This document analyzes the orange soft drink market and Crush's position in it. It finds that Crush is losing market share and market coverage. It identifies that the diet segment is underdeveloped and Crush's positioning is unclear due to potential cannibalization with Sunkist. It recommends investing more in advertising, developing the diet segment, defining a new premium positioning for Crush above Sunkist, and targeting young adults and teens. A pro forma income statement forecasts sales and expenses with a 15% market share.

1. CRUSH
MARKET & COMPETITIVE SPACE
P R E S E N T E D
BY
FRISCA
LISTYA
FERRY
CAHYADI
DEWI
SAGITA
DWI
HERMIYATI
CADBURRY BEVERAGES, INC
MAGISTER MANAGEMENT UNIVERSITY OF INDONESIA 2014

2. CRUSH
BACKGROUND
CADBURRY BEVERAGES, INC
Cadburry Schweppes
PLC is the world’s
largest soft drink
marketer.
1989.
Acquired Crush for
$220 million.
Market Share
Flavor [1989]
1. Cola [65,7%]
2. Lemon-Lime [12,9%]
3. Orange [3,9%]
Market Share
Company [1989]
1. Coca Cola
2. Pepsi Co.
3. Dr. Pepper
MAGISTER MANAJEMEN UNIVERSITAS INDONESIA 2014

3. FRAMEWORK FOR
1 Determine the Boundaries & Structure of the Product Market
DEFINING & ANALYZING
PRODUCT-MARKETS
2 Form the Product-Market
3 Describe & Analyze End Users
4 Analyze Competition
5 Forecast Market Size & Rate of Change

4. FRAMEWORK FOR
1 Define the competitive area
ANALYZING COMPETITION
2 Identify key competitors.
3 Evaluate key competitors.
4 Anticipate actions by competitors.
5 Identify & evaluate potential competitors.

5. -
-
.
-
Crush
Minute
Maid
Mandarin
Orange
Slice
Sunkist
Regular
Cola
Diet
Cola
Fruit
Flavour
Cola Lemon
Lime
/ SodaWine
Bottled
Water
Juices
Coffee Beer
Milk
Tea
Ice
Cream
Yogurt
Fast
Food Games
Movies
Product form competition :
ORANGE SOFT DRINK
Product category
competition: SOFT DRINK
Generic competition :
BEVERAGE
Budget competition :
FOOD & ENTERTAIMENT
Define the competitive area1
LEVELS OF COMPETITION

6. Define the competitive area1
#MARKET SHARE &
COVERAGE
Mandarin
Orange
Slice
21%
Sunkist
14%
Minute
Maid
14%
Crush
8%
Other
Brands
43%
1989 |Sales

7. Mandarin Orange Slice
21212216
10
68
87 88 88
0
20
40
60
80
100
1985 1986 1987 1988 1989
Market share Market coverage
Minute Maid Orange
8 14 13 14
10
60
87 88 88
0
20
40
60
80
100
1985 1986 1987 1988 1989
Market share Market coverage
Crush
22 18 14 11 8
62
78788181
0
20
40
60
80
100
1985 1986 1987 1988 1989
Market share Market coverage
Sunkist
32
20 141313
91867983
95
0
20
40
60
80
100
1985 1986 1987 1988 1989
Market share Market coverage
Define the competitive area1
PROBLEM IDENTIFICATION
Crush is decreasing in
Market Share and Market Coverage

8. Define the competitive area1
PROBLEM IDENTIFICATION
Diet Market isn’ fully developed.
Type Total Soft
Drinks
Total
Orange
Crush Sunkist Mandarin
Orange
Slice
Minute
Maid
Orange
Regular 69 73 71 82 49 53
Diet 31 27 29 18 51 47
100 % 100 % 100 % 100 % 100 % 100 %

9. Define the competitive area1
#VALUE CHAIN
Concentrate
Producer
Bottler
• National consumer
ads & promotion
program
• Product
development &
planning
• Marketing
research
• Trade promotion
to retail outlets &
consumer
promotion
Retail
Channel
• Sell the product
Consumers

10. Define the competitive area1
INDUSTRY
RIVALRY
Exit barriers very low
Pricing very
competitive
Promotion and
advertising very
attractive
NEW ENTRANTS
Strong distribution
network
Loyalty to existing brand
Entry barriers are high
Strong brand name are
important
BUYERS
Low dependency on
distributors
Product is important to
customer
Large number of
customer
SUBSTITUTES
Limited number of
substitute
Substitute product are low
quality
Intensity of existing rivalry
SUPPLIER
Diverse distribution
channel
Lower cost impact
#PORTER 5
FORCES

