...Running head: Cadbury Beverages, Inc.: Crush® Brand Cadbury Beverages, Inc.: Crush® Brand Shih Ming Chang Grand Canyon University MKT 450 July 24, 2011 1.) Three main participate in manufacturing and distribution of carbonated soft drinks in the United States: concentrated producers, bottlers, and retailers. The concentrated producers’ and bottlers’ responsibilities differ for regular and diet drinks. Bottlers are responsible of serving retail outlets, such as placing in-store displays, local advertising, and restocking, whereas concentrated producers are responsible of developing new products, national consumer advertising, promotion programs, and marketing research. There are approximately 40 concentrated producers in United States, but only top three (Coca-Cola, PepsiCo, and Dr. Pepper/7Up) account for 82% of industry sales. Whereas approximate 1000 bottlers in United States and they are either owned by concentrated manufactures or franchised. Franchised bottlers are usually given the exclusively rights for a certain territory, but they cannot sell a directly competitive brand. As far as retailers concerned, the main retail channels are supermarkets, vending machines, and fountain services. In fact, over 40% of the soft drink sales are sold in supermarkets which are claimed to be crucial in the company’s distribution net. 2.) During the period of 1985 to 1989, the total sales in the orange carbonated rinks’ category increased by 23.5%, from 102 million cases to...
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...James Floyd 9/17/13 Mk: 4900 Cadbury Beverages, Inc: Crush Brand Case Analysis I will be doing a market analysis for crush by analyzing the company (Part 1), identifying the industry and competition (Part 2), and conclusions and recommendations (Part 3). Part 1: Company Analysis - Important Company Information To Note: - Cadbury Beverage, Inc. is the beverage division of Cadbury Schweppes PLC. (a major soft drink and confectioner marketer) - Sales of $4.6 billion in more than 110 countries - Cadbury Schweepes PLC is one of the world’s first soft drink maker - In 1989, Beverages accounted for 60% of company world wide sales and 53% of operating income. o Confectionery items accounted for 40% of worldwide sales and produced 47% of operating income. - Overall goal for managers on Crush brand: o Rejuvenate the bottling network for the brand, o Develop a base positioning, o Create a new advertising and promotion program. Part 2: Industry Analysis - Cadbury Schweppes 3rd largest soft drink marketer. - Cadbury Schweppes had some key acquisitions of companies. - In 1989, Proctor & Gamble bought Crush for $220 million. - Cadbury Schweppes has a 3.4% market share of the carbonated soft drink market. - 3 leaders o Coca-Cola o PepsiCo o Dr. Pepper/7Up - Americans consumed an estimated $43 billion in retail sales in 1989 - 3 Major participants...
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...worldwide and in 1960s the company diversified into food products. In 1969 Schweppes merged with Cadbury which was a cocoa making business started in England in the 1830s. Year | Acquisition | 1986 | Canada Dry soft drink brands | 1989 | Certain soft drink brands and purchased Gini brand of Belgium. | 1989 | Crush brand from Procter & Gamble for $220 million. | Cadbury Beverages, Inc., a beverage division of Cadbury Schweppes PLC acquired the Procter & Gamble brands namely Crush, Hires and Sun-drop in the year 1989. They had to re launch those brands into the market because those products were paced out by their competitors. This case especially deals with the Crush brand(an orange drink). Kim Feil who joined the division in 1989 as a Senior Product Manager for managing the re launch of Crush soft drink brand. There had been a lot of discussions regarding the crush brand. After making a thorough industry review, competitors positioning and the image which Crush has on its customers mind the senior marketing executives at Cadbury Beverages, Inc decided to focus initial attention on the Crush Brand(fruit flavoured carbonated beverage). PROBLEM DEFINITION: After acquiring the soft drink brands from Procter & Gamble in October 1989 Cadbury beverages Inc. was not able to compete with its competitors Pepsi and Coke. So it had to relaunch its Crush brand. The brands positioning was not good...
