Transcript Hawaiian Punch Case Go-to-Market Strategy

Hawaiian Punch Case
Go-to-Market Strategy
Jessica Young, Veronica Garcia Zenteno,
Ruby Khan, Jade Su, Christina Chiu
Agenda
• Industry
• Company and Product
• Income Statement/Marketing Channels Analysis
• Competition ad Spending
• Situation Analysis (S.W.O.T.)
• Problem(s)
• Recommendation(s)
Beverage Industry and the U.S. Fruit
Juice and Juice Drink Category
Market Share per Beverage Category 2004
US . fruit juice/juice drink
category
(1) 100% juice,
(2) Nectars, 25-99% juice,
(3) Juice drinks, upto 25% juice,
(4) Fruit flavored no juice
Carbonated soft
drinks
Beer
1%
1%
1%
2%
4%
5%
15%
29%
Milk
Bottled Water
9%
12%
10%
11%
Coffee
Juice and Juice
drinks
Tea
Sports drinks
Powder Drinks
Wine
Company and Product
Market Share of Fruit
Juice/Juice Drinks per category
•
Hawaiian Punch falls in the Juice drinks sub
category that has upto 25% juice, to which
water or sweetener could be added
5%
100% Juice
•
•
Is Shelf Stable, doesn’t require refrigeration
34%
Nectar
55%
Hawaiian Punch has 11 flavors + Light version
of Fruity Juice Red with 60% less sugar
6%
Juice Drink
Fruit-Flavored
Income Statement/Marketing Channel
Analysis
Total Hawaiian
Punch Trademark
Case Volume (1
Case = 288 fluid
ounces)
Broker/Warehouse
(Finished Goods)
%
Direct Store
Delivery
(Concentrate)
%
Total
77291366
49267000
63.7
28024366
36.3
100
Gross Sales Volume
Less: Discounts and
allowances
292,460,214
241,086,000
82.4
51,374,214
17.6
100
69,761,800
56,890,000
12,871,800
Net Sales Volume
COGS
222,698,414
151,185,544
184,196,000
144,021,000
38,502,414
7,164,544
71,512,870
40,175,000
31,337,870
756,021
0
756,021
4,494,439
977,000
3,517,439
66,262,410
39,198,000
70.3
100
$0.97
$1.77
Gross Contribution
before Marketing
Less: Sales
controlled
Marketing
Marketing
controlled
Marketing
Gross Contribution
after Marketing
Gross
Contribution
Per Case
Gross
Contribution
Margin/Case
Volume
21.3
$0.80
27,064,410
Income Statement/Marketing Channel
Analysis
Competition - Ad Spending
Total All Media Expenditure ($000)
$60,000.00
$50,000.00
$40,000.00
$30,000.00
$20,000.00
$10,000.00
$0.00
Situation Analysis (S.W.O.T.)
Strengths (internal)
Weaknesses (internal)
- High brand awareness
- Positive brand association
- Brand associated with fun times during childhood
- Synonymous is ready to serve fruit punch
- High brand equity
- Many products in product line with low awareness
- Unclear positioning
- Unclear target audience
- Failure to innovate
- Weak advertising
-Favorable brand association with fun childhood
consumption
-Very Strong Brand Equity
- Synonymous with ready to serve fruit punch
- Seen as both soft drink and juice
Opportunities (external)
Threats (external)
- Growing hispanic demographic
- Reinforce brand image and strengthen brand
relationships
- Market looking for healthier drinks
- Competition: juices/soft drinks
- Mature market: lack of innovation, slow growth
Case Problem
☐Problem
1.
2.
3.
4.
Marketing Channels not broken down by Region
Unclear Position Statement
Undefined Target Audience and Weak Advertising,
inconsistent with Brand
Mature market that lacks innovation and has slow growth
Solution/Strategy
1.
2.
3.
4.
