Essay on Cadbury Beverages Problems

2021-07-14 05:53:08
2 pages
543 words
University/College: 
George Washington University
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Essay
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Cadbury Beverages, Inc is ranked as the world's largest producer of soft drinks in the market, right behind Coca-Cola and Pepsi Co.

The company encounters challenges with its bid of re-launching Crush fruit flavored carbonated beverages; which they had acquired from Proctor & Gamble. Regardless of a large number of the competitors in the market both in the soft drink and fruit-flavored drinks, Cadbury has to resolute the appropriate plans for the marketing strategy of Crush a variable competitor in this market.

Problem identification

Cadbury Beverages, Inc faced a serious problem concerning its Crush Brands of soft drinks, which is a decrease in the market coverage and market share. There is a steep challenge in acquiring more market share in the category of orange soft drink as a result of stiff competition from the main competitors, Coca-Cola and PepsiCos. As stated earlier, Cadbury acquired Crunch from Proctor & Gamble with the purpose of effectively re-launching the soft drink; in that case, for Cadbury to be able to have a successful re-launching of the brand, then it needs to highlight the problems and developing a solution towards positioning for the brand that will assist it in the initial re-launching of the product. Aligned with this, Cadbury will have to come up with a suitable and effective marketing and advertising strategy that will ensure that they avert cannibalization of the sales of the Sunkist brand, together with assisting Crush to gain the market share at the sometimes addressing the possible challenges concerning, bottlers, production, pricing as well as promotion.

Strategy

The key objective of the company is to increase its market share to 13% together with the sale of the diet orange Crush.

Its target market is teens of the age between 13 to 29 years old as well as households with children, while the companys products position is Crush the Orange! with the bold user imagery. The market strategy to be adopted by the Cadbury in the bid of promoting one of their products, Crush, is by boosting the advertising budget to enhance the brand awareness, together with increasing the promotion budget to improve the relationship with bottlers to apply consumer and merchandising promotion.

Cadbury ought to forecast an advertisement budget that accumulates to 10 Million dollars for them to attain the top market coverage portion of around 85% together with the boost in the market share from 8% to 15%. They should probably use the Coca-Colas bottlers channel (bottle network development) for distribution.

Also, Cadbury should work on giving incentives bonuses on the sale with bottles

It is important to concentrate on both the local and national ads.

Local ads include Radio, TV commercials, Newspapers, Outdoor billboards, and flyers.

National ads include TV cables and network competition events, sponsorship, syndicate TV, magazine, and radio.

In product strategy, Cadbury should supplement the product by developing and enhancing the diet segment (50%). For the proper convincing of the consumer that Crush is the reasonable carbonated beverage, they need to regulate the percentages of calories and sugar in the drink so that to guarantee that it is lower than those of its leading brands. They need to focus on emphasizing on natural flavor and sugar-free campaign. The company has a great unemployed potential characterized with better gross profit margin compared to the regular division plus high growth,

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