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Cadbury Beverages, Inc.: Crush Brand - Case Study Example

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Cadbury Beverages, Inc.: Crush® Brand Date Cadbury Beverages, Inc.: Crush® Brand Case Background and Problem Kim Fiel, the Senior Product Manager of Cadbury Beverages, Inc., is faced with the task of relaunching the Crush soft drink brand with three specifically identified objectives, to wit: (1) to revitalize bottling network strategies for the brand; (2) to design an appropriate brand positioning; and (3) to develop an advertising and promotional program relative to the brand…
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Cadbury Beverages, Inc.: Crush Brand
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Download file to see previous pages Finally, an internet research is required to evaluate and compare Cadbury Beverages' present marketing strategy with the marketing strategy presented in the case. In one’s opinion, the most significant differences and changes in the present marketing strategy would be identified and determined as to how successful orange Crush® has been in the United States since 1992 with the basis for conclusion appropriately proffered. Characteristics of the US Soft Drink Industry The carbonated soft drink industry in the United States had continued to exhibit an increasing trend with identified consumers reported to drink more soft drinks than tap water (Case facts, n.d, 2). There were major participants in the industry dominated by producers, bottlers and retail outlets. A marked concentration of sales in the industry have been attributed to the top three producers, identified as Coca-Cola, PepsiCo, and Dr Pepper/Seven Up (Industry Structure, n.d, 2). On the other hand, marketing efforts were “characterized by heavy investment in advertising, selling, and promotion to and through bottlers to retail outlets, and consumer price discounting” (Soft Drink Marketing, n.d, 2). The top 10 brands in the US are all produced by the top three producers. Purchase behaviors of consumers are generally unplanned, responds to consumer discounts, point-of-sale displays and promotions, seasonal with rise in consumption and purchase during summer months. Changes in the Orange Category from 1985 to 1989 The orange category composed of orange flavored carbonated soft drinks manifested increasing growth in sales from 1985 up to 1987, but tapered in 1998 and slowly declined in 1989. The increase in demand, consumption and sales from 1985 to 1987 were attributed to the introduction of Mandarin Orange Slice by PepsiCo and Minute Maid Orange by Coca-Cola (Orange Category, n.d, 3). Accordingly, through extensive advertisements and promotions, this particular category experienced a rise in supermarket sales. It can therefore be learned that heavy advertising and promotional campaign assists in enhancing purchase and increasing demand through awareness of the brand category. Cadbury Beverages’ Competitive Position Cadbury beverages ranked fourth among the largest soft drink producers in the U.S. soft drink industry with an identified 3.4% market share. Remarkably, the organization manifests leadership in their specific product specialization, to wit: “Canada Dry is the top-selling ginger ale in the United States, Schweppes is the leading tonic water, and Canada Dry seltzers top the club soda/seltzer category. The combined sales of Sunkist and Crush brand orange drinks lead the orange-flavored carbonated soft drink category” (Softdrinks, n.d, 2). In the orange category, Cadbury beverages’ products belong to the top four with respective market shares indicated herein in 1989: Sunkist (14%), Mandarin Orange Slice (21%) and Minute Maid Orange(14%), and Crush (8%). This information indicates that Cadbury beverages are ...Download file to see next pagesRead More
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