The cherry falls when is above the blue circle ( A1, B1, C1 or D1) and the candy below the red circle ( A2, B2, C2 or D2) is removed. The ingredient path is from top to bottom and from right to left, as shown in the picture below:
To clear the candy below the red circle, you can use a Lollipop Hammer, a vertical Striped Candy, a combo or you can mix a Color Bomb with that color. You have many choices, but it's recommended to make special candies and combine them because bringing down the ingredient is not your only task here.
You have to clear the double jellies from the main board and combos are your best weapons.
Check out the video walkthrough if you need a visualize guide: