Case Study: Hawaiian Punch: Go-to-Market Strategy
We want to create a new positioning strategy for Hawaiian Punch’s brand marketing plan that will help us remain innovative and sustain a competitive advantage. Hawaiian Punch, a top selling fruit juice brand needs alterations to stay up to date and remain the leader in our current market. Inconsistent positioning and low budget advertising are our potential risks of losing the top position in the United States to competition.
Hawaiian Punch should continue innovation as well as increased advertising, focused toward children and Hispanics, in order to solidify current market dominance as well as increase exposure to potential young buyers.
Although we have established ourselves as a frontrunner in the industry, we are constantly looking for ways to provide our products to as many households as possible. It is our belief that young television viewers and Hispanics have the highest potential to boost revenue out of all untargeted markets.
• Hawaiian Punch is owned by Cadbury Schweppes American Beverage
• #1 fruit punch drink sold in the U.S.
• Uses 2 distribution methods: Finished Product & Direct-Store Delivery
• Primary media employed by competitors is TV and magazines VS. Radio & Print
• Recent flavor extensions lack awareness
• Named the number one fruit punch drink in the U.S.
• Benefits from CSAB brand equity
• CSAB fourth largest brand by volume
• Powerful brand awareness (94%)
• Uses two separate distribution methods to serve and sell the same product
• Punchy brings back good childhood memories
We believe our brand equity is our greatest strength because by leveraging the brand name of Cadbury Schweppes American Beverages, Hawaiian Punch gains brand loyalty that would otherwise take time and money to establish.
• Lacked flavor extension awareness among households
• Their child centered focus was played down
• 77% of buyers only purchase one package size
• A new policy with the CASB banded advertising under the age of 8
• Inconsistency of products in the different distribution methods
The money spent on expanding the flavor line goes unnoticed due to little advertising and in turn hurts their profits and lacked awareness in households. Low advertising and the policy of banning advertising to children has weakened our notoriety.
• Flavor line expansion
• Increase interest in the product and gain market share
• Increase repeat purchase
• Increase in sales through promotion expenditures
• Line extension through multiple distribution to create a new niche
• Increase in media advertising to bring back a child centered focus
With unique flavor options, we have the opportunity to increase exposure towards previously unaddressed markets. Also with increased trade promotions and advertising we have the ability to gain more brand awareness, sales, and a more sustainable competitive advantage above competitors.
• CSAB policy against advertising to children under 8 years old. • Sales growth in the overall industry has slowed down significantly • Strong competitors in the beverage industry
• Threat of substitutes
The decline in sales growth in the overall industry has given us little room to grow. With a health conscious society, it gives buyers more motivation to buy substitutes products such as water, milk, coffee, tea, etc. Constraints on advertising to children under 8 years old prevent us from reaching our key target market.
Overall SWOT Analysis:
Of the above, the primary strength of Hawaiian Punch, their competitive advantage, is their ability to leverage their brand name and create a substantial of brand equity and brand...
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