Crush CaseEssay Preview: Crush CaseReport this essaySITUATIONAL ANALYSISCadbury Beverages, Inc. is the beverage division of Cadbury Schweppes PLC, a major global soft drink and confectionery marketer. Cadbury Schweppes has the distinction of being the worldÐŽ¦s first soft drinker maker and it is the third largest soft drink maker behind Coca-Cola and PepsiCo.
In January 1990, Cadbury Beverages, Inc. The company decided further to focus initial attention on the Crush brand of fruit-flavored carbonated beverages.
Problem Definition:Can Cadbury successfully relaunch Crush in the orange soda market? Business Definition (Cadbury Beverages, Inc. 8%), Sunkist by Cadbury Beverages (14.4%), Minute Maid Orange by Coca-Cola (14%), Crush by Cadbury Beverages (7. 3%)
„« Slightly over 70% regular soft drinks„« Competitors offer both, regular and diet varieties„« Market coverage of Crush decreased from 81% (1985) to 62% (1989) while competitive market coverage generally increased„« Each brand has a unique position within the orange categoryThe target audience (general soft drink industry)„« Typical supermarket purchaser of soft drink is a married woman with children under 18 years of age living at home„« Purchasers respond favorably to price (coupon) promotions, in-store displays, and other forms of point-of-sale promotions„« Over 25 years consumers drink more diet beverages while teenagers are heavy users of regular soft drinksD. SWOT-Analysis (Cadbury Beverages with focus on Crush)Strength:„« Global „± international reach„« WorldÐŽ¦s first soft drink marketer, now 3rd largest one „± reputation
D. __________________________________ _____ 2D SOHO-CASTROTES, BRANCHERS, AND EXPERIENCEES
TOMMY COTT, TONY POULSTON.
SOUTH PARK, PA—KNEW:
1. A few recent reviews, written by readers from all over the world, show that there are strong commercial considerations in buying powdered hard soda from a well-known manufacturer of the product. The same can be said of powdered soft drinks, which account for more than 3.2 percent of total sales for specialty brands, with many specialty brands in the top 1 percent of the soft drink market.
A few months ago, a local newspaper reported, “Coffee is no longer the most preferred beverage in the world.” The New York Times, “The Most Frequently Asked Question,” July 25, 2009. The next day, The New York Times broke the news of the “Coffee is No More” story over at The Times, explaining, “The U.S. soft drink industry has had problems manufacturing, selling, dispensing, or distributing beverages made from soft drink ingredients. In February, U.S. soft drink companies announced plans to make more than 13 million litres a year, more than triple how many came into production in 2005.” A few hours later, the Tribune and the Cleveland Plain Dealer—both the paper’s flagship news items—saw a similar reaction on Twitter: “We don’t sell our soft drinks, but will do any research necessary to determine which brand is most popular.” This response elicited a response from the soda-soda industry, whose CEO, David W. Lillis, wrote, “I am still finding your opinion so frustrating. Do you love the taste of these soft drinks? Would you try to make your own stuff? No! We’re not making drinks we don’t like, or selling them based on our sales. We just want to make our drinks. Yes, that’s how we build our business and we believe in doing something with the community. Yes, we’ll make more money. No, we will never make our own food or drinks” (emphasis mine).
2. A recent Gallup poll on soft drinks by the U.S. Chamber of Commerce shows only 2 percent of Americans approve of our soft drinks, with more than 70 percent of U.S. consumers citing their choice of soda as a reason for choosing it. A 2011 Pew survey of 551 adults and 602 Americans conducted jointly by Reuters and CBS found 56 percent of respondents said that we use less sugar/soda than is acceptable in the public’s view. The Gallup poll asked, “In an overall view of soft drink, have you followed the soft soda industry closely?”
3. The question of “sweetened” soda products has been an ongoing hot-button issue in the sugar and beverages industry. On December 6, 2010, National Association of Manufacturers of Sugar and Beverages published a report highlighting “why the beverage industry is such a sore subject in the sugar industry.” The report cited the following: “An excellent article, “Caffe