Crush Case

Target Market

SWOT Analysis

v Strengths

Ð"Ñ-- The name “Crush” is the first name people think of when they think of orange soda.

Ð"Ñ-- World’s first soft drink marketer, now 4th largest one

Ð"Ñ-- Schweppes brand equity support

Ð"Ñ-- Crush has is a long life brand

Ð"Ñ-- Crush has high awareness in big cities

Ð"Ñ-- Crush is the most recognized orange flavored soda name

Ð"Ñ-- It is used in many trendy pop-culture outlets (i.e. vintage clothing, popular restaurants

Ð"Ñ-- Crush has sufficient resources

v Weaknesses

Ð"Ñ-- Cadbury Schweppes PLC owns two orange flavored soft drinks, Sunkist and Crush

Ð"Ñ-- Cola’s represent 67% of soft drink consumption while orange flavored only accounts for 3.9%

Ð"Ñ-- Crush is lacking a diet Crush leaving us out of 31% of the industry

Ð"Ñ-- Crush and Sunkist used less on advertising than other companies with orange soft drinks

Ð"Ñ-- Crush had the lowest market coverage of orange sales potential among major competitors because of the decision to try and sell Crush through warehouses rather than through bottlers

Ð"Ñ-- Crush lacks a clear positioning statement that sets them distinctly apart from Sunkist

v Opportunities

Ð"Ñ-- Make the buying process more convenient, get retailers to put Crush on the end of the aisle

Ð"Ñ-- Offers sales promotions

Ð"Ñ-- Make a new line of tropical drinks, and take advantage of licensing opportunities

Ð"Ñ-- Take advantage of the developing market of the internet and create a website were people can by Crush products

Ð"Ñ-- Create an illusion that Crush is the superior orange soda

Ð"Ñ-- There is a Variety of media vehicles

Ð"Ñ-- There is a dynamic market for diet soft drinks

Ð"Ñ-- The major increase in consumption of soft drinks

v Threats

Ð"Ñ-- Crush has huge competition because the soda market is so homogeneous

Ð"Ñ-- There need to be enough resource for heavy advertising expenses

Ð"Ñ-- Unplanned soft drink purchases other that Crush.

Market

v Primary target market for Crush is young adults (18-24) drinking soft drinks. Secondary target market for Crush is families with children drinking soft drinks.

Competitive Analysis

v Key Benefits and positioning used by major competitors:

Ð"Ñ-- Mandarin Orange Slice

Ð"ÑŸ Marketed by PepsiCo.

Ð"ÑŸ Market Leader

Ð"ÑŸ Market Share 20.8%

Ð"ÑŸ 50% of its case volume sales were regular orange soft drinks and 50% were diet orange soft drinks

Ð"ÑŸ Mandarin Orange is available in markets that represented 88% of total orange category sales.

Ð"ÑŸ Positioning: “Who’s Got the Juice” Contemporary youth culture

Ð"ÑŸ Target: Young adults, 18-24

Ð"ÑŸ House hold size: 1-2 (no children)

Ð"ÑŸ Package sales mix:

• Two-liters 54%

• Cans 42%

• Other 4%

Ð"ÑŸ Loyalty: 55%

Ð"Ñ-- Sunkist

Ð"ÑŸ Sold by Cadbury Beverages, Inc.

Ð"ÑŸ Market Share 14.4%

Ð"ÑŸ 50% of its case volume sales were regular orange soft drinks and 50% were diet orange soft drinks

Ð"ÑŸ Sunkist is available in markets that represented 91% of total orange category sales.

Ð"ÑŸ Positioning: “Teens on the Beach”; “Drink in the Sun”

Ð"ÑŸ Target: Teens, 12-24

Ð"ÑŸ House hold size: 3-4 (Children at home)

Ð"ÑŸ Package sales mix:

• Two-liters 51%

• Cans 42%

• Other 9%

Ð"ÑŸ Loyalty: 36%

Ð"Ñ-- Minute Maid Orange

Ð"ÑŸ Coca-Cola

Ð"ÑŸ Market Share 14%

Ð"ÑŸ 82% of its case volume sales were regular orange soft drinks and 18% were diet orange soft drinks

Ð"ÑŸ Sunkist is available in markets that represented 88% of total orange category sales.

Ð"ÑŸ Positioning: “The orange, orange” orange flavor, taste of real orange

Ð"ÑŸ Target: Young adults, 18-34

Ð"ÑŸ House hold size: 1-2 (no children)

Ð"ÑŸ Package sales mix:

• Two-liters 54%

• Cans 41%

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