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Strategic Problem and Issue Identification
Cadbury Beverages has been a successful marketer of different carbonated drinks. The company wanted to “re-launch its brands acquired from Procter & Gamble” (Kerin and Peterson 316). The Senior Marketing Executives (SMEs) focused on the Crush brand in order to emerge successful.
To begin with, it was mandatory to rejuvenate the brand’s bottling network. The company also analyzed the facts associated with its leading brands. It was also mandatory for the firm to establish a powerful advertising program for its Crush brand.
This advertising program “required the best strategies, objectives, and preliminary budgets” (Kerin and Peterson 316).
From 1985 to 1989, the Crush orange flavor had become less competitive. The company was using ineffective advertising strategies thus affecting its goals. In 1989, most of “the competitors were using a wider spectrum of avenues to advertise their superior brands” (Kerin and Peterson 324).
Many players in the industry were using similar promotional strategies for their products. It is agreeable that many consumers admired the Crush brand. However, new strategies were required in order to re-launch the product in the targeted markets. This approach would make it easier for Cadbury Beverages Incorporation to achieve its potentials.
Analysis and Evaluation
The problems affecting Cadbury Beverages forced the Marketing Executives (MEs) to make new changes in 1990. To begin with, the MEs decided to focus on the Crush brand. The marketers wanted to make the brand successful. This approach was critical because the flavor accounted for two-thirds of the total sales.
A new bottling network for the brand was also established (Kerin and Peterson 319). The positioning strategy only focused on the existing customer base. New bottling agreements “were created in order to make the orange flavor available to more consumers” (Kerin and Peterson 320).
The level of competition also affected the performance of the Crush brand.
However, the above positioning strategy presented numerous threats to the other brands such as Sunkist. The strategy was also ineffective because the company was making little profits. The “existing competitors were also attracting more customers using their diet segments” (Kerin and Peterson 324).
There was also the need to establish new positions in order to make the brand successful. That being the case, it was appropriate to have a powerful advertising program that could make the brand successful.
It is notable that “the Crush brand boasted of high-awareness in different regions such as Boston, Miami, Seattle, San Francisco, New York, and Miami” (Kerin and Peterson 329). However, it was appropriate to create a powerful promotion program for the brand. Cadbury Beverages Incorporation should therefore have a proper budget for every promotional strategy. That being the case, the firm should use its resources to support the Crush brand. The firm should use appropriate marketing strategies in order to emerge successful because more customers are aware of this brand. A proper knowledge of the existing market conditions will produce the best strategies.
The firm should also identify new distribution channels. It should also collaborate with different restaurants and Gas Stations (GSs) in order to increase its market share. The use of modern technologies such as social media networks will inform more people about the targeted brand.
The firm should also use a powerful marketing mix. This approach will “ensure the firm uses competitive prices, strategic positions, and effective promotional practices” (Kerin and Peterson 18). The strategy will ensure the firm achieves its marketing goals.
Kerin, Roger, and Robert Peterson. Strategic Marketing Problems: Cases and Comments. Upper-Saddle River, NJ: Prentice Hall, 2009. Print.