Cadbury Disadavantages and Advantages
Alternative One
Advantages
If Cadbury Beverages chooses alternative one, that is repositioning the Crush Brand, multiple advantages would achieve their objectives, which are to increase market share by fourteen percent and increase diet crush sales. The advantages are:
1. presence in two age segments
2. creating diversification
3. avoiding cannibalization
4. competitive advantage
The presence in two age segments is advantage because this makes Crush open up in additional target segments that are reaching out to children and teenagers that live with their parent and young adults from eighteen to thirty-four that are interested in buying their diet, non-sugar, Crush beverage. By focusing on an older segment and emphasizing the healthier features of Crush, Crush may be able to increase their distribution of diet soda drinks. Market coverage strongly influences market share these actions will increase Crush’s total market share. This would increase Crush’s main objectives as diet drinks have a higher dollar price liter than regular soda. In Crush promoting that they their formula includes ten percent real juice also would attract consumers. In addition, we know that Slice and Minute Maid have already positioned themselves as a healthier choice, but within their market (p.323). The fact that Crush has natural juice will encourage parents to purchase the brand that their kids will love. This new positioning will also differentiate Crush from Sunkist, which should minimize cannibalization.
Disadvantages
If Cadbury Beverages chooses alternative one there are several disadvantages that would affect them from obtaining their objectives. The disadvantages are:
1. Implementation
2. Customer loyalty
3. Cause a frontal attack
Implementation of this alternative would cause an aggressive advertisement that Cadbury might not be ready for at this time due to having a widespread target market. Crush should also avoid direct competition with Coca-Cola and Pepsi Co.; it could
Advantages
If Cadbury Beverages chooses alternative one, that is repositioning the Crush Brand, multiple advantages would achieve their objectives, which are to increase market share by fourteen percent and increase diet crush sales. The advantages are:
1. presence in two age segments
2. creating diversification
3. avoiding cannibalization
4. competitive advantage
The presence in two age segments is advantage because this makes Crush open up in additional target segments that are reaching out to children and teenagers that live with their parent and young adults from eighteen to thirty-four that are interested in buying their diet, non-sugar, Crush beverage. By focusing on an older segment and emphasizing the healthier features of Crush, Crush may be able to increase their distribution of diet soda drinks. Market coverage strongly influences market share these actions will increase Crush’s total market share. This would increase Crush’s main objectives as diet drinks have a higher dollar price liter than regular soda. In Crush promoting that they their formula includes ten percent real juice also would attract consumers. In addition, we know that Slice and Minute Maid have already positioned themselves as a healthier choice, but within their market (p.323). The fact that Crush has natural juice will encourage parents to purchase the brand that their kids will love. This new positioning will also differentiate Crush from Sunkist, which should minimize cannibalization.
Disadvantages
If Cadbury Beverages chooses alternative one there are several disadvantages that would affect them from obtaining their objectives. The disadvantages are:
1. Implementation
2. Customer loyalty
3. Cause a frontal attack
Implementation of this alternative would cause an aggressive advertisement that Cadbury might not be ready for at this time due to having a widespread target market. Crush should also avoid direct competition with Coca-Cola and Pepsi Co.; it could
References: 1. Kerin, R., & Peterson, R. (2013). Cadbury Beverages, Inc Case. In Strategic marketing problems: Cases and comments (13th ed.). Boston: Pearson.