Hawaiian Punch is a well-known brand of fruit punch drinks owned by Dr. Pepper Snapple Group, Inc. (DPS). The company experienced several ownership handovers and some of the most recent ones include Procter & Gamble sold Hawaiian Punch to Cadbury Schweppes in 1999, and Dr. Pepper Snapple was spun off from Cadbury Schweppes in 2008. The Current Situation of the Company:
The main source of our study comes from an intensive case study that illustrates Hawaiian Punch’s “Go-to-Market Strategy” decision option, faced by the company’s Marketing Director Kate Hoedebeck during the time span from year 2004 to 2005. As the number one fruit punch drink sold in the United States, Hawaiian punch enjoyed its continuous success. Its goals are very much aligned with the customers’ needs, in the long-term it aims to maintain its competitiveness through high customer satisfaction, extensive product development, easy accessibility and better profits attainable for retailers to stock and sell. In terms of its strengths, it has already become Cadbury Schweppes’ fourth largest brand by volume. Since the acquisition of Hawaiian Punch by Cadbury Schweppes from Procter & Gamble in 1999, the company had employed two distinct and separate manufacturing, sales and distribution networks to stock and serve identical or similar beverages for the same retail customer. This dual distribution strategy by many has been seen as one of Hawaiian Punch’s strength, leading it towards diverse product lines with intensive product depth. However, there are also many weaknesses that need to be addressed as if not taken care of they might turn into severe obstacles preventing the company from a healthy and steady growth. In terms of its offerings, case sales were modest for the new flavors, this has resulted from multiple factors including but not limited to weak positioning of the 5 new added flavors as of 2002, which led to little awareness of them; limited budget available etc. Additionally, while the two way distribution has brought up new opportunities, it can also create dilemma affects because of confusion in which one to use or combination of the two. Externally, opportunities come into place as carbonated soft drink is the most popular consumer beverages in the United States; bottlers, food brokers & retailers believe growth potential in juice drink category; soft drink aisles awareness can be increased for promoting any product; and also trends are showing that consumers want a variety of flavor extensions. However, back in that time span, 100% juice ice companies still command over half the market share and competitors in juice market spend more on media advertising than Hawaiian Punch. Hawaiian Punch’s Two Distribution Systems:
Finished Goods Distribution:
The operation of finished goods manufacturing, sales, and distribution network starts from Cadbury Schweppes Americas Beverages manufacturing the Hawaiian Punch juice drink. The drink is packaged in containers at one of the three facilities: Aspers, Pennsylvania; Williamson, New York; and Tecate, Mexico. After that, it is shipped to distribution centers for delivery to retail outlets. Independent food brokers and company sales representatives are responsible for boosting the sales of Hawaiian Punch. The drink is shelved in the juice and juice drink aisle, and not in the soft drink aisle. There are seven Hawaiian Punch flavors being sold through the finished goods network. These flavors include Fruit Juicy Red, Orange Ocean, Grape Geyser, Berry Blue Typhoon, Green Berry Rush, Strawberry Surfin’, and Lemonade. Finished goods network only sell bottles in one gallon, half gallon, and 6.75 ounce standup pouch. Light Fruit Juicy Red, the recently introduced flavor, is sold only in the gallon bottle. Direct-Store Delivery Distribution (DSD):
The operation of direct-store delivery (DSD) manufacturing, sales, and distribution network starts from Cadbury Schweppes Americas...