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Cadbury Beverages Inc Crush Brand Essay

2906 words - 12 pages

SUMMARY

Introduction p.2
I- The carbonated soft drink industry in the US
- Industry structure p.4
- Industry economics p.5
- Brands & Products p.6
- Consumption behavior p.7

II- Changes in the orange category during the period 1985-1989

- Orange category p.8
- Relation between market share & market coverage p.11
- Relation between market share & advertising share p.13
- Brands positioning p.15

III- Cadbury competitive position in the US
- Swot analysis p.16

IV- Crush Positioning p.18
V- Crush advertising & promotion program
- Objectives & strategies ...view middle of the document...

In the beginning, the marketing executives intended to focus on relaunching the Crush brand on the soft drinks market. As a result, three main issues need to be tackled:

- rebuilding a cooperative relationship with bottlers,
- developing a base brand positioning consistent with the brand equity,
- developing (objectives, strategies) and budgeting the advertising and promotion program.

I- THE CARBONATED SOFT DRINK INDUSTRY IN THE UNITED STATES

➢ Industry Structure

Three main actors participate in manufacturing and distribution of carbonated soft drinks in the United States: concentrate producers, bottlers, and retailers. The concentrate producers’ and bottlers’ roles and margins of are different for regular and diet drinks (see Exhibit 2).

EXHIBIT 2.

1. Regular soft drinks:
|Actors |Functions |Gross Margin |Net Margin |
|Carbonate |manufacture the basic flavors |86% |16% |
|Producers | | | |
|Bottlers |add sweetener to carbonated water |46% |15% |
| |package in bottles and cans | | |

2. Diet soft drinks:
|Actors |Functions |Gross Margin |Net Margin |
|Carbonate |manufacture the basic flavors |87% |30% |
|Producers |include an artificial sweetener | | |
|Bottlers |add carbonated water |43% |12% |
| |package in bottles and cans | | |

There are approximately 40 concentrate manufacturers in the US, but only three of them (Coca-Cola, PepsiCo, and Dr. Pepper/7Up) account for 82 percent of industry sales. As far as bottlers are concerned, they are present in a number of 1,000 in the United States. They may be either owned by concentrate producers, or franchised. Franchised bottlers are usually given the exclusivity rights for a certain territory, but they cannot sell a directly competitive brand.

Concerning retailers, those are supermarkets (40 percent of carbonated soft drink industry sales), convenience stores and small retail outlets, vending machines, and fountain service (ex. McDonald’s). Among the above mentioned, supermarkets are claimed to be crucial in the company’s distribution net.

➢ Industry Economics

Concentrate producers typically arrive at a gross profit of 86% (regular drinks), or 87% (diet...

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