The problem in this case is that Kate Hoedebeck needed to decide the go-to-market strategy. As the director of marketing for Hawaiian Punch at Cadbury Schweppes Americas Beverages, she and her team tried to figure out how to remain Hawaiian Punch’s leading position in the current market and raise the sales regard to brand sales, brand contribution, and brand equity.
Background:
Hawaiian Punch has a long history. It can be traced in 1934, A.W, Leo, Tom Yates, and Ralph Harrison created the first ingredient. A group investors bought the company in 1946 and changed the name to Pacific Hawaiian Products Company. This company was first to sale Hawaiian Punch in ready-to-serve bottles which was a great success. And since 1955, Hawaiian Punch had
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This history should be well advertised and it gives customers an image that its quality is guaranteed. Because people thinks time can prove everything. Media advertising of Cadbury Schweppes Americas Beverages for Hawaiian Punch was approximately $2.2 million, is pretty low compared to contenders. From Exhibit 2, the average media expenditure was $24,041,133, only Juicy Juice is less than Hawaiian Punch which was $1,503,300. In case, it said Hawaiian Punch had annual revenues of $133.3 million. Then the media expenditure for Hawaiian Punch can raise from $2.2 million to $10 million. Even though the Punchy mascot is no longer a prominent role in advertising, the marketing department needs to find another character to replace it while still being related to Punchy. This brings back the original Hawaiian Punch mascot, Punchy, and use it as an intermedia that reaches teens and their target audience. Trade promotion is very necessary, the incentives include interactive media, trails, coupons, and discounts. I also think Hawaiian Punch can expand the market to 100% juice. The largest selling variety is 100 percent juice, which commands a 54.9 percent share of the fruit juice and juice drinks category, based on volume sold. Juice drinks which is the category includes Hawaiian Punch are second with a 33.7 percent share. Nectars and fruit-flavored drinks account for 6.1% and 5.3%. The position of Hawaiian Punch should be changed from child-centered to tween-and-teen-centered. It is hard to find a balance between two networks. The cost of goods sales through finished goods is more expensive than DSD. Cost of goods sold expense represents about 78% of net dollar sales volume with finished goods. The DSD cost of goods sold expense is about 19% of net dollar sales volume. DSD has capacity constraints, but finished good doesn’t. I would say just keep the way as it