Cadbury Case Study

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Cadbury Beverage’s Crush Brand has to be successfully repositioned and re-launched into the orange soda market. Primary consideration has to be given to three critical areas: First, the Crush bottling network needs to be rejuvenated. Second, Crush’s brand position has to be developed. Lastly, a new advertising and promotion program has to be developed. Situation Analysis: Industry Overview In 1989, the carbonated soft drink industry had $43 billion in retail sales which translates to 46.7 gallons of carbonated soft drinks. The production and distribution of carbonated soft drinks in the US is composed of three major participants: concentrate producers, bottlers and retail outlets. For regular soft drinks, concentrate producers manufacture the basic flavors and sell them to bottlers who add a sweetener to carbonated water and package the beverage in bottles and cans. However for diet soft drinks, concentrate producers include an artificial sweetener such as aspartame with their flavors. Coca Cola, PepsiCo and Dr Pepper/Seven Up account for 82% of industry sales in the concentrate producer segment. Bottlers are either owned by concentrate producers or franchised to sell their brands. The principal retail channels for carbonated soft drinks are supermarkets, convenience stores, vending machines, fountain service and thousands of small retail outlets with supermarkets accounting for about 40% of the carbonated soft drink industry sales. The performance of the orange flavored industry represents 3.9 percent market share stacked up against the other major flavors in the industry (cola, lemon-lime, orange, root beer, ginger ale, grape, and others). Diet soft drinks represented 31 percent of industry sales in 1989. The typical buyer was a married woman with children under 18 year old living at home (age of woman anywhere from 30-40, age of kid anywhere from 12-18).

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