A presentation I did for Marketing Research. We were supposed to come up with our own model. I chose the ORANGE system!

1. Orange Crush //Drew Lawrence // Allison Collins// //Amanda Ferreri // Merissa Wadel//

2. Company History Began in 1783 in London- Schweppes Merged with Cadbury in 1969 Cadbury Beverages Inc. is the beverage division of Cadbury Schweppes World’s third largest soft drink marketer Products located in 110 countries

3. Case Background Crush was bought by Cadbury from Procter & Gamble Procter & Gamble had been going to a warehouse distribution which caused them to lose some of their bottlers Cadbury is relaunching Crush back into the market

4. SWOT Analysis

5. Target Market Crush targeted at teens and households w/ children at home Individuals ages 13- to- 29

6. Product Crush soft drink brand Sold in cans and bottles In 1989, Orange Crush controlled 7.5% of the orange-flavored soft drinks category

7. Place Supermarkets, convenience stores, vending machines, fountain service, and thousands of small retail outlets Supermarkets account for 40% of carbonated soft drink industry sales

8. Promotion Crush promoted most frequently on spot television, in newspapers, and on outdoor signage Sunkist: newspapers, spot television, outdoor billboards, and some syndicated television

9. Promotion cont Coupons, on-package promotions, and sweepstakes Sponsorship of local events, plastic cups, baseball hats, and t-shirts “Display Loader”: part of point-of-purchase display Ice chests, insulated can coolers

10. Price Concentrate pricing differed very little among competitors Typically less than one-cent difference

11. BCG (Boston Consulting Group) Model For portfolio planning A company should maintain a balance of high growth and low growth products To prioritize which products within the company product mix should get more funding and attention To classify products

12. BCG Matrix (Model)

13. The Perfect Portfolio High-growth: New product High effort and high resources (to build up) Expected to bring high profit in the future Low-growth: Established product known by the market Characteristics do not change a great deal Customers know what they are getting Price does not change a great deal Limited marketing budget “the milking cow” bringing constant cash flow

14. Four Categories Star: (high growth, high market share) Leaders within the business but still need a great deal of support (promotion and placement) If the market share is maintained the product will eventually become a cash cow Star: CRUSH (orange) Crush is #1 in market coverage of orange soda among competitors from 1985-1989 Since acquisition in 1989, promotion and advertising is being focused on maintaining this market share

15. Four Categories Question Mark:(high growth, low market share) Products are in growing markets but have low market share Essentially new products that buyers have yet to discover Strategy is to get consumers to adopt these products High demand and low return due to low market share Must increase the market share quickly or they become dogs Question Mark: CRUSH (flavored line extensions) This is a market that is growing but flavored soda (other tan orange)holds a small % of market share 1.1% Few competitors Although people choose Crush flavored soda due to few competitors the return is low due to low market share The goal is to get more consumers to drink flavored soda and become a star

16. Four Categories Cash Cow: (low growth, high market share) IDEAL PRODUCTS High market share in a mature market With a competitive advantage the products have high profit margin with high cash flow Due to low growth, promotion, and placement investments are low Increase in infrastructure may improve efficiency and increase cash flow Cash Cow: GINGER ALE (Canada Dry) Introduced in 1870 Constant growth in a mature market maintaining the top spot in sales of Ginger Ale in the United States Investment in this product are low With increase in promotion and advertising consumer awareness may increase cash flow

17. Four Categories Dog: (low growth, low market share) In low product market with low market share These products should be avoided and minimized Expensive turn around plans do not help Dog: Strategy to avoid these products Focus on the flavored line extensions of Crush With the small market share going toward flavored soda any investment in the infrastructure of these products will create a negative profit margin

18. BCG Problems Limited knowledge of other products or how original data was collected High market share does not always indicate profitability Low share products may also be profitable Model does not show overall market growth Market growth is not the only indicator of market attractiveness

19. Positioning Market share has decreased 10% in 4 years Decline Stage Cadbury could discontinue Crush and focus on Sunkist, but…

24. Research Conduct (Research Method); compile useful information Determine how health conscious (orange) soda consumers are. Parents buying healthy for kids? Adults

25. Assets What should Crush keep? Great orange taste Thirst-quenching Caffeine-free Fun image (not necessarily heavy on “youth”) Diet is already an option for the health conscious

26. New Offerings Should help fulfill Opportunities Health & Adult Appeal Vitamin C Calcium? Entire new formula?

27. General Expenses What costs would be incurred for this repositioning? Research expenses New formula could be very expensive Brand new advertising and promotions expenses Is it worth it?

28. Execution Introducing the new Orange Crush. The healthiest orange soda at your grocery store. Now with Calcium and Vitamin C to keep your body strong. How strong?