consisted of largely the same operations. Both companies purchase their own ingredients through use of future contracts (to avoid market volatility) and produce their concentrate from their own facilities. Once this is done‚ these companies send their concentrate out to bottlers upon approval of contract for bottling company. Once the bottling company receives the shipment of concentration‚ it is diluted to the correct concentration by adding the correct amount of carbonated water‚ and sugar‚ and bottled
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Outline I- INTRODUCTION II- THE CARBONATED SOFT DRINK INDUSTRY A) The industry structure B) Brand competition & consumer behavior III- ORANGE CATEGORY A) Competition analysis B) Competitor Positioning and Advertising C) Competitor Pricing & Promotions IV- CADBURY’S COMPETITIVE POSITION IN THE US SOFT DRINK MARKET AND ORANGE CATEGORY A) SWOT Analysis B) Key Success Factors V- MEDIA ADVERTISING $ PER CASE FOR MAJOR BRANDS VI- PRO FORMA INCOME STATEMENT FOR ORANGE CRUSH A) Forecast of
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which is in the group of basic commodities‚ is profitable. Both concentrate and bottling businesses are interrelated‚ because they create one product‚ but at different stages‚ they have the same consumers‚ however‚ there is a big difference in the structure and most significant is gaining profitability. 5 forces structure of both businesses would help to explain the phenomenon: The power of suppliers: Concentrate and bottling producers would need sugar and corn syrup‚ flavors‚ sweeteners‚ packages
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analysis through Porter’s Five Forces reveals that market forces are favorable for profitability. Defining the industry: Both concentrate producers (CP) and bottlers are profitable. These two parts of the industry are extremely interdependent‚ sharing costs in procurement‚ production‚ marketing and distribution. Many of their functions overlap; for instance‚ CPs do some bottling‚ and bottlers conduct many promotional activities. The industry is already vertically integrated to some extent. They also
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Case Recap Dr. Pepper/7-Up (DPSU) is the largest division of Cadbury Schweppes PLC‚ the world’s third largest soft drink company. The Squirt brand manager in 2001‚ Kate Cox‚ is working on the brand’s annual advertising and promotion plan (Kerin & Peterson‚ 2010). The main issue in developing a marketing strategy stems from the market targeting and product positioning in Squirt’s advertising and promotion plan development. This case analysis will review the issues; examine the company’s strengths
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for an efficient new plant could range as much as $75 million. Both Coke and Pepsi pursued a backward integration strategy‚ buying significant percent of bottling companies‚ and then creating independent bottling subsidiaries such as Coca-Cola Enterprises (CCE) and Pepsi Bottling group (PBG). Thus it is very difficult for a new concentrate producer entering the market to find any bottler who will distribute their product. Industry Rivalry The CSD is an oligopoly/duopoly environment. From the high
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Cola wars continue: Coke and Pepsi in 2010 (HBS 9-711-462) a. Use the 5-forces framework to explain why the soft drink concentrate industry has been so profitable. 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. According to the 5-forces model‚ each industry’s profitability can be assessed considering the five forces that influence the market – The rivalry among existing
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clearly specify Coke and Pepsi’s market in the value chain of the industry‚ their main suppliers and main buyers. Both concentrate producers (CP) and bottlers are profitable. These two parts of the industry are extremely interdependent‚ sharing costs in procurement‚ production‚ marketing and distribution. Many of their functions overlap; for instance‚ CPs do some bottling‚ and bottlers conduct many promotional activities. The industry is already vertically integrated to some extent. They also
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gradually it became a part of their life style also the manufacturing process for concentrate was simple and required small investment‚ significant cost were to advertise‚ promotion‚ market research etc‚ while bottling process was extremely capital-intensive and involved specialized‚ high speed lines‚ but there was no considerable investments required on Advertisements‚ promotions and market research etc. This way Concentrate Manufacturers and Bottlers complemented each other for higher profit margins
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of the bottling network‚ figuring out brand equity‚ and develop new positioning. Lastly‚ there are numerous opportunities available for Crush to take advantage of that which will be discussed in this case that deal with new positioning towards a different segment and a much needed rejuvenation of the bottling network. Industry Structure There are three major players which are all very important in the production and distribution of carbonated soft drinks. They are concentrate producers‚ bottlers
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