CADBURY BEVERAGES
Miles Anderson
 Steven DiPalma
 Jesse Glendinning
 Patrick Nathanson
 Courtney Pope
 Chandra Simmons
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SUMMARY
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Cadbury Schweppes – world’s first soft drink maker
Fourth largest soft drink marketer in United States
 Coca-Cola (1), PepsiCo (2), Dr. Pepper/Seven Up (3)
 3.4 % carbonated drink market share
1989 acquisition – Crush would account for 20 % of
Cadbury Beverage sales
Production and distribution: concentrate producers,
bottlers, and retail outlets
Principal retail channels: supermarkets, convenience
stores, vending machines, fountain services, and
small retail outlets
 Supermarkets account for 40 % of sales – key to a
successful marketing effort
SUMMARY
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Competitors in orange-flavored soft drinks: Mandarin
Orange Slice (PepsiCo), Sunkist (Cadbury), Minute
Maid Orange (Coca-Cola)
$26 million spent on advertising by four major brands
 84 % of spending from Minute Maid and Mandarin
Orange
Crush spent less on advertising with fewer vehicles
 Spot Television, newspapers, outdoor signage
Very little pricing difference between four major
brands (no more than one cent)
Variety of merchandising promotions
 Dealer Loaders, sponsorships, coupons,
sweepstakes, on-package promotions
SUMMARY
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January 1990 – strategic marketing decisions for
Crush brand
Focus intitial attention on orange flavor
 Reesetablish bottling network – make Crush
available in 75 % of total sales markets
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PROBLEM DEFINITION
PROBLEM DEFINITION
Purchased Crush soft drink brand from Proctor &
Gamble for $220 million.
 Manage the relaunch of Crush.
 Three issues:
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Reestablishment of a bottling network.
 New positioning stance that incorporates flavor line.
 Development of an advertising and promotion
program.
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3 C’S
COMPANY
 Cadbury
Beverages, Inc. is the beverage
division of Cadbury Schweppes PLC.
 Sold in 110 countries.
 Cadbury Schweppes PLC headquarters in
London, England.
 Cadbury Beverages, Inc. headquarters in
Stamford, Connecticut.
 World’s first soft drink maker in 1783.
 Owns Canada Dry, Schweppes, Sunkist,
among others.
 3.6% market share in soft drinks.
CONSUMERS
SUNKIST
Target Market
 Teens, 12-24
 Households with 34 children
 Positioning
 “Teens on the
Beach”
 “Drink in the Sun”
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CRUSH
Target Market
 Teens, 13-29
 Households with 35 children
 Positioning
 “Don’t just quench
it, CRUSH IT”
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COMPETITORS
Coca-Cola (Minute
Maid Orange)
 PepsiCo (Mandarin
Orange Slice)
 Dr. Pepper/Seven Up
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Top 10 Soft Drink
Brands
MKT
SH
1. Coca-Cola Classic
19.8%
2. Pepsi-Cola
17.9%
3. Diet Coke
8.9%
4. Diet Pepsi
5.7%
5. Dr. Pepper
4.5%
6. Sprite
3.7%
7. Mountain Dew
3.6%
8. 7Up
3.2%
9. Caffeine-free Diet Coke
2.5%
10. Caffeine-free Diet
Pepsi
1.6%
Top 10 Brands
71.4%
Other Brands
28.6%
SWOT
Strengths
High name awareness in
markets served by existing and
new bottlers
Highest orange brand
awareness in key metropolitan
areas- (Seattle, San Francisco,
New York City, Los Angeles,
Chicago, Boston
Weaknesses
Poor bottling network due to
Procter and Gamble’s switching to
warehouse system
Changing brand positioning
Poor Diet Sales
Market coverage of only 62%
Opportunities
Increase Orange Crush market
shares
Increase market coverage once
bottling network is re-established
Market coverage would increase to
75% once the bottler network is
established
Threats
Three big competitors (Sunkist,
Mandarin Orange Slice, and Minute
Maid Orange) all have higher brand
market shares
Low loyalty compared to other
competitors
Every other competitor in the category
has higher market coverage percentage
COMPANY
High name awareness
 Highest orange brand awareness
 Poor bottling network
 Spend less on advertising and used fewer
advertising than two biggest competitors (Minute
Maid Orange and Mandarin Orange Slice)
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COMPETITION
Mandarin Orange Slice and Minute Maid Orange
have highest brand loyalty
 Mandarin Orange Slice and Minute Maid Orange
two biggest competitors
 Every other competitor in the category has
higher market coverage percentage
 Every other competitor has higher brand market
shares
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CUSTOMERS
Latest positioning targeted towards ages 13-29
with a tagline of “Don’t just quench it, Crush it”
 Household size of purchaser is 3-5 people with
children at home
 2 liter accounts for 64% of sales while cans
account for 31% and 5% is other
 46% customer loyalty
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ALTERNATIVE COURSES OF ACTION
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Develop an efficient distribution network (bottlers,
retailers). This is one of the key success factors in the soft
drink industry.
