Hawaiian Punch: Dominating the Fruit Punch Market with Strong Competitive Position

Case Study: Hawaiian Punch How would you characterize the U. S fruit juice and juice drink category? The U. S. fruit juice and juice drink constitutes of 4. 7 of the total 185. 5 gallon of beverage consumed annually. These corporates four distinct varieties of fruit juice and juice drinks; 100% juices which may be either be 100% made from fruits or 100% made from concentrates. 100% juices form the largest share market with its share capital comprising of 54. 9% of the total fruit drink and juice drink; the other is nectars which comprises of from 25% to 99% fruit juices and is manufactured from concentrated juices or fruit pulps.

Nectar accounts for 6. 1% of the total fruit juice and juice drink market; juice drinks that comprise of up to 25% juice and; fruit-flavored drinks which contains no juice content. Fruit-flavored drinks are the lowest ranked in terms of market share in the fruit juice and juice drink market with 5. 3% of the total share. How would you characterize the competitive position of Hawaiian Punch? Hawaiian Punch faces seven major competitors in the fruit juices and juices drink categories, the PepsiCo, Coca-Cola Company, Kraft Food, Sunny Delight, Cadbury Schweppes, and Welch.

Of all its competitors, Hawaiian Punch is a strong competitor forming 55% of the total sales. This ranks Hawaiian Punch as the top ranked consumer fruit punch drink in the United States economy. Consumers also have confidence in Hawaiian Punch as the product has established a strong market base with a reputation of 70 years in the market. Hawaiian Punch due to its long history has 94% consumer awareness of the product.

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To keep up with the competition, competitors employ innovation methods as introducing new flavors, repackaging and advertising.

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Advertising has formed the main focus for competitors with spending on average 24 cents on every case sold on advertising. Competitors also apply persuasive methods as portraying the benefits of their products to personal health. Does Hawaiian Punch buyer behavior differ between the juice/juice drink aisle and the soft drink aisle in supermarkets and other retail outlets? The behavior of Hawaiian Punch differs between juice drink aisle and soft drink aisle in supermarkets and retail outlets. Supermarkets form the largest vendors of fruit and fruit juices. Supermarkets alone constitute of over 53. % of the total sold. The rest is divided among trade sales as restaurant and schools constituting of 18. 5%; Convenience stores 10. 6%, Discounters 9. 5%, Independent food retailers 5. 8% and the rest is sold in vending machines consisting of 0. 2%. 20 percent of Hawaiian punch juice aisle buyers and 34 percent of hawaiian punch soft drink aisle buyers shop both supermarket aisles, second both supermarket aisles attract Hawaiian punch buyers from households with children under 18 years old. The juice aisle was shopped more by households with children in the “under 6” to 12 year old age group.

The soft drink aisle was more popular among the households with children in the 6 to 17 year old age range and skewed toward households with teens. How do the Finished Goods and Direct-Store Delivery Networks differ from each other? Finished goods will refer to good to a good that is ready for consumption. In reference to Hawaiian Punch, the finished product will refer to the commodity that is packaged a ready for the market. Cadbury Schweppes American Beverages will employ the necessary ingredients in the manufacture of the Hawaiian Punch.

The manufactured Hawaiian Punch will be packaged in one of the three companies that Cadbury Schweppes owns. The company manufactures seven different flavors; Lemonade, Green Berry Rush, Orange Ocean, Grape Geyser, Berry Blue Typhoon, Fruit Juicy Red and Strawberry Surfin’. The packaged Hawaiian Punch will form the finished product. Direct-Store Delivery is processes where by Cadbury Schweppes will sell Hawaiian Punch in concentrate form to licensed bottlers. Seven Up bottlers, Coca-Cola bottles and Pepsi-Cola examples of licensed Hawaiian Punch bottlers.

The licensed bottlers will in turn combine the concentrate with water and sweeteners. The product is then packed in either cans or bottles and sold to retailers. Mazin’Melon mix, Wild purple smash, Bodacious Berry, Green Berry Rush and Fruit juicy Red are example of flavors that Hawaiian Punch markets through this method. What is the relative impact of each on Hawaiian Punch’s sales and contributions? The performance of Hawaiian Punch is impressive. Hawaiian Punch has registered a 7% annual increment in sales from when it was bought by Cadbury Schweppes.

Also the Hawaiian Punch Light has registered an impressive performance as consumers who are sensitive of their health are included. Bottlers and retailers believe that Hawaiian Punch has the ability to grow if such strategies are employed as new inventive methods of customer attraction. Looking forward to the 2005 Hawaiian Punch business and marketing planning. What recommendations would you make concerning positioning, innovation and allowances and advertising given your assessment of the two manufacturing, sales and delivery networks?

Hawaiian Punch should change its prospect on advertisement. Including Punchy mascot in their advertisement of their products will establish a strong product influence. Punchy mascot is an established trade mark that consumers of Hawaiian punch establish themselves with, excluding it from the product advertisement may affect outcome. The inclusion of a variety of flavors may be essential in the increasing of sales in the company. Consumers will benefit from a variety of options available at their disposal.

If Hawaiian Punch considers the inclusion of a new flavor in the market, the outcome may be favorable as the company may register new customers who are attracted to the new brand. Advertisements are important in attracting of new customers and keeping the available ones. Advertisement may also be effective in points where increase in sale is required or where the company wants to establish a new product in the market. Hawaiian Punch may consider using advertisement as an option as it considers the introduction of the mango flavor in the market.