11. Identify Key Competitor2
Coca Cola Pepsi Co Cadbury
• World’s largest beverage
manufacturer.
• Offers 400 brands in 200
countries.
• Manages Minute Maid
Orange brand
• Emphasized “orange”
flavor. (positioning)
• Targeted young adults
(18-34) and households
without any children.
• Loyalty : 48%
• Also manages Frito-Lay,
Quaker Oats, Tropicana,
Gatorade, and SoBe.
• Formed partnerships with
Starbucks, Ben & Jerry’s,
Dole, and Lipton Original
Iced Tea.
• Manages Mandarin
Orange Slice
• Targeted young adults
(18-24) and households
without any children.
• Tagline : “Who’s Got the
Juice?” contempory
youth culture
• 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.
• Positioning : “Dont just
quench it, crush it/ bold
user imagery eith thirsty
quenching benefit”
• Crush : 46% (Loyalty),
Teens, 13-29
• Loyalty Sunkist : 36%
(Loyalty), Teens, 12-24
#COMPETITOR ANALYSIS
PROBLEM IDENTIFICATION
Canibalization with Sunkist, unclear positioning

12. • Promotion & Advertising financed by Producers & Bottler
• ATL (TVC, Radio, Prind Ad, Print Media) and BTL (Event, Sponsorship),
Trade Promo for retailer, & consumer; merchandising program
Evaluate key competitors.3

13. INTERNAL
FACTORS
STRENGTHS WEAKNESSES
 Cadbury is the world’s first soft drink marketer
 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):
• Leader in our category
• 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
 Agreements with 136 bottlers in the mid 90’s
 Positioning problem:
• 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
 The Diet segment is underdeveloped
EXTERNAL
FACTORS
OPPORTUNITIES THREATS
 International development in the long term on the orange
segment
 Dr Pepper could appear on the orange
segment
SWOT ANALYSIS

14. Crush is decreasing in
Market Share and Market Coverage
• Invest more money in advertising. Since Cadbury spent less
money to advertise its brands compare to competitors.
 TV cable and network
 Syndicated TV, radio, and
magazines
 Sponsorship, games and
competitions
• Crush should forecast an advertising budget of 10 Million dollars in order to
be able to reach a high market coverage rate of nearly 85% and to increase
market share from 8 to 15%.
• Focus on both national and local media ads.
 TV commercials
 Outdoor billboards
 Newspapers
 Radio
 Flyers
• Possibility to use Cola’s bottlers channel for distribution
(bottle network development)
• Give incentive bonuses on sales with bottlers
RECOMMENDATION

15. Diet Market isn’t fully developed
Develop and Enhance
The Diet Segment (50%)
• Emphasize sugar free and
natural flavour on campaign.
• It has a great potential
unexploited with a higher gross
profit margin than the regular
segment and a high growth.
• Besides, as Sunkist is present
on the regular segment, this
tactic could enable again the
brand to evolve on both diet
and regular segments.
RECOMMENDATION

16. Cannibalization with Sunkist,
unclear positioning
Define a new positioning for orange Crush
 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.
Targeting Product Segment Categories
 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.
 Focus on the regular.
Customer Segment
Achievers Experiencers Strivers
 Focus on family and often choose
premium products.
 Compared to other orange soft
drinks, Crush is of better quality and
is extremely family-friendly.
 Young and adventurous who seek
excitement in life.
 With its edgy and fun branding,
Crush will definitely appeal to the
Experiencers
 Trendy and likes to emulate the purchases
of those who are wealthier than them.
 Because Crush is re-launching their brand,
the Strivers will be the first to jump onto
the “new trend” of drinking Crush.
RECOMMENDATION

17. PRO FORMA INVESTMENT
Regular Diet
$ % $ %
Number of cases 23 625 250 23 625 250
Sales 138 207 712,50 100% 138 207 712,50
100
%
Cost of goods sold 74 655 790,00 54% 79 144 587,50 57%
Gross profit 63 551 922,50 46% 59 063 125,00 43%
Gross profit/case 2,69 2,50
Selling and delivery 31 894 087,50 23% 31 894 087,50 23%
Advertising and promotion 5 000 000,00 4% 5 000 000,00 4%
General and administrative
expenses 1 181 262,50 1% 1 181 262,50 1%
Pretax cash profit 25 476 572,50 18% 20 987 775,00 15%
Pretax cash profit/case 1,08 0,89
Pro forma income statement for Orange Crush
1.Forecast of $ sales
With 15% market share, we would obtain: 315 000 000*15% = 47 250 500 cases sold per year.
Total value: 47 250 500 * 5.85 $ = 276 412 500 $ sales (138 206 250 $ sales per segment)
2. Pro Forma Income Statement

18. THANKYOU
Hey, YOU!
FOR YOUR ATTENTION
FGD | FGD| FGD | FGD | FGD | FGD
FRISCA
LISTYA
FERRY
CAHYADI
DEWI
SAGITA
DWI
HERMIYATI