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Hawaii Punch Essay

1284 words - 6 pages

Case study report for Hawaiian Punch

Introduction Hawaiian Punch with the history of 70 years old which currently is the top-selling fruit punch drink currently in United States with 94% of brand awareness among United State Consumer. The rights of Hawaiian Punch were purchased by Cadbury Schweppes, PLC from Procter & Gamble Co (P&G) back in May 1999 which again at 2008, owned by Dr Pepper Snapple Group who has spun off from Cadbury Schweppes, PLC. (Wikipedia - Hawaiian Punch n.d.) Hawaiian Punch basically relying 2 distinctive manufacturing, sales and distribution network which each taking care of “finished goods” while the other one is a “direct-store deliver”. Objective & Situation ...view middle of the document...

It is also distributed by vending machines or fountain customer such as restaurants as both non-carbonated and carbonated drinks. 2. Fruit juice and juice drink category did not grow for the last 10 years(1994-2004) but has declined 0.2%. while fruit drinks only seconding at 33.7% market shares after 100% juice type at 54.9% 3. Cost of good sold for finished goods representing 78% or net dollar sales while DSD cost of goods are only 19% of net dollar sales volumes. This make a higher profitability in selling to DSD. Finished good has higher cost because they need to take care of the manufacturing, sales ,distribution and warehousing cost themselves while DSD incur the cost of bottling and distributions at the bottler level. 4. Cost of finished goods were rather high as compare to DSD could be lower economics of scale as compare to the bottlers would also bottling other product. 5. Unable to capture new shares through new flavor extension. It is noted in the case study that their effort in trying to market the new flavor extension (eg Bodacious Berry, Tropical Vibe and etc) has unable to capture the consumer awareness while Hawaiian Punch is merely relying on the best selling and established flavor such as Fruit Juicy Red.

Insights from Hawaiian Punch Experience Trade customer relationship Relationship with trade customer is strong. The trade customer were consist of their own bottlers, food brokers, company sales representative , the supermarkets and Wal-mart. They do not have relationship problem but they would all feedback Hawaiian Punch should increase marketing spending since to increase over sales and market share since there is limited growth in the fruit drinks category. Innovation of new flavoring and bottle face difficulties as it is costly for finished goods network are rather costly as it involving new product placement allowances to retailers for shelf space, while it is rather lower cost innovating via DSD network but they are facing distribution and capacity constraints when are required to store a variety of flavor, however they need support of marketing and sales promotions. Consumer Analysis In term of retail distribution, Supermarkets sold majority shares of Hawaii Punch product, and up to 53.5% in volume. A breakdown of Hawaiian Punch buyer in the supermarket will be a useful analysis to determine the consumer profile for a better understanding of their customer. Base on Exhibit 7, it is said that 58% buyer that contribute 56.7% volume consist more of households with children from under 6 to 12 years old group. Therefore it is an important group of consumer that mainly purchases the product for their family and children. It is important to continue bring the message that the product is a better and healthier choice for people who is family concerned. 2nd largest group of consumer where teens from 6-17 old where these group of consumer is looking for...

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