Preview

Cadbury Beverages Inc. Crush Brand Case Study Essay Example

Powerful Essays
Open Document
Open Document
2477 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Cadbury Beverages Inc. Crush Brand Case Study Essay Example
Dimitrius Jeffries
Marketing Strategies
Cadbury Beverages Case Study

Cadbury Beverages is the beverage division of Cadbury Schweppes, a major soft drink and confectionary marketer. In 1989 they had worldwide sales of $4.6 billion. Schweppes was the worlds first soft drink maker and the 3rd largest soft drink marketer. In 1969 Schweppes merged with Cadbury in the year 1989 and Cadbury Schweppes was on of the world’s largest multinational firms and was ranked 457th in the business week’s global 1,000. Beverages accounted for 60% of the company worldwide sales and confectionery for 40%. Cadbury Beverages is the 4th largest soft drink marketer in the U.S., with a market share of 3.4%

In January 1990 the marketing executives at Cadbury Beverages began the task of re-launching the Crush brand, which was purchased from Procter and Gamble in October 1989. In re-launching the brand they had three issues that had to be addressed if they wanted to make this a success. They were to develop a base positioning, to build a cooperative relationship with bottlers and to budget the advertising and promotion program.

The major competitors for the soft drink industry are Coke, Pepsi and Dr. Pepper/7up. Revenues are extremely concentrated in this industry, with Coke and Pepsi tighter with their associated bottlers. Market trends for the soft drink industry can be summarized by six fundamental themes. Changing consumer beverage preferences, featuring a shift toward heath-oriented wellness drinks. The growing friction that is going on with the between bottlers and manufactures in the distribution system. Continually increasing retailer strength, fierce competition, complex distribution system composed of multiple sales channels, beverage safety concerns and more-stringent regulations.

Three main actors participate in manufacturing and distributing of carbonated soft drinks in the U.S. They are concentrate producers, bottlers, and retailers. The concentrate

You May Also Find These Documents Helpful

  • Best Essays

    References: "Carbonated Soft Drinks Industry Profile: United States." Carbonated Soft Drinks Industry Profile: United States (2009): 1. Business Source Premier. EBSCO Web. Quinsigamond Community College, George I. Alden Library, Worcester, MA. 17 June 2010.…

    • 1779 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Introduction Drinks Market The soft drink market contributes around £7.7 billion to the U.K. economy and supports 135,000 jobs. It is divided into 5 sectors, dilatable, bottled water, still and juice drinks, fruit juice and carbonates which account for £3.4 billion alone (largest sector). Consumption rates of soft drinks vary year-to-year depending on crucial factors like the weather, but the value per liter and overall value of the market is always increasing annually (value per liter jumped 0.90 to 1.05 from 2006-2012) (Mintel, 2013).…

    • 2566 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Background: The Atlanta–based Coca-Cola Company controls about 65 per cent of the soft-drink market. Pepsi-Cola has about 15 per cent. The rest belong to other soft-drink products.…

    • 3630 Words
    • 15 Pages
    Good Essays
  • Powerful Essays

    Cola Wars Case

    • 1195 Words
    • 5 Pages

    Concentrate Producers and Bottlers were two of the four major participants that were involved in the production and distribution of Carbonated Soft Drinks (CSDs) in the United States.…

    • 1195 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Australian Beverages Limited

    • 13357 Words
    • 54 Pages

    Australian Beverages Limited (ABL) commenced soft drink manufacturing in 1937. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit and milk-based drinks. Entry into the snack food market was recently undertaken in response to declining consumption of carbonated soft drinks (CSDs), the company’s traditional area of business strength. This move also enabled ABL to leverage its strong distribution capabilities to supermarkets, convenience stores and hospitality channels by adding adding such complementary food products to non-alcoholic beverages. Nevertheless, CSDs still accounted for 90 per cent of company revenue in 2004. Tom Dwyer, the current managing director, has been with the company since 2005. He joined the company at a time when CSD growth was stagnating and shareholder confidence in the company was waning. This had resulted in the share price declining by 15 per cent in the two years prior to his appointment. In order to restore shareholder confidence, Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong investment was made in world class manufacturing facilities and systems. Process re-engineering was implemented to reduce costs of manufacture and time to market. Having finalised the integration of a snack food business acquisition just over 12 months ago, Dwyer is now aware that he needs to identify further growth options given predicted continuing decline in the CSD market. In January 2010 he asked the strategic planning team to undertake another detailed review of opportunities for…

    • 13357 Words
    • 54 Pages
    Powerful Essays
  • Satisfactory Essays

    cola wars continue

    • 395 Words
    • 2 Pages

    The soft drink concentrate industry has been very profitable for over 100 years. The reason can easily be found by analyzing the concentrate industry using the 5-forces model.…