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...4 - Industry economics p.5 - Brands & Products p.6 - Consumption behavior p.7 II- Changes in the orange category during the period 1985-1989 - Orange category p.8 - Relation between market share & market coverage p.11 - Relation between market share & advertising share p.13 - Brands positioning p.15 III- Cadbury competitive position in the US - Swot analysis p.16 IV- Crush Positioning p.18 V- Crush advertising & promotion program - Objectives & strategies p.18 - Advertising budget p.19 - Crush advertising budget p.20 VI- Crush Pro forma Income statement p.20 VII- Conclusion p.21 Sides p.22 INTRODUCTION Cadbury Beverages, Inc. is a beverages-manufacturing division of Cadbury Schweppes PLC. It was created in 1969 by a merger of Schweppes PLC (1783, London, the first world’s soft drink maker) and Cadbury (1830, Birmingham, a major British confectionery manufacturer). In 1989, the Cadbury Schweppes PLC was one of the world’s largest multinational companies and the world’s third largest soft drink marketer (behind Coca-Cola and PepsiCo), with worldwide sales of $4.6 billion, performed in 110 countries. Beverages accounted for 60 percent of company sales and 53 percent of its operating income. Additionally, at that time, Cadbury Beverages, Inc. was the fourth biggest soft drink marketer in the...
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...Dayne Hopkins Mkt-251 Feb. 28th Cadbury Beverages, Inc 1. How would you characterize the carbonated soft drink in the United States? The carbonated soft drink in the U.S is the most popular drink of choice by a large margin. In America consumers drink more soda than tap water, at around 47 gallons per person every year and growing. It is not only the most popular but also a large part of the economy, as some of the biggest companies like Pepsico, Coca-Cola, and Dr Pepper/Seven-Up, who are a few of the majorly recognized companies in America, grow off of these sales 2. How would you describe the changes in the orange category during the period 1985 to 1989? What can be learned from these changes? At a glance the orange category seems to have grown in sales by around 20,000,000 cases sold, according to industry sales sold through supermarkets. Also according to market coverage of Orange Category competitors, Crush and Sunkist have decreased the amount of product put out and Mandarin orange slice, and Minute maid orange have both increased significantly by putting their products in markets where more orange drinks are sold. From what I can tell, the more dominant companies have taken over due to more resources and more money to advertise and move product around. 3. What is Cadbury Beverages relative competitive position in the US soft drink industry? In the orange category? In terms of top companies in the beverage world, Cadbury with 11 difference carbonated drinks...
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...Cadubry Beverages Inc. Crush Brand #3 Company History * The company has the distincition of being the worlds first soft drink maker * It first started in London in 1783 where Jacob Schweppe sold artifical minderal water * After introducing many other products inclduing water, lemonade, gingerale, and food products they merged with Cadbury a major British candy maker in 1969 * 1989 one of largest multinational firms and ranked 457th in BusinessWeek’s Global 100 * in 1989 the company purchased Crush, Hires, and Sundrop soft drink brands from P&G for $220 Million * this is when our case takes places, the marketing excutives at Cadbury are left the with task of relaunching these brands and we will be focusing on crush * they also own brands such as schweppes, mott’s, Holland House, Hires, and many more * currently bevarges make up 60% of sales and confectionery items make up the rest * they are also the market leader is some of their categories such as Canda Dry leading in ginger ale maket, which accounts for 39% of Cadbury soft drink sales in U.S. * worldwide headquarters is in Stamford, Connecticut #5 Strengths * high brand: many of their current brands and ones they recently purchased have high * first soft drink maket: which gives them a trusting reputation * 3rd largest soft drink mareter: behind coke and pepsi Weaknesses * Due to decision that P&G made when the had owned Crush they stopped using bottling...
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...Management Project/Presentation The Dr. Pepper Snapple Group History Overview From the invention of the first soft drink more than 200 years ago to some of the industry's most beloved beverage brands, Dr Pepper Snapple Group (DPS) has a proud legacy of innovation, bold and distinct flavors, and entrepreneurial spirit. On May 7, 2008, DPS became a stand-alone, publicly-traded company on the New York Stock Exchange as the result of a spin-off by Cadbury, plc which held the Cadbury Schweppes Americas Beverages business group of entities. One of North America's leading refreshment beverage companies, DPS markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a strong, sustainable and profitable business. The company's integrated business model enables the company to manage the entire value chain from innovation to the store shelf. History The company now known as DPS has evolved from a combination of discovery, invention and collaboration. This rich history includes the very birth of the soft drink in 1783, when Jean Jacob Schweppe perfected the process for carbonating water and created the world's first carbonated mineral water. Dr Pepper and Snapple, the flagship brands of DPS, have origins that share Schweppe's entrepreneurial spirit. Charles Alderton, a young pharmacist in Waco, Texas, invented Dr Pepper in 1885. It was served at the drug store where...