Break Marketing Channels by Region
Clearly defines Positioning Statement
Clearly defined and Target Audience implementation of Push
and pull promotion, improved radio, video advertising in
English and Spanish
Introduction of new flavors, improved logo, different
promotional ideas
Recommendation
Problem: Marketing Channel not Broken Down By Region
Solution: Break down Marketing Channels by Region
(Eastern and Southern, Western and Central)
Income Statement/ Marketing Channel Analysis
Broker/Warehouse (Finished Goods)
Marketing Channel:
Manufacturer (Ready to Serve)
Warehouse/Distribution Center
Retail Outlets, Institutional Customers
Sales
Independent Broker, Sales Representative
Packaging
1 Gallon
½ Gallon
6.75 oz. Stand Up Pouch
*1 Gallon Hawaiian Light Punch sold
exclusively, 1 Gallon most popular in this
channel
Product Located In Juice Aisle
Fruit juice/juice drink aisle
% of Hawaiian Punch Buyers: 58.1%
% of Hawaiian Punch Volume: 56.7%
Attracts families with children who are under the
age of 6 and under the age of 12
Recommendation
This Marketing Channel should distribute to
supermarkets in Eastern and Southern States
since Hawaiian punch sales in the Fruit
juice/juice drink aisle are better in those States
Income Statement/ Marketing Channel Analysis
Direct Store Delivery (Concentrate)
Marketing Channel:
Manufacturer (concentrate)
Bottler
Retail Outlets
Sales:
Licensed Bottler
Packaging:
2 Liter Bottle
20 oz. Bottle
12 oz. Can
*Single serve packages most popular in this network
Product Located In Soft Drink Aisle
Soft drink aisle
% of Hawaiian Punch Buyers: 27.7%`
% of Hawaiian Punch Volume: 18.1%
Attract families with children who between the
age of 6 and 17
Recommendation:
This Marketing Channel should distribute to
supermarkets in Central and Western States
since Hawaiian punch sales in the Soft drink
aisle are better in those States
Recommendation
Problem: Unclear Position Statement
Solution: New Position Statement
“For nurturing and health conscious families, the
Hawaiian Punch is a legendary, ready to serve fruit
punch and a healthy alternative for a fun drink
enriched with Vitamin C”
Recommendation
Problem: Weak Advertising
Solution: Better advertising with well defined target audience
Strategies - Push and Pull Promotion, Improved Radio, Video Advertising in English and Spanish
Target Audience:
Health Conscious Families
Characteristics of Target Audience:
Associate Hawaiian Punch with fun times during childhood
Buy it for single pack for their children (Central and Western States),
Gallon for family (Eastern and Southern States)
Health Conscious
Hispanic, African American, racially/ethnically diverse (Bank on the opportunity of the growing Hispanic
demography in 2050)
Recommendation
Problem: Weak Advertising
Solution: Better advertising with well defined target audience
Strategies - Push and Pull Promotion, Improved Radio, Video Advertising in English and Spanish
Advertising:
key messaging in Ad initiatives around new position statement, Advertising messaging in English and Spanish
Jingle to be aired on radio (6 am - 9 am) and (5 pm to 6 pm) to target adults with families driving to/from work
Push Strategy: merchandising promotion (end-of-aisle displays); displays will be ordered through the sales
department from the customers which are the retail store; marketing to present the different types of displays
that would be appropriate for each store location
Pull Strategy: customer promotion (coupons and discounts)
Recommendation
Problem: Mature Market that Lacks Innovation and has Slow Growth
Solution: Introduction of New logo, New flavor and reduction of production line and
Introduction of New Logo:
2004
2013
New Flavor and Product Line:
Introduce new Mango flavor to appeal to Hispanic Market
Introduce a diet Hawaiian Punch in single packets through the Direct Store Delivery Marketing Channel in
Retail Stores
Reduce product line to classic Juicy Red Hawaiian punch, Juicy Red Hawaiian punch with less sugar, Diet
Hawaiian Punch, Mango Flavor, and conduct research on which fruit punch flavors will resonate with our
new target audience.
Recommendation
Problem: Lack of promotions
Solution: Healthy lifestyle promotions and PR
•
•
Annual Surf Competition: endorsements by famous surfers that raise money for health
related programs/organizations
Customers collect codes that can be traded in for Hawaiian Punch Punchy products
Questions?