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Cadbury Beverages, Inc. Crush Brand

Cadbury Beverages, Inc. Crush Brand. By: Steven Gutowitz Grant Marlowe Josh Winkler. 1. Summary. Cadbury Schweppes PLC is the world’s third largest soft drink marketer. Total annual sales in 1989 were $4.6 billion. Primary Competitors include PepsiCo. and Coca-Cola.

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Cadbury Beverages, Inc. Crush Brand

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  1. Cadbury Beverages, Inc.Crush Brand • By: • Steven Gutowitz • Grant Marlowe • Josh Winkler 1

  2. Summary Cadbury Schweppes PLC is the world’s third largest soft drink marketer. Total annual sales in 1989 were $4.6 billion. Primary Competitors include PepsiCo. and Coca-Cola. PLC acquired the Crush carbonated beverage brand in 1989 for $220 million. 3 distribution channels involved in carbonated soft drink sales. (Concentrate Producers, Bottlers, Retail Outlets.) Orange Flavor soda accounts for 3.9% of soft drink sales. Cadbury Schweppes faces the challenge of ‘re-vitalizing’ the Crush Soft Drink Brand. 2

  3. Flavors • • Crush Frozen Orange Dream • • Crush Tropical Punch[5] • Crush Fruity Red[6] • • Crush Ginger Beer • • Crush Grapefruit • • Crush Grape • • Crush Lemon[7] • • Crush Lemon-Lime[5] • • Crush Lime[5] • •Crush Nectar • Crush Orange[5] • • Crush Peach[5] • • Crush Peach Sour[6] • • Crush Pear • • Crush Pineapple[5] • • Crush Pink Grapefruit[6] • • Crush Red Cream • • Crush Red Licorice[6] • • Crush Root Beer • • Crush Sarsi • • Crush Soda Water (Kuwait, 1970s–1990s) • Crush Sour Apple (briefly offered in 2005) • • Crush Strawberries 'n' Cream • • Crush Strawberry[5] • • Crush Strawberry Lemonade • • Crush Wild Cherry Cola[7] • • Crush Watermelon • • Diet Crush Cream Soda • • Diet Crush Grape\ 3

  4. Primary Problem • Cadbury Beverages, Inc. has taken on the challenge of trying to rejuvenate the bottling network for Crush soft drink brand. 4

  5. Secondary Problems • Figure out the brand equity of Crush • Developing a new advertising and promotion program • Build relationships with bottlers • Increase advertising and promotional expenditures 5

  6. Industry Background • There are 3 main actors in the production and distribution of the soft drink market: • Concentrate Producers: • 40 concentrated producers in the United States • 82% of the industry sales are dominated by Coca-Cola, PepsiCo and Dr. Pepper/Seven Up • Retail Channels: • Supermarkets: Account for 40% of carbonated soft drink industry sales • Other retail channels: Convenience stores, vending machines, fountain service, and thousands of small retail outlets. • Bottlers: • Approximately 1,000 bottling plants in the United States covert flavor concentrate into carbonated soft drinks. • Either owned by concentrated producer or franchised to sell the brands of concentrated producers. • Franchise bottlers can: • Package and distribute product is defined territories. • Not allowed to market a directly competitive major brand. 6

  7. SWOT Analysis 7

  8. Consumer Analysis • Married women with children under the age of 18. • Respond favorably to price. (use of point-of-sale promotions, displays, etc.) • Purchases are somewhat seasonal. • Sales are slightly higher in the summer months • Diet products are more pronounced among consumers over 25 years old while teenagers and younger consumers drink regular soft drinks. 8

  9. Competitor Analysis Market Share PepsiCo- Mandarin Orange Slice=20.8% Cadbury- Sunkist= 14.4% Coca Cola- Minute Maid Orange= 14% Cadbury- Orange Crush= 7.5% Position -Minute Maid Orange- emphasis on its orange flavor (18-34) -Sunkist- focused on the teen lifestyle (12-24) -Orange Slice- focused on the contemporary youth culture (18-24) -Crush- focused on their bold imagery with thirst quenching benefits (13-29) Variety of Merchandising Promotions Used -“Dealer loader” is a premium given to retailers -End-of-aisle displays/other types of free standing displays -Shelf banners -Sponsorships of local sports and entertainment events, plastic cups and napkins featuring the brand logo -Coupons, on-package promotions, and sweepstakes 9

  10. Corporation Analysis • Dec. 12th 1989 • Cadbury Schweppes PLC (London, England) • Beverage Division: Cadbury Beverages, Inc. (Stamford, Connecticut) • Product’s Sold Include: Tonic Water, Club Soda, Ginger Ale, Root Beer, Sunkist, Crush, Mott’s Apple Juice. • World Wide sales of $4.6 billion in 1989 • One of the World’s Largest Multinational Firms. 4th largest soft drink marketer in the United States. 3.4% market share. 10

  11. Additional Questions • 3-What is Cadbury Beverages relative competitive position in the U.S. soft drink industry? in the orange category? • Bold User Imagery with thirst quenching benefit. • Teens 13-29. • “Dont Just quench it, CRUSH it.” • Two Liter 64%, Cans 31% 11

  12. Odd Facts • Clayton J. Howell included the word "crush" in the original soft drink's name to refer to the process of extracting oils from oranges. • Crush Cherry made its debut in 2010, continuing Crush's spectacular growth 12

  13. Our Recommendations • 1. Re-Establishing the bottling network. • 2. Advertising and Promotion Program • (Objectives, Strategies, Expenditures) • 3. Consumer Advertising Vehicles • (Make sure positioning is consistent with previous positioning) 13

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