Orange Crush


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A presentation I did for Marketing Research. We were supposed to come up with our own model. I chose the ORANGE system!

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  • Orange Crush

    1. 1. Orange<br />Crush<br />//Drew Lawrence // Allison Collins//<br />//Amanda Ferreri // Merissa Wadel//<br />
    2. 2. Company History<br />Began in 1783 in London- Schweppes<br />Merged with Cadbury in 1969<br />Cadbury Beverages Inc. is the beverage division of Cadbury Schweppes<br />World’s third largest soft drink marketer<br />Products located in 110 countries<br />
    3. 3. Case Background<br />Crush was bought by Cadbury from Procter & Gamble<br />Procter & Gamble had been going to a warehouse distribution which caused them to lose some of their bottlers<br />Cadbury is relaunching Crush back into the market<br />
    4. 4. SWOT Analysis<br />
    5. 5. Target Market<br />Crush targeted at teens and households w/ children at home<br />Individuals ages 13- to- 29<br />
    6. 6. Product<br />Crush soft drink brand<br />Sold in cans and bottles<br />In 1989, Orange Crush controlled 7.5% of the orange-flavored soft drinks category<br />
    7. 7. Place<br />Supermarkets, convenience stores, vending machines, fountain service, and thousands of small retail outlets<br />Supermarkets account for 40% of carbonated soft drink industry sales<br />
    8. 8. Promotion<br />Crush promoted most frequently on spot television, in newspapers, and on outdoor signage<br />Sunkist: newspapers, spot television, outdoor billboards, and some syndicated television<br />
    9. 9. Promotion cont<br />Coupons, on-package promotions, and sweepstakes<br />Sponsorship of local events, plastic cups, baseball hats, and t-shirts <br />“Display Loader”: part of <br /> point-of-purchase display<br />Ice chests, insulated can coolers<br />
    10. 10. Price<br />Concentrate pricing differed very little among competitors<br />Typically less than one-cent difference<br />
    11. 11. BCG (Boston Consulting Group) Model<br />For portfolio planning <br />A company should maintain a balance of high growth and low growth products<br />To prioritize which products within the company product mix should get more funding and attention<br />To classify products<br />
    12. 12. BCG Matrix (Model)<br />
    13. 13. The Perfect Portfolio<br />High-growth:<br />New product<br />High effort and high resources (to build up)<br />Expected to bring high profit in the future<br />Low-growth:<br />Established product known by the market<br />Characteristics do not change a great deal<br />Customers know what they are getting<br />Price does not change a great deal<br />Limited marketing budget<br />“the milking cow” bringing constant cash flow<br />
    14. 14. Four Categories<br />Star: (high growth, high market share)<br />Leaders within the business but still need a great deal of support (promotion and placement)<br />If the market share is maintained the product will eventually become a cash cow<br />Star: CRUSH (orange)<br />Crush is #1 in market coverage of orange soda among competitors from 1985-1989<br />Since acquisition in 1989, promotion and advertising is being focused on maintaining this market share<br />
    15. 15. Four Categories<br /> Question Mark:(high growth, low market share)<br />Products are in growing markets but have low market share<br />Essentially new products that buyers have yet to discover<br />Strategy is to get consumers to adopt these products<br />High demand and low return due to low market share<br />Must increase the market share quickly or they become dogs<br />Question Mark: CRUSH (flavored line extensions)<br />This is a market that is growing but flavored soda (other tan orange)holds a small % of market share <br />1.1%<br />Few competitors<br />Although people choose Crush flavored soda due to few competitors the return is low due to low market share<br />The goal is to get more consumers to drink flavored soda and become a star<br />
    16. 16. Four Categories<br />Cash Cow: (low growth, high market share) IDEAL PRODUCTS<br />High market share in a mature market<br />With a competitive advantage the products have high profit margin with high cash flow<br />Due to low growth, promotion, and placement investments are low<br />Increase in infrastructure may improve efficiency and increase cash flow<br />Cash Cow: GINGER ALE (Canada Dry)<br />Introduced in 1870 <br />Constant growth in a mature market maintaining the top spot in sales of Ginger Ale in the United States <br /> Investment in this product are low<br />With increase in promotion and advertising consumer awareness may increase cash flow<br />
    17. 17. Four Categories<br />Dog: (low growth, low market share)<br />In low product market with low market share<br />These products should be avoided and minimized<br />Expensive turn around plans do not help<br />Dog: Strategy to avoid these products<br />Focus on the flavored line extensions of Crush<br />With the small market share going toward flavored soda any investment in the infrastructure of these products will create a negative profit margin<br />
    18. 18. BCG Problems<br />Limited knowledge of other products or how original data was collected<br />High market share does not always indicate profitability<br />Low share products may also be profitable<br />Model does not show overall market growth<br />Market growth is not the only indicator of market attractiveness<br />
    19. 19. Positioning<br />Market share has decreased 10% in 4 years<br />Decline Stage<br />Cadbury could discontinue Crush and focus on Sunkist, but…<br />
    20. 20.
    21. 21.
    22. 22. ORANGE<br />Opportunities<br />Research<br />Assets<br />New Offerings<br />Goals<br />Execution<br /><ul><li>implEmentation
    23. 23. Execution</li></li></ul><li>Opportunities<br />Are there any trends or untapped markets?<br />Healthy angle<br />Older population<br />
    24. 24. Research<br />Conduct (Research Method); compile useful information<br />Determine how health conscious (orange) soda consumers are.<br />Parents buying healthy for kids?<br />Adults <br />
    25. 25. Assets<br />What should Crush keep?<br />Great orange taste<br />Thirst-quenching<br />Caffeine-free<br />Fun image (not necessarily heavy on “youth”)<br />Diet is already an option for the health conscious<br />
    26. 26. New Offerings<br />Should help fulfill Opportunities<br />Health & Adult Appeal<br />Vitamin C<br />Calcium?<br />Entire new formula?<br />
    27. 27. General Expenses<br />What costs would be incurred for this repositioning?<br />Research expenses<br />New formula could be very expensive<br />Brand new advertising and promotions expenses<br />Is it worth it?<br />
    28. 28. Execution<br />Introducing the new Orange Crush. The healthiest orange soda at your grocery store.<br />Now with Calcium and Vitamin C to keep your body strong.<br />How strong?<br />