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
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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.
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
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).
Doctors recommend that to stay healthy one should consume about 8-9 cups of fluid a day but in todays world most of those fluid are consumed in form of soft drinks. According to 2000 census “ Americans consumed 53 gallons of soft drinks per person compared with about 47 gallon in 1990” generating about $60.3 billion in sales (Kerin & Peterson, 2011).
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.
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.
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.
• Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives a competitive advantage.
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?
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.
Cadbury Dairy Milk is a brand of milk chocolate as of now made by Cadbury, aside from in the United States where it is made by The Hershey Company. It was presented in the United Kingdom in 1905 and now comprises of various items. A specific item in the Dairy Milk line is made with only drain chocolate. In 2015, Dairy Milk was positioned the top of the line chocolate bar in the UK.