Cadbury Beverages Case Study PDF

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Cadbury Beverages Case Study

Cadbury Beverages is the beverage division of Cadbury Schweppes, a major soft drink and confectionary marketer. In 1989 they had worldwide sales of $4.6 billion. Schweppes was the worlds first soft drink maker and the 3rd largest soft drink marketer. In 1969 Schweppes merged with Cadbury in the year 1989 and Cadbury Schweppes was on of the world’s largest multinational firms and was ranked 457th in the business week’s global 1,000. Beverages accounted for 60% of the company worldwide sales and confectionery for 40%. Cadbury Beverages is the 4th largest soft drink marketer in the U.S., with a market share of 3.4%

In January 1990 the marketing executives at Cadbury Beverages began the task of re-launching the Crush brand, which was purchased from Procter and Gamble in October 1989. In re-launching the brand they had three issues that had to be addressed if they wanted to make this a success. They were to develop a base positioning, to build a cooperative relationship with bottlers and to budget the advertising and promotion program.

The major competitors for the soft drink industry are Coke, Pepsi and Dr. Pepper/7up. Revenues are extremely concentrated in this industry, with Coke and Pepsi tighter with their associated bottlers. Market trends for the soft drink industry can be summarized by six fundamental themes. Changing consumer beverage preferences, featuring a shift toward heath-oriented wellness drinks. The growing friction that is going on with the between bottlers and manufactures in the distribution system. Continually increasing retailer strength, fierce competition, complex distribution system composed of multiple sales channels, beverage safety concerns and more-stringent regulations.

Three main actors participate in manufacturing and distributing of carbonated soft drinks in the U.S. They are concentrate producers, bottlers, and retailers. The concentrate Marketing Plan 1. Executive Summary In October 1989 Cadbury Beverages (CB) Inc. has acquired soft drink brands from Procter & Gamble. Then in January 1990, the Cadbury marketing team decided to take up a challenge of relaunching the Crush soft drink brands. A marketing plan is strategically developed to achieve the target of the organization. The primary objective of this marketing plan is to relaunch the Crush brand through improved market coverage. With the effort to relaunch the Crush Brand, Cadbury Beverages (CB) had identified three issues that were immediately noticeable which are affecting the current coverage and sales of the Crush brand in the market. These issues which subsequently became the secondary objective of this marketing plan will be

further discussed in this paper. A strategy was developed based on these issues in order to achieve the primary objective of relaunching the brand through improved market coverage. The issues/secondary objectives are stated as follow: i. The need to revive the cooperation and bottling network for the Crush brand. ii. The need to establish and build base brand positioning which is in-line with the brand equity. iii. The need to develop a new advertising and promotion program. By having the issues arranged in such a manner, it gives an easier understanding of the current situation that is affecting the company’s brand. It started with the primary objective of improving market coverage. With wider market coverage, the brand is able to broaden its horizons and reach for more customers in the market. The strategy to achieving this is through an improved network and cooperates with the bottler of Crush brand. Through a better networking with these bottlers, CB is able to increase its output capacity in order to supply to a wider market. Moreover, improving bottler network also gives an opportunity for the company’s product to reach a broader area due to the exclusive right of the bottlers. ------------------------------------------------------------------------------------------------------------------------------------

Cadbury Beverages, Inc.: Crush® Brand The Cadbury Beverages case requires you to analyze the marketing situation and key issues regarding the case. In your analysis, stick to the facts and do not linger on minor issues. Distinguish clearly between causes and effects. In addition to reading the case and concluding your analysis of the issues, completely answer the following eight questions regarding the Cadbury Beverages case: How would you characterize the carbonated soft drink industry in the United States? Be specific. How would you describe the changes in the orange category during the years 1985 to 1989? What can be learned from these changes? What is Cadbury Beverages relative competitive position in the U.S. soft drink industry? In the orange category? Be specific. Based on your assessment of the soft drink industry, the orange category, the competitive situation of Cadbury Beverages, and orange Crush®, what is your recommendation for positioning Orange Crush? Make sure you support and specify your reasoning. What objectives should be set for the Crush® advertising and promotion program? What marketing strategies should be pursued? Be specific. How much should be spent for advertising and promotion to launch orange Crush®?

Internet Research: Visit the Cadbury Schweppes Web sites at http://www.cadbury.com/ and http://www.drpeppersnapplegroup.com/. Evaluate and compare Cadbury Beverages' present marketing strategy with the marketing strategy presented in the case. In your opinion, what are the most significant differences and/or changes in the present marketing strategy? How successful has Orange Crush been in the United States since 1992? What is the basis for your conclusion? Models to use

SWOT A SWOT analysis is a strategic evaluation framework used to look at a company. SWOT stands for strengths, weaknesses, opportunities and threats. The first step of a SWOT analysis is to evaluate the positive and negative aspects of the company. Once the strengths and weaknesses have been determined, the company can look beyond its own organization to evaluate opportunities and threats from the market or competitors.

Five Forces Porter's Five Forces is a framework used to evaluate an industry as opposed to a company. The "forces" refer to five aspects of an industry that dictate its attractiveness. The forces include power of suppliers, power of buyers, barriers to entry, competitive rivalry and availability of substitutes. By evaluating each of these elements, a manager or business can determine whether or not to enter a particular industry. Related Reading: How to Develop a Strategic Profile, What it Entails & SWOT Analysis

Framework for Analysis One of the ways a SWOT or Five Forces analysis can benefit a strategic planning session is by creating a framework for thinking of strategic planning. While managers should not confine themselves solely to a particular framework, SWOT and Five Forces are useful tools to guide the process by forcing managers and other decision makers to consider specific aspects of their company and the competitive landscape.

Industry Focus While a Five Forces analysis focuses specifically on the industry in which a company operates and a SWOT analysis focuses primarily on the company itself, both analyses actually focus closely on the industry. In a SWOT analysis, the strengths and weaknesses of a company are analyzed relative to the entire industry, while the threats and opportunities originate primarily within the industry. The industry focus of both of these tools helps managers concentrate on the most relevant environment when considering strategic planning initiatives....