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... permission to reproduce or cite this case, contact Jeffrey S. Harrison (RCNcases@richmond.edu). In your message, state your name, affiliation and the intended use of the case. Permission for classroom use will be granted free of charge. Other cases are available at: http://robins.richmond.edu/centers/center-‐for-‐active-‐business-‐education/research/case-‐network.html Larry Young, President and CEO of Dr Pepper Snapple Group, Inc. (DPS) seemed to be on a roll. Named 2010 Beverage Executive of the Year by Beverage Industry Magazine, he led the company through three very difficult economic years since it separated from the London-based food and beverage giant Cadbury Schweppes. Reflecting on that time, he chuckled, “There couldn’t have been a worse year to go public.”1 Triggered by the collapse of mortgage-backed securities, the recession froze the credit markets and led to unprecedented commodities prices. In spite of adverse economic conditions and fierce...
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...Dr. Pepper-Snapple Company Kim Hayes Deonta Samilton Jordan Narcisse Tori Wallar Professor Cary Accounting November 11, 2013 Section 2: Introduction Dr. Pepper-Snapple Group, Inc. 5301 Legacy Dr. Plano, TX 75024 Industry: Beverages (Non-Alcoholic) Sic Code: 2080- Beverages Major Products: Canada Dry (Ginger ale,) 7-up (lemon-lime,) A&W (Root beer,) Sunkist (Orange,) and Sun Drop (Citrus.) Competitors: Coca-Cola and PepsiCo. Stock exchange: 47.33 Ticker symbol: DPS Name of outside auditors: Deloitte & Touche, LLP SIC (Standard Industry Classification): 2080 Beverages * History: Today, Dr Pepper Snapple Group is one of the leading producers of flavored beverages in North America and Caribbean. The have 6 of the top 10 non-cola drinks, and 13 of their 14 leading brands are ranked in the top two of its flavor categories. The DPS market more than 50 brands of carbonated soft drinks, juices, teas, mixers, water, and other premium beverages. Dr Pepper Snapple group include: 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr. & Mrs. T mixers, Penafiel, Rose's, Schweppes, Squirt and Sunkist soda. We are able to thank DPS for inventing the first carbonated drink. In 1783, Jean Jacob Schweppes created the world’s first carbonated mineral water. Schweppes’s was the original inventor of this new product, shared his invention with a young pharmacist in Waco, Texas, named Charles Alderton. They both invented Dr Pepper in...
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...stock is publicly-traded on the New York Stock Exchange under the ticker symbol KO. Coca Cola operates in over 200 nations around the world and sells carbonated and non carbonated beverages. Coca Cola’s line of non carbonated drinks includes: water, juice, and teas. The company has over 70,000 employees and is led by CEO Neville Isdell. The Coca-Cola Company’s (Coke’s) operating segments include 1) Africa, 2) East, South East Asia & Pacific Rim, 3) European Union, 4) Latin America, 5) North America, 6) North Asia, Eurasia, and the Middle East, and 7) bottling investments. Not all soft drink products/flavors of the company are available in all the operating groups. The Coca-Cola Company has two major rivals: PepsiCo and Cadbury Schweppes PLC. It’s interesting to note that PepsiCo has more that double the employees as Coca-Cola as listed in Exhibit 6. Groupe Danone competes to a lesser degree with C oke. The number 3 soft drink producer, Cadbury Schweppes PLC (behind Coca-Cola and PepsiCo Inc.), is a diversified company that produces and markets beverages, chocolate, and chewing gum. Cadbury plans to divest its beverage division in 2007 of PepsiCo, Coca Cola Company, and Cadbury Schweppes PLC. Federal regulations may prohibit PepsiCo and Coke...
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...thank all my respondent for giving me their valuable time and information. OBJECTIVE TO KNOW THE CUSTOMER PREFERENCE TOWARD THE CADBURY’S CHOCOLATES. TO KNOW THAT THE CONSUMERS ARE FULLY AWARE ABOUT THE CADBURY’S CHOCOLATES. Introduction The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury India’s no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both, the confectionary and soft drink market in tech UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story of a family business that grew in one of the biggest, most loved chocolate brand in the world. A story that you will remember as the story of “The taste of life”. Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark...
