Cadbury Beverages Case Study
SUMMARY
Introduction
I- The carbonated soft drink industry in the US
– Industry structure
– Industry economics
– Brands & Products
– Consumption behavior
II- Changes in the orange category during the period 1985-1989
– Orange category
– Relation between market share & market coverage
– Relation between market share & advertising share
– Brands positioning
III- Cadbury competitive position in the US
– Swot analysis
IV- Crush Positioning
V- Crush advertising & promotion program
– Objectives & strategies
– Advertising budget
– Crush advertising budget
VI- Crush Pro forma Income statement
VII- Conclusion
Sides
INTRODUCTION
Cadbury Beverages, Inc. is a beverages-manufacturing division of Cadbury Schweppes PLC. It was created in 1969 by a merger of Schweppes PLC (1783, London, the first worlds soft drink maker) and Cadbury (1830, Birmingham, a major British confectionery manufacturer).
In 1989, the Cadbury Schweppes PLC was one of the worlds largest multinational companies and the worlds third largest soft drink marketer (behind Coca-Cola and PepsiCo), with worldwide sales of $4.6 billion, performed in 110 countries. Beverages accounted for 60 percent of company sales and 53 percent of its operating income.
Additionally, at that time, Cadbury Beverages, Inc. was the fourth biggest soft drink marketer in the US (behind Coca-Cola, PepsiCo, Dr.Pepper-7Up), with a carbonated soft drink market share of 3.4 percent, and the market leader in some specific soft drinks categories (see exhibit 1).
EXHIBIT 1.
Brand name
Leader in category
% of the US soft drink sales
Canada Dry
Ginger ale, soda/seltzer
Sunkist
Orange-flavored carbonated
soft