Cadbury Beverages Case Study

SUMMARY

Introduction p.2

I- The carbonated soft drink industry in the US

- Industry structure p.4

- Industry economics p.5

- Brands & Products p.6

- Consumption behavior p.7

II- Changes in the orange category during the period 1985-1989

- Orange category p.8

- Relation between market share & market coverage p.11

- Relation between market share & advertising share p.13

- Brands positioning p.15

III- Cadbury competitive position in the US

- Swot analysis p.16

IV- Crush Positioning p.18

V- Crush advertising & promotion program

- Objectives & strategies p.18

- Advertising budget p.19

- Crush advertising budget p.20

VI- Crush Pro forma Income statement p.20

VII- Conclusion p.21

Sides p.22

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 world's soft drink maker) and Cadbury (1830, Birmingham, a major British confectionery manufacturer).

In 1989, the Cadbury Schweppes PLC was one of the world's largest multinational companies and the world's 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 39

Sunkist Orange-flavored carbonated

soft