Cadbury Beverages Inc. Case Study

Topics: Soft drink, Marketing, Advertising Pages: 14 (5114 words) Published: November 7, 2012
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 to distribute in a defined territory. The annual supermarket case volume of orange-flavored soft drinks is believed to decrease over the years due to market saturation. From the year 1985 to 1989, the market has been feeding on the same soft-drink brands with no new product being launched into the market. Thus, it is critical for CB to revive its Crush brand and give it a new “image” in the market or it will continue to suffer as the trend continue to decrease. The new positioning of the brand in the market has to be consistent with previous positioning and this will require an approach that is integrated into the organization’s overall business objectives where one of it is to avoid the cannibalization of Sunkist while at the same time allows the Crush brand to stay distinctively unique. To further enhance this marketing plan, a new promotion concept is introduced through advertisement activities. The new promotion concept is developed with aim to build awareness and to stimulate demand for the product. Having a broad market coverage means nothing if the market is unable to absorb these supply. A contingency plan is also developed to handle any uncertainties. 2. The challenges/Issues/Problem Statement

Following the acquisition of Procter & Gambler in 1989, Cadbury Beverages attempt to relaunch the Crush brand of fruit-flavored carbonated beverages on the following year. There are three prominent issues that require the attention and focus by the company. The issues are as follows: i) Rejuvenate a cooperative network relationship with bottlers. The decision of distribution system for selling Crush through warehouses rather than through bottlers has eroded the bottling network; causing Crush to record the poorest market coverage of orange category sales among major competitors. Besides poor market coverage and sales, the decision made by the former company has consequently caused a sense of ambiguity among the existing bottlers who are doubtful of their future...
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