Running Head : MARKETING

Cadbury Beverages

Cadbury Beverages

Introduction

Almost all Americans have consumed at least one soft drink beverage over a year time span. Dr. Pepper/Seven Up, Inc is the largest division of Cadbury Schweppes PLC. “Cadbury Schweppes PLC is the world's third largest soft drink company and the fourth largest confectionary company with product sales in over 200 countries”. Dr. Pepper/Seven Up, Inc. is among one of the three major concentrated producers in the U.S. Dr. Pepper/Seven Up, Inc. owns 2% of market share in the soft drink beverage industry. Cadbury Schweppes is known as the world's “first soft drink maker”, and the “world's largest non-cola soft drink producer and marketer”. The company has several national brands and regional brands that are top leaders in the soft drink industry. Crush was marketed by Dr. Pepper/Seven Up Inc. in the 1990's by Cadbury Schweppes PLC.

In 1938 Herbert Bishop created a carbonated drink that required less fruit and sugar to produce. The new drink “seemed to Crush onto the tongue just like squeezing a grapefruit”. Crush became a popular soft drink product in the 1950's. Throughout the 70's Crush transitioned into a “brand that was a mainstream soft drink”. Crush is a caffeine free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices. Crush leads the market with selling grapefruit “soft drink brand in the U.S”. Crush created several products, and diet Crush was “the first soft drink in the U.S. to be sweetened with Nutria Sweet. Crush partnered with A&W in 1986 and later was acquired by Cadbury Schweppes PLC in 1993 Crush target market has been 18-44 year olds. Red Crush was positioned to appeal to younger generation 12-24 year olds.

Crush wanted to revisit their current market target and product positioning. Crush acquired several marketing firms throughout the years to develop new marketing strategies. Crush position was addressed in 1990's by Foot, Cone and Belding. The marketing company revised the creative strategy by narrowing down the demographic market segment to 18-34 year olds. Foot, Cone and Belding did not implement many changes to increase sales of Crush. Kate Cox was later acquired to help change the direction the Crush Brand was going. Her major decision was to utilize the plan that Foot, Cone and Belding created, or start with a whole new strategy (Smith, 2006, pp. 56-62).

Identifying the Root Problem Components

The focal point for the company was the targeting and positioning for Crush. A major weakness with the Crush brands is marketing targeting. Crush target market has constantly changed over the years. Crush has not been consistent with the market segment that uses their products. The product positioning of the product should require a better advertising and promotion plan development. The company had several different approaches to the strategy planning for their brands. The latest marketing manager challenge was to decide which market structure the product needs in their advertising and promotion strategy.

Crush weakness is competing with other leading soft drink ...