Hawaiian Punch: Go-To-Market Strategy

Hawaiian Punch

Problem Identification

• Role and positioning of the two-manufacturing, sales, and distribution networks.

• Flavor innovations for both finished goods and DSD networks.

• Product placement and media advertising.

Alternative Identification

1. Continue with the current marketing and positioning strategies.

2. Remove the finished goods network and focus entirely on DSD networks.

3. Remove the DSD networks and concentrate only on the finished goods networks.

4. Keep distributing through both networks but revamp the product and marketing efforts of each network.

Alternative Evaluation

• The current marketing and position strategies showed some struggles with flavors and sizes of the product compared to customer preferences, along with slow growth in case sales.

• By removing the finished goods network the company would save $137 million in cost of goods sold because the bottling companies take on most of these costs. Cadbury would possibly lose $49 million in case sales and $39 million in Gross contribution after marketing. This also only allows the product to be sold in the soft drink isle moving it away from the juice isle where 56.7% of Hawaiian Punch volume is sold. Decreases Cadburys control on product sizes.

• By removing the direct-store delivery networks the company is potentially losing $27 million in gross contributions after marketing. This strategy removes them from the soda isle to be sold exclusively in the juice isle potentially losing 18.1% of our Hawaiian Punch volume. This would give use more control on the size of our product offered.

• In pursuing the fourth alternative we would only make our product available in one isle determined geographically from consumer reports and market research. This will reduce some of the companies money spent on the COGS and allow us to tailor our product to our customers needs geographically.

Recommendations

• Alternative four gives Cadbury the best potential to increase their sales and continue to offer their product to customers in the most convenient way. Cadbury would continue to distribute Hawaiian Punch in the eastern and southern states while the DSD networks would sell in the western and central states.

• Target Market: For the finished goods networks distributing in the eastern and southern states "mom" will be the focus of marketing. In the western and central states where DSD is the distributers we will focus our marketing on urban, multicultural teens.

• Overall Objective: Increase sales of case volume in both distribution networks and to increase the gross contribution after marketing.

• Overall Marketing Strategy: Continue to offer our products through all the same distribution channels but only make it available in one isle depending on store locations. Increase the media advertising budget to $3 million and split it equally between radio, magazines, and television ads. Differentiating our advertising by regions with the eastern and southern states aimed at "mom" and the western and central states aimed at urban, multicultural teens. Both advertisements telling which isle it's located in.

• Positioning: It will continue to be a refreshing fruit drink that the whole family can enjoy with. Same great taste the parents enjoyed growing up.

Product Service

• Objectives: Provide our product to the customer in the most convenient places with a variety of flavors and sizes. Continue to provide the same great taste and quality they desire.

• Strategies: Differentiated

• Tactics: Do some market research to find out what other flavors the consumer would prefer and if we don't offer a majority of them replace our three least favored flavors with new ones to meet regional preferences. Offer our product in gallon, 2-liter, 20-ounce, 12-ounce cans, and single serve pouches. Removing the half-gallon to reduce shelf space required.

Pricing

• Objectives: Competitive, no change.