If Cadbury Beverages chooses alternative one, that is repositioning the Crush Brand, multiple advantages would achieve their objectives, which are to increase market share by fourteen percent and increase diet crush sales. The advantages are:
1. presence in two age segments
2. creating diversification
3. avoiding cannibalization
4. competitive advantage
The presence in two age segments is advantage because this makes Crush open up in additional target segments that are reaching out to children and teenagers that live with their parent and young adults from eighteen to thirty-four that are interested in buying their diet, non-sugar, Crush beverage. By focusing on an older segment and emphasizing the healthier features of Crush, Crush may be able to increase their distribution of diet soda drinks. Market coverage strongly influences market share these actions will increase Crush’s total market share. This would increase Crush’s main objectives as diet drinks have a higher dollar price liter than regular soda. In Crush promoting that they their formula includes ten percent real juice also would attract consumers. In addition, we know that Slice and Minute Maid have already positioned themselves as a healthier choice, but within their market (p.323).
The fact that Crush has natural juice will encourage parents to purchase the brand that their kids will love. This new positioning will also differentiate Crush from Sunkist, which should minimize cannibalization.
Many organizations are utilizing target marketing to compete more effectively. Companies focus on the customers which they can most likely satisfy, instead of scattering their marketing effort. Effective target marketing requires identifying distinct groups who have different needs and preferences which is called market segmentation and select one or more market segments to enter which is called ...
If Cadbury Beverages chooses alternative one there are several disadvantages that would affect them from obtaining their objectives. The disadvantages are:
2. Customer loyalty
3. Cause a frontal attack
Implementation of this alternative would cause an aggressive advertisement that Cadbury might not be ready for at this time due to having a widespread target market. Crush should also avoid direct competition with Coca-Cola and Pepsi Co.; it could bring on a price war. This alternative may cause a frontal attack, which means that Cadbury will not remain a niche marketer. Customer loyalty is always a disadvantage for any company entering into a market that is very attractive and have an establish customers. For example crush is reintroducing the Crush, carbonated soft drink, sugared, and diet carbonated soft drink, non-sugar, but just because they have a choices of this soft drink does not mean they will attract the consumers in market because they already have strong preferences for what they already have been drinking.
If Cadbury Beverages chooses alternative two, that is creating a program to improve advertising and promotion for the Crush Brand there are multiple advantages that would achieve their objectives, increase market share by fourteen percent and increase diet crush sales. The advantages are:
1. Brand awareness
The market in question is very responsive to advertising and promotion. Crush has no choice but to increase expenditures in order to reach the new market share and objectives. Crush participating in promotions that will establish their recognition of the important role the bottlers will play in Crush’s re-launch. This alternative promotes brand awareness through the new slogan “Crush your thirst”. It is referring to the consumers quenching their thirst from drinking unhealthy carbonated soft drinks. With this new, different, and trendy advertisement, it will capture many consumer and new consumers. For re-launching the Crush brand, some specific promotional techniques, such as coupons and discounts are going to be included to attract the maximum of customers. There is also a correlation between advertising expenditure and market share. Unique packaging plays a big part also due to all ages there will be all sizes in order to please all consumers. Disadvantages
Case Summary Cadbury Plc. is a multinational confectionery (chocolate, chewing gum and candy) company which was founded in 1824 by John Cadbury. In the first years, a time when only wealthy people could afford its products, Cadbury only sold cocoa and chocolate. After World War I, Cadbury started its mass production of chocolate and later was consequently enlarging the company’s capabilities and ...
If Cadbury Beverages chooses alternative two, a couple of disadvantages would affect them from obtaining their objectives. The disadvantages are:
1. Money allocated
2. Risk Cannibalization
With this alternative there, a less disadvantages than the other alternative but they are very detrimental. Allocating funds from Cadbury other resources is a disadvantage because it may cut down another part of the company that may need those funds in future for promoting, advertising, etc. This alternative is also a big risk for cannibalization of Sunkist and return on investments. Alternative Three
If Cadbury Beverages chooses alternative three, that is developing a new the distribution network for Crush Brand there are numerous advantages that would achieve their objectives, increase market share by fourteen percent and increase diet crush sales. The advantages are:
1. ease of implementation
2. strong relationships
3. more choices for channels
4. obtain the largest market share
5. make Crush name more competitive
Crush’s first interest should be to continue repairing the relationships with the bottling network and build relationships with retailers. The is alternative would give the Crush brand an advantage because it is attempting to reestablish relationships with bottlers, the distribution which is helpful by showing and then convincing bottlers that Crush brand is just as important as their competitors which would help their position to Crush’s successful re-launch. Through Cadbury, entering into long term contract is very strategic and shows the bottling companies that Crush brand will be the best fit for them. They understand and see that Crush new positioning campaign will want to be involved in this relaunching the brand. Disadvantages
If Cadbury Beverages chooses alternative three, a few disadvantages would affect them from obtaining their objectives. The disadvantages are:
1. competitive are established
2. three major competitors hold eighty-two percent of sales
3. brand loyalty- producers and bottlers
What is the communication mix of Cadbury? The marketing communications mix consists of five major modes of communication 1. Advertising – in the case of Cadbury, advertising is used to build a long-term image of the product – Cadbury must therefore through its media posture be the market champion and carry the brand message – Television is the advised primary medium of ...
The disadvantage of alternative three would definitely be Crush brand competitors having a competitive advantage because they already have an eighty-two percent of sales, which bottlers, producers, and distributors would not turn from. The high loyalty would not help their market share increase fourteen percent. These relationships are key to Crush’s ability to regain market share and vastly improve their marketing coverage. Potential Outcomes
Cadbury can relaunch the Crush brand into the carbonated soft drink market by introducing their product without cannibalization with Sunkist and entering into a frontal attack with their major competitors. To differentiate they can give choices, for example, sugared and sugar-free to reach more segments. However, their method is the thing that will have the effect in whether they succeed or fail relaunching the Crush brand in the market. Cadbury’s portfolio is diversified that it is a great opportunity to enter into the market with relauching a carbonated soft drink making it favorable to the organization overall. The way that brand dedication is a huge element inside this market, so it may ruin their passageway to the business. Regardless, of the chances that they figure out how to strengthen the barriers they may have the capability to make a decent benefit inside the carbonated soft drink market. Epilogue
Cadbury Beverages Re-launch Crush Brand
Through our research and evaluation of the alternative disadvantages and advantages, we recommended the first two alternatives. At the end, we found that Cadbury as we did paid attention to positioning Crush brand, advertising, and promotion. They also focused on developing a distribution network. As of right now, Crush is receiving sales but not enough to compete with the top competitors.
1. Kerin, R., & Peterson, R. (2013).
Why is easy Jet successful? Four key criteria are used to evaluate easy Jet's strategic marketing success. Strong Financial Performance Shareholder value is ultimately driven by bottom-line financial success, which at easy Jet has been fuel led by capacity expansion, cost control and tapping in to highly price sensitive segments of the market. Rapid Sales growth - Between 1998 and 2003 revenues ...
Cadbury Beverages, Inc Case. In Strategic marketing problems: Cases and comments (13th ed.).