The Candy Man Can

1
The Candy Man Can

• Five Girls
• Krista Murphy
• Danielle Dane
• Kacey Sullivan
• Sharon Mercando
• Eveleena

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Cadbury Schweppes

• Company History
• History of Dr. Pepper
• Article Summary and Overview
• Marketing Implications
• Recommendations
• Question and Answer

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Company HistoryCadbury Schweppes

• Dr. Peppers History
• Oldest major soft drink in the U.S.
• Principal brand in U.S.
• First made in Waco, Texas (1885)
• Story behind the name
• Invented by Charles Alderton
• Bought by Cadbury Schweppes in 1995
• New flavor

• Cadbury and Schweppes History
• Largest confectionery company
• Strong regional presence in beverages (U.S. and
  Australia)
  
• Founders John Cadbury and Jacob Schweppe
• Merger in 1969
• Started with non-core International Brands
• Strengthened portfolio by purchasing
• Motts (1982)
• Canada Dry (1986)
• Trebor (1989)
• Bassett (1989)
• Dr. Pepper and 7 Up (1995)
• Hawaiian Punch (1999)

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Article OverviewThe Candy Man Can

• Cadbury Schweppes shares were slumping because of
  the UK soft drink and confectionary company.
  
• Their Dr. Pepper soft drink successfully solved
  some distribution problems.
  
• The US is a very large consumer market. The
  remaining market comes from the rest of the
  world, a ¼ from the UK.
  
• Dominance of beverage business, particularly Dr.
  Pepper and 7-up, is a third of the worlds
  carbonated-beverage market.
  

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Summary Cont.

• When they acquired the franchise for Dr. Pepper
  it was just distributed to US and Canada.
  
• Cadbury Schweppes was able to apply distributions
  systems in different parts of the world to extend
  the Dr. Pepper franchise.
  
• The markets are Russia, Australia, The Czech,
  Slovak Republic, UK, and Mexico.

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Cadbury Chocolate

• Talks about adapting Chocolates such as Russia
  likes the taste for slightly darker chocolate.
  
• Cadbury and the Confectionary Market.
• Master plan is built around Cadbury brand.
  (chocolate)
  
• In five years, Cadbury Schweppes is not going to
  be a different business. The CEO just wants it to
  be the best at what it does.
  

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Marketing Implications

• -Ask questions before entering the global
  market.-Do research before entering the global
  market.-Consider the political and business
  environments of potential markets.-Target
  specific markets.-Decide whether to extend,
  adapt, and/or create products.
• Cadbury is an example of successful global
  marketing.
  
• To begin, the company asked vital questions about
  the challenges and opportunities of developing
  their brand and products in othermarkets before
  initiating the expansion.  
• Is the brand ready to grow outside its local
  consumer base?
  
• How should the product be changed as it enters
  new markets?

• Cadbury took these questions and researched the
  markets they wished toenter in to.
  
• This puts theminto a polycentric view, which is
  very successful.

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Marketing Implications

• The Cadbury company realized that the political
  and business climate of Russia, a big market, is
  very unstable, and that the distribution routes
  are not well-defined.
• This researched helped the company decide which
  countries to target, with which of their
  products.
  
• In addition, they found that the taste for one of
  their main products,chocolate, was different
  than what their American consumers preferred.
  
• Russians, for example, prefer a more bitter
  tasting chocolate.  
  
• This research helped dictate which of their
  products should be extended, adapted, and Cadbury
  ended up using a combination ofextension and
  adaptation to their products, and distributed
  improvedproducts into other markets.

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Recommendations

• Cadbury should focus more on standardizing their
  products. This is where a target market strategy
  calls for creating the same marketing mix for a
  broad mass market of potential buyers.
• In the article it states that buying brands has
  been the key to Cadburys success.
  
• Cadbury needed better marketing research
• They need to learn more about how to expand their
  existing products at home and globally. Cadbury
  consistently has questions about how to expand
  their products.

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Recommendations Cont.

• Cadbury should focus on adaptation in some
  countries, such as Russia.
  
• Russia likes darker chocolates, so they need a
  way to adapt to Russia, as well as other
  countries.
  
• Cadbury needs more innovation.
• They are working on the development of new
  products within every category to provide their
  customers with more choice. Some of these
  choices include lower calories offerings and
  sweetening options.

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Recommendations Cont.

• They need better marketing to young children.
• They are introducing a global marketing code of
  practice with reference to children, since the
  majority of their audience is young children.
  
• Cadbury needs better labeling.
• They are looking for ways to help make more
  informed choices, such as providing more
  information about their products and ingredients
  to better inform the consumer

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Quiz Time!!!

• Dr. Pepper is the ______________ in the U.S.
• What kind of chocolate do Russians like the
  most?
  
• Cadbury Schweppes ought to focus on __________
  their products and stress __________ in certain
  countries.