Hawaiian Punch: Go-to-Market Strategy

Topics: Marketing, Soft drink, United States Pages: 5 (1533 words) Published: June 17, 2009
Hawaiian Punch is the leading brand of fruit drink brands in the United States and has a long history of satisfying customers. The Hawaiian Punch brand traces its roots back to the 1930’s when it was developed as tropical-tasting syrup for ice cream and later sold as a drink. The brand has been owned by several different companies over the years and was recently purchased by the Cadbury Schweppes Company from Procter and Gamble Corporation. Hawaiian Punch joined the Dr. Pepper-Seven UP Inc. bottling network, which is the third largest carbonated soft drink bottler in the United States. This allowed the brand to be distributed in the soft drink aisle of the supermarket. The brand is unique in that it is sold in two different sections of the supermarket: the juice aisle as well as the carbonated soft drink aisle. Kate Hoedebeck, Director of Marketing at Cadbury Schweppes American Beverages, has been assigned to the Hawaiian Punch Brand. She and her team, who are new to the Hawaiian Punch brand, must develop a marketing plan for the upcoming year. The team must review and determine what the marketing plan will be for the coming year that will enable the company to increase Hawaiian Punch brand sales, continue the brand margins, and maintain the high brand equity that Hawaiian Punch has. The team has a large constraint of not being able to change the selling price and has several goals for the plan: •Positioning

Allowances and advertising

SWOT Analysis
Hawaiian Punch is the number one fruit drink in the United States. •Ninety-four percent brand awareness of consumers in the United States. •Fourth largest brand by volume
Dual distribution systems – easy for consumers to find. oJuice aisle in Supermarket
oSoda aisle in Supermarket
oAvailable in many different sizes, from single serving to gallon size. •Brand linked with fun and youthfulness
Unique and refreshing taste
Contains Vitamin C
Popular mascot, “Punchy”
Preferred beverage in households with children under 18 years old Weaknesses
Stagnate growth in the fruit juice and juice drink market in the United States. •Inability to successfully expand the brand into more flavors. •Low level of bottlers carrying the full line of brand flavors. Opportunities

Room for growth in the total beverage market, since juice and juice drinks are only 4.7% of the total US beverage consumed. •Possible export or overseas license of the product.
Growth of other beverage categories, such as carbonated drinks, over- taking the juice category. •Additional competition from national brand juice brands with large advertising budgets. Brand Positioning

Ms. Hoedebeck’s team’s first issue is to develop a brand message for Hawaiian Punch for both of its distribution networks. Since each network is different and is currently marketing towards a different target this will be a difficult task. Each market is very important to the brand in different ways. The finished goods network markets targets the mom with children in the household from under six to twelve years old and accounts for sixty-four percent of cases sold, which equals eighty-two percent of total sales of the brand. These large percentages make this network very important to the brand, but the problem is that the juice market is only 4.7% of the total beverage market in the United States and category growth has been slow in the last few years. Some innovation in the brand must be developed to spur increased sales either by taking market share for other juice competitors or by increasing the juice category by taking share from some other category group, such as milk or water. The goal for the finished goods distribution network is to increase volume by taking share and this must be done by some new innovation or line extension product. The direct to store network, which is bottled by independent licensed bottlers as opposed to the finished goods...
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