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Orange Crush Marketing Plan
Transcript of Orange Crush Marketing Plan
Jessica Callies Decision Preview Situation Analysis Consideration 1: Consideration 2: Backup Analysis Rejuvenate Bottler Network Formulate Repositioning Plan Consideration 3: Set Advertising Objectives In 1990, Cadbury Beverages, Inc. bought Crush from Proctor & Gamble for $220 million. Program manager, Kim Feil, was given responsibility for the relaunch of the Crush soft drink brand. Three issues: How do we rejuvenate the bottler network? What is Crush's brand equity? And how do we reposition from there? What objectives and budget should we set for advertising? Soda Market Industry Competitors Cadbury Beverages, Inc. SWOT Soft drinks > tap water.
In 1989, carbonated soft drinks accounted for $43 billion in retail sales.
Three major components: concentrate producers, bottlers, and retail outlets.
In 1980s, an increase in diet sales accounted for growth in soda market. World's first soft drink maker.
As of 1989, third largest soft drink marketer behind Coca-Cola and PepsiCo.
Already owned Sunkist, and with acquisition of Crush, Cadbury leads the orange-flavored carbonated soft drink category.
Chose to focus on orange flavor of Crush. What has been done? What is next? P&G did not maintain good relationships with bottlers, so market coverage declined in the 1980s.
In 1990, Cadbury recruited new bottlers and established 136 partnerships with bottlers.
More bottlers allowed Crush to increase market coverage from 62% to 75%! The broadened bottler network requires strong promotional support.
"A brand is locked out of 60% of the supermarket soft drink volume if it can't get end-aisle displays."
We propose a change from 31 cents to 50 cents per case spent on promotion.
The 19 cent increase per case is the most aggressive rejuvenation approach Cadbury can afford. Build on current brand equity. Differentiate from Sunkist. Determine diet/regular sales mix. Cadbury should capitalize on established brand equity and build a repositioning plan that is not contradictory to current strategy.
Orange Crush already had a high name awareness and 46% loyalty.
"Don't just quench it, CRUSH it."
Bold user imagery with thirst-quenching benefit.
Teens, 13-29 Modify target market. The typical supermarket purchaser of soft drinks is a married woman with children under 18 years of age living at home.
Consumption of diet beverages was more pronounced over 25 years of age.
We propose to focus on target market of Young adults and All-family. Continue with previous campaign which emphasized thirst-quenching benefit and Crush name stress. Diet soft drinks have a larger profit margin than regular soft drinks, so increasing diet sales would bring in more profit.
We propose to increase diet sales from 28.7% of case volume to 40% of case volume.
We will implement a push strategy by making more diet cases available and promoting consumers to purchase it. We propose little change in the media advertising budget considering our resources are focused on per case promotion. (Budget stays around $2,000,000.)
Due to the 13% increase in market coverage, we propose an orange soft drink market share increase of 5% (from 8% to 13%).
Therefore, we propose a sales target of 40,950,000 cases sold in 1990.
If all objectives are met, Cadbury will still see a profit of $457,000.