Cadbury Circumstance analysis

 Cadbury Case analysis Article

Case: Cadbury Beverages, Incorporation.

1 ) Situation Research

-Industry

o$43 billion in retail product sales for sodas in 1989

o82% of soft drink sales are led by several producers: Softdrink, PepsiCo, Doctor Pepper/Seven Up Supermarkets account for 40% of industry sales

oOrange Category (diet & regular) accounts for about 3. 9% of soft drink product sales Top 5 ‘orange' brands: Sunkist, Piece, Minute House maid, Crush -Company: Cadbury

o1989, $4. 6 billion in globally sales

beverages accounted for 60% ($2. seventy six Billion)

o3. 4% soda market share

o3rd largest soda marketer lurking behind Coke & PepsiCo

oSunkist available in market segments representing 91% of lemon sales; Grind available in 62% o16% of advertising for top 4 fruit brands put in by Sunkist & Smash -Trends

oLost the struggle of Business between 1986-1989

With intro of Piece and Small Maid in 1986, market stocks for Sunkist and Grind decreased by simply 12% and 4% respectively; 1987-> Decrease of 7% and 4% respectively; 1988 & 1989 Crush had a 3% decrease each year oSunkist & Crush had an overall decline in advertising bills between 85 and 1989 (68% and 58% respectively) while Day Maid improved ad costs from $174K to over $10. 4 , 000, 000 within the same time frame Slice had an total decrease of advertisement expenditures, but still had more allocated in 1989 than Minute Maid 2 . Issue

-Crush need to reposition by itself in order to gain a better market share among the orange group of soft drinks.

3. Alternatives

-Alternative A: Spend even more on advertising and marketing and advertising of Orange colored Crush using more advertising and marketing vehicles (network tv, cable tv, etc…) oAdvantages

More publicity and availableness markets that represent the orange category Extend to focus on audiences inside the ‘Young Adult' (18-34) Category oDisadvantage

Cannibalization of Sunkist

Decrease in customer commitment from initial target buyer (13-29) -Alternative B: Even more emphasis on Diet Crush regarding regular Crush oAdvantages...

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