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 US . fruit juice/juice drink category 100% juice, Nectars, 25-99% juice, Juice drinks, upto 25% juice, Fruit flavored no juice Ranks 6th in the most consumed beverage category • US . fruit juice/juice drink category account for 4.7 % of total beverage consumption (Graph) • US . fruit juice/juice drink category account for 8.6 Gallons of total 182.5 Gallons of beverage consumption

Company and Product • Hawaiian Punch falls in the Juice drinks sub category that has upto 25% juice, to which water or sweetener could be added • Is Shelf Stable, doesn’t require refrigeration • Hawaiian Punch has 11 flavors + Light version of Fruity Juice Red with 60% less sugar Juice drinks is the 2nd largest selling variety within the U.S. fruit juice/juice drink category with 33.7% share (following the 100% Juice category which commans 54.9% share) (Graph) • Fruity Juice Red is the most popular flavor

Income Statement/Marketing Channel Analysis

Income Statement/Marketing Channel Analysis

Competition - Ad Spending

Situation Analysis (S.W.O.T.) Strengths (internal) - High brand awareness - Positive brand association - Brand associated with fun times during childhood - Synonymous is ready to serve fruit punch - High brand equity -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 Weaknesses (internal) - Many products in product line with low awareness - Unclear positioning - Unclear target audience - Failure to innovate - Weak advertising Opportunities (external) Growing hispanic demographic Reinforce brand image and strengthen brand relationships - Market looking for healthier drinks Threats (external) - Competition: juices/soft drinks - Mature market: lack of innovation, slow growth

Case Problem ☐Problem Solution/Strategy 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 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) 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) 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?