Minute Maid Orange) all have higher brand market shares Low loyalty compared to other competitors Every other competitor in the category has higher market coverage percentage
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COMPANY

• High name awareness
• Highest orange brand awareness
• Poor bottling network
• Spend less on advertising and used fewer
  advertising than two biggest competitors (Minute
  Maid Orange and Mandarin Orange Slice)

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COMPETITION

• Mandarin Orange Slice and Minute Maid Orange have
  highest brand loyalty
• Mandarin Orange Slice and Minute Maid Orange two
  biggest competitors
• Every other competitor in the category has higher
  market coverage percentage
• Every other competitor has higher brand market
  shares
•  

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CUSTOMERS

• Latest positioning targeted towards ages 13-29
  with a tagline of Dont just quench it, Crush
  it
• Household size of purchaser is 3-5 people with
  children at home
• 2 liter accounts for 64 of sales while cans
  account for 31 and 5 is other
• 46 customer loyalty

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ALTERNATIVE COURSES OF ACTION

• Develop an efficient distribution network
  (bottlers, retailers). This is one of the key
  success factors in the soft drink industry.
•  Crush is targeting teens 13-29 with its current
  positioning we suggest reworking this position
  to target mainly young families with children.
•  With a target market of 18-30 Crush can fight
  for market share without cannibalizing that of
  Sunkist.
•  We also suggest that Crush return to a position
  that emphasizes on its great natural taste. This
  would appeal to the young family and ensure once
  again that Crush was not cannibalizing Sunkist
  teenage market.
•  
•  

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ALTERNATIVE COURSES OF ACTION

• Crush ran similar ads in the early 80s and had
  success with the young family market.
•  New ads would focus on the great natural taste
  of crush and be run in a variety of media with
  special attention given to point of purchase
  displays, end cap shelving, and coupons and
  discounts for the customers. (Given 60 of sales
  come from supermarket sales)
•  Crush could also run an ad campaign that depicts
  alterative times and places to enjoy orange soda
  and would focus on increasing the orange soda
  market s share of 3.9.
• This would need to be done carefully however to
  avoid having an all out price war with some of
  the larger soda companies, (coke and pepsi).

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QUESTION 1
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QUESTION 2
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3-WHAT IS CADBURY BEVERAGES RELATIVE COMPETITIVE
POSITION IN THE U.S. SOFT DRINK INDUSTRY? IN THE
ORANGE CATEGORY? 

• Cadbury Beverage has a strong competitive
  position in the Soft Drink Industry. It is the
  world's third largest soft drink marketer behind
  Coca Cola and PepsiCo. Cola flavored sodas do
  account for 65.7 of market share, however orange
  flavored soda accounts for 3.9. There are three
  other brands that compete against Cadburys
  Sunkist and Crush to dominate a large portion of
  the orange-flavored soft drink sales. These
  competitors include PepsiCo's Mandarin Orange
  Slice, and Coca-Cola's Minute Maid Orange. in
  1989,Cadburys Orange Sodas were not as high on
  market share as their competitors,Sunkist (14)
  and Crush (8), Slice (21) and Minute Maid
  Orange (14). Crush postitioned themselves to
  teens ages 13-29 using the statement " Don't just
  quench it, Crush it" to attract their
  consumers.

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4-BASED ON YOUR ASSESSMENT OF THE 4 SOFT DRINK
INDUSTRY, THE ORANGE-FLAVORED CATEGORY, AND THE
COMPETITIVE SITUATION OF CADBURY BEVERAGES AND
ORANGE CRUSH, WHAT IS YOUR RECOMMENDATION FOR
POSITIONING ORANGE CRUSH?

• Crush is targeting teens 13-29 with its current
  positioning and its sister company Sunkist is
  targeting teens ages 12-24. we suggest reworking
  Crush's position to target mainly young families
  with children. We believe that with a target
  market of 18-30 Crush can fight for market share
  without cannibalizing that of Sunkist. We also
  suggest that Crush's reposition emphasizes its
  great, natural, taste. We believe this would
  appeal to the young family and ensure once again
  that Crush was not cannibalizing Sunkist's
  teenage market.