Cadbury Crush Case
Cadbury Beverages, Inc.: Crush Brand
1. Based on your assessment of the soft drink industry, the orange-flavored category, and the competitive situation of Cadbury Beverages and orange Crush, what is your recommendation for positioning orange Crush? Be sure to base your recommendation on facts and issues raised in the case.
According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17. Appendix D shows that Pepsi Co. and Minute Maid entered the market with their own orange soda brands capturing a large portion of the orange soda market. These new juggernaut competitors reduced Crush’s market share consistently each year by positioning themselves in the 15-30 year old market. Initially, we thought it would be wise for Crush to revert back to its’ original target market, however with the emergence of Pepsi Co.’s Slice and Coca Cola’s Minute Maid into the market, and the fact that both brands are targeting individuals roughly between the ages of 15-30 (Crushes’ previous target market) (Exhibit 8), we believe it would be best for Crush to make an adjustment to their current positioning strategy. Shifting from their current age range (teens 12-17)(Exhibit 13) to younger children between the ages of 6-16 would tap into a market segment not currently being pursued by the new dominant Orange Soda companies. This shift would differentiate Crush even further from their competition, and as a result lead to more market share capture potential and competitive advantage due to the fact that they will be the first major orange soda brand to enter into this new target market. Secondly, the alignment with a younger age bracket
1. Based on your assessment of the soft drink industry, the orange-flavored category, and the competitive situation of Cadbury Beverages and orange Crush, what is your recommendation for positioning orange Crush? Be sure to base your recommendation on facts and issues raised in the case.
According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17. Appendix D shows that Pepsi Co. and Minute Maid entered the market with their own orange soda brands capturing a large portion of the orange soda market. These new juggernaut competitors reduced Crush’s market share consistently each year by positioning themselves in the 15-30 year old market. Initially, we thought it would be wise for Crush to revert back to its’ original target market, however with the emergence of Pepsi Co.’s Slice and Coca Cola’s Minute Maid into the market, and the fact that both brands are targeting individuals roughly between the ages of 15-30 (Crushes’ previous target market) (Exhibit 8), we believe it would be best for Crush to make an adjustment to their current positioning strategy. Shifting from their current age range (teens 12-17)(Exhibit 13) to younger children between the ages of 6-16 would tap into a market segment not currently being pursued by the new dominant Orange Soda companies. This shift would differentiate Crush even further from their competition, and as a result lead to more market share capture potential and competitive advantage due to the fact that they will be the first major orange soda brand to enter into this new target market. Secondly, the alignment with a younger age bracket