Crush is targeting teens 13-29 with its current positioning;
we suggest reworking this position to target mainly young
families with children.
With a target market of 18-30 Crush can fight for market
share without cannibalizing that of Sunkist.
We also suggest that Crush return to a position that
emphasizes on its great natural taste. This would appeal to
the young family and ensure once again that Crush was not
cannibalizing Sunkist teenage market.
ALTERNATIVE COURSES OF ACTION
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Crush ran similar ads in the early 80’s and had
success with the young family market.
New ads would focus on the great natural taste of
crush and be run in a variety of media with special
attention given to point of purchase displays, end cap
shelving, and coupons and discounts for the
customers. (Given 60% of sales come from
supermarket sales)
Crush could also run an ad campaign that depicts
alterative times and places to enjoy orange soda and
would focus on increasing the orange soda market s
share of 3.9%.
This would need to be done carefully however to avoid
having an all out price war with some of the larger
soda companies, (coke and pepsi).
QUESTION 1
QUESTION 2
3-WHAT IS CADBURY BEVERAGES RELATIVE
COMPETITIVE POSITION IN THE U.S. SOFT DRINK
INDUSTRY? IN THE ORANGE CATEGORY?
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Cadbury Beverage has a strong competitive position in the Soft Drink
Industry. It is the world's third largest soft drink marketer behind
Coca Cola and PepsiCo. Cola flavored sodas do account for 65.7% of
market share, however orange flavored soda accounts for 3.9%. There
are three other brands that compete against Cadburys Sunkist and
Crush to dominate a large portion of the orange-flavored soft drink
sales. These competitors include PepsiCo's Mandarin Orange Slice,
and Coca-Cola's Minute Maid Orange. in 1989,Cadburys Orange
Sodas were not as high on market share as their competitors,Sunkist
(14%) and Crush (8%), Slice (21%) and Minute Maid Orange (14%).
Crush postitioned themselves to teens ages 13-29 using the statement
" Don't just quench it, Crush it" to attract their consumers.
4-BASED ON YOUR ASSESSMENT OF THE 4
SOFT DRINK INDUSTRY, THE ORANGEFLAVORED CATEGORY, AND THE COMPETITIVE
SITUATION OF CADBURY BEVERAGES AND
ORANGE CRUSH, WHAT IS YOUR
RECOMMENDATION FOR POSITIONING
ORANGE CRUSH?
Crush is targeting teens 13-29 with its current positioning;
and its sister company Sunkist is targeting teens ages 1224. we suggest reworking Crush's position to target mainly
young families with children. We believe that with a target
market of 18-30 Crush can fight for market share without
cannibalizing that of Sunkist. We also suggest that Crush's
reposition emphasizes its great, natural, taste. We believe
this would appeal to the young family and ensure once
again that Crush was not cannibalizing Sunkist's teenage
market.