    • 395 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    There are a vast amount of manufacturers and distributors in this market, but Pepsi and Coca-Cola have managed to stay in the number one spot for a couple of decades. These two companies have not only dominated the market domestically they have dominated the worldwide market. They followed a plan that kept them above and beyond the market of soft drinks. They have overcome obstacles that allowed them to manufacture and distribute globally. (The Coca Cola Company, 2009).…

    • 1271 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    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.…

    • 5114 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    The competition within the $74 billion carbonated soft drink (CSD) industry has been remarkable ever since Coca-Cola was formulated in 1886, and further intensified when Pepsi was introduced in 1893. Ever since then, the CSD industry has been dominated by these two companies, with Coke taking the lead in the early stage, followed by Pepsi doubled its market share between 1950 and 1970 by offering its concentrate at a lower price than its competitor. The CSD industry has been profitable historically due to numerous reasons. Firstly, in the world’s largest market for CSD products, consumption had been growing at a steady rate of 3% annually from 1970 to 2000 in the U.S., marking a high growth stage in the industry life cycle (Appendix B). This allowed both Coke and Pepsi (C&P) to achieve annual sales growth of around 10%, while competing head-to-head against each other and other smaller CSD producers. Competition between C&P reinforced their brand image, as the increase in marketing efforts could be transferred into profit and sales growth when the overall demand was increasing in a growing industry. However, the increasing industry volume was largely obtained by C&P, leaving other smaller firms vulnerable with stagnated growth opportunity. Secondly, according to Porter’s Five Forces analysis in Appendix A, high barrier for new entrants, low bargaining power of suppliers of both concentrate producers and bottlers, moderate buyer’s bargaining power and low degree of threats of substitutes prior to 2000, have been favorable to the high profitability and growth of the CSD industry. In terms of concentrate producers, the manufacture process involves little fixed costs and capital investments. This ensures high level of gross margin for them and frees up funds for marketing related expenditures. As the industry became more consolidated, large firms such as C&P gained pricing power over bottlers through master price contracts. For bottlers, even though heavy capital…

    • 1227 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Squirt

    • 1042 Words
    • 5 Pages

    The soft drink industry has three major participants in the production and distribution; concentrate producers, bottlers, and retail outlets. Concentrate producers are responsible for consumer advertising and promotion programs, product development and planning and market research. The bottler’s responsibility is to set up local and retail trade promotions. Among this is selling and servicing retail outlets, placements and…

    • 1042 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The Carbonated Soft Drink (CSD) industry is enormous. In 2000, more Americans drank soft drinks than water. The production and distribution of soft drinks involve concentrate producers (basic flavors), bottlers (add sweetener and carbonated water), and retailers. Of all the retailers available for distribution to customers, grocery stores and supermarkets account for about 31% of sales. There are three major competitors in the soft drink market (Coca-Cola, 44.1%; Pepsi-Cola, 31.4%; Dr Pepper/Seven Up, 14.7%). Each competitor spends a lot of money on advertising their brand through promotions, and consumer price discounting. Concentrate producers and bottlers usually share advertising costs because bottlers can target markets locally while producers focus on the bigger picture.…

    • 3374 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Cadbury Schweppes Case Study

    • 12635 Words
    • 51 Pages

    Cadbury Schweppes was formed by the 1969 merger of a beverage company started by Jacob Schweppe in 1783 in Geneva, Switzerland and a chocolate business started by John Cadbury in Birmingham, U.K. in 1824. While Schweppes was best known for its mixers, such as tonic water, the firm was the number three competitor in the beverage business after Coca-Cola and PepsiCo. Cadbury Schweppes was the number four player in the global chocolate business, having exited related businesses such as biscuits (cookies) in a restructuring in the 1980s. This had focused the company on its core beverage and confectionery brands, the former of which was fortified by the acquisitions of carbonated soft drink (CSD) brands Canada Dry and Sunkist (1986), Dr.…

    • 12635 Words
    • 51 Pages
    Good Essays
  • Satisfactory Essays

    Cadbury Beverages Inc.

    • 460 Words
    • 2 Pages

    The Re-launch: Cadbury decides to re-launch Crush brand, specifically the orange soda flavor because of the past success. The industry of the orange flavor, while on a decline, was rejuvenated by Minute Maid Orange and Mandarin Orange in the mid 1980’s due to widespread distribution, heavy advertising, and creative promotions. The marketing effort of the Crush brand can capitalize on this rejuvenation by successfully finding solutions for the following antecedents (issues).…

    • 460 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Established markets generate intense competition during which new and innovative marketing strategies are required and new and existing products are developed.…

    • 2720 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Cadburys Swot and Pestle

    • 1316 Words
    • 6 Pages

    Cadbury’s is fully focused on chocolate, candy, and chewing gum, with a unique understanding of consumer in the segments. This allow Cadburys to be able to put all efforts and resources into just this area, concentrating all R&D and marketing here and not using money in other areas.…

    • 1316 Words
    • 6 Pages
    Good Essays