1. Based on your assessment of the soft drink industry, the orange-flavored category, and the competitive situation of Cadbury Beverages and orange Crush, what is your recommendation for positioning orange Crush? Be sure to base your recommendation on facts and issues raised in the case.
According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17. …show more content…
An additional approach may be to involve a youthful cultural personality to endorse the product, such as a cartoon character. For example, placing “The Lorax” character, for instance, on the Crush label and have “The Lorax” star in Crush commercials will align Crush with the most popular children’s cultural icon within the new target market and could be the final piece in creating a truly integrated marketing communications package.
3. How much should be spent on advertising and promotion to re-launch the Crush brand (i.e., total dollar media expenses)? Be specific and be sure to base your recommended spending on facts provided in the case
Our recommendation for the advertising and promotion budget is based around two separate areas: Historical trends and advertising/promotion expenses expressed as a percent of total sales relative to what Pepsi and Coca Cola are doing. First, in regard to historical trends, in 1985, Crush captured 22% of the market share while spending 25.2%, or $4,371,200.00 on advertising expenses, earning total sales revenues of $17,345,680.00. This occurred without the presence of Pepsi and Coca Cola competing in their target market. Due to our repositioning strategy, Crush will once again be targeting a segment where there is little competition. This will set the conditions for an environment similar to what Crush operated in during