Crush Case

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  • Topic: Soft drink, Orange sodas, Orange soft drink
  • Pages : 24 (6197 words )
  • Download(s) : 84
  • Published : April 17, 2008
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Target Market

SWOT Analysis

v Strengths
ÿ The name “Crush” is the first name people think of when they think of orange soda. ÿ World’s first soft drink marketer, now 4th largest one ÿ Schweppes brand equity support
ÿ Crush has is a long life brand
ÿ Crush has high awareness in big cities
ÿ Crush is the most recognized orange flavored soda name
ÿ It is used in many trendy pop-culture outlets (i.e. vintage clothing, popular restaurants ÿ Crush has sufficient resources
v Weaknesses
ÿ Cadbury Schweppes PLC owns two orange flavored soft drinks, Sunkist and Crush ÿ Cola’s represent 67% of soft drink consumption while orange flavored only accounts for 3.9% ÿ Crush is lacking a diet Crush leaving us out of 31% of the industry ÿ Crush and Sunkist used less on advertising than other companies with orange soft drinks ÿ Crush had the lowest market coverage of orange sales potential among major competitors because of the decision to try and sell Crush through warehouses rather than through bottlers ÿ Crush lacks a clear positioning statement that sets them distinctly apart from Sunkist v Opportunities

ÿ Make the buying process more convenient, get retailers to put Crush on the end of the aisle ÿ Offers sales promotions
ÿ Make a new line of tropical drinks, and take advantage of licensing opportunities ÿ Take advantage of the developing market of the internet and create a website were people can by Crush products ÿ Create an illusion that Crush is the superior orange soda ÿ There is a Variety of media vehicles

ÿ There is a dynamic market for diet soft drinks
ÿ The major increase in consumption of soft drinks

v Threats
ÿ Crush has huge competition because the soda market is so homogeneous ÿ There need to be enough resource for heavy advertising expenses ÿ Unplanned soft drink purchases other that Crush.

Market

v Primary target market for Crush is young adults (18-24) drinking soft drinks. Secondary target market for Crush is families with children drinking soft drinks.

Competitive Analysis

v Key Benefits and positioning used by major competitors:
ÿ Mandarin Orange Slice
ß Marketed by PepsiCo.
ß Market Leader
ß Market Share 20.8%
ß 50% of its case volume sales were regular orange soft drinks and 50% were diet orange soft drinks ß Mandarin Orange is available in markets that represented 88% of total orange category sales. ß Positioning: “Who’s Got the Juice” Contemporary youth culture ß Target: Young adults, 18-24

ß House hold size: 1-2 (no children)
ß Package sales mix:
• Two-liters 54%
• Cans 42%
• Other 4%
ß Loyalty: 55%
ÿ Sunkist
ß Sold by Cadbury Beverages, Inc.
ß Market Share 14.4%
ß 50% of its case volume sales were regular orange soft drinks and 50% were diet orange soft drinks ß Sunkist is available in markets that represented 91% of total orange category sales. ß Positioning: “Teens on the Beach”; “Drink in the Sun” ß Target: Teens, 12-24

ß House hold size: 3-4 (Children at home)
ß Package sales mix:
• Two-liters 51%
• Cans 42%
• Other 9%
ß Loyalty: 36%
ÿ Minute Maid Orange
ß Coca-Cola
ß Market Share 14%
ß 82% of its case volume sales were regular orange soft drinks and 18% were diet orange soft drinks ß Sunkist is available in markets that represented 88% of total orange category sales. ß Positioning: “The orange, orange” orange flavor, taste of real orange ß Target: Young adults, 18-34

ß House hold size: 1-2 (no children)
ß Package sales mix:
• Two-liters 54%
• Cans 41%
• Other 5%
ß Loyalty: 48%

Indirect Competitors:

v Lemon-Lime soft drinks
v Cola soft drinks
v Grape soft drinks
v Water
v Juice

Demographics

v Age: 12-45
v Income: $30,000-$100,000
v Occupation: Salaried professionals, interior designers, police officers, firemen, contractors, , teachers, servers, students, part-time workers v Social class: working class, middle class, upper middle class, lower upper classes v Life stage: 80% Married, cohabitating with another, 20% single v...
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