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Marketing Situation Analysis of Crush Brand of Soft Drinks

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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?

Prepare a case analysis.

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Solution Summary

The solution provides guidance on Case Analysis for Crush Brand of Soft drinks where Marketing Situation Analysis has been done using 3C Analysis of Cadbury Schweppes, identification of rejuvenation of bottling network, developing a base positioning and developing a new advertising and promotion program.

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Analysis of the Marketing Situation

An Analysis of the marketing situation can be done using the 3 C (Company, Competitor and Customer) Analysis can be done in the following manner:

Company

Cadbury Beverages, Inc. is the beverage-manufacturing division of Cadbury Schweppes PLC. It was created in 1969 by a merger of Schweppes Plc. and Cadbury. Schweppes is considered to be the first soft drink maker which started with its artificial mineral water in 1783. In 1989, the Cadbury Schweppes PLC was one of the world's largest multinational companies and the world's third largest soft drink marketer (behind Coca-Cola and PepsiCo), with worldwide sales of $4.6 billion, sold in 110 countries. Beverages accounted for 60 percent of company sales and 53 percent of its operating income. The main points can be listed as below:

- Strong Brand Name of Schweppes and Cadbury
- Worldwide Portfolio of brands include: 11 carbonated beverages, 16 Still drinks/juices and 4 mineral water brands.
- In U.S: 15 product under Schweppes brand, 18 products under Canada Dry brand, 10 products under Sunkist brand, 7 products under Crush brand, 4 products under Hires brand, 2 products under Sundrop brand and 23 more products under other brands: A total of 79 different products under 10 different brands.
- Total share of sales of these brands
- Canada Dry 39%
- Sunkist: 22%
- Crush : 20%
- Schweppes : 17%
- Others : 2%

Competitors

Cadbury Beverages, Inc. was the ...

Solution provided by:
Himanshu Mahobia, MBA
Education
  • BCom, M.D.S University, Ajmer
  • MBA, M.D.S University, Ajmer
  • PhD, Suresh Gyan Vihar University, Jaipur
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