Cadbury Crush Case Study

Cadbury Crush Case Study

1)How do you characterize the carbonated soft drink industry in the United States?

Soft drinks represent a huge industry in the United States. The average age American drink more soft drinks than tap water, averaging 46.7 gallons per person per year. Soft Drink industry has always relied heavily on the three major participants. They are concentrate producers, bottlers, and retail outlets. There are about 40 concentrate producers in the United States and the three major role players in the soft drink industry are Coca-Cola, Pepsi-Co and Dr Pepper/Seven Up, they take the 82% of the market share in the United States. They are about 1000 bottling plants in the United states where they receive the concentrate and convert into the carbonated soft drink. Bottlers are either owned by the concentrate producer or franchised. Supermarket, convenience stores, vending machines, fountain service and retail outlets are retail channels for the carbonated soft drink.

2)What is Cadbury Beverages’ Relative competitive position in the United States soft drink Industry?

In 1989 PepsiCo was the leader with a market share of 21 percent. Cadbury Beverages had 14 percent, Coca-Cola had 14 percent and Orange Crush had a market share of 8 percent. Other smaller brands had 40 percent of market share. Mandarin Orange Slice and Minute Maid Orange were available in 81 percent of the market. Mandarin Orange and Minute Maid Orange were targeted towards young adults and households without children. Cadbury needs to do more of advertising and promotions in order to stay and compete in the market.

3)What are your recommendations for STP Orange (Crush)?

Most of the people in United States are health conscious, and moving into organic drinks, it’s better to take this as an advantage in repositioning the Crush Brand as a healthy drink when compared to other drinks in the market. My recommendation would be to sell both regular crush and diet crush by reducing the volume of sugar added to crush, instead add natural sweeteners which are low in calories. R/D might be needed in this case, target teens of 12 to 29 years old and house hold with children, coming to promotion crush should get into rapid advertisement, unlike other drinks advertisements, crush should me more attractive and should make sure that the target people hear the name more, as children at home are the ones who influence. Advertising in kid’s TV shows channel is also one of the way to get more customer base. Media could be social media, shopping malls, radio, Televisions Ads, shopping malls, street posters. As sales in supermarkets are high compared to other outlets crush has to promote their drink by giving discounts during vacations as kids spend more time at home, and the Ads in kids’ TV shows might influence them to force parents to make a purchase. During summer consumption of carbonated drinks are more, the right time to push their product by offering discounts, vacations coupons etc.,