Marketing Case Study: Cadbury Beverages, Inc.

Executive summary

Cadbury Beverages, Inc., faces the challenge of re-launching Crush fruit-flavored carbonated beverages, a product recently acquired from Proctor & Gamble. Given the multitude of competitors, not only in the soft drink market but specifically in the fruit-flavored soft drink market, Cadbury has to determine the best plan for making Crush a viable competitor in this market.

While Crush has been on the market since 1954 and is a familiar brand name, the Cadbury marketing executives face several key issues. First, with the switch from P&G to Cadbury, the Crush soft drink brand needs a revitalized bottling network within Cadbury’s system and steps need to be taken to make the distribution channels clear and efficient. Second, the marketing team has to find the ideal position

While these franchisees are not allowed to sell competing brands of soft drinks, they are permitted to sell non-competing brands. For instance, a bottler who sells Dr Pepper (Dr Pepper/Seven

Up) is not permitted to also market Mr. Pibb (Coca-Cola), but is free to promote and sell Fanta, an alternate, non-competing Coca-Cola product.

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Retailers represent the third major participant in the soda sales market. The major outlets for soda are supermarkets (which make up 40% of industry sales), convenience stores, vending machines, fountain service and other small retailers such as restaurants.

Interestingly, all three key players in soft drink production and distribution play distinctive roles in the marketing and selling of soft drinks. While the concentrate producers take on the tasks of market research and product development, they also develop the ideas for national promotion and large-scale advertising campaigns. The bottlers are involved at another level: they are responsible for working out promotional programs with the retailers to whom they sell and provide service. Retailers, usually in exchange for coupons, promotions and deals for their customers, make arrangements with bottlers