RUNNING HEAD: CADBURY BEVERAGES INC. CASE ANALYSIS
Cadbury Beverages Inc. Case Analysis
October 3, 2010
Cadbury Beverages, Inc. Case Analysis
Marketing executives at Cadbury Beverages, Inc. want to re-launch the following brands: Crush, Hires, and Sun-Drop soft drinks. However, Cadbury has seen several challenges arise in the eve of their next attempt to lead the market. Senior marketing executives decided to focus generally on the Crush brand of fruit flavored carbonated beverages. The key issues that were foreseen by Cadbury executives were the rejuvenation of the bottling network, figuring out brand equity, and develop new positioning. Lastly, there are numerous opportunities available for Crush to take advantage of that which
…show more content…
That is why Cadbury should maximize its diet drinks market share (Kerin, 2007).
Buyer Behavior
US consumers drink more soft drinks than tap water. Most purchases in supermarkets are unplanned because people are sensitive to price promotions, in-store displays and all point- of- sales promotions. In a geographical sense, the national consumption per capita is 46.7 gallons with per capita consumption the highest in the East South Central states. It is the lowest in the Mountain states at 37.1 gallons. Higher consumption usually occurs during the summer months and is called seasonal consumption (Kerin & Peterson, 2007).
Brands and Products
There are more than 900 registered brand names in the US. The top 10 brands are marketed by the 3 leading US soft drinks companies which are Coca-Cola, PepsiCo and Dr. Pepper/7up. The cola flavor is the most popular of carbonated soft drinks in the US with 65.7% of the market share. The orange flavor comes in 3rd with only 3.9% of the market share. As far as market segments are concerned there are only two segments; the regular carbonated soft drink and the diet carbonated soft drink (Kerin & Peterson, 2007).
SWOT Analysis:
Strengths of this brand include: it is the 4th largest marketer, brand longevity, and it has a large/high awareness in big cities. Its’ weaknesses are: low market share, low market coverage, limited bottlers’ network, relatively low advertising
1. Emerging market is a financial market of a developing country, usually a small market with a short operating history.
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000, carbonated soft drink retail sales were estimated $60.3 billion, however, soft drink consumption growth has slowed in recent years. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the U.S. They are the Coca Cola Company with 44.1% market share, The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/ Seven Up, Inc. with 14.7% market share. These three companies market the top ten brands account for 73% of soft drink sales in the U.S. Dr. Pepper/ Seven Up, Inc. owns two of the top ten brands: Dr.
According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17.
Trader Joe’s strategy is to provide unique products for highly educated customers at reasonable prices and excellent customer service. The efficient and effective way in which TJ has achieved this strategy has turned it into its competitive advantage. This competitive advantage has its roots on TJ’s core competency of Culture and Brand Management (Exhibit 7) which is the result of the combined effects of Infrastructure, Human Resources, Inbound Logistics and Service from the value chain (Exhibit 6).
The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) collectively hold about 70% of the US market which can making very hard for new entry to succeed in this industry. However, the decline in CSDs consumption has opened a great market for non-carbonated and health conscious drinks. So, LaMarquise intends to take advantage of this opportunity to develop its market of flavored syrups and fruits concentrate juices, also to note that there are very few competitors when it comes to flavored syrups in the U.S. The products are great refreshing drinks for adults and children and contain no preservatives or harmful chemicals. Furthermore, our marketing plans and strategies will offer an opportunity to succeed in this competitive market.
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten
Dr. Pepper/Seven Up, Inc. is the company which produces the brand Squirt. “Squirt is a caffeine-free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Squirt is the best selling carbonated grapefruit soft drink brand in the U.S.” (Kerin and Peterson, 2010) Kate Cox, the brand manager responsible for Squirt believes that market targeting and product positioning are key elements in Squirt’s advertising and promotional plan development. This case study will provide a summary and analysis of Dr. Pepper/Seven Up, Inc.’s options and the examination into the company’s strengths, weaknesses, threats, and opportunities.
Based in St. Louis, Missouri, Anheuser-Busch is the leading American brewer. The company is one of the largest theme park operators in the United States, a major manufacturer of aluminum cans and one of the world’s largest recyclers of aluminum cans. Our diverse background also includes malt production, rice milling, real estate development, turf farming, label printing and transportation services.
Analysis of the Cadbury Business The person, who created the Cadbury business, is John Cadbury in 1824. The business started as a shop in a fashionable place in Birmingham. It sold things such as tea and coffee, mustard and a new sideline - cocoa and drinking chocolate, which John Cadbury prepared himself using a mortar and pestle. In 1847 the Cadbury business became a partnership. This is because John Cadbury took his brother, which also made it a family business.
How should Ben & Jerry’s management improve its management control processes in order for it to be more competitive in the superpremium ice cream industry?
1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008.
The soft drink industry is one of the most highly profitable industries in the USA. Also, the competitive market is a very large market. Americans consumed about 53 gallons of soft drinks per person a year in 2000 by $ 60.3 billion!! Comparing with the market in 1990, since it was 47 gallons. In recent years, the market growth has slowed.
The next tool would be the news. We would create favorable news about the product and watching the news is a daily thing and when the public watches the news and sees this product, they would be enticed to buy
It is interesting to read the article about Cadbury Worldwide. From perspectives of 3 three different cultures. While it might be lucrative to start providing your services, or selling products across your borders, an option should be thought of as real journey of discovering new cultures and customs of different groups of people. It will be useful to understand them and how to do business in their countries. Be aware of the regulation and standards are important. There are two examples of the purchasing Cadbury UK by the American food gain Kraft and how the two work cultures of the American and the British are different.
• Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives a competitive advantage.