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...PepsiCo, Inc. Nitesh Kalwar June 18, 2010 HOLD Pros: • • Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Morning Star Ratings Beta PEP NYSE Consumer Staples Beverages (NonAlcoholic) Income & Capital Appreciation $103.67 Billion $52.56-67.61 $64.28 16.34 13.81 $3.81 $5.50 3.00% **** .56 • • • • Broad portfolio in the soft drink, saltysnack market and beverages. Acquisition of bottlers will allow for cost savings and new business opportunities Opportunities for growth in healthy snack, and healthy drink markets; growth in emerging markets Commodity (raw materials) volatility, exchange rate risks Increased bad debt and higher interest rates No high prospects for growth Cons: Porter’s Five Forces: • • • • • Threat of Competition: Moderate Threat of New Entrants: Low Threat of Substitutes: Low to Moderate Power of Suppliers: Moderate Power of Buyers: High Brief Overview PepsiCo, Inc. operates four major businesses: Frito-Lay North America, 31% of sales; Quaker Foods NA, 4%; Latin American Foods, 13% of total revenue, PepsiCo America Beverages, 23% of revenue, Europe, 16% of total revenue, AMEA 13%. PepsiCo recently purchased two of its largest bottling companies for a combined total of $12.6 Billion.1 1 10K 2010 PORTFOLIO CONSIDERATIONS PepsiCo, a consumer staple equity, currently composes 3.39% of the equity value of the EIF portfolio. As...
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...PROJECT REPORT On MARKETING STRATEGIES OF COCA COLA Submitted By – Name : Pinak Paul MANAV RACHNA INTERNATIONAL UNIVERSITY ACKNOWLEDGEMENTS I am sincerely thankful to Miss Kanupriya (Project Faculty Guide), under whose guidance I have successfully completed this project and time spent with her had been a great learning experience. I think her constant encouragement, warm responses and for filling every gap with valuable ideas has made this project successful. She made it possible for me to put all my theoretical knowledge to work out on the topic: “MARKETING STRATEGIES OF COCA COLA. A mammoth project of this nature calls for intellectual nourishment, professional help and encouragement from many people. We are highly thankful to all of them for their help and encouragement. We wish to acknowledge our great debt to all of them whose ideas and contribution influenced me to complete the project work. TABLE OF CONTENT 1. TITLE PAGE 2. ACKNOWLEDGEMENT 3. INTRODUCTION 4. INDUSTRY PROFILE 5. COMPANY PROFILE 6. PORTER'S FIVE FORCES 7. PEST ANALYSIS 8. RESEARCH OBJECTIVES & METHODOLOGY 9. REVIEW OF LITERATURE 10. PRIMARY FINDINGS & ANALYSIS 11. CONCLUSION & RECOMMENDATION 12. BIBLIOGRAPHY 13. ANNEXURE INTRODUCTION This project is focused on studying the various marketing strategies of Coca-Cola and the scenario of Indian soft drink industry in the 1990’s. Coca-Cola Co., the global soft...
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...fountain as a "treatment for the mental and physical disorders. A few years later, Asa Candler acquired the formula, established a sales force and began advertising the brand of Coca-Cola. The Coca-Cola became incorporated in 1919 and is now the largest manufacturer, distributor and marketer of non- alcoholic beverages in the world. Nature of the Business Today Coca-Cola markets and connects with consumers using a portfolio of nearly 400 brands in over 200 different countries. Coca-Cola has five strategic business units: North America, Africa, Asia, Latin America, and Europe, Eurasia and the Middle East. The company adopted their strategies of success using the following strategic priorities: A. Accelerated carbonated soft-drink growth, led by Coca Cola B. selectively broaden the family of beverage brands to drive profitable growths C. grow system profitability and capability together with our bottling partners. D. Direct investments to highest potential areas across markets. E. Drive efficiency and cost effectiveness everywhere. In 2003 Coca-Cola Company products comprised of about 10% of total worldwide sales of non-alcoholic beverage products. The company's' primary competitor in many countries is PepsiCo. Other significant competitors include Nestle S.A., Cadbury Schweppes plc, Groupe Danone, and Kraft Foods Inc., among others. The remaining portion will evaluate the performance and give an investment outlook of the Coca-Cola Co using market and ratio analysis. Market Position...
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...`A Report ON Foreign Investment In The FMCG Sector "There was a time, not long ago FMCG was on the go, Other sectors were mere midgets, Growth was in the double digits. Alas, all of that's in the past! The growth today is not so fast. There are reasons, that's for sure. Nowadays sales tax is more And durables are selling better, The weather surely could be wetter. My job is just to set the stage Describe the current sorry age. Adi, of course, will paint the scene And tell us why the times are lean." Mr. Nadir Godrej Executive summary The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc. Burgeoning Indian population, particularly...
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