This presentation was done for my Strategic Marketing Management Course.

1. Cadbury Beverages, Inc.
(Crush Brand)
PPrreesseenntteedd BByy:: Asif Iqbal

2.  Began in 1783 in London- Schweppes
 Merged with Cadbury in 1969
 Cadbury Beverages Inc. is the beverage division
of Cadbury Schweppes
 World’s third largest soft drink marketer
 Products located in 110 countries

3.  Crush was bought by Cadbury from Procter &
Gamble
 Procter & Gamble had been going to a
warehouse distribution which caused them to
lose some of their bottlers
 Cadbury is re-launching Crush back into the
market

4. BBrraannddss’’ SSttaattiissttiiccss iinn tthhee UUSS
 900+ brands exist
 10 are regarded as top brands
 Account for 71.4% of US market
 Top Six are colas accounting for 56.4% of
market share

5. MMaajjoorr PPaarrttiicciippaannttss
iinn OOrraannggee SSooddaa SSeeggmmeenntt
Minute Maid by Coca Cola & Slice by Pepsi Cola
holds the most share at this beginning period
Both utilize:
 Widespread Distribution
 Heavy Advertising & Promotion

6. NNoottiicceeaabbllee ttrreennddss ooff SSoofftt DDrriinnkk
SShhooppppeerrss
 The typical customer purchasing soft drinks is a
married woman with children under 18 years of
age living at home
 Unplanned purchase of soft drinks - mostly in
supermarkets, account for 40% of carbonated soft
drink industry
 US customers drink more soft drinks than tap
water

7. IInndduussttrryy SSttrruuccttuurree
 Concentrate producers
(82% of industry sales accounted for by Coca-Cola, PepsiCo and
Dr.Pepper/7UP)
 Bottlers
(Owned by concentrate producers or franchised to sell brand)
 Retailers
(Supermarkets account for 40% of market)

8. BBrraanndd MMaarrkkeett aanndd SShhaarree
Brand Market Share
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. 7-Up 3.2%
9. Caffeine-free Diet Coke 2.5%
10. Caffeine-free Diet Pepsi 1.6%

9. Re-Launch DDeecciissiioonn ffoorr CCrruusshh ttaakkeenn
oonn 11998899//11999900 PPeerriioodd
Main issues considered:
 Rebuilding a cooperative relationship with
bottlers.
 A new Positioning Theme
 Advertising and promotion program

10. ((Current Marketing MMiixx ffoorr CCrruusshh))
 Crush soft drink brand with flavors like
Grape, Pineapple, Cheery, orange.
 Sold in cans and bottles
 In 1989, Orange Crush controlled 7.5% of the
orange-flavored soft drinks category

11.  Supermarkets, convenience stores, vending
machines, fountain service, and thousands of
small retail outlets
 Supermarkets account for 40% of carbonated
soft drink industry sales

12.  Crush promoted most frequently on spot
television, in newspapers, and on outdoor
signage
 Sunkist: newspapers, spot television, outdoor
billboards, and some syndicated television

13.  Coupons, on-package promotions, and
sweepstakes
 Sponsorship of local events, plastic cups,
baseball hats, and t-shirts
 “Display Loader”: part of
point-of-purchase display
 Ice chests, insulated can coolers

14.  Concentrate pricing differed very little among
competitors
 Typically less than one-cent difference
After analyzing the Marketing Mix, IItt iiss tthhoouugghhtt tthhaatt
CCrruusshh’’ss OOrraannggee BBrraanndd nneeeeddeedd ttoo bbee ggiivveenn mmoorree
ffooccuuss bbyy tthhee ccoommppaannyy

15. Overview of CCoommppeettiittiioonn ffaacceedd bbyy CCrruusshh
Coca Cola Pepsi Cola Crush
•World’s largest beverage
• Formed partnerships with
manufacturer.
Starbucks, Ben & Jerry’s,
• Manages Minute Maid
Dole, and Lipton Original
Orange brand
Iced Tea.
• Emphasized “orange”
• Manages Mandarin
flavor. (positioning)
Orange Slice
• Targeted young adults
• Targeted young adults
(18-34) and households
(18-24) and households
without any children.
without any children.
• Loyalty : 48%
• Loyalty : 55%
•Along with owning Crush,
the company is also the
successor to Dr.Pepper/7up,
Mott, and Snapple.
• Manages Sunkist.
• Targeted teens and
focused on their lifestyle.
• Crush : 46% (Loyalty),
Teens, 13-29
• Loyalty Sunkist : 36%
(Loyalty), Teens, 12-24

16. Strengths
Each Cadbury’s brand has been
acquired with an established
customer franchise.
Cadbury’s orange products are not
in competition with leaders on the
market (Cola).
We can use franchised bottlers who
are not in competition on our
segment.
Crush brand has high name
awareness with consumers
(in big cities) and bottlers.
Weaknesses
Our target is too large and un-adapted
Cannibalization risk of Sunkist
Advertising campaign un-targeted
clearly and not innovative enough
Amount of the advertising budget
insufficient
Variety of media used insufficient

17. Opportunities
Continue to expand # of bottlers in
market area
Soft drink consumption rising
Threats
Dr. Pepper could appear on the
orange segment
Competition from:
1.Orange Slice by PepsiCo
2. Healthier drink choices

18. PPrrooppoosseedd CChhaannggeess iinn tthhee bbuussiinneessss
pprroocceessss
Increase presence in high margin channels and
packages.
Leverage an integrated business model
Strengthen route-to-market through acquisitions
Improve operating

19. RReeccoommmmeennddaattiioonn ffoorr CCrruusshh OOrraannggee
In order to make a new positioning for Orange
flavored Crush, followings things need to be
addressed:
First focus on the young adults segment in order to
prevent Sunkist’s cannibalization and to establish
Cadbury’s presence on the two age categories
segment.
Crush will be positioned above its sister brand Sunkist.
 Crush has a premium brand name, therefore; it is wise
to position Crush as a product quality leader rather than
a market leader.
 Sunkist, Crush’s sister brand will take the role of
competing through market share.

20. RReeccoommmmeennddaattiioonn ffoorr CCrruusshh ((CCoonnttiinnuueedd)
 Focus on the young adults segment (18-34 years)
with a household purchasing size of 1-2 persons.
 Focus on the teens segment (12-24 years) with 3-4
persons.
 Development of the diet segment.
 Invest more money in advertising. Since Cadbury
spent less money to advertise its brands compare to
competitors.
 Focus on both national and local media ads.

21. TThhee ppoossiittiioonniinngg ooff CCrruusshh sshhoouulldd bbee bbaasseedd
oonn tthhee ffoolllloowwiinngg ppooiinnttss
 Compared to other orange soft drinks, Crush is of better
quality and is extremely family-friendly.
 Young and adventurous who seek excitement in life may
prefer Crush.
 With its edgy and fun branding, Crush will definitely
appeal to the youth early adopter type customers
 Trendy and likes to emulate the purchases of those who
are wealthier than them are another segment for Crush.

22. PPrrooppoosseedd PPoossiittiioonniinngg aanndd PPrroommoottiioonn
EElleemmeennttss ffoorr CCrruusshh OOrraannggee
 Should be positioned with the tagline : “Crush your
Orange cravings” (Now with more nutritional elements).
Push Strategy
for Bottlers
Pull Strategy for
Consumers