Case Study Analysis: Cadbury

Topics: Soft drink, Marketing, Coca-Cola Pages: 6 (1451 words) Published: October 2, 2012
Case Analysis: Cadbury Beverages, Inc. Crush Brand ®

Case Analysis: Cadbury Beverages, Inc. Crush Brand ®
Luis Villagomez
Grand Canyon University
MKT 450
September 23, 2012

Case Analysis: Cadbury Beverages, Inc. Crush Brand ®

The carbonated soft drink production industry encompasses firms that blend various ingredients with carbonated water and also package and distribute for resale (IBIS World). With the full industry definition that Cadbury Beverages is a part of, we can effectively help the marketing team, most especially Kim Feil, Cadbury’s Senior Product Manager. In order for Kim and her marketing team to succeed, they must first characterize the carbonated soft drink industry in the United States, describe the changes in the orange category during the year of 1985 to 1989, Cadbury Beverages’ relative competitive position in the US soft drink industry, appropriate brand positioning to effectively plan marketing strategies. Kim must also set the advertising and promotion objectives and a pro forma income statement. Characteristics of the carbonated soft drink industry in the United States

We must first take a look at the overall industry structure. The three major participants in the production and the distribution of carbonated soft drinks in the United States include concentrate producers, bottlers and retails outlets. Each ‘participant’ plays an integral role in the entire process that defines the carbonated soft drink industry. Eighty-two percent of the total industry sales can be accounted to three out of the forty concentrate manufacturers in the United States: Coca-cola, PepsiCo and Dr Pepper / 7up. The bottlers on the other hand may be either owned by concentrate producers or franchised bottlers. Retails outlets are very valuable to the industry. With 40% of industry sales accounted to retail outlets, a marketer should definitely take a closer look in this distribution channel (Kerin, R. A., & Petersen, R. A.). Principal Retail Distribution Channels:

• Supermarkets
• Convenience stores
• Vending machines
• Fountain service
• Small retail outlets
Carbonated Soft Drinks Brands in the US
Out of the 900 registered brands within the carbonated soft drinks industry in the US market, it is apparent that the top three concentrates producers remain on the top slots based on the data table below: |Brands (1989) |Share |

|Coca-cola Classic |19.80% |
|Pepsi |17.90% |
|Diet Coke |8.90% |
|Diet Pepsi |5.70% |
|Dr. Pepper |4.50% |
|Sprite |3.70% |
|Mountain Dew |3.60% |
|7up |3.20% |
|Diet Coke (Caffeine free) |2.50% |
|Diet Pepsi (Caffeine free) |1.60% |
| |71.40% |
|Other brands |28.60% |

By analyzing the above table, the marketers of Cadbury Beverages can further assess the current market trends in the US market in terms of carbonated beverages and will definitely help them move forward in the planning the marketing strategies. The following information can prove helpful: • Out of the top ten brands, majority of the carbonated drinks are cola-flavored. • Other popular flavors aside from cola include lemon-lime, orange, root beer, ginger ale and grape. • Carbonated soft drinks can easily be classified into two: regular and diet. Who are the buyers, where are they and what are their behaviors?

Unlike other products, soft drinks are purchased unplanned which gives the good marketer a reason to effectively deploy suggestive marketing, heavy advertising, attractive packaging and visibility in the retail outlets. Now,...
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